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FIFTY NINTH DAY

MORNING SESSION

House Chamber, Olympia, Wednesday, March 11, 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 Rebecca Doumit and Mai Truong. Prayer was offered by Reverend Mark Bell, Michael Serveteus Unitarian Universalist Fellowship, Vancouver.

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

MESSAGES FROM THE SENATE

March 10, 1998

Mr. Speaker:

The Senate receded from its amendment(s) to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2313 and passed the bill without said amendments,

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

MESSAGE FROM THE SENATE

March 10, 1998

Mr. Speaker:

The Senate receded from its amendment(s) to ENGROSSED HOUSE BILL NO. 3003 and the bill failed on final passage. On motion to reconsider, the Senate passed ENGROSSED HOUSE BILL NO. 3003,

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

March 10, 1998

Mr. Speaker:

The Senate has passed:

ENGROSSED HOUSE BILL NO. 1042,

SUBSTITUTE HOUSE BILL NO. 1184,

SUBSTITUTE HOUSE BILL NO. 3015,

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

March 10, 1998

Mr. Speaker:

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

SUBSTITUTE SENATE BILL NO. 6161,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6418,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6509,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6622,

SENATE BILL NO. 6699,

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

The Speaker assumed the chair.

SIGNED BY THE SPEAKER

The Speaker announced he was signing:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1074,

SUBSTITUTE HOUSE BILL NO. 1121,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1223,

SUBSTITUTE HOUSE BILL NO. 1504,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1746,

SUBSTITUTE HOUSE BILL NO. 1829,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2345,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2496,

ENGROSSED HOUSE BILL NO. 2501,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2514,

HOUSE BILL NO. 2542,

HOUSE BILL NO. 2557,

HOUSE BILL NO. 2558,

SUBSTITUTE HOUSE BILL NO. 2611,

SUBSTITUTE HOUSE BILL NO. 2710,

SUBSTITUTE HOUSE BILL NO. 2724,

SUBSTITUTE HOUSE BILL NO. 2836,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2880,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2881,

SUBSTITUTE HOUSE BILL NO. 2885,

HOUSE BILL NO. 2905,

SUBSTITUTE HOUSE BILL NO. 2960,

HOUSE BILL NO. 3052,

SECOND SUBSTITUTE HOUSE BILL NO. 3070,

SUBSTITUTE HOUSE BILL NO. 3096,

SUBSTITUTE HOUSE BILL NO. 3099,

The Speaker called upon Representative Pennington to preside.

RESOLUTIONS

HOUSE RESOLUTION NO. 98-4723, by Representatives Skinner, Clements, Lisk, Honeyford, Mulliken and Chandler

WHEREAS, It is the policy of the Washington State Legislature to recognize and honor those individuals that have made significant contributions to the well-being of the citizens of Washington; and

WHEREAS, Al Bell is retiring after thirty-nine years as news and sports announcer at radio station KIT in Yakima; and

WHEREAS, Al Bell is beloved for his candid, to the point, just the facts, plain and simple approach to the giving the news, earning him the distinction as the "local Walter Cronkite"; and

WHEREAS, Through the years Al Bell has become Yakima Valley's best known play-by-play announcer, covering everything from the Yakima Bears, the American Legion Baseball team, horse racing at Yakima Meadows, and high school sports; and

WHEREAS, Al Bell served in the Army's military intelligence during the Korean War and began his radio career after the Korean War in 1953 at KREW, a Sunnyside radio station, and six years later began at KIT; and

WHEREAS, Al Bell through his many years of service has become Yakima Valley's most trusted newsperson and is counted on to deliver to surrounding Yakima Valley the news, local events, sports, weather, and emergency information; and

WHEREAS, Shortly after Mount St. Helens erupted on May 18, 1980, Al Bell and KIT went on the air, without any interruptions for advertisements, to provide the Yakima Valley with continuous up-to-date reports, news, weather, and emergency information; and

WHEREAS, Al Bell is a credit to the entire Yakima Valley and the State of Washington;

NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives honor Al Bell for his many years of service to the Yakima Valley and for his contribution to the quality of life in the Pacific Northwest; and

BE IT FURTHER RESOLVED, That a copy of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to Al Bell and Rick McClary, KIT Operations Manager.

There being no objection, House Resolution No. 4723 was adopted.

HOUSE RESOLUTION NO. 98-4726, by Representatives Veloria, Clements, Butler, Skinner, Hankins, Van Luven, Lisk, Kenney, L. Thomas and Conway

WHEREAS, A well-educated and diverse population is vital to the economic development of our state and the well-being of its citizens; and

WHEREAS, Refugees and immigrants are served with distinction by teachers, curriculum developers, linguists, and bilingual specialists who help them learn English; and

WHEREAS, Washington state's public schools, community colleges, and state universities provide valuable instruction to students and adults seeking to enhance their English skills; and

WHEREAS, Eight thousand participants from the United States and eighty other countries will gather at the Washington State Trade and Convention Center in Seattle on March 17-21, 1998, for the Teachers of English to Speakers of Other Languages (TESOL) annual convention;

NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives pay tribute to the TESOL 1998 convention, welcoming participants to the fair state of Washington; and

BE IT FURTHER RESOLVED, That March be named English as a Second Language and Bilingual Education Month in the state of Washington.

There being no objection, House Resolution No. 4726 was adopted.

HOUSE RESOLUTION NO. 98-4727, by Representatives Regala, Conway, Butler, Clements, Wolfe, Kastama, Wood, Kenney, Linville, Buck, Fisher, Lantz, Appelwick, Carlson, Grant, Pennington, Keiser, Mitchell, Ogden, L. Thomas and Dunn

WHEREAS, Elaine Stefanowicz is a true example of determination; and

WHEREAS, Elaine Stefanowicz has proven that the wheelchair she has been in for the last seventeen years was not the end of her life, but a new chapter in her life; and

WHEREAS, Elaine's positive outlook and "gift of gab" has helped her explain to people in Washington state and the rest of the country the challenges and victories of the mobility-impaired; and

WHEREAS, As the first resident of Washington to participate in the Ms. Wheelchair America pageant, Elaine Stefanowicz was crowned Ms. Wheelchair America in 1996; and

WHEREAS, During her reign as Ms. Wheelchair America, which ended this month, Elaine Stefanowicz educated people about the Americans with Disabilities Act and encouraged other women to participate in the Ms. Wheelchair America pageant; and

WHEREAS, During her reign, Elaine Stefanowicz spoke with President and Mrs. Clinton, visited Christopher Reeve, and was the first person in a wheelchair to throw out the first pitch at a Seattle Mariners baseball game; and

WHEREAS, Elaine Stefanowicz continues to be active in the community as a cofounder of the Spinal Cord Injury Action Group, which provides support and fun for people with spinal cord injuries and their families; and

WHEREAS, When she has a spare moment, Elaine Stefanowicz is a skier, who has captured a first place medal for downhill skiing; and

WHEREAS, Elaine Stefanowicz continues to be a source of inspiration and strength for those facing the challenge of life in a wheelchair;

NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives recognize the efforts of Elaine Stefanowicz both as a private citizen and as Ms. Wheelchair American to educate, challenge, encourage, and inspire people everywhere who are mobility-impaired; and

BE IT FURTHER RESOLVED, That a copy of this Resolution be immediately transmitted by the Chief Clerk of the House of Representatives to Elaine Stefanowicz.

There being no objection, House Resolution No. 4727 was adopted.

HOUSE RESOLUTION NO. 98-4728, by Representatives Dickerson, H. Sommers, Doumit, Hatfield, Dunn and McCune

WHEREAS, The Fishermen's Festival will hold its 70th annual event in Seattle's Ballard neighborhood on Sunday, March 15, 1998; and

WHEREAS, The Fishermen's Festival, as sponsored by Ballard's First Lutheran Church, carries on a centuries-old European tradition of blessing fishermen before their annual fishing journeys; and

WHEREAS, The Fishermen's Festival will honor those brave fishermen who tragically lost their lives on the seas; and

WHEREAS, Ever since the Army Corps of Engineers dredged Salmon Bay in 1916, commercial fishing in Ballard has greatly expanded, becoming an important economic resource for the state of Washington; and

WHEREAS, Fish have played a significant role in the economic and cultural climate of our state;

NOW, THEREFORE, BE IT RESOLVED, That the Washington State House of Representatives pay tribute to the 1998 Fishermen's Festival and its bestowal of blessings upon fishermen and their families.

There being no objection, House Resolution No. 4728 was adopted.

HOUSE RESOLUTION NO. 98-4731, by Representatives Romero, Alexander, Wolfe, DeBolt, Eickmeyer and Johnson

WHEREAS, Thurston County has been extremely well-represented in the recent Washington State 3A boys and girls basketball tournaments, and in the recent Washington State 3A gymnastics tournament; and

WHEREAS, Our society all too often neglects to pay proper tribute to the athletes and teams that fall just short of their ultimate objective; and

WHEREAS, We certainly have much to learn from the examples set by the courageous young men and women who strive mightily but don't quite come out on top in their quest for a sports crown; and

WHEREAS, Fans and supporters all over the state were electrified as the Olympia High School boys basketball team captured a highly charged two-point victory over the defending state champions in the semifinal game; and

WHEREAS, The emotionally exhausted Olympia Bears, who fell behind by as many as seventeen points the next night in the second half of the championship game, came up a mere four points shy after a roaring and dramatic comeback turned the title tilt into a battle of the ages; and

WHEREAS, Led by Coach John Kiley, by Assistant Coaches Don Kruse, Tim Hume, Don Brewer, Casey Kilborn, and James Washington, and by Olympia Athletic Director Bill Maguire, the Olympia boys basketball squad closed out the season with a tremendous record of twenty-four wins and only two losses; and

WHEREAS, The Tumwater High School boys basketball team fell in their first game to the eventual tournament champions, but then stormed back with three straight conquests to snare the fifth-place trophy in the state joust; and

WHEREAS, The hard-charging Tumwater Thunderbirds emerged victorious in their nail-biting final battle for their well-earned chunk of tournament hardware in the school's first trip to the state boys hoops showdown in many years; and

WHEREAS, Led by Coach Brian Hunter, by Assistant Coaches Rob Hinkle, Tom Taylor, and Jeremy Best, and by Tumwater Athletic Director Val Overdahl, the Tumwater boys basketball team finished the year with a super record of twenty-two wins and only six losses; and

WHEREAS, Appearing in the state girls basketball tournament for just the second time in school history, the Capital High School Cougars seized a highly esteemed eighth-place laurel in the hard-fought competition; and

WHEREAS, The never-say-die Capital Cougars sprinted through a brilliant season and commanded state-wide respect and considerable honor after beginning their basketball year somewhat slowly; and

WHEREAS, Led by Coach Neil White, by Assistant Coaches Jenny Mahlstedt, Lance O'Dell, Bob Bjorklund, and Colleen Wells, and by Athletic Director Leola Wheeler, the Capital girls basketball team concluded their campaign with an excellent record of twenty wins and only seven losses; and

WHEREAS, The Olympia High School gymnastics team earlier this year registered tremendous performances to merit a high-powered second-place finish in the state tournament action; and

WHEREAS, From the start of their storied season to the very end, the masterful and skillful Bear gymnasts thrilled their loyal boosters and awed their respectful rivals; and

WHEREAS, Led by Coaches Kim Strathdee and Tony Phillipsen, the Olympia gymnastics team set a standard for acrobatic teams to follow in the years to come; and

WHEREAS, So far in the 1997-98 school year, many other athletes and teams representing Thurston County schools have given tremendous accounts of themselves in local, regional, and state-wide competition;

NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives of the state of Washington hails and commends the Olympia High School boys basketball Bears, the Tumwater High School boys basketball Thunderbirds, the Capital High School girls basketball Cougars, and the Olympia High School gymnastics team; and

BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to the appropriate coaching staffs and the administrations at Olympia High School, Tumwater High School, and Capital High School.

There being no objection, House Resolution No. 4731 was adopted.

HOUSE RESOLUTION NO. 98-4733, by Representatives Wensman and Ballasiotes

WHEREAS, It is the policy of the Legislature to honor excellence in every field of endeavor; and

WHEREAS, The Mercer Island High School Islanders boys swimming and diving team won the 1998 Swimming and Diving State Championship; and

WHEREAS, The Islanders boys swimming and diving team State Championship participants were Nathan Burstein, Timmy Chung, Spencer Driscoll, Will Gee, Jeff Guyman, Ronan Johnson, Chris Martinez, Tyler Nickerson, Danny Smith, and David Wilson; and

WHEREAS, The Islanders have exemplified to their classmates the success that is possible in any field of endeavor when persistent effort is made; and

WHEREAS, The Islanders are a credit to their community;

NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives honor and congratulate the Mercer Island High School Islanders boys swimming and diving team for their hard work, dedication, and sacrifice in achieving this significant accomplishment; and

BE IT FURTHER RESOLVED, That Coaches Frank Ceteznik and Jim Gillingham be recognized for their leadership; and

BE IT FURTHER RESOLVED, That the teachers, classmates, and parents of the team members be recognized for the important part they played in helping these student athletes excel; and

BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to Principal Dr. Judy Smith, Vice-Principal and Athletic Director Craig Olson, and to each of the coaches and members of the Mercer Island High School Islanders boys swimming and diving team that participated on the State Championship team.

There being no objection, House Resolution No. 4733 was adopted.

HOUSE RESOLUTION NO. 98-4734, by Representatives Schoesler, Sheahan, Quall and Buck

WHEREAS, It is the policy of the Legislature to honor excellence in every field of endeavor; and

WHEREAS, The Ritzville High School Girls Basketball Team has won the 1998 State "B" Championship, by defeating Wilbur-Creston 50-37; and

WHEREAS, The Ritzville High School Girls Basketball Team, beginning in 1997 has won two consecutive State "B" championships, tying the state record for most consecutive state championships currently held by Davenport; and

WHEREAS, During the State Championship Tournament, the Ritzville Team set a tournament record by holding all four of their opponents to an average score of 29.3 points per game; and

WHEREAS, The Ritzville Team finished the season undefeated and beginning in 1997, the Broncos have won thirty-nine straight league, district, and state tournament games; and

WHEREAS, The Broncos Girls Basketball Team State Championship participants were Jamie Alspach, Amy Fitch, Angela Gibler, Jennifer Horpedahl, Jennifer Janzen, Shannon Russel, Amber Sackmann, Tracy Warriner, Erin Weber, Jaime Wellsandt, Megan Yerza, and Carlye Zicha; and

WHEREAS, The Broncos have exemplified to their classmates the success that is possible in any field of endeavor when persistent effort is made; and

WHEREAS, The Broncos are a credit to their community; and

WHEREAS, The honor of being high school state champions reflects positively upon the character of the school, the students, the parents, and the community;

NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives honor and congratulate the Ritzville High School Girls Basketball Team for their hard work, dedication, and sacrifice in achieving this significant accomplishment; and

BE IT FURTHER RESOLVED, That Coach Howard Manke and Assistant Coach Steve Wellsandt be recognized for their leadership; and

BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to the Principal of Ritzville High School Bob Hammann, Head Coach Howard Manke, Assistant Coach Steve Wellsandt, and each member of the Ritzville High School Girls Basketball Team.

There being no objection, House Resolution No. 4734 was adopted.

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

REPORT OF CONFERENCE COMMITTEE

Bill No.: 2SSB 6190 Date: March 10, 1998

Prepared by: Reema Shawa Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your Conference Committee, to whom was referred SECOND SUBSTITUTE SENATE BILL NO. 6190, Disabled persons' parking, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and the striking amendment by the Conference Committee be adopted; and that the bill do pass as amended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 46.16.381 and 1995 c 384 s 1 are each amended to read as follows:

(1) The director shall grant special parking privileges to any person who has a disability that limits or impairs the ability to walk and meets one of the following criteria, as determined by a licensed physician:

(a) Cannot walk two hundred feet without stopping to rest;

(b) Is severely limited in ability to walk due to arthritic, neurological, or orthopedic condition;

(c) Is so severely disabled, that the person cannot walk without the use of or assistance from a brace, cane, another person, prosthetic device, wheelchair, or other assistive device;

(d) Uses portable oxygen;

(e) Is restricted by lung disease to such an extent that forced expiratory respiratory volume, when measured by spirometry is less than one liter per second or the arterial oxygen tension is less than sixty mm/hg on room air at rest;

(f) Impairment by cardiovascular disease or cardiac condition to the extent that the person's functional limitations are classified as class III or IV under standards accepted by the American Heart Association; or

(g) Has a disability resulting from an acute sensitivity to automobile emissions which limits or impairs the ability to walk. The personal physician of the applicant shall document that the disability is comparable in severity to the others listed in this subsection.

(2) The applications for disabled parking permits and temporary disabled parking permits are official state documents. Knowingly providing false information in conjunction with the application is a gross misdemeanor punishable under chapter 9A.20 RCW. The following statement must appear on each application form immediately below the physician's signature and immediately below the applicant's signature: "A disabled parking permit may be issued only for a medical necessity that severely affects mobility (RCW 46.16.381). Knowingly providing false information on this application is a gross misdemeanor. The penalty is up to one year in jail and a fine of up to $5,000 or both."

(3) Persons who qualify for special parking privileges are entitled to receive from the department of licensing a removable windshield placard bearing the international symbol of access and an individual serial number, along with a special identification card bearing the photograph, name, and date of birth of the person to whom the placard is issued, and the placard's serial number. The department shall design the placard to be displayed when the vehicle is parked by suspending it from the rearview mirror, or in the absence of a rearview mirror the card may be displayed on the dashboard of any vehicle used to transport the disabled person. Instead of regular motor vehicle license plates, disabled persons are entitled to receive special license plates bearing the international symbol of access for one vehicle registered in the disabled person's name. Disabled persons who are not issued the special license plates are entitled to receive a second special placard upon submitting a written request to the department. Persons who have been issued the parking privileges and who are using a vehicle or are riding in a vehicle displaying the special license plates or placard may park in places reserved for mobility disabled persons. The director shall adopt rules providing for the issuance of special placards and license plates to public transportation authorities, nursing homes licensed under chapter 18.51 RCW, boarding homes licensed under chapter 18.20 RCW, senior citizen centers, private nonprofit agencies as defined in chapter 24.03 RCW, and vehicles registered with the department as cabulances that regularly transport disabled persons who have been determined eligible for special parking privileges provided under this section. The director may issue special license plates for a vehicle registered in the name of the public transportation authority, nursing home, boarding homes, senior citizen center, private nonprofit agency, or cabulance service if the vehicle is primarily used to transport persons with disabilities described in this section. Public transportation authorities, nursing homes, boarding homes, senior citizen centers, private nonprofit agencies, and cabulance services are responsible for insuring that the special placards and license plates are not used improperly and are responsible for all fines and penalties for improper use.

(((3))) (4) Whenever the disabled person transfers or assigns his or her interest in the vehicle, the special license plates shall be removed from the motor vehicle. If another vehicle is acquired by the disabled person and the vehicle owner qualifies for a special plate, the plate shall be attached to the vehicle, and the director shall be immediately notified of the transfer of the plate. If another vehicle is not acquired by the disabled person, the removed plate shall be immediately surrendered to the director.

(((4))) (5) The special license plate shall be renewed in the same manner and at the time required for the renewal of regular motor vehicle license plates under this chapter. No special license plate may be issued to a person who is temporarily disabled. A person who has a condition expected to improve within six months may be issued a temporary placard for a period not to exceed six months. ((The director may issue a second temporary placard during that period if requested by the person who is temporarily disabled.)) If the condition exists after six months a new temporary placard shall be issued upon receipt of a new certification from the disabled person's physician. The permanent parking placard and photo identification card of a disabled person shall be renewed((, when)) at least every five years, as required by the director, by satisfactory proof of the right to continued use of the privileges. In the event of the permit holder's death, the parking placard and photo identification card must be immediately surrendered to the department. The department shall match and purge its disabled permit data base with available death record information at least every twelve months.

(((5))) (6) Each person who has been issued a permanent disabled parking permit on or before July 1, 1998, must renew the permit no later than July 1, 2003, subject to a schedule to be set by the department, or the permit will expire.

(7) Additional fees shall not be charged for the issuance of the special placards or the photo identification cards. No additional fee may be charged for the issuance of the special license plates except the regular motor vehicle registration fee and any other fees and taxes required to be paid upon registration of a motor vehicle.

(((6))) (8) Any unauthorized use of the special placard ((or the)), special license plate, or photo identification card is a ((misdemeanor)) traffic infraction with a monetary penalty of two hundred fifty dollars.

(((7))) (9) It is a parking infraction, with a monetary penalty of two hundred fifty dollars for a person to make inaccessible the access aisle located next to a space reserved for physically disabled persons. The clerk of the court shall report all violations related to this subsection to the department.

(10) It is a parking infraction, with a monetary penalty of ((one hundred seventy-five)) two hundred fifty dollars for any person to park a vehicle in a parking place provided on private property without charge or on public property reserved for physically disabled persons without a special license plate or placard. If a person is charged with a violation, the person shall not be determined to have committed an infraction if the person produces in court or before the court appearance the special license plate or placard required under this section. A local jurisdiction providing nonmetered, on-street parking places reserved for physically disabled persons may impose by ordinance time restrictions of no less than four hours on the use of these parking places. A local jurisdiction may impose by ordinance time restrictions of no less than four hours on the use of nonreserved, on-street parking spaces by vehicles displaying the special parking placards. All time restrictions must be clearly posted.

(((8))) (11) The ((penalty)) penalties imposed under subsections (((7))) (9) and (10) of this section shall be used by that local jurisdiction exclusively for law enforcement. The court may also impose an additional penalty sufficient to reimburse the local jurisdiction for any costs it may have incurred in removal and storage of the improperly parked vehicle.

(((9))) (12) Except as provided by subsection (2) of this section, it is a ((misdemeanor)) traffic infraction with a monetary penalty of two hundred fifty dollars for any person ((to)) willfully to obtain a special license plate ((or)), placard, or photo identification card in a manner other than that established under this section.

(13)(a) A law enforcement agency authorized to enforce parking laws may appoint volunteers, with a limited commission, to issue notices of infractions for violations of this section or RCW 46.61.581. Volunteers must be at least twenty-one years of age. The law enforcement agency appointing volunteers may establish any other qualifications the agency deems desirable.

(b) An agency appointing volunteers under this section must provide training to the volunteers before authorizing them to issue notices of infractions.

(c) A notice of infraction issued by a volunteer appointed under this subsection has the same force and effect as a notice of infraction issued by a police officer for the same offense.

(d) A police officer or a volunteer may request a person to show the person's photo identification card or special parking placard when investigating the possibility of a violation of this section. If the request is refused, the person in charge of the vehicle may be issued a notice of infraction for a violation of this section.

(14) For second or subsequent violations of this section, in addition to a monetary fine, the violator must complete a minimum of forty hours of:

(a) Community service for a nonprofit organization that serves the disabled community or persons having disabling diseases; or

(b) Any other community service that may sensitize the violator to the needs and obstacles faced by persons who have disabilities.

(15) The court may not suspend more than one-half of any fine imposed under subsection (8), (9), (10), or (12) of this section.

Sec. 2. RCW 46.61.581 and 1988 c 74 s 1 are each amended to read as follows:

A parking space or stall for a disabled person shall be indicated by a vertical sign, between thirty-six and eighty-four inches off the ground, with the international symbol of access, whose colors are white on a blue background, described under RCW 70.92.120 and the notice "State disabled parking permit required."

Failure of the person owning or controlling the property where required parking spaces are located to erect and maintain the sign is a class ((4)) 2 civil infraction under chapter 7.80 RCW for each parking space that should be so designated. The person owning or controlling the property where the required parking spaces are located shall ensure that the parking spaces are not blocked or made inaccessible, and failure to do so is a class 2 civil infraction.

Sec. 3. RCW 46.63.020 and 1997 c 229 s 13 and 1997 c 66 s 8 are each reenacted and amended to read as follows:

Failure to perform any act required or the performance of any act prohibited by this title or an equivalent administrative regulation or local law, ordinance, regulation, or resolution relating to traffic including parking, standing, stopping, and pedestrian offenses, is designated as a traffic infraction and may not be classified as a criminal offense, except for an offense contained in the following provisions of this title or a violation of an equivalent administrative regulation or local law, ordinance, regulation, or resolution:

(1) RCW 46.09.120(2) relating to the operation of a nonhighway vehicle while under the influence of intoxicating liquor or a controlled substance;

(2) RCW 46.09.130 relating to operation of nonhighway vehicles;

(3) RCW 46.10.090(2) relating to the operation of a snowmobile while under the influence of intoxicating liquor or narcotics or habit-forming drugs or in a manner endangering the person of another;

(4) RCW 46.10.130 relating to the operation of snowmobiles;

(5) Chapter 46.12 RCW relating to certificates of ownership and registration and markings indicating that a vehicle has been destroyed or declared a total loss;

(6) RCW 46.16.010 relating to initial registration of motor vehicles;

(7) RCW 46.16.011 relating to permitting unauthorized persons to drive;

(8) RCW 46.16.160 relating to vehicle trip permits;

(9) RCW 46.16.381 (((6) or (9))) (2) relating to ((unauthorized use or acquisition of)) knowingly providing false information in conjunction with an application for a special placard or license plate for disabled persons' parking;

(10) RCW 46.20.005 relating to driving without a valid driver's license;

(11) RCW 46.20.091 relating to false statements regarding a driver's license or instruction permit;

(12) RCW 46.20.336 relating to the unlawful possession and use of a driver's license;

(13) RCW 46.20.342 relating to driving with a suspended or revoked license or status;

(14) RCW 46.20.410 relating to the violation of restrictions of an occupational driver's license;

(15) RCW 46.20.420 relating to the operation of a motor vehicle with a suspended or revoked license;

(16) RCW 46.20.740 relating to operation of a motor vehicle without an ignition interlock device in violation of a license notation that the device is required;

(17) RCW 46.20.750 relating to assisting another person to start a vehicle equipped with an ignition interlock device;

(18) RCW 46.25.170 relating to commercial driver's licenses;

(19) Chapter 46.29 RCW relating to financial responsibility;

(20) RCW 46.30.040 relating to providing false evidence of financial responsibility;

(21) RCW 46.37.435 relating to wrongful installation of sunscreening material;

(22) RCW 46.44.180 relating to operation of mobile home pilot vehicles;

(23) RCW 46.48.175 relating to the transportation of dangerous articles;

(24) RCW 46.52.010 relating to duty on striking an unattended car or other property;

(25) RCW 46.52.020 relating to duty in case of injury to or death of a person or damage to an attended vehicle;

(26) RCW 46.52.090 relating to reports by repairmen, storagemen, and appraisers;

(27) RCW 46.52.100 relating to driving under the influence of liquor or drugs;

(28) RCW 46.52.130 relating to confidentiality of the driving record to be furnished to an insurance company, an employer, and an alcohol/drug assessment or treatment agency;

(29) RCW 46.55.020 relating to engaging in the activities of a registered tow truck operator without a registration certificate;

(30) RCW 46.55.035 relating to prohibited practices by tow truck operators;

(31) RCW 46.61.015 relating to obedience to police officers, flagmen, or fire fighters;

(32) RCW 46.61.020 relating to refusal to give information to or cooperate with an officer;

(33) RCW 46.61.022 relating to failure to stop and give identification to an officer;

(34) RCW 46.61.024 relating to attempting to elude pursuing police vehicles;

(35) RCW 46.61.500 relating to reckless driving;

(36) RCW 46.61.502 and 46.61.504 relating to persons under the influence of intoxicating liquor or drugs;

(37) RCW 46.61.503 relating to a person under age twenty-one driving a motor vehicle after consuming alcohol;

(38) RCW 46.61.520 relating to vehicular homicide by motor vehicle;

(39) RCW 46.61.522 relating to vehicular assault;

(40) RCW 46.61.5249 relating to first degree negligent driving;

(41) RCW 46.61.527(4) relating to reckless endangerment of roadway workers;

(42) RCW 46.61.530 relating to racing of vehicles on highways;

(43) RCW 46.61.685 relating to leaving children in an unattended vehicle with the motor running;

(44) RCW 46.64.010 relating to unlawful cancellation of or attempt to cancel a traffic citation;

(45) RCW 46.64.048 relating to attempting, aiding, abetting, coercing, and committing crimes;

(46) Chapter 46.65 RCW relating to habitual traffic offenders;

(47) RCW 46.68.010 relating to false statements made to obtain a refund;

(48) Chapter 46.70 RCW relating to unfair motor vehicle business practices, except where that chapter provides for the assessment of monetary penalties of a civil nature;

(49) Chapter 46.72 RCW relating to the transportation of passengers in for hire vehicles;

(50) RCW 46.72A.060 relating to limousine carrier insurance;

(51) RCW 46.72A.070 relating to operation of a limousine without a vehicle certificate;

(52) RCW 46.72A.080 relating to false advertising by a limousine carrier;

(53) Chapter 46.80 RCW relating to motor vehicle wreckers;

(54) Chapter 46.82 RCW relating to driver's training schools;

(55) RCW 46.87.260 relating to alteration or forgery of a cab card, letter of authority, or other temporary authority issued under chapter 46.87 RCW;

(56) RCW 46.87.290 relating to operation of an unregistered or unlicensed vehicle under chapter 46.87 RCW."

On page 1, line 1 of the title, after "persons;" strike the remainder of the title and insert "amending RCW 46.16.381 and 46.61.581; reenacting and amending RCW 46.63.020; and prescribing penalties."

There being no objection, the House adopted the Report of the Conference Committee on Second Substitute Senate Bill No. 6190 and advanced the bill to Final Passage.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington presiding) stated stated the question before the House to be final passage of Second Substitute Senate Bill No. 6190 as recommended by the Conference Committee.

Representatives Robertson and Fisher spoke in favor of passage of the bill.

MOTIONS

On motion of Representative Cairnes, Representative Cooke was excused. On motion by Representative Cooper, Representative Romero was excused.

ROLL CALL

The Clerk called the roll on the final passage of Second Substitute Senate Bill No. 6190 as recommended by the Conference Committee, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, 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, 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.

Excused: Representatives Cooke and Romero - 2.

Second Substitute Senate Bill No. 6190, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

REPORT OF CONFERENCE COMMITTEE

Bill No: ESSB 6408 Date: March 10, 1998

Prepared by: Bill Perry (7123) Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your Conference Committee, to whom was referred ENGROSSED SUBSTITUTE SENATE BILL NO. 6408, increasing penalties for alcohol violators, have had the same under consideration and we recommend that:

All previous amendments not be adopted and the striking amendment by the Conference Committee be adopted; and

that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 46.61.5055 and 1997 c 229 s 11 and 1997 c 66 s 14 are each reenacted and amended to read as follows:

(1) A person who is convicted of a violation of RCW 46.61.502 or 46.61.504 and who has no prior offense within five years shall be punished as follows:

(a) In the case of a person whose alcohol concentration was less than 0.15, or for whom for reasons other than the person's refusal to take a test offered pursuant to RCW 46.20.308 there is no test result indicating the person's alcohol concentration:

(i) By imprisonment for not less than one day nor more than one year. Twenty-four consecutive hours of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(ii) By a fine of not less than three hundred fifty dollars nor more than five thousand dollars. Three hundred fifty dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; and

(iii) By suspension of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of ninety days. The period of license, permit, or privilege suspension may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall suspend the offender's license, permit, or privilege; or

(b) In the case of a person whose alcohol concentration was at least 0.15, or for whom by reason of the person's refusal to take a test offered pursuant to RCW 46.20.308 there is no test result indicating the person's alcohol concentration:

(i) By imprisonment for not less than two days nor more than one year. Two consecutive days of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(ii) By a fine of not less than five hundred dollars nor more than five thousand dollars. Five hundred dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; and

(iii) By revocation of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of one year. The period of license, permit, or privilege suspension may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall suspend the offender's license, permit, or privilege.

(2) A person who is convicted of a violation of RCW 46.61.502 or 46.61.504 and who has one prior offense within five years shall be punished as follows:

(i) By imprisonment for not less than thirty days nor more than one year. Thirty days of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(iii) By revocation of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of two years. The period of license, permit, or privilege revocation may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall revoke the offender's license, permit, or privilege; or

(i) By imprisonment for not less than forty-five days nor more than one year. Forty-five days of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(ii) By a fine of not less than seven hundred fifty dollars nor more than five thousand dollars. Seven hundred fifty dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; and

(iii) By revocation of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of nine hundred days. The period of license, permit, or privilege revocation may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall revoke the offender's license, permit, or privilege.

(3) A person who is convicted of a violation of RCW 46.61.502 or 46.61.504 and who has two or more prior offenses within five years shall be punished as follows:

(i) By imprisonment for not less than ninety days nor more than one year. Ninety days of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(ii) By a fine of not less than one thousand dollars nor more than five thousand dollars. One thousand dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; and

(iii) By revocation of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of three years. The period of license, permit, or privilege revocation may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall revoke the offender's license, permit, or privilege; or

(i) By imprisonment for not less than one hundred twenty days nor more than one year. One hundred twenty days of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(ii) By a fine of not less than one thousand five hundred dollars nor more than five thousand dollars. One thousand five hundred dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; and

(iii) By revocation of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of four years. The period of license, permit, or privilege revocation may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall revoke the offender's license, permit, or privilege.

(4) In exercising its discretion in setting penalties within the limits allowed by this section, the court shall particularly consider the following:

(a) Whether the person's driving at the time of the offense was responsible for injury or damage to another or another's property; and

(b) Whether the person was driving or in physical control of a vehicle with one or more passengers at the time of the offense.

(5) An offender punishable under this section is subject to the alcohol assessment and treatment provisions of RCW 46.61.5056.

(6) After expiration of any period of suspension or revocation of the offender's license, permit, or privilege to drive required by this section, the department shall place the offender's driving privilege in probationary status pursuant to RCW 46.20.355.

(7)(a) In addition to any nonsuspendable and nondeferrable jail sentence required by this section, whenever the court imposes less than one year in jail, the court shall also suspend but shall not defer a period of confinement for a period not exceeding two years. The court shall impose conditions of probation that include: (i) Not driving a motor vehicle within this state without a valid license to drive and proof of financial responsibility for the future; (ii) not driving a motor vehicle within this state while having an alcohol concentration of 0.08 or more within two hours after driving; and (iii) not refusing to submit to a test of his or her breath or blood to determine alcohol concentration upon request of a law enforcement officer who has reasonable grounds to believe the person was driving or was in actual physical control of a motor vehicle within this state while under the influence of intoxicating liquor. The court may impose conditions of probation that include nonrepetition, installation of an ignition interlock or other biological or technical device on the probationer's motor vehicle, alcohol or drug treatment, supervised probation, or other conditions that may be appropriate. The sentence may be imposed in whole or in part upon violation of a condition of probation during the suspension period.

(b) For each violation of mandatory conditions of probation under (a)(i) and (ii) or (a)(i) and (iii) of this subsection, the court shall order the convicted person to be confined for thirty days, which shall not be suspended or deferred.

(c) For each incident involving a violation of a mandatory condition of probation imposed under this subsection, the license, permit, or privilege to drive of the person shall be suspended by the court for thirty days or, if such license, permit, or privilege to drive already is suspended, revoked, or denied at the time the finding of probation violation is made, the suspension, revocation, or denial then in effect shall be extended by thirty days. The court shall notify the department of any suspension, revocation, or denial or any extension of a suspension, revocation, or denial imposed under this subsection.

(8)(a) A "prior offense" means any of the following:

(i) A conviction for a violation of RCW 46.61.502 or an equivalent local ordinance;

(ii) A conviction for a violation of RCW 46.61.504 or an equivalent local ordinance;

(iii) A conviction for a violation of RCW 46.61.520 committed while under the influence of intoxicating liquor or any drug;

(iv) A conviction for a violation of RCW 46.61.522 committed while under the influence of intoxicating liquor or any drug;

(v) A conviction for a violation of RCW 46.61.5249 or an equivalent local ordinance, if the conviction is the result of a charge that was originally filed as a violation of RCW 46.61.502 or 46.61.504, or an equivalent local ordinance, or of RCW 46.61.520 or 46.61.522;

(vi) An out-of-state conviction for a violation that would have been a violation of (a)(i), (ii), (iii), (iv), or (v) of this subsection if committed in this state;

(vii) A deferred prosecution under chapter 10.05 RCW granted in a prosecution for a violation of RCW 46.61.502, 46.61.504, or an equivalent local ordinance; or

(viii) A deferred prosecution under chapter 10.05 RCW granted in a prosecution for a violation of RCW 46.61.5249, or an equivalent local ordinance, if the charge under which the deferred prosecution was granted was originally filed as a violation of RCW 46.61.502 or 46.61.504, or an equivalent local ordinance, or of RCW 46.61.520 or 46.61.522.

(b) "Within five years" means that the arrest for a prior offense occurred within five years of the arrest for the current offense."

On page 1, line 1 of the title, after "violators;" strike the remainder of the title and insert "reenacting and amending RCW 46.61.5055; and prescribing penalties."

There being no objection, the House adopted the Report of the Conference Committee on Engrossed Substitute Senate Bill No. 6408 and advanced the bill to Final Passage.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 6408 as recommended by the Conference Committee.

Representatives Sheahan and Costa spoke in favor of passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 6408 as recommended by the Conference Committee, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

Excused: Representatives Cooke and Romero - 2.

Engrossed Substitute Senate Bill No. 6408, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

REPORT OF CONFERENCE COMMITTEE

Bill No: ESSB 6204 Date: March 10, 1998

Prepared by: Kenneth Hirst (7105) Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your Conference Committee, to whom was referred ENGROSSED SUBSTITUTE SENATE BILL NO. 6204, Increasing the efficiency of registering and identifying livestock, have had the same under consideration and we recommend that:

All previous amendments not be adopted and that the striking amendment by the Conference Committee be adopted; and

that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 16.57.010 and 1996 c 105 s 1 are each amended to read as follows:

For the purpose of this chapter:

(1) "Department" means the department of agriculture of the state of Washington.

(2) "Director" means the director of the department or a duly appointed representative.

(3) "Person" means a natural person, individual, firm, partnership, corporation, company, society, and association, and every officer, agent or employee thereof. This term shall import either the singular or the plural as the case may be.

(4) "Livestock" includes, but is not limited to, horses, mules, cattle, sheep, swine, goats, poultry and rabbits.

(5) "Brand" means a permanent fire brand or any artificial mark, other than an individual identification symbol, approved by the ((director)) board to be used in conjunction with a brand or by itself.

(6) "Production record brand" means a number brand which shall be used for production identification purposes only.

(7) "((Brand)) Livestock inspection" means the examination of livestock or livestock hides for brands or any means of identifying livestock or livestock hides and/or the application of any artificial identification such as back tags or ear clips necessary to preserve the identity of the livestock or livestock hides examined.

(8) "Individual identification symbol" means a permanent mark placed on a horse for the purpose of individually identifying and registering the horse and which has been approved for use as such by the ((director)) board.

(9) "Registering agency" means any person issuing an individual identification symbol for the purpose of individually identifying and registering a horse.

(10) "Poultry" means chickens, turkeys, ratites, and other domesticated fowl.

(11) "Ratite" means, but is not limited to, ostrich, emu, rhea, or other flightless bird used for human consumption, whether live or slaughtered.

(12) "Ratite farming" means breeding, raising, and rearing of an ostrich, emu, or rhea in captivity or an enclosure.

(13) "Microchipping" means the implantation of an identification microchip or similar electronic identification device to establish the identity of an individual animal:

(a) In the pipping muscle of a chick ratite or the implantation of a microchip in the tail muscle of an otherwise unidentified adult ratite;

(b) In the nuchal ligament of a horse unless otherwise specified by rule of the ((director)) board; and

(c) In locations of other livestock species as specified by rule of the ((director)) board when requested by an association of producers of that species of livestock.

(14) "Livestock identification board" or "board" means the board established under RCW 16.57.015.

(15) "Certificate of permit" means a form prescribed by and obtained from the board that is completed by the owner or a person authorized to act on behalf of the owner to show the ownership of livestock. It does not evidence inspection of livestock.

(16) "Inspection certificate" means a certificate issued by the board documenting the ownership of livestock based on an inspection of livestock by the board. It includes an individual identification certificate issued by the board.

(17) "Self-inspection certificate" means a form prescribed by and obtained from the board that is used for self-inspection of cattle or horses and is signed by the buyer and seller of the cattle or horses.

Sec. 2. RCW 16.57.015 and 1993 c 354 s 10 are each amended to read as follows:

(1) ((The director shall establish a livestock identification advisory board. The board shall be composed of six members appointed by the director. One member shall represent each of the following groups: Beef producers, public livestock market operators, horse owners, dairy farmers, cattle feeders, and meat processors. In making appointments, the director shall solicit nominations from organizations representing these groups state-wide.

(2) The purpose of the board is to provide advice to the director regarding livestock identification programs administered under this chapter and regarding brand inspection fees and related licensing fees. The director shall consult the board before adopting, amending, or repealing a rule under this chapter or altering a fee under RCW 16.58.050, 16.58.130, 16.65.030, or 16.65.090. If the director publishes in the state register a proposed rule to be adopted under the authority of this chapter or a proposed rule setting a fee under RCW 16.58.050, 16.58.130, 16.65.030, or 16.65.090 and the rule has not received the approval of the advisory board, the director shall file with the board a written statement setting forth the director's reasons for proposing the rule without the board's approval.

(3) The members of the advisory board serve three-year terms. However, the director shall by rule provide shorter initial terms for some of the members of the board to stagger the expiration of the initial terms. The members serve without compensation. The director may authorize the expenses of a member to be reimbursed if the member is selected to attend a regional or national conference or meeting regarding livestock identification. Any such reimbursement shall be in accordance with RCW 43.03.050 and 43.03.060.)) There is established a Washington state livestock identification board. The board is composed of the director, who shall be a nonvoting member, and six voting members appointed by the governor as follows: One beef producer, one cattle feeder, one dairy producer, one livestock market owner, one meat packer, and one horse producer. Organizations representing the groups represented on the board may submit nominations for these appointments to the governor for the governor's consideration. Three members of the initial board shall be appointed for two years and three members shall be appointed for three years, thereafter gubernatorially appointed members shall be appointed for a three-year term. Members may succeed themselves. As used in this subsection, "meat packer" means a person licensed to operate a slaughtering establishment under chapter 16.49A RCW.

(2) The board shall be responsible for the administration of the livestock identification program which includes the review of recording and registration of brands, approval of all expenditures from the livestock identification account, administration of this chapter and chapters 16.58 and 16.65 RCW, administration of the inspection, enforcement, and licensing activities, fee setting, and holding hearings and adopting rules for the administration of the livestock identification program. Authorities and responsibilities other than rule making that are granted to the board by this chapter and chapters 16.58 and 16.65 RCW may be delegated by the board to duly authorized representatives of the board. The board shall adopt rules regarding such authorities and responsibilities in accordance with chapter 34.05 RCW.

(3) Until June 30, 2004, the board shall contract with the department for registration and recording and for livestock inspection or investigation work and fix the compensation and terms of the contract. Beginning July 1, 2004, the board may contract with the department or other entities to provide such registration, recording, inspection, or investigation.

(4) Members of the board shall receive compensation as provided by RCW 43.03.240 and travel expenses to meetings or in otherwise carrying out the duties of the board as provided under RCW 43.03.050 and 43.03.060. The board shall meet at least quarterly in each calendar year. The board shall hire staff as necessary to carry out its duties.

(5) The board may select the area of the state in which to locate its principal office, which may include an area that is, by and large, near the geographic center of the state. The department shall examine the rental and other costs of locating the principal office from which it administers any contract it has with the board in an area that is, by and large, near the geographic center of the state. The department shall compare these costs with those of maintaining the principal office in its current location. The department shall report its findings to the board and shall consider moving its principal office for such administration to such an area if it would be more cost-effective to do so.

NEW SECTION. Sec. 3. A new section is added to chapter 16.57 RCW to read as follows:

There is established a Washington state livestock identification account in the agricultural local fund created under RCW 43.23.230 into which all moneys collected or received from registration, recording, inspection, or enforcement under this chapter and moneys collected or received by the board under chapters 16.58 and 16.65 RCW shall be deposited. These moneys shall be used solely for the Washington state livestock identification program. Only the board may authorize expenditures from this account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

Sec. 4. RCW 16.57.020 and 1994 c 46 s 7 are each amended to read as follows:

(1) The ((director)) board shall be the recorder of livestock brands and such brands shall not be recorded elsewhere in this state. Any person desiring to register a livestock brand shall apply on a form prescribed by the ((director)) board. Such application shall be accompanied by a facsimile of the brand applied for and a ((thirty-five)) seventy-dollar recording fee. The ((director)) board shall, upon ((his or her)) their satisfaction that the application and brand facsimile meet the requirements of this chapter and/or rules adopted hereunder, record such brand.

(2) As provided in RCW 16.57.015, the director of agriculture may be designated by the board as the recorder of livestock brands. If the director is so designated, the recording fee shall be deposited by the director in the Washington state livestock identification account and shall be used solely for livestock identification program purposes as provided in this chapter and only as authorized by the board.

(3) This section is null and void unless subsections (1) through (5) of section 2 of this act and section 98 of this act become law.

NEW SECTION. Sec. 5. A new section is added to chapter 16.57 RCW to read as follows:

(1) The board may adopt rules establishing criteria and fees for the permanent renewal of brands registered with the department or with the board but renewed as livestock heritage brands. Such heritage brands are not intended for use on livestock.

(2) If the Washington state livestock identification board with authority and responsibility for administering the livestock identification program is not established by July 31, 1998, the department of agriculture is granted the authorities provided to the board by subsection (1) of this section.

NEW SECTION. Sec. 6. A new section is added to chapter 16.57 RCW to read as follows:

(1) The board may enter into agreements with Washington state licensed and accredited veterinarians, who have been certified by the board, to perform livestock inspection. Fees for livestock inspection performed by a certified veterinarian shall be collected by the veterinarian and remitted to the board. Veterinarians providing livestock inspection may charge a fee for livestock inspection that is in addition to and separate from fees collected under RCW 16.57.220. The board may adopt rules necessary to implement livestock inspection performed by veterinarians and may adopt fees to cover the cost associated with certification of veterinarians.

(2) If the Washington state livestock identification board with authority and responsibility for administering the livestock identification program is not established by July 31, 1998, the department of agriculture is granted all of the authorities provided to the board by subsection (1) of this section.

Sec. 7. RCW 16.57.030 and 1959 c 54 s 3 are each amended to read as follows:

The ((director)) board shall not record tattoo brands or marks for any purpose subsequent to the enactment of this chapter. However, all tattoo brands and marks of record on the date of the enactment of this chapter shall be recognized as legal ownership brands or marks.

Sec. 8. RCW 16.57.040 and 1974 ex.s. c 64 s 1 are each amended to read as follows:

The ((director)) board may provide for the use of production record brands. Numbers for such brands shall be issued at the discretion of the ((director)) board and shall be placed on livestock immediately below the registered ownership brand or any other location prescribed by the ((director)) board.

Sec. 9. RCW 16.57.070 and 1959 c 54 s 7 are each amended to read as follows:

The ((director)) board shall determine conflicting claims between applicants to a brand, and in so doing shall consider the priority of applicants.

Sec. 10. RCW 16.57.080 and 1994 c 46 s 16 are each amended to read as follows:

((The director shall establish by rule a schedule for the renewal of registered brands.)) (1) Except as provided in section 5 of this act, the fee for the renewal of ((the)) a brand((s)) registration shall be ((no less than twenty-five)) seventy dollars for each two-year period of brand ownership((, except that)). However, the ((director)) board may((, in adopting a renewal schedule,)) provide for the collection of renewal fees on a prorated basis ((and may by rule increase the registration and renewal fee for brands by no more than fifty percent subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015)). At least sixty days before the expiration of a registered brand, the ((director)) board shall notify by letter the owner of record of the brand that on the payment of the requisite application fee and application of renewal the ((director)) board shall issue the proof of payment allowing the brand owner exclusive ownership and use of the brand for the subsequent registration period. The failure of the registered owner to pay the renewal fee by the date required by rule shall cause such owner's brand to revert to the ((department)) board. The ((director)) board may for a period of one year following such reversion, reissue such brand only to the prior registered owner upon payment of the registration fee and a late filing fee ((to be prescribed by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015,)) of twenty dollars for renewal subsequent to the regular renewal period. The ((director)) board may at the ((director's)) board's discretion, if such brand is not reissued within one year to the prior registered owner, issue such brand to any other applicant.

(2) This section is null and void unless subsections (1) through (5) of section 2 of this act and section 98 of this act become law.

Sec. 11. RCW 16.57.090 and 1994 c 46 s 17 are each amended to read as follows:

A brand is the personal property of the owner of record. Any instrument affecting the title of such brand shall be acknowledged in the presence of the recorded owner and a notary public. The ((director)) board shall record such instrument upon presentation and payment of a recording fee not to exceed fifteen dollars to be prescribed by the ((director)) board by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015. Such recording shall be constructive notice to all the world of the existence and conditions affecting the title to such brand. A copy of all records concerning the brand, certified by the ((director)) board, shall be received in evidence to all intent and purposes as the original instrument. The ((director)) board shall not be personally liable for failure of the ((director's)) board's agents to properly record such instrument.

Sec. 12. RCW 16.57.100 and 1971 ex.s. c 135 s 3 are each amended to read as follows:

The right to use a brand shall be evidenced by the original certificate issued by the ((director)) board showing that the brand is of present record or a certified copy of the record of such brand showing that it is of present record. A healed brand of record on livestock shall be prima facie evidence that the recorded owner of such brand has legal title to such livestock and is entitled to its possession: PROVIDED, That the ((director)) board may require additional proof of ownership of any animal showing more than one healed brand.

Sec. 13. RCW 16.57.105 and 1967 c 240 s 38 are each amended to read as follows:

Any person having a brand recorded with the ((department)) board shall have a preemptory right to use such brand and its design under any newly approved method of branding adopted by the ((director)) board.

Sec. 14. RCW 16.57.110 and 1959 c 54 s 11 are each amended to read as follows:

No brand shall be placed on livestock that is not permanent in nature and of a size that is not readily visible. The ((director)) board, in order to assure that brands are readily visible, may prescribe the size of branding irons to be used for ownership brands.

Sec. 15. RCW 16.57.120 and 1991 c 110 s 2 are each amended to read as follows:

No person shall remove or alter a brand of record on livestock without first having secured the written permission of the ((director)) board. Violation of this section shall be a gross misdemeanor punishable to the same extent as a gross misdemeanor that is punishable under RCW 9A.20.021.

Sec. 16. RCW 16.57.130 and 1959 c 54 s 13 are each amended to read as follows:

The ((director)) board shall not record a brand that is identical to a brand of present record; nor a brand so similar to a brand of present record that it will be difficult to distinguish between such brands when applied to livestock.

Sec. 17. RCW 16.57.140 and 1994 c 46 s 18 are each amended to read as follows:

The owner of a brand of record may procure from the ((director)) board a certified copy of the record of the owner's brand upon payment of a fee not to exceed seven dollars and fifty cents to be prescribed by the ((director)) board by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015.

Sec. 18. RCW 16.57.150 and 1974 ex.s. c 64 s 5 are each amended to read as follows:

The ((director)) board shall publish a book to be known as the "Washington State Brand Book", showing all the brands of record. Such book shall contain the name and address of the owners of brands of record and a copy of the brand laws and regulations. Supplements to such brand book showing newly recorded brands, amendments or newly adopted regulations, shall be published biennially, or prior thereto at the discretion of the ((director)) board: PROVIDED, That whenever ((he deems it)) necessary, the ((director)) board may issue a new brand book.

Sec. 19. RCW 16.57.160 and 1991 c 110 s 3 are each amended to read as follows:

(1) Except as provided in subsection (3) of this section, the ((director)) board may ((by)) adopt rules ((adopted subsequent to a public hearing designate)): Designating any point for mandatory ((brand)) livestock inspection of cattle or horses or the furnishing of proof that cattle passing or being transported through such points have been ((brand)) livestock inspected and are lawfully being moved; providing for self-inspection of cattle and horses; and providing for issuance of individual horse and cattle identification certificates or other means of horse and cattle identification.

((Further,)) (2) The ((director)) board or any peace officer may stop vehicles carrying cattle or horses to determine if ((such)) the cattle or horses are identified, branded, or accompanied by ((the form prescribed by the director under RCW 16.57.240 or a brand certificate issued by the department)) a certificate of permit, inspection certificate, self-inspection certificate, or other satisfactory proof of ownership, as determined by the board.

(3) Inspection shall not be required for:

(a) Any individual private sale of any unbranded dairy breed milk production cattle involving fifteen head or less; or

(b) A sale by the owner of a dairy farm licensed under chapter 15.36 RCW of a male calf or male calves from the farm that are not more than thirty days old, as long as the license number for the dairy is listed on the bill of sale or its equivalent.

Sec. 20. RCW 16.57.165 and 1971 ex.s. c 135 s 6 are each amended to read as follows:

The ((director)) board may, in order to reduce the cost of ((brand)) livestock inspection to livestock owners, enter into agreements with any qualified county, municipal, or other local law enforcement agency, or qualified individuals for the purpose of performing ((brand)) livestock inspection in areas where ((department brand)) livestock inspection by the department may not readily be available.

Sec. 21. RCW 16.57.170 and 1959 c 54 s 17 are each amended to read as follows:

The ((director)) board may enter at any reasonable time any slaughterhouse or public livestock market to make an examination of the brands on livestock or hides, and may enter at any reasonable time an establishment where hides are held to examine them for brands. The ((director)) board may enter any of these premises at any reasonable time to examine all books and records required by law in matters relating to ((brand)) livestock inspection or other methods of livestock identification.

Sec. 22. RCW 16.57.180 and 1959 c 54 s 18 are each amended to read as follows:

Should the ((director)) board be denied access to any premises or establishment where such access was sought for the purposes set forth in RCW 16.57.170, ((he)) the board may apply to any court of competent jurisdiction for a search warrant authorizing access to such premises or establishment for said purposes. The court may upon such application, issue the search warrant for the purposes requested.

Sec. 23. RCW 16.57.200 and 1959 c 54 s 20 are each amended to read as follows:

Any owner or ((his)) an agent shall make the brand or brands on livestock being ((brand)) livestock inspected readily visible and shall cooperate with the ((director)) board to carry out such ((brand)) livestock inspection in a safe and expeditious manner.

Sec. 24. RCW 16.57.210 and 1959 c 54 s 21 are each amended to read as follows:

The ((director)) board shall have authority to arrest any person without warrant anywhere in the state found in the act of, or whom ((he)) the board has reason to believe is guilty of, driving, holding, selling or slaughtering stolen livestock. Any such person arrested by the ((director)) board shall be turned over to the sheriff of the county where the arrest was made, as quickly as possible.

Sec. 25. RCW 16.57.220 and 1997 c 356 s 2 are each amended to read as follows:

The ((director)) livestock identification board shall cause a charge to be made for all ((brand)) livestock inspection of cattle and horses required under this chapter and rules adopted hereunder. Such charges shall be paid to the ((department)) board by the owner or person in possession unless requested by the purchaser and then such ((brand)) livestock inspection shall be paid by the purchaser requesting such ((brand)) livestock inspection. Except as provided by rule, such inspection charges shall be due and payable at the time ((brand)) livestock inspection is performed and shall be paid upon billing by the ((department)) board and if not shall constitute a prior lien on the cattle or cattle hides or horses or horse hides ((brand)) livestock inspected until such charge is paid. The ((director)) board in order to best utilize the services of the ((department)) livestock inspector in performing ((brand)) livestock inspection may establish schedules by days and hours when a ((brand)) livestock inspector will be on duty to perform ((brand)) livestock inspection at established inspection points. The fees for ((brand)) livestock inspection performed at inspection points according to schedules established by the ((director)) board shall be seventy-five cents per head for cattle and ((not more than)) three dollars per head for horses ((as prescribed by the director subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015)). Fees for ((brand)) livestock inspection of cattle and horses at points other than those designated by the ((director)) board or not in accord with the schedules established by the ((director)) board shall be based on a fee schedule not to exceed actual net cost to the ((department)) board of performing the ((brand)) livestock inspection service. For the purpose of this section, actual costs shall mean fifteen dollars per hour and the current mileage rate set by the office of financial management.

Sec. 26. RCW 16.57.230 and 1995 c 374 s 50 are each amended to read as follows:

No person shall collect or make a charge for ((brand)) livestock inspection of livestock unless there has been an actual ((brand)) livestock inspection of such livestock.

Sec. 27. RCW 16.57.240 and 1995 c 374 s 51 are each amended to read as follows:

((Any person purchasing, selling, holding for sale, trading, bartering, transferring title, slaughtering, handling, or transporting cattle shall keep a record on forms prescribed by the director. Such forms)) (1) Certificates of permit, inspection certificates, and self-inspection certificates shall show the owner, number, ((specie)) breed, sex, brand or other method of identification of ((such)) the cattle or horses and any other necessary information required by the ((director)) board. ((The original shall be kept for a period of three years or shall be furnished to the director upon demand or as prescribed by rule, one copy shall accompany the cattle to their destination and shall be subject to inspection at any time by the director or any peace officer or member of the state patrol: PROVIDED, That in the following instances only, cattle may be moved or transported within this state without being accompanied by an official certificate of permit, brand inspection certificate, bill of sale, or self-inspection slip:

(1) When such cattle are moved or transported upon lands under the exclusive control of the person moving or transporting such cattle;

(2) When such cattle are being moved or transported for temporary grazing or feeding purposes and have the registered brand of the person having or transporting such cattle.))

(2) The board may cause certificate of permit forms to be issued to any person on payment of a fee established by rule.

(3) Inspection certificates, self-inspection certificates, or other proof of ownership deemed satisfactory by the board shall be kept by the owner and/or person in possession of any cattle or horses and shall be furnished to the board or any peace officer upon demand.

(4) Cattle may not be moved or transported within this state without being accompanied by a certificate of permit, inspection certificate, or self-inspection certificate except:

(a) When the cattle are moved or transported upon lands under the exclusive control of the person moving or transporting the cattle; or

(b) When the cattle are being moved or transported for temporary grazing or feeding purposes and have the recorded brand of the person having or transporting the cattle.

(5) Certificates of permit, inspection certificates, or self-inspection certificates accompanying cattle being moved or transported within this state shall be subject to inspection at any time by the board or any peace officer.

Sec. 28. RCW 16.57.260 and 1981 c 296 s 19 are each amended to read as follows:

It shall be unlawful for any person to remove or cause to be removed or accept for removal from this state, any cattle or horses which are not accompanied at all times by an official ((brand)) livestock inspection certificate issued by the ((director)) board on such cattle or horses, except as provided in RCW 16.57.160.

Sec. 29. RCW 16.57.270 and 1959 c 54 s 27 are each amended to read as follows:

It shall be unlawful for any person moving or transporting livestock in this state to refuse to assist the ((director)) board or any peace officer in establishing the identity of such livestock being moved or transported.

Sec. 30. RCW 16.57.275 and 1967 c 240 s 37 are each amended to read as follows:

Any cattle carcass, or primal part thereof, of any breed or age being transported in this state from other than a state or federal licensed and inspected slaughterhouse or common carrier hauling for such slaughterhouse, shall be accompanied by a certificate of permit signed by the owner of such carcass or primal part thereof and, if such carcass or primal part is delivered to a facility custom handling such carcasses or primal part thereof, such certificate of permit shall be deposited with the owner or manager of such custom handling facility and such certificate of permit shall be retained for a period of one year and be made available to the ((department)) livestock identification board for inspection during reasonable business hours. ((The owner of such carcass or primal part thereof shall mail a copy of the said certificate of permit to the department within ten days of said transportation.))

Sec. 31. RCW 16.57.280 and 1995 c 374 s 52 are each amended to read as follows:

No person shall knowingly have unlawful possession of any livestock marked with a recorded brand or tattoo of another person unless:

(1) Such livestock lawfully bears the person's own healed recorded brand; or

(2) Such livestock is accompanied by a certificate of permit from the owner of the recorded brand or tattoo; or

(3) Such livestock is accompanied by a ((brand)) livestock inspection certificate; or

(4) Such cattle is accompanied by a self-inspection slip; or

(5) Such livestock is accompanied by a bill of sale from the previous owner or other satisfactory proof of ownership.

A violation of this section constitutes a gross misdemeanor punishable to the same extent as a gross misdemeanor that is punishable under RCW 9A.20.021.

Sec. 32. RCW 16.57.290 and 1995 c 374 s 53 are each amended to read as follows:

All unbranded cattle and horses and those bearing brands not recorded, in the current edition of this state's brand book, which are not accompanied by a certificate of permit, and those bearing brands recorded, in the current edition of this state's brand book, which are not accompanied by a certificate of permit signed by the owner of the brand when presented for inspection by the ((director)) board, shall be sold by the ((director)) board or the ((director's)) board's representative, unless other satisfactory proof of ownership is presented showing the person presenting them to be lawfully in possession. Upon the sale of such cattle or horses, the ((director)) board or the ((director's)) board's representative shall give the purchasers a bill of sale therefor, or, if theft is suspected, the cattle or horses may be impounded by the ((director)) board or the ((director's)) board's representative.

Sec. 33. RCW 16.57.300 and 1989 c 286 s 24 are each amended to read as follows:

The proceeds from the sale of cattle and horses as provided for under RCW 16.57.290, after paying the cost thereof, shall be paid to the ((director)) board, who shall make a record showing the brand or marks or other method of identification of the animals and the amount realized from the sale thereof. However, the proceeds from a sale of such cattle or horses at a licensed public livestock market shall be held by the licensee for a reasonable period not to exceed thirty days to permit the consignor to establish ownership or the right to sell such cattle or horses. If such consignor fails to establish legal ownership or the right to sell such cattle or horses, such proceeds shall be paid to the ((director)) board to be disposed of as any other estray proceeds.

Sec. 34. RCW 16.57.310 and 1959 c 54 s 31 are each amended to read as follows:

When a person has been notified by registered mail that animals bearing his or her recorded brand have been sold by the ((director)) board, he or she shall present to the ((director)) board a claim on the proceeds within ten days from the receipt of the notice or the ((director)) board may decide that no claim exists.

Sec. 35. RCW 16.57.320 and 1991 c 110 s 6 are each amended to read as follows:

If, after the expiration of one year from the date of sale, the person presenting the animals for inspection has not provided the ((director)) board with satisfactory proof of ownership, the proceeds from the sale shall be paid on the claim of the owner of the recorded brand. However, it shall be a gross misdemeanor for the owner of the recorded brand to knowingly accept such funds after he or she has sold, bartered or traded such animals to the claimant or any other person. A gross misdemeanor under this section is punishable to the same extent as a gross misdemeanor that is punishable under RCW 9A.20.021.

Sec. 36. RCW 16.57.330 and 1959 c 54 s 33 are each amended to read as follows:

If, after the expiration of one year from the date of sale, no claim is made, the money shall be credited to the ((department of agriculture)) board to be expended in carrying out the provisions of this chapter.

Sec. 37. RCW 16.57.340 and 1959 c 54 s 34 are each amended to read as follows:

The ((director)) board shall have the authority to enter into reciprocal agreements with any or all states to prevent the theft, misappropriation or loss of identification of livestock. The ((director)) board may declare any livestock which is shipped or moved into this state from such states estrays if such livestock is not accompanied by the proper official brand certificate or other such certificates required by the law of the state of origin of such livestock. The ((director)) board may hold such livestock subject to all costs of holding or sell such livestock and send the funds, after the deduction of the cost of such sale, to the proper authority in the state of origin of such livestock.

Sec. 38. RCW 16.57.350 and 1994 c 46 s 8 are each amended to read as follows:

The ((director)) board may adopt such rules as are necessary to carry out the purposes of this chapter. It shall be the duty of the ((director)) board to enforce and carry out the provisions of this chapter and/or rules adopted hereunder. No person shall interfere with the ((director)) board when ((he or she)) the board is performing or carrying out duties imposed on ((him or her)) it by this chapter and/or rules adopted hereunder.

Sec. 39. RCW 16.57.360 and 1991 c 110 s 7 are each amended to read as follows:

The ((department)) board is authorized to issue notices of and enforce civil infractions in the manner prescribed under chapter 7.80 RCW.

The violation of any provision of this chapter and/or rules and regulations adopted hereunder shall constitute a class I civil infraction as provided under chapter 7.80 RCW unless otherwise specified herein.

Sec. 40. RCW 16.57.370 and 1959 c 54 s 37 are each amended to read as follows:

All fees collected under the provisions of this chapter shall be retained and deposited by the ((director)) board to be used only for the enforcement of this chapter.

Sec. 41. RCW 16.57.400 and 1994 c 46 s 20 are each amended to read as follows:

The ((director)) board may provide by rules ((and regulations)) adopted pursuant to chapter 34.05 RCW for the issuance of individual horse and cattle identification certificates or other means of horse and cattle identification deemed appropriate. Such certificates or other means of identification shall be valid only for the use of the horse and cattle owner in whose name it is issued.

Horses and cattle identified pursuant to the provisions of this section and the rules ((and regulations)) adopted hereunder shall not be subject to ((brand)) livestock inspection except when sold at points provided for in RCW ((16.57.380)) 16.57.160. The ((director)) board shall charge a fee for the certificates or other means of identification authorized pursuant to this section and no identification shall be issued until the ((director)) board has received the fee. The schedule of fees shall be established in accordance with the provisions of chapter 34.05 RCW.

Sec. 42. RCW 16.57.407 and 1996 c 105 s 3 are each amended to read as follows:

The ((department)) livestock identification board has the authority to conduct an investigation of an incident where scars or other marks indicate that a microchip has been removed from a horse.

Sec. 43. RCW 16.57.410 and 1993 c 354 s 11 are each amended to read as follows:

(1) No person may act as a registering agency without a permit issued by the ((department)) board. The ((director)) board may issue a permit to any person or organization to act as a registering agency for the purpose of issuing permanent identification symbols for horses in a manner prescribed by the ((director)) board. Application for such permit, or the renewal thereof by January 1 of each year, shall be on a form prescribed by the ((director)) board, and accompanied by the proof of registration to be issued, any other documents required by the ((director)) board, and a fee of one hundred dollars.

(2) Each registering agency shall maintain a permanent record for each individual identification symbol. The record shall include, but need not be limited to, the name, address, and phone number of the horse owner and a general description of the horse. A copy of each permanent record shall be forwarded to the ((director)) board, if requested by the ((director)) board.

(3) Individual identification symbols shall be inspected as required for brands under RCW 16.57.220 ((and 16.57.380)). Any horse presented for inspection and bearing such a symbol, but not accompanied by proof of registration and certificate of permit, shall be sold as provided under RCW 16.57.290 through 16.57.330.

(4) The ((director)) board shall adopt such rules as are necessary for the effective administration of this section pursuant to chapter 34.05 RCW.

Sec. 44. RCW 16.57.420 and 1993 c 105 s 3 are each amended to read as follows:

The ((department)) livestock identification board may, in consultation with representatives of the ratite industry, develop by rule a system that provides for the identification of individual ratites through the use of microchipping. The ((department)) board may establish fees for the issuance or reissuance of microchipping numbers sufficient to cover the expenses of the ((department)) board.

Sec. 45. RCW 16.58.020 and 1971 ex.s. c 181 s 2 are each amended to read as follows:

For the purpose of this chapter:

(1) "Livestock identification board" or "board" means the livestock identification board defined under RCW 16.57.010.

(2) "Certified feed lot" means any place, establishment, or facility commonly known as a commercial feed lot, cattle feed lot, or the like, which complies with all of the requirements of this chapter, and any ((regulations)) rules adopted pursuant to the provisions of this chapter and which holds a valid license from the ((director)) board as hereinafter provided.

(((2) "Department" means the department of agriculture of the state of Washington.

(3) "Director" means the director of the department or his duly authorized representative.

(4))) (3) "Licensee" means any persons licensed under the provisions of this chapter.

(((5))) (4) "Person" means a natural person, individual, firm, partnership, corporation, company, society, and association, and every officer, agent or employee thereof. This term shall import either the singular or the plural as the case may be.

Sec. 46. RCW 16.58.030 and 1971 ex.s. c 181 s 3 are each amended to read as follows:

The ((director)) board may adopt such rules ((and regulations)) as are necessary to carry out the purpose of this chapter. The adoption of such rules shall be subject to the provisions of this chapter and rules ((and regulations)) adopted hereunder. No person shall interfere with the ((director when he)) board when it is performing or carrying out any duties imposed ((upon him)) by this chapter or rules ((and regulations)) adopted hereunder.

Sec. 47. RCW 16.58.040 and 1971 ex.s. c 181 s 4 are each amended to read as follows:

On or after August 9, 1971, any person desiring to engage in the business of operating one or more certified feed lots shall obtain an annual license from the ((director)) board for such purpose. The application for a license shall be on a form prescribed by the ((director)) board and shall include the following:

(1) The number of certified feed lots the applicant intends to operate and their exact location and mailing address;

(2) The legal description of the land on which the certified feed lot will be situated;

(3) A complete description of the facilities used for feeding and handling of cattle at each certified feed lot;

(4) The estimated number of cattle which can be handled for feeding purposes at each such certified feed lot; and

(5) Any other information necessary to carry out the purpose and provisions of this chapter and rules ((or regulations)) adopted hereunder.

Sec. 48. RCW 16.58.050 and 1997 c 356 s 4 are each amended to read as follows:

The application for an annual license to engage in the business of operating one or more certified feed lots shall be accompanied by a license fee of seven hundred fifty dollars. Upon approval of the application by the ((director)) livestock identification board and compliance with the provisions of this chapter and rules adopted hereunder, the applicant shall be issued a license or a renewal thereof. The board shall conduct an inspection of all cattle and their corresponding ownership documents prior to issuing an original license. The inspection fee shall be the higher of the current inspection fee per head of cattle or time and mileage as set forth in RCW 16.57.220.

Sec. 49. RCW 16.58.060 and 1991 c 109 s 10 are each amended to read as follows:

The ((director)) board shall establish by rule an expiration date or dates for all certified feed lot licenses. License fees shall be prorated where necessary to accommodate staggering of expiration dates of a license or licenses. If an application for renewal of a certified feed lot license is not received by the ((department)) board per the date required by rule or should a person fail, refuse, or neglect to apply for renewal of a preexisting license on or before the date of expiration, that person shall be assessed an additional twenty-five dollars which shall be added to the regular license fee and shall be paid before the ((director)) board may issue a license to the applicant.

Sec. 50. RCW 16.58.070 and 1989 c 175 s 54 are each amended to read as follows:

The ((director)) livestock identification board is authorized to deny, suspend, or revoke a license in accord with the provisions of chapter 34.05 RCW if ((he)) it finds that there has been a failure to comply with any requirement of this chapter or rules ((and regulations)) adopted hereunder. Hearings for the revocation, suspension, or denial of a license shall be subject to the provisions of chapter 34.05 RCW concerning adjudicative proceedings.

Sec. 51. RCW 16.58.080 and 1971 ex.s. c 181 s 8 are each amended to read as follows:

Every certified feed lot shall be equipped with a facility or a livestock pen, approved by the ((director)) livestock identification board as to location and construction within the ((said)) feed lot so that necessary ((brand)) livestock inspection can be carried on in a proper, expeditious and safe manner. Each licensee shall furnish the ((director)) board with sufficient help necessary to carry out ((brand)) livestock inspection in the manner set forth above.

Sec. 52. RCW 16.58.095 and 1991 c 109 s 11 are each amended to read as follows:

All cattle entering or reentering a certified feed lot must be inspected for brands upon entry, unless they are accompanied by a ((brand)) livestock inspection certificate issued by the ((director)) livestock identification board, or any other agency authorized in any state or Canadian province by law to issue such a certificate. Licensees shall report a discrepancy between cattle entering or reentering a certified feed lot and the ((brand)) livestock inspection certificate accompanying the cattle to the nearest ((brand)) livestock inspector immediately. A discrepancy may require an inspection of all the cattle entering or reentering the lot, except as may otherwise be provided by rule.

Sec. 53. RCW 16.58.100 and 1979 c 81 s 3 are each amended to read as follows:

The ((director)) livestock identification board shall each year conduct audits of the cattle received, fed, handled, and shipped by the licensee at each certified feed lot. Such audits shall be for the purpose of determining if such cattle correlate with the ((brand)) livestock inspection certificates issued in their behalf and that the certificate of assurance furnished the ((director)) board by the licensee correlates with his or her assurance that ((brand)) livestock inspected cattle were not commingled with uninspected cattle.

Sec. 54. RCW 16.58.110 and 1991 c 109 s 12 are each amended to read as follows:

All certified feed lots shall furnish the ((director)) livestock identification board with records as requested by ((him)) it from time to time on all cattle entering or on feed in ((said)) certified feed lots and dispersed therefrom. All such records shall be subject to examination by the ((director)) board for the purpose of maintaining the integrity of the identity of all such cattle. The ((director)) board may make the examinations only during regular business hours except in an emergency to protect the interest of the owners of such cattle.

Sec. 55. RCW 16.58.120 and 1991 c 109 s 13 are each amended to read as follows:

The licensee shall maintain sufficient records as required by the ((director)) livestock identification board at each certified feed lot, if ((said)) the licensee operates more than one certified feed lot.

Sec. 56. RCW 16.58.130 and 1997 c 356 s 7 are each amended to read as follows:

(1) Each licensee shall pay to the ((director)) livestock identification board a fee of ((twelve)) fifteen cents for each head of cattle handled through the licensee's feed lot. Payment of such fee shall be made by the licensee on a monthly basis. Failure to pay as required shall be grounds for suspension or revocation of a certified feed lot license. Further, the ((director)) board shall not renew a certified feed lot license if a licensee has failed to make prompt and timely payments.

(2) This section is null and void unless subsections (1) through (5) of section 2 of this act and section 98 of this act become law.

Sec. 57. RCW 16.58.140 and 1979 c 81 s 5 are each amended to read as follows:

All fees provided for in this chapter shall be retained by the ((director)) board for the purpose of enforcing and carrying out the purpose and provisions of this chapter or chapter 16.57 RCW.

Sec. 58. RCW 16.58.150 and 1971 ex.s. c 181 s 15 are each amended to read as follows:

No ((brand)) livestock inspection shall be required when cattle are moved or transferred from one certified feed lot to another or the transfer of cattle from a certified feed lot to a point within this state, or out of state where this state maintains ((brand)) livestock inspection, for the purpose of immediate slaughter.

Sec. 59. RCW 16.58.160 and 1991 c 109 s 15 are each amended to read as follows:

The ((director)) board may, when a certified feed lot's conditions become such that the integrity of reports or records of the cattle therein becomes doubtful, suspend such certified feed lot's license until such time as the ((director)) board can conduct an investigation to carry out the purpose of this chapter.

Sec. 60. RCW 16.65.010 and 1983 c 298 s 1 are each amended to read as follows:

For the purposes of this chapter:

(1) The term "public livestock market" means any place, establishment or facility commonly known as a "public livestock market", "livestock auction market", "livestock sales ring", yards selling on commission, or the like, conducted or operated for compensation or profit as a public livestock market, consisting of pens or other enclosures, and their appurtenances in which livestock is received, held, sold, kept for sale or shipment. The term does not include the operation of a person licensed under this chapter to operate a special open consignment horse sale.

(2) (("Department" means the department of agriculture of the state of Washington.

(3) "Director" means the director of the department or his duly authorized representative.

(4))) "Licensee" means any person licensed under the provisions of this chapter.

(((5))) (3) "Livestock" includes horses, mules, burros, cattle, sheep, swine, and goats.

(((6))) (4) "Livestock identification board" or "board" means the board created in RCW 16.57.015.

(5) "Person" means a natural person, individual, firm, partnership, corporation, company, society, and association, and every officer, agent or employee thereof. This term shall import either the singular or the plural as the case may be.

(((7))) (6) "Stockyard" means any place, establishment, or facility commonly known as a stockyard consisting of pens or other enclosures and their appurtenances in which livestock services such as feeding, watering, weighing, sorting, receiving and shipping are offered to the public: PROVIDED, That stockyard shall not include any facilities where livestock is offered for sale at public auction, feed lots, or quarantined registered feed lots.

(((8))) (7) "Packer" means any person engaged in the business of slaughtering, manufacturing, preparing meat or meat products for sale, marketing meat, meat food products or livestock products.

(((9))) (8) "Deputy state veterinarian" means a graduate veterinarian authorized to practice in the state of Washington and appointed or deputized by the director of agriculture as his or her duly authorized representative.

(((10))) (9) "Special open consignment horse sale" means a sale conducted by a person other than the operator of a public livestock market which is limited to the consignment of horses and donkeys only for sale on an occasional and seasonal basis.

Sec. 61. RCW 16.65.015 and 1983 c 298 s 2 are each amended to read as follows:

This chapter does not apply to:

(1) A farmer selling his or her own livestock on the farmer's own premises by auction or any other method.

(2) A farmers' cooperative association or an association of livestock breeders when any class of their own livestock is assembled and offered for sale at a special sale on an occasional and seasonal basis under the association's management and responsibility, and the special sale has been approved by the ((director)) board in writing. However, the special sale shall be subject to brand and health inspection requirements as provided in this chapter for sales at public livestock markets.

Sec. 62. RCW 16.65.020 and 1983 c 298 s 5 are each amended to read as follows:

Public livestock markets and special open consignment horse sales shall be under the direction and supervision of the ((director)) livestock identification board, and the ((director)) board, but not ((his)) its duly authorized representative, may adopt such rules ((and regulations)) as are necessary to carry out the purpose of this chapter. It shall be the duty of the ((director)) board to enforce and carry out the provisions of this chapter and rules ((and regulations)) adopted hereunder. No person shall interfere with the ((director)) board when ((he)) it is performing or carrying out any duties imposed upon ((him)) it by this chapter or rules ((and regulations)) adopted hereunder.

Sec. 63. RCW 16.65.030 and 1995 c 374 s 54 are each amended to read as follows:

(1) ((On and after June 10, 1959,)) No person shall operate a public livestock market without first having obtained a license from the ((director)) livestock identification board. Application for ((such)) a license shall be in writing on forms prescribed by the ((director)) board, and shall include the following:

(a) A nonrefundable original license application fee of fifteen hundred dollars.

(b) A legal description of the property upon which the public livestock market shall be located.

(c) A complete description and blueprints or plans of the public livestock market physical plant, yards, pens, and all facilities the applicant proposes to use in the operation of such public livestock market.

(d) ((A detailed statement showing all the assets and liabilities of the applicant which must reflect a sufficient net worth to construct or operate a public livestock market.)) A financial statement, compiled or audited by a certified or licensed public accountant, to determine whether or not the applicant meets the minimum net worth requirements, established by the director by rule, to construct and/or operate a public livestock market. If the applicant is a subsidiary of a larger company, corporation, society, or cooperative association, both the parent company and the subsidiary company must submit a financial statement to determine whether or not the applicant meets the minimum net worth requirements. All financial statement information required by this subsection is confidential information and not subject to public disclosure.

(e) The schedule of rates and charges the applicant proposes to impose on the owners of livestock for services rendered in the operation of such livestock market.

(f) The weekly or monthly sales day or days on which the applicant proposes to operate his or her public livestock market sales and the class of livestock that may be sold on these days.

(g) Projected source and quantity of livestock((, by county,)) anticipated to be handled.

(h) Projected ((income and expense statements for)) gross dollar volume of business to be carried on, at, or through the public livestock market during the first year's operation.

(i) Facts upon which ((are)) is based the conclusion that the trade area and the livestock industry will benefit because of the proposed market.

(j) ((Such)) Other information as the ((director)) board may ((reasonably)) require by rule.

(2) ((The director shall, after public hearing as provided by chapter 34.05 RCW, grant or deny an application for original license for a public livestock market after considering evidence and testimony relating to all of the requirements of this section and giving reasonable consideration at the same hearing to:

(a) Benefits to the livestock industry to be derived from the establishment and operation of the public livestock market proposed in the application; and

(b) The present market services elsewhere available to the trade area proposed to be served.

(3) Applications for renewal under RCW 16.65.040 shall include all information under subsection (1) of this section, except subsection (1)(a) of this section.)) If the board determines that the applicant meets all the requirements of subsection (1) of this section, the board shall conduct a public hearing as provided by chapter 34.05 RCW, and shall grant or deny an application for original license for a public livestock market after considering evidence and testimony relating to the requirements of this section and giving reasonable consideration to:

(a) Benefits to the livestock industry to be derived from the establishment and operation of the public livestock market proposed in the application;

(b) The geographical area that will be affected;

(d) The amount and class of livestock available for marketing in the area;

(e) Buyers available to the proposed market; and

(f) Any other conditions affecting the orderly marketing of livestock.

(3) Before a license is issued to operate a public livestock market, the applicant must:

(a) Execute and deliver to the board a surety bond as required under RCW 16.65.200;

(b) Provide evidence of a custodial account, as required under RCW 16.65.140, for the consignor's proceeds;

(d) Provide other information required under this chapter and rules adopted under this chapter.

Sec. 64. RCW 16.65.037 and 1997 c 356 s 8 are each amended to read as follows:

(1) Upon the approval of the application by the ((director)) livestock identification board and compliance with the provisions of this chapter, the applicant shall be issued a license or renewal thereof. Any license issued under the provisions of this chapter shall only be valid at location and for the sales day or days for which the license was issued.

(2) The license fee shall be based on the average gross sales volume per official sales day of that market:

(a) Markets with an average gross sales volume up to and including ten thousand dollars, a one hundred fifty dollar fee;

(b) Markets with an average gross sales volume over ten thousand dollars and up to and including fifty thousand dollars, a three hundred fifty dollar fee; and

The fees for public market licenses shall be set by the ((director)) board by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015.

(3) Any applicant operating more than one public livestock market shall make a separate application for a license to operate each such public livestock market, and each such application shall be accompanied by the appropriate application fee.

Sec. 65. RCW 16.65.040 and 1983 c 298 s 6 are each amended to read as follows:

All public livestock market licenses provided for in this chapter shall expire on March 1st subsequent to the date of issue. Any person who fails, refuses, or neglects to apply for a renewal of a preexisting license on or before the date of expiration, shall pay a penalty of twenty-five dollars, which shall be added to the regular license fee, before such license may be renewed by the ((director)) livestock identification board.

Sec. 66. RCW 16.65.042 and 1983 c 298 s 3 are each amended to read as follows:

(1) A person shall not operate a special open consignment horse sale without first obtaining a license from the ((director)) livestock identification board. The application for the license shall include:

(a) A detailed statement showing all of the assets and liabilities of the applicant;

(b) The schedule of rates and charges the applicant proposes to impose on the owners of horses for services rendered in the operation of the horse sale;

(d) Projected quantity and approximate value of horses to be handled; and

(e) Such other information as the ((director)) board may reasonably require.

(2) The application shall be accompanied by a license fee of one hundred dollars. Upon the approval of the application by the ((director)) board and compliance with this chapter, the applicant shall be issued a license. A special open consignment horse sale license is valid only for the specific date or dates and exact location for which the license was issued.

Sec. 67. RCW 16.65.050 and 1959 c 107 s 5 are each amended to read as follows:

All fees ((provided for)) collected or received by the board under this chapter shall be ((retained by the director)) deposited by the board in the livestock identification account created in section 3 of this act. Moneys collected under this chapter may be expended by the board without appropriation for the purpose of enforcing this chapter.

Sec. 68. RCW 16.65.080 and 1985 c 415 s 9 are each amended to read as follows:

(1) The ((director)) livestock identification board is authorized to deny, suspend, or revoke a license in the manner prescribed herein, when there are findings by the ((director)) board that any licensee (a) has been guilty of fraud or misrepresentation as to titles, charges, numbers, brands, weights, proceeds of sale, or ownership of livestock; (b) has attempted payment to a consignor by a check the licensee knows not to be backed by sufficient funds to cover such check; (c) has violated any of the provisions of this chapter or rules ((and regulations)) adopted hereunder; (d) has violated any laws of the state that require health or ((brand)) livestock inspection of livestock; (e) has violated any condition of the bond, as provided in this chapter. However, the ((director)) board may deny a license if the applicant refuses to accept the sales day or days allocated to ((him)) it under the provisions of this chapter.

(2) In all proceedings for revocation, suspension, or denial of a license the licensee or applicant shall be given an opportunity to be heard in regard to such revocation, suspension or denial of a license. The ((director)) board shall give the licensee or applicant twenty days' notice in writing and such notice shall specify the charges or reasons for such revocation, suspension or denial. The notice shall also state the date, time and place where such hearing is to be held. Such hearings shall be held in the city where the licensee has his or her principal place of business, or where the applicant resides, unless some other place be agreed upon by the parties, and the defendant may be represented by counsel.

(3) The ((director)) board may issue subpoenas to compel the attendance of witnesses, and/or the production of books or documents anywhere in the state. The applicant or licensee shall have opportunity to be heard, and may have such subpoenas issued as he or she desires. Subpoenas shall be served in the same manner as in civil cases in the superior court. Witnesses shall testify under oath which may be administered by the ((director)) board. Testimony shall be recorded, and may be taken by deposition under such rules as the ((director)) board may prescribe.

(4) The ((director)) board shall hear and determine the charges, make findings and conclusions upon the evidence produced, and file them in ((his)) its office, together with a record of all of the evidence, and serve upon the accused a copy of such findings and conclusions.

Sec. 69. RCW 16.65.090 and 1997 c 356 s 10 are each amended to read as follows:

The ((director)) livestock identification board shall provide for ((brand)) livestock inspection. When such ((brand)) livestock inspection is required the licensee shall collect from the consignor and pay to the ((department)) board, as provided by law, a fee for ((brand)) livestock inspection for each animal consigned to the public livestock market or special open consignment horse sale. However, if in any one sale day the total fees collected for ((brand)) livestock inspection do not exceed ninety dollars, then such licensee shall pay ninety dollars for such ((brand)) livestock inspection or as much thereof as the ((director)) board may prescribe.

Sec. 70. RCW 16.65.100 and 1983 c 298 s 9 are each amended to read as follows:

The licensee of each public livestock market or special open consignment horse sale shall collect from any purchaser of livestock requesting ((brand)) livestock inspection a fee as provided by law for each animal inspected. Such fee shall be in addition to the fee charged to the consignor for ((brand)) livestock inspection and shall not apply to the minimum fee chargeable to the licensee.

Sec. 71. RCW 16.65.140 and 1971 ex.s. c 192 s 4 are each amended to read as follows:

Each licensee shall establish a custodial account for consignor's proceeds. All funds derived from the sale of livestock handled on a commission or agency basis shall be deposited in that account. Such account shall be drawn on only for the payment of net proceeds to the consignor, or such other person or persons of whom such licensee has knowledge is entitled to such proceeds, and to obtain from such proceeds only the sums due the licensee as compensation for his or her services as are set out in his or her tariffs, and for such sums as are necessary to pay all legal charges against the consignment of livestock which the licensee in his or her capacity as agent is required to pay for on behalf of the consignor or shipper. The licensee in each case shall keep such accounts and records that will at all times disclose the names of the consignors and the amount due and payable to each from the funds in the custodial account for consignor's proceeds. The licensee shall maintain the custodial account for consignor's proceeds in a manner that will expedite examination by the ((director)) livestock identification board and reflect compliance with the requirements of this section.

Sec. 72. RCW 16.65.190 and 1983 c 298 s 12 are each amended to read as follows:

No person shall hereafter operate a public livestock market or special open consignment horse sale unless such person has filed a schedule with the application for license to operate such public livestock market or special open consignment horse sale. Such schedule shall show all rates and charges for stockyard services to be furnished by such person at such public livestock market or special open consignment horse sale.

(1) Schedules shall be posted conspicuously at the public livestock market or special open consignment horse sale, and shall plainly state all such rates and charges in such detail as the ((director)) livestock identification board may require, and shall state any rules ((and regulations)) which in any manner change, affect, or determine any part of the aggregate of such rates or charges, or the value of the stockyard services furnished. The ((director)) board may determine and prescribe the form and manner in which such schedule shall be prepared, arranged and posted.

(2) No changes shall be made in rates or charges so filed and published except after thirty days' notice to the ((director)) board and to the public filed and posted as aforesaid, which shall plainly state the changes proposed to be made and the time such changes will go into effect.

(3) No licensee shall charge, demand or collect a greater or a lesser or a different compensation for such service than the rates and charges specified in the schedule filed with the ((director)) board and in effect at the time; nor shall a licensee refund or remit in any manner any portion of the rates or charges so specified (but this shall not prohibit a cooperative association of producers from properly returning to its members, on a patronage basis, its excess earnings on their livestock); nor shall a licensee extend to any person at such public livestock market or special open consignment horse sale any stockyard services except such as are specified in such schedule.

Sec. 73. RCW 16.65.200 and 1983 c 298 s 13 are each amended to read as follows:

Before the license is issued to operate a public livestock market or special open consignment horse sale, the applicant shall execute and deliver to the ((director)) livestock identification board a surety bond in a sum as herein provided for, executed by the applicant as principal and by a surety company qualified and authorized to do business in this state as surety. ((Said)) The bond shall be a standard form and approved by the ((director)) board as to terms and conditions. ((Said)) The bond shall be conditioned that the principal will not commit any fraudulent act and will comply with the provisions of this chapter and the rules ((and/or regulations)) adopted hereunder. ((Said)) The bond shall be to the state in favor of every consignor and/or vendor creditor whose livestock was handled or sold through or at the licensee's public livestock market or special open consignment horse sale: PROVIDED, That if such applicant is bonded as a market agency under the provisions of the packers and stockyards act, (7 U.S.C. 181) as amended, on March 20, 1961, in a sum equal to or greater than the sum required under the provisions of this chapter, and such applicant furnishes the ((director)) board with a bond approved by the United States secretary of agriculture ((naming the department as trustee)), the ((director)) board may accept such bond and its method of termination in lieu of the bond provided for herein and issue a license if such applicant meets all the other requirements of this chapter.

The total and aggregate liability of the surety for all claims upon the bond shall be limited to the face of such bond. Every bond filed with and approved by the ((director)) board shall, without the necessity of periodic renewal, remain in force and effect until such time as the license of the licensee is revoked for cause or otherwise canceled. The surety on a bond, as provided herein, shall be released and discharged from all liability to the state accruing on such bond upon compliance with the provisions of RCW 19.72.110 concerning notice and proof of service, as enacted or hereafter amended, but this shall not operate to relieve, release or discharge the surety from any liability already accrued or which shall accrue (due and to become due hereunder) before the expiration period provided for in RCW 19.72.110 concerning notice and proof of service as enacted or hereafter amended, and unless the principal shall before the expiration of such period, file a new bond, the ((director)) board shall forthwith cancel the principal's license.

Sec. 74. RCW 16.65.220 and 1971 ex.s. c 192 s 7 are each amended to read as follows:

If the application for a license to operate a public livestock market is from a new public livestock market which has not operated in the past twelve-month period, the ((director)) livestock identification board shall determine a bond, in a reasonable sum, that the applicant shall execute in favor of the state, which shall not be less than ten thousand dollars nor greater than twenty-five thousand dollars: PROVIDED, That the ((director)) board may at any time, upon written notice, review the licensee's operations and determine whether, because of increased or decreased sales, the amount of the bond should be altered.

Sec. 75. RCW 16.65.235 and 1973 c 142 s 3 are each amended to read as follows:

In lieu of the surety bond required under the provisions of this chapter, an applicant or licensee may file with the ((director)) livestock identification board a deposit consisting of cash or other security acceptable to the ((director)) board. The ((director)) board may adopt rules ((and regulations)) necessary for the administration of such security.

Sec. 76. RCW 16.65.250 and 1959 c 107 s 25 are each amended to read as follows:

The ((director)) livestock identification board or any vendor or consignor creditor may also bring action upon ((said)) the bond against both principal and surety in any court of competent jurisdiction to recover the damages caused by any failure to comply with the provisions of this chapter and the rules ((and/or regulations)) adopted hereunder.

Sec. 77. RCW 16.65.260 and 1983 c 298 s 14 are each amended to read as follows:

In case of failure by a licensee to pay amounts due a vendor or consignor creditor whose livestock was handled or sold through or at the licensee's public livestock market or special open consignment horse sale, as evidenced by a verified complaint filed with the ((director)) livestock identification board, the ((director)) board may proceed forthwith to ascertain the names and addresses of all vendor or consignor creditors of such licensee, together with the amounts due and owing to them and each of them by such licensee, and shall request all such vendor and consignor creditors to file a verified statement of their respective claims with the ((director)) board. Such request shall be addressed to each known vendor or consignor creditor at his or her last known address.

Sec. 78. RCW 16.65.270 and 1959 c 107 s 27 are each amended to read as follows:

If a vendor or consignor creditor so addressed fails, refuses or neglects to file in the office of the ((director his)) livestock identification board a verified claim as requested by the ((director)) board within sixty days from the date of such request, the ((director)) board shall thereupon be relieved of further duty or action hereunder on behalf of ((said)) the producer or consignor creditor.

Sec. 79. RCW 16.65.280 and 1959 c 107 s 28 are each amended to read as follows:

Where by reason of the absence of records, or other circumstances making it impossible or unreasonable for the ((director)) livestock identification board to ascertain the names and addresses of all ((said)) the vendor and consignor creditors, the ((director)) board, after exerting due diligence and making reasonable inquiry to secure ((said)) the information from all reasonable and available sources, may make demand on ((said)) the bond on the basis of information then in ((his)) its possession, and thereafter shall not be liable or responsible for claims or the handling of claims which may subsequently appear or be discovered.

Sec. 80. RCW 16.65.290 and 1959 c 107 s 29 are each amended to read as follows:

Upon ascertaining all claims and statements in the manner herein set forth, the ((director)) livestock identification board may then make demand upon the bond on behalf of those claimants whose statements have been filed, and shall have the power to settle or compromise ((said)) the claims with the surety company on the bond, and is empowered in such cases to execute and deliver a release and discharge of the bond involved.

Sec. 81. RCW 16.65.300 and 1959 c 107 s 30 are each amended to read as follows:

Upon the refusal of the surety company to pay the demand, the ((director)) livestock identification board may thereupon bring an action on the bond in behalf of ((said)) the vendor and consignor creditors. Upon any action being commenced on ((said)) the bond, the ((director)) board may require the filing of a new bond. Immediately upon the recovery in any action on such bond such licensee shall file a new bond. Upon failure to file the same within ten days, in either case, such failure shall constitute grounds for the suspension or revocation of his or her license.

Sec. 82. RCW 16.65.310 and 1959 c 107 s 31 are each amended to read as follows:

In any settlement or compromise by the ((director)) livestock identification board with a surety company as provided in RCW 16.65.290, where there are two or more consignor and/or vendor creditors that have filed claims, either fixed or contingent, against a licensee's bond, such creditors shall share pro rata in the proceeds of the bond to the extent of their actual damage: PROVIDED, That the claims of the state and the ((department)) board which may accrue from the conduct of the licensee's public livestock market shall have priority over all other claims.

Sec. 83. RCW 16.65.320 and 1985 c 415 s 10 are each amended to read as follows:

For the purpose of enforcing the provisions of this chapter, the ((director)) livestock identification board on the ((director's)) board's own motion or upon the verified complaint of any vendor or consignor against any licensee, or agent, or any person assuming or attempting to act as such, shall have full authority to make any and all necessary investigations. The ((director)) board is empowered to administer oaths of verification of such complaints.

Sec. 84. RCW 16.65.330 and 1959 c 107 s 33 are each amended to read as follows:

For the purpose of making investigations as provided for in RCW 16.65.320, the ((director)) livestock identification board may enter a public livestock market and examine any records required under the provisions of this chapter. The ((director)) board shall have full authority to issue subpoenas requiring the attendance of witnesses before ((him)) it, together with all books, memorandums, papers, and other documents relative to the matters under investigation, and to administer oaths and take testimony thereunder.

Sec. 85. RCW 16.65.340 and 1967 c 192 s 2 are each amended to read as follows:

The ((director)) livestock identification board shall, when livestock is sold, traded, exchanged or handled at or through a public livestock market, require such testing, treating, identifying, examining and record keeping of such livestock by a ((deputy)) state licensed and accredited veterinarian employed by the market as in the ((director's)) board's judgment may be necessary to prevent the spread of brucellosis, tuberculosis, paratuberculosis, ((hog cholera)) pseudorabies, or any other infectious, contagious or communicable disease among the livestock of this state. The state veterinarian or his or her authorized representative may conduct additional testing and examinations for the same purpose.

Sec. 86. RCW 16.65.350 and 1959 c 107 s 35 are each amended to read as follows:

(((1))) The director of the department of agriculture shall ((perform all tests and make all examinations required under the provisions of this chapter and rules and regulations adopted hereunder: PROVIDED, That veterinary inspectors of the United States department of agriculture may be appointed by the director to make such examinations and tests as are provided for in this chapter without bond or compensation, and shall have the same authority and power in this state as a deputy state veterinarian.

(2) The director shall have the responsibility for the direction and control of)) adopt rules regarding sanitary practices and health practices and standards and for the examination of animals at public livestock markets. ((The deputy state veterinarian at any such public livestock market shall notify the licensee or his managing agent, in writing, of insanitary practices or conditions. Such deputy state veterinarian shall notify the director if the improper sanitary practices or conditions are not corrected within the time specified. The director shall investigate and upon finding such report correct shall take appropriate action to hold a hearing on the suspension or revocation of the licensee's license.))

Sec. 87. RCW 16.65.360 and 1959 c 107 s 36 are each amended to read as follows:

Licensees shall provide facilities and sanitation for the prevention of livestock diseases at their public livestock markets, as follows:

(1) The floors of all pens and alleys that are part of a public livestock market shall be constructed of concrete or similar impervious material and kept in good repair, with a slope of not less than one-fourth inch per foot to adequate drains leading to an approved sewage system: PROVIDED, That the ((director)) livestock identification board may designate certain pens within such public livestock markets as feeding and holding pens and the floors and alleys of such pens shall not be subject to the aforementioned surfacing requirements.

(2) Feeding and holding pens maintained in an area adjacent to a public livestock market shall be constructed and separated from such public livestock market, in a manner prescribed by the director of agriculture, in order to prevent the spread of communicable diseases to the livestock sold or held for sale in such public livestock market.

(3) All yards, chutes and pens used in handling livestock shall be constructed of such materials which will render them easily cleaned and disinfected, and such yards, pens and chutes shall be kept clean, sanitary and in good repair at all times, as required by the director of agriculture.

(4) Sufficient calf pens of adequate size to prevent overcrowding shall be provided, and such pens, when used, shall be cleaned and disinfected no later than the day subsequent to each sale.

(5) All swine pens, when used, shall be cleaned and disinfected no later than the day subsequent to each sale.

(6) A water system carrying a pressure of forty pounds and supplying sufficient water to thoroughly wash all pens, floors, alleys and equipment shall be provided.

(7) Sufficient quarantine pens of adequate capacity shall be provided. Such pens shall be used to hold only cattle reacting to brucellosis and tuberculosis or to quarantine livestock with other contagious or communicable diseases and shall be:

(a) hard surfaced with concrete or similar impervious material and shall be kept in good repair;

(b) provided with separate watering facilities;

(c) painted white with the word "quarantine" painted in red letters not less than four inches high on such quarantine pen's gate;

(d) provided with a tight board fence not less than five and one-half feet high;

(e) cleaned and disinfected not later than one day subsequent to the date of sale.

To prevent the spread of communicable diseases among livestock, the director of agriculture shall have the authority to cause the cleaning and disinfecting of any area or all areas of a public livestock market and equipment or vehicles with a complete coverage of disinfectants approved by the director.

Sec. 88. RCW 16.65.420 and 1991 c 17 s 3 are each amended to read as follows:

(1) Any application for sales days or days for a new salesyard, and any application for a change of sales day or days or additional sales day or days for an existing yard shall be subject to approval by the ((director)) livestock identification board, subsequent to a hearing as provided for in this chapter and the ((director)) board is hereby authorized to allocate these dates and type and class of livestock which may be sold on these dates. In considering the allocation of such sales days, the ((director)) board shall give appropriate consideration, among other relevant factors, to the following:

(a) The geographical area which will be affected;

(b) The conflict, if any, with sales days already allocated in the area;

(d) Buyers available to such market;

(e) Any other conditions affecting the orderly marketing of livestock.

(2) No special sales shall be conducted by the licensee unless the licensee has applied to the ((director)) board in writing fifteen days prior to such proposed sale and such sale date shall be approved at the discretion of the ((director)) board.

(3) In any case that a licensee fails to conduct sales on the sales days allocated to the licensee, the ((director)) board shall, subsequent to a hearing, be authorized to revoke an allocation for nonuse. The rate of usage required to maintain an allocation shall be established by rule.

Sec. 89. RCW 16.65.422 and 1963 c 232 s 17 are each amended to read as follows:

A producer of purebred livestock may, upon obtaining a permit from the ((director)) livestock identification board, conduct a public sale of the purebred livestock on an occasional or seasonal basis on premises other than his or her own farm. Application for such special sale shall be in writing to the ((director)) board for ((his)) its approval at least fifteen days before the proposed public sale is scheduled to be held by such producer.

Sec. 90. RCW 16.65.423 and 1983 c 298 s 16 are each amended to read as follows:

The ((director)) livestock identification board shall have the authority to issue a public livestock market license pursuant to the provisions of this chapter limited to the sale of horses and/or mules and to allocate a sales day or days to such licensee. The ((director)) board is hereby authorized and directed to adopt ((regulations)) rules for facilities and sanitation applicable to such a license. The facility requirements of RCW 16.65.360 shall not be applicable to such licensee's operation as provided for in this section.

Sec. 91. RCW 16.65.424 and 1963 c 232 s 19 are each amended to read as follows:

The ((director)) livestock identification board shall have the authority to grant a licensee an additional sales day or days limited to the sale of horses and/or mules and may if requested grant the licensee, by permit, the authority to have the sale at premises other than at his or her public livestock market if the facilities are approved by the ((director)) board as being adequate for the protection of the health and safety of such horses and/or mules. For the purpose of such limited sale the facility requirements of RCW 16.65.360 shall not be applicable.

Sec. 92. RCW 16.65.445 and 1989 c 175 s 55 are each amended to read as follows:

The ((director)) livestock identification board shall hold public hearings upon a proposal to promulgate any new or amended ((regulations)) rules and all hearings for the denial, revocation, or suspension of a license issued under this chapter or in any other adjudicative proceeding, and shall comply in all respects with chapter 34.05 RCW, the Administrative Procedure Act.

Sec. 93. RCW 16.65.450 and 1991 c 17 s 4 are each amended to read as follows:

Any licensee or applicant who feels aggrieved by an order of the ((director)) livestock identification board may appeal to the superior court of the county in the state of Washington of the residence of the licensee or applicant where the trial on such appeal shall be held de novo.

Sec. 94. RCW 16.04.025 and 1989 c 286 s 21 are each amended to read as follows:

If the owner or the person having in charge or possession such animals is unknown to the person sustaining the damage, the person retaining such animals shall, within twenty-four hours, notify the county sheriff or the nearest state brand inspector as to the number, description, and location of the animals. The county sheriff or brand inspector shall examine the animals by brand, tattoo, or other identifying characteristics and attempt to ascertain ownership. If the animal is marked with a brand or tattoo which is registered with the ((director of agriculture)) livestock identification board, the brand inspector or county sheriff shall furnish this information and other pertinent information to the person holding the animals who in turn shall send the notice required in RCW 16.04.020 to the animals' owner of record by certified mail.

If the county sheriff or the brand inspector determines that there is no apparent damage to the property of the person retaining the animals, or if the person sustaining the damage contacts the county sheriff or brand inspector to have the animals removed from his or her property, such animals shall be removed in accordance with chapter 16.24 RCW. Such removal shall not prejudice the property owner's ability to recover damages through civil suit.

Sec. 95. RCW 41.06.070 and 1996 c 319 s 3, 1996 c 288 s 33, and 1996 c 186 s 109 are each reenacted and amended to read as follows:

(1) The provisions of this chapter do not apply to:

(a) The members of the legislature or to any employee of, or position in, the legislative branch of the state government including members, officers, and employees of the legislative council, joint legislative audit and review committee, statute law committee, and any interim committee of the legislature;

(b) The justices of the supreme court, judges of the court of appeals, judges of the superior courts or of the inferior courts, or to any employee of, or position in the judicial branch of state government;

(d) The officers of the Washington state patrol;

(e) Elective officers of the state;

(f) The chief executive officer of each agency;

(g) In the departments of employment security and social and health services, the director and the director's confidential secretary; in all other departments, the executive head of which is an individual appointed by the governor, the director, his or her confidential secretary, and his or her statutory assistant directors;

(h) In the case of a multimember board, commission, or committee, whether the members thereof are elected, appointed by the governor or other authority, serve ex officio, or are otherwise chosen:

(i) All members of such boards, commissions, or committees;

(ii) If the members of the board, commission, or committee serve on a part-time basis and there is a statutory executive officer: The secretary of the board, commission, or committee; the chief executive officer of the board, commission, or committee; and the confidential secretary of the chief executive officer of the board, commission, or committee;

(iii) If the members of the board, commission, or committee serve on a full-time basis: The chief executive officer or administrative officer as designated by the board, commission, or committee; and a confidential secretary to the chair of the board, commission, or committee;

(iv) If all members of the board, commission, or committee serve ex officio: The chief executive officer; and the confidential secretary of such chief executive officer;

(i) The confidential secretaries and administrative assistants in the immediate offices of the elective officers of the state;

(j) Assistant attorneys general;

(k) Commissioned and enlisted personnel in the military service of the state;

(l) Inmate, student, part-time, or temporary employees, and part-time professional consultants, as defined by the Washington personnel resources board;

(m) The public printer or to any employees of or positions in the state printing plant;

(n) Officers and employees of the Washington state fruit commission;

(o) Officers and employees of the Washington state apple advertising commission;

(p) Officers and employees of the Washington state dairy products commission;

(q) Officers and employees of the Washington tree fruit research commission;

(r) Officers and employees of the Washington state beef commission;

(s) Officers and employees of any commission formed under chapter 15.66 RCW;

(t) Officers and employees of the state wheat commission formed under chapter 15.63 RCW;

(u) Officers and employees of agricultural commissions formed under chapter 15.65 RCW;

(v) Officers and employees of the nonprofit corporation formed under chapter 67.40 RCW;

(w) Executive assistants for personnel administration and labor relations in all state agencies employing such executive assistants including but not limited to all departments, offices, commissions, committees, boards, or other bodies subject to the provisions of this chapter and this subsection shall prevail over any provision of law inconsistent herewith unless specific exception is made in such law;

(x) In each agency with fifty or more employees: Deputy agency heads, assistant directors or division directors, and not more than three principal policy assistants who report directly to the agency head or deputy agency heads;

(y) All employees of the marine employees' commission;

(z) Up to a total of five senior staff positions of the western library network under chapter 27.26 RCW responsible for formulating policy or for directing program management of a major administrative unit. This subsection (1)(z) shall expire on June 30, 1997;

(aa) Staff employed by the department of community, trade, and economic development to administer energy policy functions and manage energy site evaluation council activities under RCW 43.21F.045(2)(m);

(bb) Staff employed by Washington State University to administer energy education, applied research, and technology transfer programs under RCW 43.21F.045 as provided in RCW 28B.30.900(5);

(cc) Officers and employees of the livestock identification board created under RCW 16.57.015.

(2) The following classifications, positions, and employees of institutions of higher education and related boards are hereby exempted from coverage of this chapter:

(a) Members of the governing board of each institution of higher education and related boards, all presidents, vice-presidents, and their confidential secretaries, administrative, and personal assistants; deans, directors, and chairs; academic personnel; and executive heads of major administrative or academic divisions employed by institutions of higher education; principal assistants to executive heads of major administrative or academic divisions; other managerial or professional employees in an institution or related board having substantial responsibility for directing or controlling program operations and accountable for allocation of resources and program results, or for the formulation of institutional policy, or for carrying out personnel administration or labor relations functions, legislative relations, public information, development, senior computer systems and network programming, or internal audits and investigations; and any employee of a community college district whose place of work is one which is physically located outside the state of Washington and who is employed pursuant to RCW 28B.50.092 and assigned to an educational program operating outside of the state of Washington;

(b) Student, part-time, or temporary employees, and part-time professional consultants, as defined by the Washington personnel resources board, employed by institutions of higher education and related boards;

(c) The governing board of each institution, and related boards, may also exempt from this chapter classifications involving research activities, counseling of students, extension or continuing education activities, graphic arts or publications activities requiring prescribed academic preparation or special training as determined by the board: PROVIDED, That no nonacademic employee engaged in office, clerical, maintenance, or food and trade services may be exempted by the board under this provision;

(d) Printing craft employees in the department of printing at the University of Washington.

(3) In addition to the exemptions specifically provided by this chapter, the Washington personnel resources board may provide for further exemptions pursuant to the following procedures. The governor or other appropriate elected official may submit requests for exemption to the Washington personnel resources board stating the reasons for requesting such exemptions. The Washington personnel resources board shall hold a public hearing, after proper notice, on requests submitted pursuant to this subsection. If the board determines that the position for which exemption is requested is one involving substantial responsibility for the formulation of basic agency or executive policy or one involving directing and controlling program operations of an agency or a major administrative division thereof, the Washington personnel resources board shall grant the request and such determination shall be final as to any decision made before July 1, 1993. The total number of additional exemptions permitted under this subsection shall not exceed one percent of the number of employees in the classified service not including employees of institutions of higher education and related boards for those agencies not directly under the authority of any elected public official other than the governor, and shall not exceed a total of twenty-five for all agencies under the authority of elected public officials other than the governor. The Washington personnel resources board shall report to each regular session of the legislature during an odd-numbered year all exemptions granted under subsections (1)(w) and (x) and (2) of this section, together with the reasons for such exemptions.

The salary and fringe benefits of all positions presently or hereafter exempted except for the chief executive officer of each agency, full-time members of boards and commissions, administrative assistants and confidential secretaries in the immediate office of an elected state official, and the personnel listed in subsections (1)(j) through (v), (y), (z), and (2) of this section, shall be determined by the Washington personnel resources board. However, beginning with changes proposed for the 1997-99 fiscal biennium, changes to the classification plan affecting exempt salaries must meet the same provisions for classified salary increases resulting from adjustments to the classification plan as outlined in RCW 41.06.152.

Any person holding a classified position subject to the provisions of this chapter shall, when and if such position is subsequently exempted from the application of this chapter, be afforded the following rights: If such person previously held permanent status in another classified position, such person shall have a right of reversion to the highest class of position previously held, or to a position of similar nature and salary.

Any classified employee having civil service status in a classified position who accepts an appointment in an exempt position shall have the right of reversion to the highest class of position previously held, or to a position of similar nature and salary.

A person occupying an exempt position who is terminated from the position for gross misconduct or malfeasance does not have the right of reversion to a classified position as provided for in this section.

NEW SECTION. Sec. 96. A new section is added to chapter 42.17 RCW to read as follows:

Financial statements provided under RCW 16.65.030(1)(d) are exempt from disclosure under this chapter.

Sec. 97. 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. Except as provided in section 3 of this act, the department may make disbursements from the fund. The fund is not subject to legislative appropriation.

NEW SECTION. Sec. 98. (1) On the effective date of this section, all powers, duties, and functions of the department of agriculture under chapters 16.57, 16.58, and 16.65 RCW except those identified as remaining with the department in RCW 16.65.350 and 16.65.360 are transferred to the livestock identification board. The authority to adopt rules regarding those powers, duties, and functions is transferred to the livestock identification board and the administration of those powers, duties, and functions is transferred to the board.

(2)(a) All funds, credits, or other assets, including but not limited to those in the agricultural local fund, held by the department of agriculture in connection with the powers, functions, and duties transferred shall be assigned to the board.

(b) At any time after June 30, 2004, and at the conclusion of a contract under which the department of agriculture conducts by contract activities for the livestock identification board, the board may request the transfer and the department shall, upon such a request, transfer to the custody of the board all reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of agriculture pertaining to the functions performed by contract by the department for the board and all cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department to perform such duties on behalf of the board.

(c) Whenever any question arises as to the transfer of any funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

(3) All rules of the department of agriculture adopted under chapter 16.57 RCW in effect on the effective date of this section, all rules adopted by the department under chapter 16.58 RCW in effect on the effective date of this section, and all rules adopted by the department under chapter 16.65 RCW, except for those adopted under the authorities retained by the department under RCW 16.65.350 and 16.65.360, in effect on the effective date of this section are, on the effective date of this section, rules of the livestock identification board. All proposed rules and all pending business before the department of agriculture pertaining to the powers, functions, and duties transferred shall be continued and acted upon by the board. All existing contracts and obligations shall remain in full force and shall be performed by the board. All registrations made with the department under chapter 16.57 RCW, all licenses issued by the department under chapter 16.58 RCW, and all licenses issued by the department under chapter 16.65 RCW before the effective date of this section shall be considered to be registrations with and licenses issued by the board.

(4) The transfer of the powers, duties, and functions of the department of agriculture shall not affect the validity of any act performed before the effective date of this section. The board shall take action to enforce against violations of chapters 16.57, 16.58, and 16.65 RCW and rules adopted thereunder regarding authorities transferred to the board by this act which occurred before the effective date of this section and for which enforcement is not taken by the department before the effective date of this section with the same force and effect as it may take actions to enforce chapters 16.57 and 16.58 RCW and rules adopted thereunder after the effective date of this section. Any enforcement action taken by the department of agriculture under chapter 16.57, 16.58, or 16.65 RCW regarding authorities transferred to the board by this act, or the rules adopted thereunder and not concluded before the effective date of this section, shall be continued in the name of the board.

(5) As used in this section "livestock identification board" and "board" means the board created under RCW 16.57.015.

NEW SECTION. Sec. 99. (1) The following acts or parts of acts are each repealed:

(a) 1997 c 356 s 3;

(b) 1997 c 356 s 5;

(d) 1997 c 356 s 11;

(e) RCW 16.57.380 and 1991 c 110 s 8, 1981 c 296 s 22, & 1974 ex.s. c 38 s 1; and

(f) RCW 16.65.110 and 1959 c 107 s 11.

(2) This section is null and void unless subsections (1) through (5) of section 2 of this act and section 98 of this act become law.

NEW SECTION. Sec. 100. This act takes effect July 1, 1998, except that appointments may be made by the governor and proposed contracts may be developed under RCW 16.57.015 prior to July 1, 1998, to provide for an orderly transition of authority under this act.

NEW SECTION. Sec. 101. 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, sections 1 through 4 and 7 through 100 of this act are null and void."

On page 1, line 1 of the title, after "identification;" strike the remainder of the title and insert "amending RCW 16.57.010, 16.57.015, 16.57.020, 16.57.030, 16.57.040, 16.57.070, 16.57.080, 16.57.090, 16.57.100, 16.57.105, 16.57.110, 16.57.120, 16.57.130, 16.57.140, 16.57.150, 16.57.160, 16.57.165, 16.57.170, 16.57.180, 16.57.200, 16.57.210, 16.57.220, 16.57.230, 16.57.240, 16.57.260, 16.57.270, 16.57.275, 16.57.280, 16.57.290, 16.57.300, 16.57.310, 16.57.320, 16.57.330, 16.57.340, 16.57.350, 16.57.360, 16.57.370, 16.57.400, 16.57.407, 16.57.410, 16.57.420, 16.58.020, 16.58.030, 16.58.040, 16.58.050, 16.58.060, 16.58.070, 16.58.080, 16.58.095, 16.58.100, 16.58.110, 16.58.120, 16.58.130, 16.58.140, 16.58.150, 16.58.160, 16.65.010, 16.65.015, 16.65.020, 16.65.030, 16.65.037, 16.65.040, 16.65.042, 16.65.050, 16.65.080, 16.65.090, 16.65.100, 16.65.140, 16.65.190, 16.65.200, 16.65.220, 16.65.235, 16.65.250, 16.65.260, 16.65.270, 16.65.280, 16.65.290, 16.65.300, 16.65.310, 16.65.320, 16.65.330, 16.65.340, 16.65.350, 16.65.360, 16.65.420, 16.65.422, 16.65.423, 16.65.424, 16.65.445, 16.65.450, 16.04.025, and 43.23.230; reenacting and amending RCW 41.06.070; adding new sections to chapter 16.57 RCW; adding a new section to chapter 42.17 RCW; creating new sections; repealing RCW 16.57.380 and 16.65.110; repealing 1997 c 356 s 3; repealing 1997 c 356 s 5; repealing 1997 c 356 s 9; repealing 1997 c 356 s 11; and providing an effective date."

There being no objection, the House adopted the Report of the Conference Committee on Engrossed Substitute Senate Bill No. 6204 and advanced the bill to Final Passage.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 6204 as recommended by the Conference Committee.

Representatives Schoesler and Linville spoke in favor of passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 6204 as recommended by the Conference Committee, and the bill passed the House by the following vote: Yeas - 64, Nays - 33, Absent - 0, Excused - 1.

Voting yea: Representatives Alexander, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Clements, Cooke, Crouse, DeBolt, Delvin, Doumit, Dunn, Dyer, Fisher, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Koster, Lambert, Lisk, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Parlette, Pennington, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Zellinsky and Mr. Speaker - 64.

Voting nay: Representatives Anderson, Appelwick, Butler, Chopp, Cody, Cole, Constantine, Conway, Cooper, Costa, Dickerson, Dunshee, Eickmeyer, Gardner, Gombosky, Kastama, Keiser, Kenney, Kessler, Lantz, Linville, Mason, Murray, O'Brien, Ogden, Poulsen, Quall, Regala, Scott, Tokuda, Veloria, Wolfe and Wood - 33.

Excused: Representative Romero - 1.

Engrossed Substitute Senate Bill No. 6204, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

REPORT OF CONFERENCE COMMITTEE

Bill No: ESSB 6165 Date: March 10, 1998

Prepared by: Bill Perry (7123) Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your Conference Committee, to whom was referred ENGROSSED SUBSTITUTE SENATE BILL NO. 6165, ignition interlock violations, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and the striking amendment by the Conference Committee be adopted; and

that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. This act may be known and cited as the Mary Johnsen Act.

Sec. 2. RCW 46.20.720 and 1997 c 229 s 8 are each amended to read as follows:

(1) The court may order that after a period of suspension, revocation, or denial of driving privileges, and for up to as long as the court has jurisdiction, any person convicted of any offense involving the use, consumption, or possession of alcohol while operating a motor vehicle may drive only a motor vehicle equipped with a functioning ignition interlock or other biological or technical device.

(2) If a person is convicted of a violation of RCW 46.61.502 or 46.61.504 or an equivalent local ordinance, the court shall order that after a period of suspension, revocation, or denial of driving privileges, the person may drive only a motor vehicle equipped with a functioning ignition interlock or other biological or technical device. The court may waive the requirement for the use of such a device if the court makes a specific finding in writing that such devices are not reasonably available in the local area.

(3) The court shall establish a specific calibration setting at which the ignition interlock or other biological or technical device will prevent the motor vehicle from being started and the period of time that the person shall be subject to the restriction. In the case of a person under subsection (2) of this section, the period of time of the restriction will be as follows:

(a) For a person subject to RCW 46.61.5055 (1)(b), (2), or (3) who has not previously been restricted under this section, a period of not less than one year;

(b) For a person who has previously been restricted under (a) of this subsection, a period of not less than five years;

For purposes of this section, "convicted" means being found guilty of an offense or being placed on a deferred prosecution program under chapter 10.05 RCW.

Sec. 3. RCW 46.20.740 and 1997 c 229 s 10 are each amended to read as follows:

(1) The department shall attach or imprint a notation on the driver's license of any person restricted under RCW 46.20.720 or 46.61.5055 stating that the person may operate only a motor vehicle equipped with an ignition interlock or other biological or technical device.

(2) It is a misdemeanor for a person with such a notation on his or her driver's license to operate a motor vehicle that is not so equipped. For the first such conviction, the minimum sentence is thirty days in jail. For a second offense, the minimum sentence is sixty days in jail. For a third or subsequent offense, the minimum sentence is ninety days in jail.

Sec. 4. RCW 46.61.5055 and 1997 c 229 s 11 and 1997 c 66 s 14 are each reenacted and amended to read as follows:

(1) A person who is convicted of a violation of RCW 46.61.502 or 46.61.504 and who has no prior offense within five years shall be punished as follows:

(iv) By a court-ordered restriction under RCW 46.20.720.

(2) A person who is convicted of a violation of RCW 46.61.502 or 46.61.504 and who has one prior offense within five years shall be punished as follows:

(iv) By a court-ordered restriction under RCW 46.20.720; or

(iv) By a court-ordered restriction under RCW 46.20.720.

(3) A person who is convicted of a violation of RCW 46.61.502 or 46.61.504 and who has two or more prior offenses within five years shall be punished as follows:

(iv) By a court-ordered restriction under RCW 46.20.720; or

(iv) By a court-ordered restriction under RCW 46.20.720.

(4) In exercising its discretion in setting penalties within the limits allowed by this section, the court shall particularly consider whether the person's driving at the time of the offense was responsible for injury or damage to another or another's property.

(5) An offender punishable under this section is subject to the alcohol assessment and treatment provisions of RCW 46.61.5056.

(8)(a) A "prior offense" means any of the following:

(i) A conviction for a violation of RCW 46.61.502 or an equivalent local ordinance;

(ii) A conviction for a violation of RCW 46.61.504 or an equivalent local ordinance;

(iii) A conviction for a violation of RCW 46.61.520 committed while under the influence of intoxicating liquor or any drug;

(iv) A conviction for a violation of RCW 46.61.522 committed while under the influence of intoxicating liquor or any drug;

(vi) An out-of-state conviction for a violation that would have been a violation of (a)(i), (ii), (iii), (iv), or (v) of this subsection if committed in this state;

(vii) A deferred prosecution under chapter 10.05 RCW granted in a prosecution for a violation of RCW 46.61.502, 46.61.504, or an equivalent local ordinance; or

(b) "Within five years" means that the arrest for a prior offense occurred within five years of the arrest for the current offense.

Sec. 5. RCW 46.55.113 and 1997 c 66 s 7 are each amended to read as follows:

Whenever the driver of a vehicle is arrested for a violation of RCW 46.61.502 or 46.61.504 or any similar municipal ordinance, the arresting officer may take custody of the vehicle and provide for its prompt removal to a place of safety. If the driver is in violation of a restriction under RCW 46.20.720 or 46.61.5055 to operate only a motor vehicle equipped with an ignition interlock or other biological or technical device, the arresting officer shall take custody of the vehicle and provide for its prompt removal to a place of safety. The vehicle will remain impounded for use as evidence at a trial regarding the violation of the restriction.

In addition, a police officer may take custody of a vehicle and provide for its prompt removal to a place of safety under any of the following circumstances:

(1) Whenever a police officer finds a vehicle standing upon the roadway in violation of any of the provisions of RCW 46.61.560, the officer may provide for the removal of the vehicle or require the driver or other person in charge of the vehicle to move the vehicle to a position off the roadway;

(2) Whenever a police officer finds a vehicle unattended upon a highway where the vehicle constitutes an obstruction to traffic or jeopardizes public safety;

(3) Whenever a police officer finds an unattended vehicle at the scene of an accident or when the driver of a vehicle involved in an accident is physically or mentally incapable of deciding upon steps to be taken to protect his or her property;

(4) Whenever the driver of a vehicle is arrested and taken into custody by a police officer;

(5) Whenever a police officer discovers a vehicle that the officer determines to be a stolen vehicle;

(6) Whenever a vehicle without a special license plate, card, or decal indicating that the vehicle is being used to transport a disabled person under RCW 46.16.381 is parked in a stall or space clearly and conspicuously marked under RCW 46.61.581 which space is provided on private property without charge or on public property;

(7) Upon determining that a person is operating a motor vehicle without a valid driver's license in violation of RCW 46.20.005 or with a license that has been expired for ninety days or more, or with a suspended or revoked license in violation of RCW 46.20.342 or 46.20.420.

Nothing in this section may derogate from the powers of police officers under the common law. For the purposes of this section, a place of safety may include the business location of a registered tow truck operator.

NEW SECTION. Sec. 6. A new section is added to chapter 46.61 RCW to read as follows:

Charges of a violation of RCW 46.61.502, 46.61.503, or 46.61.504, whether made by citation, complaint, or information, shall be filed, and arraignment on those charges shall be held, within twenty-one days following arrest.

NEW SECTION. Sec. 7. The legislature finds that driving is a privilege and that the state may restrict that privilege in the interests of public safety. One such reasonable restriction is requiring certain individuals, if they choose to drive, to drive only vehicles equipped with ignition interlock devices. The legislature further finds that the costs of these devices are minimal and are affordable. It is the intent of the legislature that these devices be paid for by the drivers using them and that neither the state nor entities of local government provide any public funding for this purpose.

NEW SECTION. Sec. 8. If this act mandates an increased level of service by local governments, the local government may, under RCW 43.135.060 and chapter 4.92 RCW, submit claims for reimbursement by the legislature. The claims shall be subject to verification by the office of financial management.

NEW SECTION. Sec. 9. This act takes effect January 1, 1999."

On page 1, line 1 of the title, after "devices;" strike the remainder of the title and insert "amending RCW 46.20.720, 46.20.740, and 46.55.113; reenacting and amending RCW 46.61.5055; adding a new section to chapter 46.61 RCW; creating new sections; prescribing penalties; and providing an effective date."

There being no objection, the House adopted the Report of the Conference Committee on Engrossed Substitute Senate Bill No. 6165 and advanced the bill to Final Passage.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 6165 as recommended by the Conference Committee.

Representatives Sterk and Constantine spoke in favor of passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 6165 as recommended by the Conference Committee, 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, 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, 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 Romero - 1.

Engrossed Substitute Senate Bill No. 6165, as recommended by the Conference Committee, 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 ENGROSSED SUBSTITUTE SENATE BILL NO. 6515 and asks the House for a conference thereon. The President has appointed the following members as conferees: Senators Strannigan, Brown and Finkbeiner

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. 6515.

APPOINTMENT OF CONFEREES

The Speaker (Representative Pennington presiding) appointed Representatives Hankins, Crouse and Poulsen as conferees on Engrossed Substitute Senate Bill No. 6515.

MESSAGE FROM THE SENATE

March 11, 1998

Mr. Speaker:

The Senate refuses to recede from its amendment(s) to SECOND ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1354 and asks the House for a conference thereon. The President has appointed the following members as conferees: Senators Morton, Fraser and Prince

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House granted the Senate Request for a conference on Second Engrossed Second Substitute House Bill No. 1354.

APPOINTMENT OF CONFEREES

The Speaker (Representative Pennington presiding) appointed Representatives Schoesler, Pennington and Cooper as conferees on Second Engrossed Second Substitute House Bill No. 1354.

SENATE AMENDMENTS TO HOUSE BILL

March 10, 1998

Mr. Speaker:

Under suspension of rules, SUBSTITUTE HOUSE BILL NO. 2459 was returned to second reading for purposes of amendment. The Senate adopted the attached striking amendment (S-5223.2) Floor No. 1007,

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 35.82.040 and 1995 c 293 s 1 are each amended to read as follows:

Except as provided in section 2 of this act, when the governing body of a city adopts a resolution declaring that there is a need for a housing authority, it shall promptly notify the mayor of such adoption. Upon receiving such notice, the mayor shall appoint five persons as commissioners of the authority created for the city. When the governing body of a county adopts a resolution declaring that there is a need for a housing authority, it shall appoint five persons as commissioners of the authority created for the county. The commissioners who are first appointed shall be designated to serve for terms of one, two, three, four and five years, respectively, from the date of their appointment, but thereafter commissioners shall be appointed for a term of office of five years except that all vacancies shall be filled for the unexpired term. No commissioner of an authority may be an officer or employee of the city or county for which the authority is created, unless the commissioner is an employee of a separately elected county official other than the county governing body in a county with a population of less than one hundred seventy-five thousand as of the 1990 federal census, and the total government employment in that county exceeds forty percent of total employment. A commissioner shall hold office until a successor has been appointed and has qualified, unless sooner removed according to this chapter. A certificate of the appointment or reappointment of any commissioner shall be filed with the clerk and such certificate shall be conclusive evidence of the due and proper appointment of such commissioner. A commissioner shall receive no compensation for his or her services for the authority, in any capacity, but he or she shall be entitled to the necessary expenses, including traveling expenses, incurred in the discharge of his or her duties.

The powers of each authority shall be vested in the commissioners thereof in office from time to time. Except as provided in section 2 of this act, three commissioners shall constitute a quorum of the authority for the purpose of conducting its business and exercising its powers and for all other purposes. Action may be taken by the authority upon a vote of a majority of the commissioners present, unless in any case the bylaws of the authority shall require a larger number. The mayor (or in the case of an authority for a county, the governing body of the county) shall designate which of the commissioners appointed shall be the first chair of the commission and he or she shall serve in the capacity of chair until the expiration of his or her term of office as commissioner. When the office of the chair of the authority becomes vacant, the authority shall select a chair from among its commissioners. An authority shall select from among its commissioners a vice-chair, and it may employ a secretary (who shall be executive director), technical experts and such other officers, agents and employees, permanent and temporary, as it may require, and shall determine their qualifications, duties and compensation. For such legal services as it may require, an authority may call upon the chief law officer of the city or the county or may employ its own counsel and legal staff. An authority may delegate to one or more of its agents or employees such powers or duties as it may deem proper.

NEW SECTION. Sec. 2. A new section is added to chapter 35.82 RCW to read as follows:

(1) After the effective date of this section, the governing body of a city with a population of four hundred thousand or more, that has created a housing authority under RCW 35.82.040, shall adopt a resolution to expand the number of commissioners on the housing authority from five to seven. Upon receiving the notice, the mayor, with approval of the city council, shall appoint additional persons as commissioners of the authority created for the city.

(2) In appointing commissioners, the mayor shall consider persons that represent the community, provided that two commissioners shall consist of tenants that reside in a housing project that is owned by the housing authority.

(3) After the effective date of this section, all commissioners shall be appointed to serve four-year terms, except that all vacancies shall be filled for the remainder of the unexpired term. A commissioner of an authority may not be an officer or employee of the city for which the authority is created. A commissioner shall hold office until a successor has been appointed and has qualified, unless sooner removed according to this chapter.

(4) A commissioner may be reappointed only after review and approval by the city council.

(5) A certificate of the appointment or reappointment of any commissioner shall be filed with the clerk and the certificate is conclusive evidence of the due and proper appointment of the commissioner.

(6) A commissioner shall receive no compensation for his or her services for the authority, in any capacity, but he or she is entitled to the necessary expenses, including traveling expenses, incurred in the discharge of his or her duties.

(7) The powers of each authority vest in the commissioners of the authority in office from time to time. Four commissioners shall constitute a quorum of the authority for the purpose of conducting its business and exercising its powers and for all other purposes. Action may be taken by the authority upon a vote of a majority of the commissioners present, unless in any case the bylaws of the authority shall require a larger number.

(8) The mayor, with consent of the city council, shall designate which of the commissioners appointed shall be the first chair of the commission and he or she shall serve in the capacity of chair until the expiration of his or her term of office as commissioner. When the office of the chair of the authority becomes vacant, the authority shall select a chair from among its commissioners. An authority shall select from among its commissioners a vice-chair, and the authority may employ a secretary, who shall be executive director, technical experts and such other officers, agents, and employees, permanent and temporary, as the authority requires, and shall determine their qualifications, duties, and compensation.

(9) For such legal services as it may require, an authority may call upon the chief law officer of the city or may employ its own counsel and legal staff. An authority may delegate to one or more of its agents or employees such powers or duties as it may deem proper.

Sec. 3. RCW 35.82.050 and 1965 c 7 s 35.82.050 are each amended to read as follows:

(1) No commissioner ((or)), employee ((of an authority)), or appointee to any decision-making body for the housing authority shall ((acquire any interest direct or indirect in any housing project or in any property included or planned to be included in any project, nor shall he have any interest direct or indirect in any contract or proposed contract for materials or services to be furnished or used in connection with any housing project)) own or hold an interest in any contract or property or engage in any business, transaction, or professional or personal activity, that would:

(a) Be, or appear to be, in conflict with the commissioner's, employee's, or appointee's official duties to any decision-making body for the housing authority duties relating to the housing authority served by or subject to the authority of such commissioner, employee, or appointee to any decision-making body for the housing authority;

(b) Secure, or appear to secure, unwarranted privileges or advantages for such commissioner, employee, or appointee to any decision-making body for the housing authority, or others; or

(c) Prejudice, or appear to prejudice, such commissioner's, employee's, or appointee's to any decision-making body for the housing authority independence of judgment in exercise of his or her official duties relating to the housing authority served by or subject to the authority of the commissioner, employee, or appointee to any decision-making body for the housing authority.

(2) No commissioner, employee, or appointee to any decision-making body for the housing authority shall act in an official capacity in any manner in which such commissioner, employee, or appointee to any decision-making body of the housing authority has a direct or indirect financial or personal involvement.

(3) No commissioner, employee, or appointee to any decision-making body for the housing authority shall use his or her public office or employment to secure financial gain to such commissioner, employee, or appointee to any decision-making body for the housing authority.

(4) If any commissioner or employee of an authority or any appointee to any decision-making body for the housing authority owns or controls an interest direct or indirect in any property included or planned to be included in any housing project, he immediately shall disclose the same in writing to the authority and such disclosure shall be entered upon the minutes of the authority. Failure ((so)) to disclose such interest shall constitute misconduct in office. Upon such disclosure such commissioner ((or)), employee, or appointee to any decision-making body for the housing authority shall not participate in any action by the authority affecting such property.

(5) No provision of this section shall preclude a tenant of the public housing authority from serving as a commissioner, employee, or appointee to any decision-making body of the housing authority. No provision of this section shall preclude a tenant of the public housing authority who is serving as a commissioner, employee, or appointee to any decision-making body of the housing authority from voting on any issue or decision, or participating in any action by the authority, unless a conflict of interest, as set forth in subsections (1) through (4) of this section, exists as to that particular tenant and the particular property or interest at issue before, or subject to action by the housing authority."

On page 1, line 2 of the title, after "thousand;" strike the remainder of the title and insert "amending RCW 35.82.040 and 35.82.050; and adding a new section to chapter 35.82 RCW."

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Substitute House Bill No. 2459 and advanced the bill as amended by the Senate to final passage.

Representatives Veloria, Van Luven and Chopp spoke in favor of final passage of the bill.

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. 2459 as amended by the Senate.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 2459 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. 2459, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 10, 1998

Mr. Speaker:

Under suspension of rules, SUBSTITUTE HOUSE BILL NO. 1441 was returned to second reading for purposes of amendment. The Senate adopted the attached striking amendment (S-5543.1) Floor No. 1014,

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 9A.44 RCW to read as follows:

(1) As used in this section:

(a) "Photographs" or "films" means the making of a photograph, motion picture film, videotape, or any other recording or transmission of the image of a person;

(b) "Place where he or she would have a reasonable expectation of privacy" means:

(i) A place where a reasonable person would believe that he or she could disrobe in privacy, without being concerned that his or her undressing was being photographed or filmed by another; or

(ii) A place where one may reasonably expect to be safe from casual or hostile intrusion or surveillance;

(c) "Surveillance" means secret observation of the activities of another person for the purpose of spying upon and invading the privacy of the person;

(d) "Views" means the intentional looking upon of another person for more than a brief period of time, in other than a casual or cursory manner, with the unaided eye or with a device designed or intended to improve visual acuity.

(2) A person commits the crime of voyeurism if, for the purpose of arousing or gratifying the sexual desire of any person, he or she knowingly views, photographs, or films another person, without that person's knowledge and consent, while the person being viewed, photographed, or filmed is in a place where he or she would have a reasonable expectation of privacy.

(3) Voyeurism is a class C felony.

(4) This section does not apply to viewing, photographing, or filming by personnel of the department of corrections or of a local jail or correctional facility for security purposes or during investigation of alleged misconduct by a person in the custody of the department of corrections or the local jail or correctional facility.

Sec. 2. RCW 9A.04.080 and 1997 c 174 s 1 and 1997 c 97 s 1 are each reenacted and amended to read as follows:

(1) Prosecutions for criminal offenses shall not be commenced after the periods prescribed in this section.

(a) The following offenses may be prosecuted at any time after their commission:

(i) Murder;

(ii) Homicide by abuse;

(iii) Arson if a death results;

(iv) Vehicular homicide;

(v) Vehicular assault if a death results;

(vi) Hit-and-run injury-accident if a death results (RCW 46.52.020(4)).

(b) The following offenses shall not be prosecuted more than ten years after their commission:

(i) Any felony committed by a public officer if the commission is in connection with the duties of his or her office or constitutes a breach of his or her public duty or a violation of the oath of office;

(ii) Arson if no death results; or

(iii) Violations of RCW 9A.44.040 or 9A.44.050 if the rape is reported to a law enforcement agency within one year of its commission; except that if the victim is under fourteen years of age when the rape is committed and the rape is reported to a law enforcement agency within one year of its commission, the violation may be prosecuted up to three years after the victim's eighteenth birthday or up to ten years after the rape's commission, whichever is later. If a violation of RCW 9A.44.040 or 9A.44.050 is not reported within one year, the rape may not be prosecuted: (A) More than three years after its commission if the violation was committed against a victim fourteen years of age or older; or (B) more than three years after the victim's eighteenth birthday or more than seven years after the rape's commission, whichever is later, if the violation was committed against a victim under fourteen years of age.

(c) Violations of the following statutes shall not be prosecuted more than three years after the victim's eighteenth birthday or more than seven years after their commission, whichever is later: RCW 9A.44.073, 9A.44.076, 9A.44.083, 9A.44.086, 9A.44.070, 9A.44.080, 9A.44.100(1)(b), or 9A.64.020.

(d) The following offenses shall not be prosecuted more than six years after their commission: Violations of RCW 9A.82.060 or 9A.82.080.

(e) The following offenses shall not be prosecuted more than five years after their commission: Any class C felony under chapter 74.09, 82.36, or 82.38 RCW.

(f) Bigamy shall not be prosecuted more than three years after the time specified in RCW 9A.64.010.

(g) A violation of RCW 9A.56.030 must not be prosecuted more than three years after the discovery of the offense when the victim is a tax exempt corporation under 26 U.S.C. Sec. 501(c)(3).

(h) No other felony may be prosecuted more than three years after its commission; except that in a prosecution under section 1 of this act, if the person who was viewed, photographed, or filmed did not realize at the time that he or she was being viewed, photographed, or filmed, the prosecution must be commenced within two years of the time the person who was viewed or in the photograph or film first learns that he or she was viewed, photographed, or filmed.

(i) No gross misdemeanor may be prosecuted more than two years after its commission.

(j) No misdemeanor may be prosecuted more than one year after its commission.

(2) The periods of limitation prescribed in subsection (1) of this section do not run during any time when the person charged is not usually and publicly resident within this state.

(3) If, before the end of a period of limitation prescribed in subsection (1) of this section, an indictment has been found or a complaint or an information has been filed, and the indictment, complaint, or information is set aside, then the period of limitation is extended by a period equal to the length of time from the finding or filing to the setting aside."

On page 1, line 1 of the title, after "voyeurism;" strike the remainder of the title and insert "reenacting and amending RCW 9A.04.080; adding a new section to chapter 9A.44 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 Substitute House Bill No. 1441 and advanced the bill as amended by the Senate to final passage.

Representatives McDonald and Lantz spoke in favor of final passage of the bill.

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. 1441 as amended by the Senate.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 1441 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. 1441, as amended by the Senate, having received the constitutional majority, was declared passed.

MESSAGE FROM THE SENATE

March 11, 1998

Mr. Speaker:

The Senate has adopted the report of the Conference Committee on Substitute House Bill No. 2077 and has passed the bill as recommended by the Conference Committee, and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

REPORT OF CONFERENCE COMMITTEE

SHB 2077 March 10, 1998

Prepared by: Diane Smith Includes "NEW ITEM": YES

Mr. President:

Mr. Speaker:

We of your CONFERENCE COMMITTEE, to whom was referred SUBSTITUTE HOUSE BILL NO. 2077, Competitive bidding, have had the same under consideration and we recommend that:

All previous amendments be not adopted, and the Conference Committee striking amendment be adopted, and

and that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 39.04 RCW to read as follows:

This section provides uniform exemptions to competitive bidding requirements utilized by municipalities when awarding contracts for public works and contracts for purchases. The statutes governing a specific type of municipality may also include other exemptions from competitive bidding requirements. The purpose of this section is to supplement and not to limit the current powers of any municipality to provide exemptions from competitive bidding requirements.

(1) Competitive bidding requirements may be waived by the governing body of the municipality for:

(a) Purchases that are clearly and legitimately limited to a single source of supply;

(b) Purchases involving special facilities or market conditions;

(d) Purchases of insurance or bonds; and

(e) Public works in the event of an emergency.

(2)(a) The waiver of competitive bidding requirements under subsection (1) of this section may be by resolution or by the terms of written policies adopted by the municipality, at the option of the governing body of the municipality. If the governing body elects to waive competitive bidding requirements by the terms of written policies adopted by the municipality, immediately after the award of any contract, the contract and the factual basis for the exception must be recorded and open to public inspection.

If a resolution is adopted by a governing body to waive competitive bidding requirements under (b) of this subsection, the resolution must recite the factual basis for the exception. This subsection (2)(a) does not apply in the event of an emergency.

(b) If an emergency exists, the person or persons designated by the governing body of the municipality to act in the event of an emergency may declare an emergency situation exists, waive competitive bidding requirements, and award all necessary contracts on behalf of the municipality to address the emergency situation. If a contract is awarded without competitive bidding due to an emergency, a written finding of the existence of an emergency must be made by the governing body or its designee and duly entered of record no later than two weeks following the award of the contract.

(3) For purposes of this section "emergency" means unforeseen circumstances beyond the control of the municipality that either: (a) Present a real, immediate threat to the proper performance of essential functions; or (b) will likely result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken.

Sec. 2. RCW 35.22.620 and 1993 c 198 s 9 are each amended to read as follows:

(1) As used in this section, the term "public works" means as defined in RCW 39.04.010.

(2) A first class city may have public works performed by contract pursuant to public notice and call for competitive bids. As limited by subsection (3) of this section, a first class city may have public works performed by city employees in any annual or biennial budget period equal to a dollar value not exceeding ten percent of the public works construction budget, including any amount in a supplemental public works construction budget, over the budget period. The amount of public works that a first class city has a county perform for it under RCW 35.77.020 shall be included within this ten percent limitation.

If a first class city has public works performed by public employees in any budget period that are in excess of this ten percent limitation, the amount in excess of the permitted amount shall be reduced from the otherwise permitted amount of public works that may be performed by public employees for that city in its next budget period. Twenty percent of the motor vehicle fuel tax distributions to that city shall be withheld if two years after the year in which the excess amount of work occurred, the city has failed to so reduce the amount of public works that it has performed by public employees. The amount so withheld shall be distributed to the city when it has demonstrated in its reports to the state auditor that the amount of public works it has performed by public employees has been so reduced.

Whenever a first class city has had public works performed in any budget period up to the maximum permitted amount for that budget period, all remaining public works within that budget period shall be done by contract pursuant to public notice and call for competitive bids.

The state auditor shall report to the state treasurer any first class city that exceeds this amount and the extent to which the city has or has not reduced the amount of public works it has performed by public employees in subsequent years.

(3) In addition to the percentage limitation provided in subsection (2) of this section, a first class city with a population in excess of one hundred fifty thousand shall not have public employees perform a public works project in excess of fifty thousand dollars if more than a single craft or trade is involved with the public works project, or a public works project in excess of twenty-five thousand dollars if only a single craft or trade is involved with the public works project or the public works project is street signalization or street lighting. In addition to the percentage limitation provided in subsection (2) of this section, a first class city with a population of one hundred fifty thousand or less shall not have public employees perform a public works project in excess of thirty-five thousand dollars if more than one craft or trade is involved with the public works project, or a public works project in excess of twenty thousand dollars if only a single craft or trade is involved with the public works project or the public works project is street signalization or street lighting. A public works project means a complete project. The restrictions in this subsection do not permit the division of the project into units of work or classes of work to avoid the restriction on work that may be performed by day labor on a single project.

(4) In addition to the accounting and record-keeping requirements contained in RCW 39.04.070, every first class city annually shall prepare a report for the state auditor indicating the total public works construction budget and supplemental public works construction budget for that year, the total construction costs of public works performed by public employees for that year, and the amount of public works that is performed by public employees above or below ten percent of the total construction budget. However, if a city budgets on a biennial basis, this annual report shall indicate the amount of public works that is performed by public employees within the current biennial period that is above or below ten percent of the total biennial construction budget.

After September 1, 1987, each first class city with a population of one hundred fifty thousand or less shall use the form required by RCW 43.09.205 to account and record costs of public works in excess of five thousand dollars that are not let by contract.

(5) The cost of a separate public works project shall be the costs of materials, supplies, equipment, and labor on the construction of that project. The value of the public works budget shall be the value of all the separate public works projects within the budget.

(6) ((When any emergency shall require the immediate execution of such public work, upon the finding of the existence of such emergency by the authority having power to direct such public work to be done and duly entered of record, publication of description and estimate may be made within seven days after the commencement of the work. Within two weeks of the finding that such an emergency existed, the city council shall adopt a resolution certifying the existence of this emergency situation.)) The competitive bidding requirements of this section may be waived by the city legislative authority pursuant to section 1 of this act if an exemption contained within that section applies to the work or contract.

(7) In lieu of the procedures of subsections (2) and (6) of this section, a first class city may use ((a)) the small works roster process ((and)) in RCW 39.04.155 to award contracts for public works projects with an estimated value of one hundred thousand dollars or less ((as provided in RCW 39.04.155)).

Whenever possible, the city shall invite at least one proposal from a minority or woman contractor who shall otherwise qualify under this section.

(8) The allocation of public works projects to be performed by city employees shall not be subject to a collective bargaining agreement.

(9) This section does not apply to performance-based contracts, as defined in RCW 39.35A.020(3), that are negotiated under chapter 39.35A RCW.

(10) Nothing in this section shall prohibit any first class city from allowing for preferential purchase of products made from recycled materials or products that may be recycled or reused.

Sec. 3. RCW 35.23.352 and 1996 c 18 s 2 are each amended to read as follows:

(1) Any second class city or any town may construct any public works, as defined in RCW 39.04.010, by contract or day labor without calling for bids therefor whenever the estimated cost of the work or improvement, including cost of materials, supplies and equipment will not exceed the sum of thirty thousand dollars if more than one craft or trade is involved with the public works, or twenty thousand dollars if a single craft or trade is involved with the public works or the public works project is street signalization or street lighting. A public works project means a complete project. The restrictions in this subsection do not permit the division of the project into units of work or classes of work to avoid the restriction on work that may be performed by day labor on a single project.

Whenever the cost of the public work or improvement, including materials, supplies and equipment, will exceed these figures, the same shall be done by contract. All such contracts shall be let at public bidding upon publication of notice calling for sealed bids upon the work. The notice shall be published in the official newspaper, or a newspaper of general circulation most likely to bring responsive bids, at least thirteen days prior to the last date upon which bids will be received. The notice shall generally state the nature of the work to be done that plans and specifications therefor shall then be on file in the city or town hall for public inspections, and require that bids be sealed and filed with the council or commission within the time specified therein. Each bid shall be accompanied by a bid proposal deposit in the form of a cashier's check, postal money order, or surety bond to the council or commission for a sum of not less than five percent of the amount of the bid, and no bid shall be considered unless accompanied by such bid proposal deposit. The council or commission of the city or town shall let the contract to the lowest responsible bidder or shall have power by resolution to reject any or all bids and to make further calls for bids in the same manner as the original call.

When the contract is let then all bid proposal deposits shall be returned to the bidders except that of the successful bidder which shall be retained until a contract is entered into and a bond to perform the work furnished, with surety satisfactory to the council or commission, in accordance with RCW 39.08.030. If the bidder fails to enter into the contract in accordance with his or her bid and furnish a bond within ten days from the date at which he or she is notified that he or she is the successful bidder, the check or postal money order and the amount thereof shall be forfeited to the council or commission or the council or commission shall recover the amount of the surety bond. A low bidder who claims error and fails to enter into a contract is prohibited from bidding on the same project if a second or subsequent call for bids is made for the project.

If no bid is received on the first call the council or commission may readvertise and make a second call, or may enter into a contract without any further call or may purchase the supplies, material or equipment and perform the work or improvement by day labor.

(2) The allocation of public works projects to be performed by city or town employees shall not be subject to a collective bargaining agreement.

(3) In lieu of the procedures of subsection (1) of this section, a second class city or a town may use the small works roster process provided in RCW 39.04.155 to award public works contracts with an estimated value of one hundred thousand dollars or less.

Whenever possible, the city or town shall invite at least one proposal from a minority or woman contractor who shall otherwise qualify under this section.

(4) The form required by RCW 43.09.205 shall be to account and record costs of public works in excess of five thousand dollars that are not let by contract.

(5) The cost of a separate public works project shall be the costs of the materials, equipment, supplies, and labor on that construction project.

(6) Any purchase of supplies, material, or equipment, except for public work or improvement, where the cost thereof exceeds seven thousand five hundred dollars shall be made upon call for bids.

(7) Bids shall be called annually and at a time and in the manner prescribed by ordinance for the publication in a newspaper of general circulation in the city or town of all notices or newspaper publications required by law. The contract shall be awarded to the lowest responsible bidder.

(8) For advertisement and formal sealed bidding to be dispensed with as to purchases ((between seven thousand five hundred and)) with an estimated value of fifteen thousand dollars or less, the council or commission must authorize by resolution, use of the uniform procedure provided in RCW 39.04.190.

(9) ((These requirements for purchasing may be waived by resolution of the city or town council or commission which declared that the purchase is clearly and legitimately limited to a single source or supply within the near vicinity, or the materials, supplies, equipment, or services are subject to special market conditions, and recites why this situation exists. Such actions are subject to RCW 39.30.020.)) The city or town legislative authority may waive the competitive bidding requirements of this section pursuant to section 1 of this act if an exemption contained within that section applies to the purchase or public work.

(10) This section does not apply to performance-based contracts, as defined in RCW 39.35A.020(3), that are negotiated under chapter 39.35A RCW.

(11) Nothing in this section shall prohibit any second class city or any town from allowing for preferential purchase of products made from recycled materials or products that may be recycled or reused.

Sec. 4. RCW 36.32.270 and 1963 c 4 s 36.32.270 are each amended to read as follows:

((In the event of an emergency when the public interest or property of the county would suffer material injury or damage by delay, upon resolution of the board of county commissioners declaring the existence of such emergency and reciting the facts constituting the same, the board)) The county legislative authority may waive the competitive bidding requirements of this chapter ((with reference to any)) pursuant to section 1 of this act if an exemption contained within that section applies to the purchase or ((contract)) public work.

Sec. 5. RCW 52.14.110 and 1993 c 198 s 11 are each amended to read as follows:

Insofar as practicable, purchases and any public works by the district shall be based on competitive bids. A formal sealed bid procedure shall be used as standard procedure for purchases and contracts for purchases executed by the board of commissioners. Formal sealed bidding shall not be required for:

(1) ((Emergency purchases if the sealed bidding procedure would prevent or hinder the emergency from being addressed appropriately. The term emergency means an occurrence that creates an immediate threat to life or property;

(2))) The purchase of any materials, supplies, or equipment if the cost will not exceed the sum of four thousand five hundred dollars. However, whenever the estimated cost ((is from four thousand five hundred dollars up to)) does not exceed ten thousand dollars, the commissioners may by resolution use the process provided in RCW 39.04.190 to award contracts;

(((3))) (2) Contracting for work to be done involving the construction or improvement of a fire station or other buildings where the estimated cost will not exceed the sum of two thousand five hundred dollars, which includes the costs of labor, material, and equipment. However, whenever the estimated cost ((is from two thousand five hundred dollars up to)) does not exceed ten thousand dollars, the commissioner may by resolution use the small works roster process provided in RCW 39.04.155; and

(((4) Purchases which are clearly and legitimately limited to a single source of supply, or services, in which instances the purchase price may be best established by direct negotiation: PROVIDED, That this subsection shall not apply to purchases or contracts relating to public works as defined in chapter 39.04 RCW; and

(5) Purchases of insurance and bonds.)) (3) Any contract for purchases or public work pursuant to section 1 of this act if an exemption contained within that section applies to the purchase or public work.

Sec. 6. RCW 53.08.120 and 1993 c 198 s 13 are each amended to read as follows:

All material required by a port district may be procured in the open market or by contract and all work ordered may be done by contract or day labor. All such contracts for work, the estimated cost of which exceeds one hundred thousand dollars, shall be let at public bidding upon notice published in a newspaper of general circulation in the district at least thirteen days before the last date upon which bids will be received, calling for sealed bids upon the work, plans and specifications for which shall then be on file in the office of the commission for public inspection. The same notice may call for bids on such work or material based upon plans and specifications submitted by the bidder. The competitive bidding requirements for purchases or public works may be waived pursuant to section 1 of this act if an exemption contained within that section applies to the purchase or public work.

Each port district shall maintain a small works roster, as provided in RCW 39.04.155, and may use the small works roster process to award contracts in lieu of calling for sealed bids whenever work is done by contract, the estimated cost of which is one hundred thousand dollars or less. Whenever possible, the managing official shall invite at least one proposal from a minority contractor who shall otherwise qualify under this section.

When awarding such a contract for work, when utilizing proposals from the small works roster, the managing official shall give weight to the contractor submitting the lowest and best proposal, and whenever it would not violate the public interest, such contracts shall be distributed equally among contractors, including minority contractors, on the small works roster.

Sec. 7. RCW 54.04.070 and 1993 c 198 s 14 are each amended to read as follows:

Any item, or items of the same kind of materials, equipment, or supplies purchased, the estimated cost of which is in excess of five thousand dollars, exclusive of sales tax shall be by contract: PROVIDED, That a district may make purchases of the same kind of items of materials, equipment and supplies not exceeding five thousand dollars in any calendar month without a contract, purchasing any excess thereof over five thousand dollars by contract. Any work ordered by a district commission, the estimated cost of which is in excess of ten thousand dollars exclusive of sales tax, shall be by contract, except that a district commission may have its own regularly employed personnel perform work which is an accepted industry practice under prudent utility management without a contract. Prudent utility management means performing work with regularly employed personnel utilizing material of a worth not exceeding fifty thousand dollars in value without a contract: PROVIDED, That such limit on the value of material being utilized in work being performed by regularly employed personnel shall not include the value of individual items of equipment purchased or acquired and used as one unit of a project. Before awarding such a contract, the commission shall publish a notice once or more in a newspaper of general circulation in the district at least thirteen days before the last date upon which bids will be received, inviting sealed proposals for the work or materials; plans and specifications of which shall at the time of the publication be on file at the office of the district subject to public inspection. Any published notice ordering work to be performed for the district shall be mailed at the time of publication to any established trade association which files a written request with the district to receive such notices. The commission may at the same time and as part of the same notice, invite tenders for the work or materials upon plans and specifications to be submitted by the bidders.

Notwithstanding any other provisions herein, all contract projects, the estimated cost of which is less than one hundred thousand dollars, may be awarded to a contractor using the small works roster process provided in RCW 39.04.155. All contract projects equal to or in excess of one hundred thousand dollars shall be let by competitive bidding.

Whenever equipment or materials required by a district are held by a governmental agency and are available for sale but such agency is unwilling to submit a proposal, the commission may ascertain the price of such items and file a statement of such price supported by the sworn affidavit of one member of the commission and may consider such price as a bid without a deposit or bond. ((In the event of an emergency when the public interest or property of the district would suffer material injury or damage by delay, upon resolution of the commission, or proclamation of an official designated by the board to act for the board during such emergencies, declaring the existence of such emergency and reciting the facts constituting the same, the board, or the official acting for the board, may waive the requirements of this chapter with reference to any purchase or contract, after having taken precautions to secure the lowest price practicable under the circumstances.

After determination by the commission during a public meeting that a particular purchase is available clearly and legitimately only from a single source of supply, the bidding requirements of this section may be waived by the commission.))

The commission may waive the competitive bidding requirements of this section pursuant to section 1 of this act if an exemption contained within that section applies to the purchase or public work.

Sec. 8. RCW 57.08.050 and 1997 c 245 s 4 are each amended to read as follows:

(1) All work ordered, the estimated cost of which is in excess of five thousand dollars shall be let by contract. All contract projects, the estimated cost of which is less than fifty thousand dollars, may be awarded to a contractor using the small works roster process provided in RCW 39.04.155. The board of commissioners may set up uniform procedures to prequalify contractors for inclusion on the small works roster. All contract projects equal to or in excess of fifty thousand dollars shall be let by competitive bidding. Before awarding any such contract the board of commissioners shall publish a notice in a newspaper of general circulation where the district is located at least once thirteen days before the last date upon which bids will be received, inviting sealed proposals for such work, plans and specifications which must at the time of publication of such notice be on file in the office of the board of commissioners subject to the public inspection. The notice shall state generally the work to be done and shall call for proposals for doing the same to be sealed and filed with the board of commissioners on or before the day and hour named therein.

Each bid shall be accompanied by a certified or cashier's check or postal money order payable to the order of the county treasurer for a sum not less than five percent of the amount of the bid, or accompanied by a bid bond in an amount not less than five percent of the bid with a corporate surety licensed to do business in the state, conditioned that the bidder will pay the district as liquidated damages the amount specified in the bond, unless the bidder enters into a contract in accordance with the bidder's bid, and no bid shall be considered unless accompanied by such check, cash or bid bond. At the time and place named such bids shall be publicly opened and read and the board of commissioners shall proceed to canvass the bids and may let such contract to the lowest responsible bidder upon plans and specifications on file or to the best bidder submitting the bidder's own plans and specifications. ((However, no contract shall be let in excess of the cost of the materials or work.)) The board of commissioners may reject all bids for good cause and readvertise and in such case all checks, cash or bid bonds shall be returned to the bidders. If the contract is let, then all checks, cash, or bid bonds shall be returned to the bidders, except that of the successful bidder, which shall be retained until a contract shall be entered into for doing the work, and a bond to perform such work furnished with sureties satisfactory to the board of commissioners in the full amount of the contract price between the bidder and the commission in accordance with the bid. If the bidder fails to enter into the contract in accordance with the bid and furnish the bond within ten days from the date at which the bidder is notified that the bidder is the successful bidder, the check, cash, or bid bonds and the amount thereof shall be forfeited to the district. If the bidder fails to enter into a contract in accordance with the bidder's bid, and the board of commissioners deems it necessary to take legal action to collect on any bid bond required by this section, then the district shall be entitled to collect from the bidder any legal expenses, including reasonable attorneys' fees occasioned thereby. A low bidder who claims error and fails to enter into a contract is prohibited from bidding on the same project if a second or subsequent call for bids is made for the project.

(2) Any purchase of materials, supplies, or equipment, with an estimated cost in excess of ten thousand dollars, shall be by contract. Any purchase of materials, supplies, or equipment, with an estimated cost of ((from five thousand dollars to)) less than fifty thousand dollars shall be made using the process provided in RCW ((39.04.155 or by competitive bidding following the procedure for letting contracts for projects under subsection (1) of this section)) 39.04.190. Any purchase of materials, supplies, or equipment with an estimated cost of fifty thousand dollars or more shall be made by competitive bidding following the procedure for letting contracts for projects under subsection (1) of this section.

(3) ((In the event of an emergency when the public interest or property of the district would suffer material injury or damage by delay, upon resolution of the board of commissioners, or proclamation of an official designated by the board to act for the board during such emergencies, declaring the existence of such emergency and reciting the facts constituting the same, the board or official acting for the board may waive the requirements of this chapter with reference to any purchase or contract. In addition, these requirements may be waived for purchases which are clearly and legitimately limited to a single source of supply and purchases involving special facilities, services, or market conditions, in which instances the purchase price may be best established by direct negotiation.)) The board may waive the competitive bidding requirements of this section pursuant to section 1 of this act if an exemption contained within that section applies to the purchase or public work.

Sec. 9. RCW 70.44.140 and 1996 c 18 s 15 are each amended to read as follows:

(1) All materials purchased and work ordered, the estimated cost of which is in excess of five thousand dollars, shall be by contract. Before awarding any such contract, the commission shall publish a notice at least thirteen days before the last date upon which bids will be received, inviting sealed proposals for such work. The plans and specifications must at the time of the publication of such notice be on file at the office of the public hospital district, subject to public inspection: PROVIDED, HOWEVER, That the commission may at the same time, and as part of the same notice, invite tenders for the work or materials upon plans and specifications to be submitted by bidders. The notice shall state generally the work to be done, and shall call for proposals for doing the same, to be sealed and filed with the commission on or before the day and hour named therein. Each bid shall be accompanied by bid proposal security in the form of a certified check, cashier's check, postal money order, or surety bond made payable to the order of the commission, for a sum not less than five percent of the amount of the bid, and no bid shall be considered unless accompanied by such bid proposal security. At the time and place named, such bids shall be publicly opened and read, and the commission shall proceed to canvass the bids, and may let such contract to the lowest responsible bidder upon plans and specifications on file, or to the best bidder submitting his or her own plans and specifications: PROVIDED, HOWEVER, That no contract shall be let in excess of the estimated cost of the materials or work, or if, in the opinion of the commission, all bids are unsatisfactory, they may reject all of them and readvertise, and in such case all bid proposal security shall be returned to the bidders((; but if such)). If the contract ((be)) is let, then ((and in such case)) all bid proposal security shall be returned to the bidders, except that of the successful bidder, which ((shall be)) is retained until a contract shall be entered into for the purchase of such materials for doing such work, and a bond to perform such work furnished, with sureties satisfactory to the commission, in an amount to be fixed by the commission, not less than twenty-five percent of contract price in any case, between the bidder and commission, in accordance with the bid. If such bidder fails to enter into the contract in accordance with the bid and furnish such bond within ten days from the date at which the bidder is notified that he or she is the successful bidder, the bid proposal security and the amount thereof shall be forfeited to the public hospital district. A low bidder who claims error and fails to enter into a contract is prohibited from bidding on the same project if a second or subsequent call for bids is made for the project.

(2) In lieu of the procedures of subsection (1) of this section, a public hospital district may use ((a)) the small works roster process provided in RCW 39.04.155 and award public works contracts for projects ((in excess of five thousand dollars up to)) with an estimated value in excess of fifty thousand dollars ((as provided in RCW 39.04.155)).

(3) ((For advertisement and formal sealed bidding to be dispensed with as to)) Any purchases ((between five thousand and)) with an estimated cost of up to fifteen thousand dollars((, the commission must authorize by resolution a procedure as)) may be made using the process provided in RCW 39.04.190.

(4) The commission may waive the competitive bidding requirements of this section pursuant to section 1 of this act if an exemption contained within that section applies to the purchase or public work.

NEW SECTION. Sec. 10. A new section is added to chapter 36.34 RCW to read as follows:

In accordance with RCW 35.42.010 through 35.42.220, a county with a population of one million or more may lease space and provide for the leasing of such space through leases with an option to purchase and the acquisition of buildings erected upon land owned by the county upon the expiration of lease of such land. For the purposes of this section, "building," as defined in RCW 35.42.020 shall be construed to include any building or buildings used as part of, or in connection with, the operation of the county. The authority conferred by this section is in addition to and not in lieu of any other provision authorizing counties to lease property.

Sec. 11. RCW 39.04.150 and 1994 c 264 s 12 and 1994 c 243 s 2 are each reenacted and amended to read as follows:

(1) As used in this section, "agency" means the department of general administration, the department of fish and wildlife, the department of natural resources, the department of transportation, and the state parks and recreation commission.

(2) In addition to any other power or authority that an agency may have, each agency, alone or in concert, may establish a small works roster consisting of all qualified contractors who have requested to be included on the roster.

(3) The small works roster may make distinctions between contractors based on the geographic areas served and the nature of the work the contractor is qualified to perform. At least once every year, the agency shall advertise in a newspaper of general circulation the existence of the small works roster and shall add to the roster those contractors who request to be included on the roster.

(4) Construction, repair, or alteration projects estimated to cost less than one hundred thousand dollars are exempt from the requirement that the contracts be awarded after advertisement and competitive bid as defined by RCW 39.04.010. In lieu of advertisement and competitive bid, ((the agency shall solicit at least five quotations, confirmed in writing, from contractors chosen from the small works roster for the category of job type involved and shall award the work to the party with the lowest quotation or reject all quotations. If the agency does not receive at least two responsive quotations for a particular project, then the project shall be advertised and competitively bid. The agency shall solicit quotations from contractors selected randomly from the small works roster in a manner which will equitably distribute the opportunity for these contracts among contractors on the roster. The agency shall invite at least one proposal each from a certified minority and a certified women-owned contractor who shall otherwise qualify to perform such work. Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by telephone request. If the work is executed by competitive bid, the agency shall invite at least one proposal each from a certified minority and a certified women-owned contractor who shall otherwise qualify to perform such work)) each agency alone or in concert shall establish a procedure for securing telephone, electronic, or written quotations from the contractors on the small works roster to assure establishment of a competitive price and for awarding contracts to the lowest responsive and responsible bidder. This procedure shall require either that the agency make a good faith effort to request quotations from all contractors on the small works roster who have indicated the capability of performing the kind of public works being contracted or that the agency solicit quotations from at least five contractors in a manner that will equitably distribute the opportunity among contractors willing to perform in the geographic area of the work. The agency shall invite at least one proposal from a certified minority or women-owned contractor, if available, who is otherwise qualified to perform such work. Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by telephone inquiry.

(5) The breaking down of any public work or improvement into units or accomplishing any public work or improvement by phases for the purpose of avoiding the minimum dollar amount for bidding is contrary to public policy and is prohibited.

(6) The director of general administration shall adopt by rule a procedure to ((prequalify)) qualify contractors for inclusion on the small works roster. Each agency shall follow the procedure adopted by the director of general administration. No agency shall be required to make available for public inspection or copying under chapter 42.17 RCW financial information required to be provided by the ((prequalification)) qualification procedure.

(7) An agency may adopt by rule procedures to implement this section which shall not be inconsistent with the procedures adopted by the director of the department of general administration pursuant to subsection (6) of this section.

Sec. 12. RCW 39.04.155 and 1993 c 198 s 1 are each amended to read as follows:

(1) This section provides a uniform process to award contracts for public works projects by those municipalities that are authorized to use a small works roster in lieu of the requirements for formal sealed bidding. The state statutes governing a specific type of municipality shall establish the maximum dollar thresholds of the contracts that can be awarded under this process, and may include other matters concerning the small works roster process, for the municipality.

(2) Such municipalities may create a single general small works roster, or may create a small works roster for different categories of anticipated work. The small works roster or rosters shall consist of all responsible contractors who have requested to be on the list, and where required by law are properly licensed or registered to perform such work in this state. At least twice a year, the municipality shall publish in a newspaper of general circulation within the jurisdiction a notice of the existence of the roster or rosters and solicit the names of contractors for such roster or rosters.

The governing body of the municipality shall establish a procedure for securing telephone or written quotations from the contractors on the general small works roster, or a specific small works roster for the appropriate category of work, to assure that a competitive price is established and to award contracts to the lowest responsible bidder, as defined in RCW 43.19.1911. Such invitations for quotations shall include an estimate of the scope and nature of the work to be performed as well as materials and equipment to be furnished. However, detailed plans and specifications need not be included in the invitation. This section does not eliminate other requirements for architectural or engineering approvals as to quality and compliance with building codes. Whenever possible at least five contractors shall be invited to submit bids. Once a contractor has been afforded an opportunity to submit a proposal, that contractor shall not be offered another opportunity until all other appropriate contractors on the small works roster have been afforded an opportunity to submit a proposal on a contract. Proposals may be invited from all appropriate contractors on the small works roster.

A contract awarded from a small works roster under this section need not be advertised.

Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by telephone inquiry."

On page 1, line 1 of the title, after "bidding;" strike the remainder of the title and insert "amending RCW 35.22.620, 35.23.352, 36.32.270, 52.14.110, 53.08.120, 54.04.070, 57.08.050, 70.44.140, and 39.04.155; reenacting and amending RCW 39.04.150; adding a new section to chapter 39.04 RCW; and adding a new section to chapter 36.34 RCW."

There being no objection, the House adopted the Report of the Conference Committee on Substitute House Bill No. 2077 and advanced the bill to Final Passage.

FINAL PASSAGE OF HOUSE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Substitute House Bill No. 2077 as recommended by the Conference Committee.

Representatives D. Schmidt and Wolfe spoke in favor of passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 2077 as recommended by the Conference Committee, 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. 2077, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

RESOLUTION

HOUSE RESOLUTION NO. 98-4721, by Representatives Chopp, Mason, Constantine, Murray, Linville, Appelwick, Dunshee, Veloria, Hatfield, Butler, Cody, Lantz, Kenney, Dickerson, Regala, Wolfe and Conway

WHEREAS, Hazel Wolf, born on March 10, 1898, has lived an exceptional life and is a recognized leader in the environmental and peace and justice communities in the Pacific Northwest; and

WHEREAS, Hazel Wolf has helped organize twenty-one of the twenty-six chapters of the National Audubon Society in Washington state and one chapter in Victoria, British Columbia; and

WHEREAS, Hazel Wolf has served as an officer of the Seattle Audubon Society for thirty years; and

WHEREAS, Hazel Wolf successfully fought McCarthy-period tactics to deport her to her native Canada in a sixteen-year battle that advanced nearly to the Supreme Court, finally ending in vindication for her cause in 1963; and

WHEREAS, Hazel Wolf has worked passionately on many grassroots issues, including laying the groundwork for tribes and environmental groups in Washington state to share concerns and find common ground on the environment, a cause she first advanced in 1979 by traveling to fifteen tribes in Washington and Canada, urging them to convene a joint conference with conservation groups; and

WHEREAS, In the mid-1990's, she helped a group of low-income citizens start the Community Coalition for Environmental Justice; and

WHEREAS, Hazel Wolf regularly and actively educates others on civic matters in such locales as grade school classrooms and legislative offices in Olympia or Washington, D.C.; and

WHEREAS, The Audubon Society recently created "Kids for the Environment," an endowment in honor of Hazel Wolf, to fund activities that connect urban children with nature; and

WHEREAS, Hazel Wolf has received numerous awards, including the National Audubon Society Medal of Excellence, the Chevron Conservation Award for Citizen Volunteers, an honorary Doctorate degree from Seattle University, the Washington Physicians for Social Responsibility's Paul Beeson Peace Award, the Washington Environmental Council's "Environmental Angel of the First Order," the National Audubon Society's Conservationist of the Year, the Business and Professional Women of Fife/Milton Award, the Association of Biologists and Ecologists of Nicaragua Award, the State of Washington's Environmental Excellence Award, and the State of New York's Sol Feinstein Award; and

WHEREAS, On March 10, 1998, Hazel Wolf will celebrate one century of living;

NOW, THEREFORE, BE IT RESOLVED, That the Washington State House of Representatives honor March 10, 1998, as Hazel Wolf Day and acknowledge the great contributions made by Ms. Wolf to our environment and its natural preservation, and to the general welfare of Washington state's citizenry, through decade upon decade of personal sacrifice, commitment, and sustained concern.

Representative Chopp moved adoption of the resolution.

Representatives Chopp, Murray, Mason, Kenney and Lantz spoke in favor of the adoption of the resolution.

House Resolution No. 4721 was adopted.

POINT OF PERSONAL PRIVILEGE

Representative Skinner honored Al Bell, subject of House Resolution No. 4723. The Speaker (Representative Pennington presiding) introduced Al Bell and quests.

MESSAGE FROM THE SENATE

March 7, 1998

Mr. Speaker:

The Senate refuses to concur in the House amendment(s) to SENATE BILL NO. 6541 and asks the House for a conference thereon. The President has appointed the following members as conferees: Senators Sellar, Kohl and Deccio, 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, insisted on its position regarding the House amendment(s) to SENATE BILL NO. 6541 and asked the Senate to concur therein.

MESSAGE FROM THE SENATE

March 11, 1998

Mr. Speaker:

The President has signed:

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,

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

The Speaker assumed the chair.

SIGNED BY THE SPEAKER

The Speaker announced he was signing:

SUBSTITUTE HOUSE BILL NO. 1043,

SUBSTITUTE HOUSE BILL NO. 1083,

HOUSE BILL NO. 1165,

ENGROSSED HOUSE BILL NO. 1254,

HOUSE BILL NO. 1297,

HOUSE BILL NO. 1309,

ENGROSSED HOUSE BILL NO. 1408,

SUBSTITUTE HOUSE BILL NO. 1692,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2313,

HOUSE BILL NO. 2402,

HOUSE BILL NO. 2500,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2551,

SUBSTITUTE HOUSE BILL NO. 2826,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2831,

ENGROSSED HOUSE BILL NO. 3003,

SECOND SUBSTITUTE HOUSE BILL NO. 3089,

The Speaker called upon Representative Pennington to preside.

MESSAGE FROM THE SENATE

March 10, 1998

Mr. Speaker:

The Senate refuses to concur in the House amendment(s) to ENGROSSED SENATE BILL NO. 6628 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 Senate Bill No. 6628 was returned to second reading for purpose of amendments.

There being no objection, the committee amendment by the Committee on Transportation Policy & Budget was before the House for purpose of amendments.

Representative K. Schmidt moved the adoption of amendment (1188) to the committee amendment:

Beginning on page 4, line 20, strike all of section 4

Correct the title.

Representatives K. Schmidt and Fisher spoke in favor of the adoption of the amendment to the committee amendment.

The amendment to the committee amendment was adopted.

Representative Conway moved the adoption of amendment (1186) to the committee amendment:

On page 5, after line 7 of the amendment, insert the following:

"NEW SECTION. Sec. 5. A new section is added to chapter 81.104 RCW to read as follows:

Any regional transit authority imposing taxes under this chapter shall consult with the department of community, trade, and economic development to explore the potential for developing contracting methods and procedures that encourage the establishment of a manufacturing base in the state of Washington for the purpose of constructing and assembling commuter and light rail train sets and components. The regional transit authority shall report its findings and recommendations to the legislative transportation committee by January 1, 1999."

Representatives Conway and Robertson spoke in favor of the adoption of the amendment to the committee amendment.

The amendment to the committee amendment was adopted.

The question before the House was the adoption of the committee amendment by the Committee on Transportation Policy and Budget as amended. The committee amendment as amended 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 Fisher spoke against the passage of the bill.

Representative K. Schmidt 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 Senate Bill No. 6628 as amended by the House.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Senate Bill No. 6628, as amended by the House and the bill passed the House by the following vote: Yeas - 77, Nays - 21, Absent - 0, Excused - 0.

Voting yea: Representatives Alexander, Anderson, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Clements, Cody, Conway, Cooke, Cooper, Costa, Crouse, DeBolt, Delvin, Doumit, Dunn, Dyer, Eickmeyer, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kessler, Koster, Lambert, Lantz, Lisk, Mastin, McCune, McDonald, McMorris, Mielke, Morris, Mulliken, O'Brien, Parlette, Pennington, 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, Wood, Zellinsky and Mr. Speaker - 77.

Voting nay: Representatives Appelwick, Butler, Chopp, Cole, Constantine, Dickerson, Dunshee, Fisher, Kenney, Linville, Mason, Mitchell, Murray, Ogden, Poulsen, Regala, Romero, Sommers, H., Tokuda, Veloria and Wolfe - 21.

Engrossed Senate Bill No. 6628, as amended by the House, having received the constitutional majority, was declared passed.

MESSAGES FROM THE SENATE

March 11, 1998

Mr. Speaker:

The President has signed:

SUBSTITUTE SENATE BILL NO. 5309,

SENATE BILL NO. 5631,

SUBSTITUTE SENATE BILL NO. 6077,

SENATE BILL NO. 6270,

SENATE BILL NO. 6449,

SENATE BILL NO. 6552,

SENATE BILL NO. 6599,

SUBSTITUTE SENATE BILL NO. 6602,

SENATE BILL NO. 6662,

SENATE BILL NO. 6668,

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

March 11, 1998

Mr. Speaker:

The President has signed:

SUBSTITUTE SENATE BILL NO. 6161,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6418,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6509,

SENATE BILL NO. 6539,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6622,

SENATE BILL NO. 6699,

SUBSTITUTE SENATE BILL NO. 6727,

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

March 11, 1998

Mr. Speaker:

The President has signed:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1074,

SUBSTITUTE HOUSE BILL NO. 1121,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1223,

SUBSTITUTE HOUSE BILL NO. 1504,

SUBSTITUTE HOUSE BILL NO. 1829,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2345,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2496,

ENGROSSED HOUSE BILL NO. 2501,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2514,

HOUSE BILL NO. 2542,

HOUSE BILL NO. 2557,

HOUSE BILL NO. 2558,

SUBSTITUTE HOUSE BILL NO. 2611,

SUBSTITUTE HOUSE BILL NO. 2710,

SUBSTITUTE HOUSE BILL NO. 2724,

SUBSTITUTE HOUSE BILL NO. 2836,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2880,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2881,

SUBSTITUTE HOUSE BILL NO. 2885,

HOUSE BILL NO. 2905,

SUBSTITUTE HOUSE BILL NO. 2960,

HOUSE BILL NO. 3052,

SECOND SUBSTITUTE HOUSE BILL NO. 3070,

SUBSTITUTE HOUSE BILL NO. 3096,

SUBSTITUTE HOUSE BILL NO. 3099,

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

RESOLUTION

HOUSE RESOLUTION NO. 98-4732, by Representatives Dyer and Cody

WHEREAS, The promotion of public health and the prevention of disease and injury are paramount responsibilities of government; and

WHEREAS, In 1989 the State of Washington created the state Department of Health with the purpose of "giving expression to the needs of individual citizens and local communities as they seek to preserve the public health"; and

WHEREAS, Dr. Miriam Louise Fields, MD, MPH, FACPM, affectionately known as "Mimi," served as Washington State's Health Officer from the time of the Department's creation until the end of 1997; and

WHEREAS, Dr. Fields came to this state as a nationally recognized expert on the prevention of HIV and AIDS and, as Washington State's first director of the Office of HIV/AIDS, quickly developed effective collaboration between state government and the regional AIDSNETS; and

WHEREAS, In her role of State Health Officer, Dr. Fields demonstrated the highest level of knowledge, compassion, and understanding of our residents' public health concerns; and

WHEREAS, Dr. Fields' contributions to public health have consistently reflected the voice of science, originality, and the value of reasoned and respectful discourse in the public debates surrounding difficult public health issues; and

WHEREAS, During her tenure as State Health Officer, Dr. Fields established an exemplary standard of personal and professional conduct as she shaped the State Health Officer's leadership role in promoting public health in our state and nation; and

WHEREAS, Dr. Fields helped establish Washington State as a national leader in the development of contemporary approaches to public health through her contributions to the Washington State Public Health Improvement Plan; and

WHEREAS, Dr. Fields has made significant contributions to interagency and public-private collaboration in support of health care quality, as cochair and chair of the Interagency Quality Committee; and

WHEREAS, Dr. Fields exerted a strongly positive, creative, and visionary leadership effect on the development of our state Department of Health during its formative years;

NOW, THEREFORE, BE IT RESOLVED, That the Washington State House of Representatives commends Dr. Miriam Louise Fields for her contributions to the health and well-being of every Washington resident through her exemplary service as State Health Officer; and

BE IT FURTHER RESOLVED, That a copy of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to Dr. Fields.

There being no objection, House Floor Resolution No. 4732 was adopted.

MESSAGE FROM THE SENATE

March 11, 1998

Mr. Speaker:

The Senate refuses to concur in the House amendment(s) to ENGROSSED SUBSTITUTE SENATE BILL NO. 6187 and asks the House for a conference thereon. The President has appointed the following members as conferees: Senators Stevens, Fairley and Roach, and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House refused to grant a conference on Engrossed Substitute Senate Bill No. 6187. The House insisted on its position and asked the Senate to concur therein.

MESSAGE FROM THE SENATE

March 11, 1998

Mr. Speaker:

The Senate has passed ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2342 with the following amendment(s):

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. It is the intent of the legislature to attract and retain businesses that provide professional services and insurance services to international customers. To that end, the legislature finds that an incentive measured by a business's growth in jobs is a meaningful method of attracting and retaining such businesses. Therefore, the incentive in this act is specifically targeted at "net new jobs." In addition, to further the impact and benefit of this program, this incentive is limited to those urban areas of the state, both in eastern Washington and western Washington, that are characterized by unemployment and poverty. The legislature finds that providing this targeted incentive will be of benefit to the state as a whole.

NEW SECTION. Sec. 2. A new section is added to chapter 82.04 RCW to read as follows:

(1) Subject to the limits in this section, an eligible person is allowed a credit against the tax due under this chapter. The credit is based on qualified employment positions in eligible areas. The credit is available to persons who are engaged in international services as defined in this section. In order to receive the credit, the international service activities must take place at a business within the eligible area.

(2)(a) The credit shall equal three thousand dollars for each qualified employment position created after the effective date of this act in an eligible area. A credit is earned for the calendar year the person is hired to fill the position, plus the four subsequent consecutive years, if the position is maintained for those four years. (b) Credit may not be taken for hiring of persons into positions that exist on the effective date of this act. Credit is authorized for new employees hired for new positions created after the effective date of this act. New positions filled by existing employees are eligible for the credit under this section only if the position vacated by the existing employee is filled by a new hire.

(c) When a position is newly created, if it is filled before July 1st, this position is eligible for the full yearly credit. If it is filled after June 30th, this position is eligible for half of the credit.

(d) Credit may be accrued and carried over until it is used. No refunds may be granted for credits under this section.

(3) For the purposes of this section:

(a) "Eligible area" means: (i) A community empowerment zone under RCW 43.63A.700; or (ii) a contiguous group of census tracts that meets the unemployment and poverty criteria of RCW 43.63A.710 and is designated under subsection (4) of this section;

(b) "Eligible person" means a person, as defined in RCW 82.04.030, who in an eligible area at a specific location is engaged in the business of providing international services;

(c)(i) "International services" means the provision of a service, as defined under (c)(iii) of this subsection, that is subject to tax under RCW 82.04.290(2), and either:

(A) Is for a person domiciled outside the United States; or

(B) The service itself is for use primarily outside of the United States.

(ii) "International services" excludes any service taxable under RCW 82.04.290(1).

(iii) Eligible services are: Computer; data processing; information; legal; accounting and tax preparation; engineering; architectural; business consulting; business management; public relations and advertising; surveying; geological consulting; real estate appraisal; or financial services. For the purposes of this section these services mean the following:

(A) "Computer services" are services such as computer programming, custom software modification, customization of canned software, custom software installation, custom software maintenance, custom software repair, training in the use of software, computer systems design, and custom software update services;

(B) "Data processing services" are services such as word processing, data entry, data retrieval, data search, information compilation, payroll processing, business accounts processing, data production, and other computerized data and information storage or manipulation. "Data processing services" also includes the use of a computer or computer time for data processing whether the processing is performed by the provider of the computer or by the purchaser or other beneficiary of the service;

(C) "Information services" are services such as electronic data retrieval or research that entails furnishing financial or legal information, data or research, internet service as defined in RCW 82.04.297, general or specialized news, or current information;

(D) "Legal services" are services such as representation by an attorney, or other person when permitted, in an administrative or legal proceeding, legal drafting, paralegal services, legal research services, and court reporting services, arbitration, and mediation services;

(E) "Accounting and tax preparation services" are services such as accounting, auditing, actuarial, bookkeeping, or tax preparation services;

(F) "Engineering services" are services such as civil, electrical, mechanical, petroleum, marine, nuclear, and design engineering, machine designing, machine tool designing, and sewage disposal system designing services;

(G) "Architectural services" are services such as structural or landscape design or architecture, interior design, building design, building program management, and space planning services;

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

(I) "Business management services" are services such as administrative management, business management, and office management. "Business management services" does not include property management or property leasing, motel, hotel, and resort management, or automobile parking management;

(J) "Public relations and advertising services" are services such as layout, art direction, graphic design, copy writing, mechanical preparation, opinion research, marketing research, marketing, or production supervision;

(K) "Surveying services" are services such as land surveying;

(L) "Geological consulting services" are services rendered for the oil, gas, and mining industry and other earth resource industries, and other services such as soil testing;

(M) "Real estate appraisal services" are services such as market appraisal and other real estate valuation; and

(N) "Financial services" are services such as banking, loan, security, investment management, investment advisory, mortgage servicing, contract collection, and finance leasing services, engaged in by financial businesses, or businesses similar to or in competition with financial businesses; and

(d) "Qualified employment position" means a permanent full-time position to provide international services. If an employee is either voluntarily or involuntarily separated from employment, the employment position is considered filled on a full-time basis if the employer is either training or actively recruiting a replacement employee.

(4) By ordinance, the legislative authority of a city, or legislative authorities of contiguous cities by ordinance of each city's legislative authority, with population greater than eighty thousand, located in a county containing no community empowerment zones as designated under RCW 43.63A.700, may designate a contiguous group of census tracts within the city or cities as an eligible area under this section. Each of the census tracts must meet the unemployment and poverty criteria of RCW 43.63A.710. Upon making the designation, the city or cities shall transmit to the department of revenue a certification letter and a map, each explicitly describing the boundaries of the census tract. This designation must be made by December 31, 1998.

(5) No application is necessary for the tax credit. The person must keep records necessary for the department to verify eligibility under this section. This information includes:

(a) Employment records for the previous six years;

(b) Information relating to description of international service activity engaged in at the eligible location by the person; and

(6) If at any time the department finds that a person is not eligible for tax credit under this section, the amount of taxes for which a credit has been used shall be immediately due. The department shall assess interest, but not penalties, on the credited taxes for which the person is not eligible. The interest shall be assessed at the rate provided for delinquent excise taxes under chapter 82.32 RCW, shall be assessed retroactively to the date the tax credit was taken, and shall accrue until the taxes for which a credit has been used are repaid.

(7) The employment security department shall provide to the department of revenue such information needed by the department of revenue to verify eligibility under this section.

NEW SECTION. Sec. 3. A new section is added to chapter 48.14 RCW to read as follows:

(1) Subject to the limits in this section, an eligible person is allowed a credit against the tax due under RCW 48.14.020. The credit is based on qualified employment positions in eligible areas. The credit is available to persons who are engaged in international insurance services as defined in this section. In order to receive the credit, the international insurance services activities must take place at a business within the eligible area.

(d) Credit may be accrued and carried over until it is used. No refunds may be granted for credits under this section.

(3) For the purposes of this section:

(b) "Eligible person" means a person, as defined in RCW 82.04.030, who in an eligible area at a specific location is engaged in the business of providing international insurance services;

(c) "International insurance services" means a business that provides insurance services related directly to the delivery of the service outside the United States or on behalf of persons residing outside the United States; and

(d) "Qualified employment position" means a permanent full-time position to provide international insurance services. If an employee is either voluntarily or involuntarily separated from employment, the employment position is considered filled on a full-time basis if the employer is either training or actively recruiting a replacement employee.

(4) By ordinance, the legislative authority of a city with population greater than eighty thousand, located in a county containing no community empowerment zones as designated under RCW 43.63A.700, may designate a contiguous group of census tracts within the city as an eligible area under this section. Each of the census tracts must meet the unemployment and poverty criteria of RCW 43.63A.710. Upon making the designation, the city shall transmit to the department of revenue a certification letter and a map, each explicitly describing the boundaries of the census tract. This designation must be made by December 31, 1998.

(5) No application is necessary for the tax credit. The person must keep records necessary for the department to verify eligibility under this section. This information includes:

(a) Employment records for the previous six years;

(b) Information relating to description of international insurance services activity engaged in at the eligible location by the person; and

(c) Information relating to customers of international insurance services activity engaged in at that location by the person.

(7) The employment security department shall provide to the department of revenue such information needed by the department of revenue to verify eligibility under this section.

NEW SECTION. Sec. 4. This act takes effect July 1, 1998."

On page 1, line 1 of the title, after "services;" strike the remainder of the title and insert "adding a new section to chapter 82.04 RCW; adding a new section to chapter 48.14 RCW; creating a new section; and providing an effective date."

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House refused to concur in the Senate amendments to Engrossed Second Substitute House Bill No. 2342, and asked the Senate to recede therefrom.

CONFERENCE COMMITTEE REPORT

Bill No: 2SSB 6168 Date: March 10, 1998

Prepared by: Kenny Pittman (7392) Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your Conference Committee, to whom was referred SECOND SUBSTITUTE SENATE BILL NO. 6168, Developing housing for temporary workers, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and that the attached striking amendment be adopted, and

that the bill do pass as amended.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 19.27 RCW to read as follows:

(1) Temporary worker housing shall be constructed, altered, or repaired as provided in chapter 70.114A RCW and chapter . . ., Laws of 1998 (this act). The construction, alteration, or repair of temporary worker housing is not subject to the codes adopted under RCW 19.27.031, except as provided by rule adopted under chapter 70.114A RCW or chapter . . ., Laws of 1998 (this act).

(2) For the purpose of this section, "temporary worker housing" has the same meaning as provided in RCW 70.114A.020.

(3) This section is applicable to temporary worker housing as of the date of the final adoption of the temporary worker building code by the department of health under section 2 of this act.

NEW SECTION. Sec. 2. A new section is added to chapter 70.114A RCW to read as follows:

(1) The department shall adopt by rule a temporary worker building code in conformance with the temporary worker housing standards developed under the Washington industrial safety and health act, chapter 49.17 RCW, the rules adopted by the state board of health under RCW 70.54.110, and the following guidelines:

(a) The temporary worker building code shall provide construction standards for shelter and associated facilities that are safe, secure, and capable of withstanding the stresses and loads associated with their designated use, and to which they are likely to be subjected by the elements;

(b) The temporary worker building code shall permit and facilitate designs and formats that allow for maximum affordability, consistent with the provision of decent, safe, and sanitary housing;

(i) The need for dormitory type housing for groups of unrelated individuals; and

(ii) The need for housing to accommodate families;

(d) The temporary worker building code shall incorporate the opportunity for the use of construction alternatives and the use of new technologies that meet the performance standards required by law;

(e) The temporary worker building code shall include standards for heating and insulation appropriate to the type of structure and length and season of occupancy;

(f) The temporary worker building code shall include standards for temporary worker housing that are to be used only during periods when no auxiliary heat is required; and

(g) The temporary worker building code shall provide that persons operating temporary worker housing consisting of four or fewer dwelling units or combinations of dwelling units, dormitories, or spaces that house nine or fewer occupants may elect to comply with the provisions of the temporary worker building code, and that unless the election is made, such housing is subject to the codes adopted under RCW 19.27.031.

(2) In adopting the temporary worker building code, the department shall make exceptions to the codes listed in RCW 19.27.031 and chapter 19.27A RCW, in keeping with the guidelines set forth in this section. The initial temporary worker building code adopted by the department shall be substantially equivalent with the temporary worker building code developed by the state building code council as directed by section 8, chapter 220, Laws of 1995.

(3) The temporary worker building code authorized and required by this section shall be enforced by the department.

The department shall have the authority to allow minor variations from the temporary worker building code that do not compromise the health or safety of workers. Procedures for requesting variations and guidelines for granting such requests shall be included in the rules adopted under this section.

NEW SECTION. Sec. 3. A new section is added to chapter 49.17 RCW to read as follows:

By December 1, 1998, the department of labor and industries shall adopt rules requiring electricity in all temporary worker housing and establishing minimum requirements to ensure the safe storage, handling, and preparation of food in these camps, regardless of whether individual or common cooking facilities are in use.

Sec. 4. RCW 43.22.480 and 1995 c 289 s 2 are each amended to read as follows:

(1) The department shall adopt and enforce rules that protect the health, safety, and property of the people of this state by assuring that all factory built housing or factory built commercial structures are structurally sound and that the plumbing, heating, electrical, and other components thereof are reasonably safe. The rules shall be reasonably consistent with recognized and accepted principles of safety and structural soundness, and in adopting the rules the department shall consider, so far as practicable, the standards and specifications contained in the uniform building, plumbing, and mechanical codes, including the barrier free code and the Washington energy code as adopted by the state building code council pursuant to chapter 19.27A RCW, and the national electrical code, including the state rules as adopted pursuant to chapter 19.28 RCW and published by the national fire protection association or, when applicable, the temporary worker building code adopted under section 2 of this act.

(2) The department shall set a schedule of fees which will cover the costs incurred by the department in the administration and enforcement of RCW 43.22.450 through 43.22.490.

(3) The director may adopt rules that provide for approval of a plan that is certified as meeting state requirements or the equivalent by a professional who is licensed or certified in a state whose licensure or certification requirements meet or exceed Washington requirements.

NEW SECTION. Sec. 5. A new section is added to chapter 43.70 RCW to read as follows:

(1) Any person providing temporary worker housing consisting of five or more dwelling units, or any combination of dwelling units, dormitories, or spaces that house ten or more occupants, or any person providing temporary worker housing who makes the election to comply with the temporary worker building code under section 2(1)(g) of this act, shall secure an annual operating license prior to occupancy and shall pay a fee according to RCW 43.70.340. The license shall be conspicuously displayed on site.

(2) Licenses issued under this chapter may be suspended or revoked upon the failure or refusal of the person providing temporary worker housing to comply with the provisions of RCW 70.54.110, or of any rules adopted under this section by the department. All such proceedings shall be governed by the provisions of chapter 34.05 RCW.

(3) The department may assess a civil fine in accordance with RCW 43.70.095 for failure or refusal to obtain a license prior to occupancy of temporary worker housing. The department may refund all or part of the civil fine collected once the operator obtains a valid operating license.

(4) Civil fines under this section shall not exceed twice the cost of the license plus the cost of the initial on-site inspection for the first violation of this section, and shall not exceed ten times the cost of the license plus the cost of the initial on-site inspection for second and subsequent violations within any five-year period. The department may adopt rules as necessary to assure compliance with this section.

NEW SECTION. Sec. 6. A new section is added to chapter 43.70 RCW to read as follows:

(1) Any person who constructs, alters, or makes an addition to temporary worker housing consisting of five or more dwelling units, or any combination of dwelling units, dormitories, or spaces that house ten or more occupants, or any person who constructs, alters, or makes an addition to temporary worker housing who elects to comply with the temporary worker building code under section 2(1)(g) of this act, shall:

(a) Submit plans and specifications for the alteration, addition, or new construction of this housing prior to beginning any alteration, addition, or new construction on this housing;

(b) Apply for and obtain a temporary worker housing building permit from the department prior to construction or alteration of this housing; and

(2) The department shall adopt rules as necessary, for the application procedures for the temporary worker housing plan review and permit process.

(3) Any alteration of a manufactured structure to be used for temporary worker housing remains subject to chapter 43.22 RCW, and the rules adopted under chapter 43.22 RCW.

Sec. 7. RCW 43.70.340 and 1990 c 253 s 3 are each amended to read as follows:

(1) The ((farmworker housing inspection)) temporary worker housing fund is established in the custody of the state treasury. The department ((of health)) shall deposit all funds received under subsections (2) and (3) of this section and from the legislature to administer a ((labor camp)) temporary worker housing permitting, licensing, and inspection program conducted by the department ((of health)). Disbursement from the fund shall be on authorization of the secretary of health or the secretary's designee. The fund is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements.

(2) There is imposed a fee on each operating license issued by the department ((of health)) to every operator of ((a labor camp)) temporary worker housing 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)) In establishing the fee to be paid under this subsection the department shall consider the cost of administering a license as well as enforcing 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)) temporary worker housing.

(3) There is imposed a fee on each temporary worker housing building permit issued by the department to every operator of temporary worker housing as required by section 6 of this act. The fee shall include the cost of administering a permit as well as enforcing the department's temporary worker building code as adopted under section 2 of this act.

(4) The department shall conduct a fee study for:

(a) A temporary worker housing operator's license;

(b) On-site inspections; and

After completion of the study, the department shall adopt these fees by rule by no later than December 31, 1998.

(5) The term of the operating license and the application procedures shall be established, by rule, by the department ((of health)).

NEW SECTION. Sec. 8. A new section is added to chapter 43.330 RCW to read as follows:

(1) The department shall work with the advisory group established in subsection (2) of this section to review proposals and make prioritized funding recommendations to the department or funding approval board that oversees the distribution of housing trust fund grants and loans to be used for the development, maintenance, and operation of housing for low-income farmworkers.

(2) A farmworker housing advisory group representing growers, farmworkers, and other interested parties shall be formed to assist the department in the review and priority funding recommendations under this section.

NEW SECTION. Sec. 9. RCW 70.114A.080 and 1995 c 220 s 8 are each repealed."

On page 1, line 2 of the title, after "workers;" strike the remainder of the title and insert "amending RCW 43.22.480 and 43.70.340; adding a new section to chapter 19.27 RCW; adding a new section to chapter 70.114A RCW; adding a new section to chapter 49.17 RCW; adding new sections to chapter 43.70 RCW; adding a new section to chapter 43.330 RCW; and repealing RCW 70.114A.080."

There being no objection, the House adopted the Report of the Conference Committee on Second Substitute Senate Bill No. 6168, and advanced the bill to Final Passage.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Second Substitute Senate Bill No. 6168 as recommended by the Conference Committee.

Representatives Clements, Van Luven, Parlette, Schoesler and Clements (again) spoke in favor of passage of the bill.

Representatives Kenney, Conway, Veloria, Morris and Regala spoke against the passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Second Substitute Senate Bill No. 6168 as recommended by the Conference Committee, and the bill passed the House by the following vote: Yeas - 67, Nays - 31, Absent - 0, Excused - 0.

Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Clements, Cooke, Crouse, DeBolt, Delvin, Doumit, Dunn, Dyer, Gardner, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kessler, Koster, Lambert, Linville, Lisk, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Mulliken, Parlette, Pennington, Quall, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sterk, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Zellinsky and Mr. Speaker - 67.

Voting nay: Representatives Butler, Chopp, Cody, Cole, Constantine, Conway, Cooper, Costa, Dickerson, Dunshee, Eickmeyer, Fisher, Gombosky, Kastama, Keiser, Kenney, Lantz, Mason, Morris, Murray, O'Brien, Ogden, Poulsen, Regala, Romero, Sommers, H., Sullivan, Tokuda, Veloria, Wolfe and Wood - 31.

Second Substitute Senate Bill No. 6168, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

REPORT OF CONFERENCE COMMITTEE

Bill No: 2SSB 6544 Date: March 10, 1998

Prepared by: Antonio Sanchez (7383) Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your Conference Committee, to whom was referred SECOND SUBSTITUTE SENATE BILL NO. 6544, Adult family/boarding homes, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and that the attached striking amendment be adopted,

and that the bill do pass as amended.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that many residents of long-term care facilities and recipients of in-home personal care services are exceptionally vulnerable and their health and well-being are heavily dependent on their caregivers. The legislature further finds that the quality of staff in long-term care facilities is often the key to good care. The need for well-trained staff and well-managed facilities is growing as the state's population ages and the acuity of the health care problems of residents increases. In order to better protect and care for residents, the legislature directs that the minimum training standards be reviewed for management and caregiving staff, including those serving residents with special needs, such as mental illness, dementia, or a developmental disability, that management and caregiving staff receive appropriate training, and that the training delivery system be improved.

NEW SECTION. Sec. 2. A new section is added to chapter 18.20 RCW to read as follows:

(1) The department of social and health services shall review, in coordination with the department of health, the nursing care quality assurance commission, adult family home providers, boarding home providers, in-home personal care providers, and long-term care consumers and advocates, training standards for administrators and resident caregiving staff. The departments and the commission shall submit to the appropriate committees of the house of representatives and the senate by December 1, 1998, specific recommendations on training standards and the delivery system, including necessary statutory changes and funding requirements. Any proposed enhancements shall be consistent with this section, shall take into account and not duplicate other training requirements applicable to boarding homes and staff, and shall be developed with the input of boarding home and resident representatives, health care professionals, and other vested interest groups. Training standards and the delivery system shall be relevant to the needs of residents served by the boarding home and recipients of long-term in-home personal care services and shall be sufficient to ensure that administrators and caregiving staff have the skills and knowledge necessary to provide high quality, appropriate care.

(2) The recommendations on training standards and the delivery system developed under subsection (1) of this section shall be based on a review and consideration of the following: Quality of care; availability of training; affordability, including the training costs incurred by the department of social and health services and private providers; portability of existing training requirements; competency testing; practical and clinical course work; methods of delivery of training; standards for management and caregiving staff training; and necessary enhancements for special needs populations and resident rights training. Residents with special needs include, but are not limited to, residents with a diagnosis of mental illness, dementia, or developmental disability.

(3) The department of social and health services shall report to the appropriate committees of the house of representatives and the senate by December 1, 1998, on the cost of implementing the proposed training standards for state-funded residents, and on the extent to which that cost is covered by existing state payment rates.

NEW SECTION. Sec. 3. A new section is added to chapter 70.128 RCW to read as follows:

(1) The department of social and health services shall review, in coordination with the department of health, the nursing care quality assurance commission, adult family home providers, boarding home providers, in-home personal care providers, and long-term care consumers and advocates, training standards for providers, resident managers, and resident caregiving staff. The departments and the commission shall submit to the appropriate committees of the house of representatives and the senate by December 1, 1998, specific recommendations on training standards and the delivery system, including necessary statutory changes and funding requirements. Any proposed enhancements shall be consistent with this section, shall take into account and not duplicate other training requirements applicable to adult family homes and staff, and shall be developed with the input of adult family home and resident representatives, health care professionals, and other vested interest groups. Training standards and the delivery system shall be relevant to the needs of residents served by the adult family home and recipients of long-term in-home personal care services and shall be sufficient to ensure that providers, resident managers, and caregiving staff have the skills and knowledge necessary to provide high quality, appropriate care.

(2) The recommendations on training standards and the delivery system developed under subsection (1) of this section shall be based on a review and consideration of the following: Quality of care; availability of training; affordability, including the training costs incurred by the department of social and health services and private providers; portability of existing training requirements; competency testing; practical and clinical course work; methods of delivery of training; standards for management; uniform caregiving staff training; necessary enhancements for special needs populations; and resident rights training. Residents with special needs include, but are not limited to, residents with a diagnosis of mental illness, dementia, or developmental disability. Development of training recommendations for developmental disabilities services shall be coordinated with the study requirements in section 6 of this act.

Sec. 4. RCW 70.128.070 and 1995 1st sp.s. c 18 s 22 are each amended to read as follows:

(1) ((A license shall be valid for one year.

(2) At least sixty days prior to expiration of the license, the provider shall submit an application for renewal of a license. The department shall send the provider an application for renewal prior to this time. The department shall have the authority to investigate any information included in the application for renewal of a license.

(3))) A license shall remain valid unless voluntarily surrendered, suspended, or revoked in accordance with this chapter.

(2)(a) Homes applying for a license shall be inspected at the time of licensure.

(b) Homes licensed by the department shall be inspected at least every eighteen months, subject to available funds.

(c) The department may make an unannounced inspection of a licensed home at any time to assure that the home and provider are in compliance with this chapter and the rules adopted under this chapter.

(((4))) (3) If the department finds that the home is not in compliance with this chapter, it shall require the home to correct any violations as provided in this chapter. ((If the department finds that the home is in compliance with this chapter and the rules adopted under this chapter, the department shall renew the license of the home.))

Sec. 5. RCW 70.129.030 and 1997 c 386 s 31 are each amended to read as follows:

(1) The facility must inform the resident both orally and in writing in a language that the resident understands of his or her rights and all rules and regulations governing resident conduct and responsibilities during the stay in the facility. The notification must be made prior to or upon admission. Receipt of the information must be acknowledged in writing.

(2) The resident or his or her legal representative has the right:

(a) Upon an oral or written request, to access all records pertaining to himself or herself including clinical records within twenty-four hours; and

(b) After receipt of his or her records for inspection, to purchase at a cost not to exceed the community standard photocopies of the records or portions of them upon request and two working days' advance notice to the facility.

(3) The facility shall only admit or retain individuals whose needs it can safely and appropriately serve in the facility with appropriate available staff and through the provision of reasonable accommodations required by state or federal law. Except in cases of genuine emergency, the facility shall not admit an individual before obtaining a thorough assessment of the resident's needs and preferences. The assessment shall contain, unless unavailable despite the best efforts of the facility, the resident applicant, and other interested parties, the following minimum information: Recent medical history; necessary and contraindicated medications; a licensed medical or other health professional's diagnosis, unless the individual objects for religious reasons; significant known behaviors or symptoms that may cause concern or require special care; mental illness, except where protected by confidentiality laws; level of personal care needs; activities and service preferences; and preferences regarding other issues important to the resident applicant, such as food and daily routine.

(4) The facility must inform each resident in writing in a language the resident or his or her representative understands before((, or at the time of)) admission, and at least once every twenty-four months thereafter of: (a) Services, items, and activities customarily available in the facility or arranged for by the facility as permitted by the facility's license; (b) charges for those services, items, and activities including charges for services, items, and activities not covered by the facility's per diem rate or applicable public benefit programs; and (c) the rules of facility operations required under RCW 70.129.140(2). Each resident and his or her representative must be informed in writing in advance of changes in the availability or the charges for services, items, or activities, or of changes in the facility's rules. Except in emergencies, thirty days' advance notice must be given prior to the change. However, for facilities licensed for six or fewer residents, if there has been a substantial and continuing change in the resident's condition necessitating substantially greater or lesser services, items, or activities, then the charges for those services, items, or activities may be changed upon fourteen days' advance written notice.

(((4))) (5) The facility must furnish a written description of residents rights that includes:

(a) A description of the manner of protecting personal funds, under RCW 70.129.040;

(b) A posting of names, addresses, and telephone numbers of the state survey and certification agency, the state licensure office, the state ombudsmen program, and the protection and advocacy systems; and

(c) A statement that the resident may file a complaint with the appropriate state licensing agency concerning alleged resident abuse, neglect, and misappropriation of resident property in the facility.

(((5))) (6) Notification of changes.

(a) A facility must immediately consult with the resident's physician, and if known, make reasonable efforts to notify the resident's legal representative or an interested family member when there is:

(i) An accident involving the resident which requires or has the potential for requiring physician intervention;

(ii) A significant change in the resident's physical, mental, or psychosocial status (i.e., a deterioration in health, mental, or psychosocial status in either life-threatening conditions or clinical complications).

(b) The facility must promptly notify the resident or the resident's representative shall make reasonable efforts to notify an interested family member, if known, when there is:

(i) A change in room or roommate assignment; or

(ii) A decision to transfer or discharge the resident from the facility.

(c) The facility must record and update the address and phone number of the resident's representative or interested family member, upon receipt of notice from them.

NEW SECTION. Sec. 6. The division of developmental disabilities in the department of social and health services, in coordination with advocacy, self-advocacy, and provider organizations, shall review administrator and resident caregiver staff training standards for agency contracted supported living services, including intensive tenant support, tenant support, supportive living, and in-home personal care services for children. The division and the advocates shall coordinate specialty training recommendations with the larger study group referenced in sections 2(1) and 3(1) of this act and submit specific recommendations on training standards, including necessary statutory changes and funding requirements to the appropriate committees of the house of representatives and the senate by December 1, 1998.

NEW SECTION. Sec. 7. A new section is added to chapter 18.48 RCW to read as follows:

Adult family homes have developed rapidly in response to the health and social needs of the aging population in community settings, especially as the aging population has increased in proportion to the general population. The growing demand for elder care with a new focus on issues affecting senior citizens, including persons with developmental disabilities, mental illness, or dementia, has prompted a growing professionalization of adult family home providers to address quality care and quality of life issues consistent with standards of accountability and regulatory safeguards for the health and safety of the residents. The establishment of an advisory committee to the department of health and the department of social and health services under section 8 of this act formalizes a stable process for discussing and considering these issues among residents and their advocates, regulatory officials, and adult family home providers. The dialogue among all stakeholders interested in maintaining a healthy option for the aging population in community settings assures the highest regard for the well-being of these residents within a benign and functional regulatory environment.

NEW SECTION. Sec. 8. A new section is added to chapter 18.48 RCW to read as follows:

(1) The secretary, in consultation with the secretary of social and health services, shall appoint an advisory committee on matters relating to the regulation, administrative rules, enforcement process, staffing, and training requirements of adult family homes. The advisory committee shall be composed of six members, of which two members shall be resident advocates, three members shall represent adult family home providers, and one member shall represent the public and serve as chair. The members shall generally represent the interests of aging residents, residents with dementia, residents with mental illness, and residents with developmental disabilities respectively. Members representing adult family home providers must have at least two years' experience as licensees. The membership must generally reflect urban and rural areas and western and eastern parts of the state. A member may not serve more than two consecutive terms.

(2) The secretary may remove a member of the advisory committee for cause as specified by rule adopted by the department. If there is a vacancy, the secretary shall appoint a member to serve for the remainder of the unexpired term.

(3) The advisory committee shall meet at the times and places designated by the secretary and shall hold meetings during the year as necessary to provide advice to the secretary on matters relating to the regulation of adult family homes. A majority of the members may request a meeting of the committee for any express purpose directly related to the regulation of adult family homes. A majority of members currently serving shall constitute a quorum.

(4) Establishment of the advisory committee shall not prohibit the department of health from utilizing other advisory activities that the department of health deems necessary for program development.

(5) Each member of the advisory committee shall serve without compensation but may be reimbursed for travel expenses as authorized in RCW 43.03.060.

(6) The secretary, members of the advisory committee, or individuals acting on their behalf are immune from civil liability for official acts performed in the course of their duties.

NEW SECTION. Sec. 9. A new section is added to chapter 70.128 RCW to read as follows:

Establishment of the advisory committee shall not prohibit the department of social and health services from utilizing other advisory activities that the department of social and health services deems necessary for program development.

Sec. 10. RCW 18.88A.210 and 1995 1st sp.s. c 18 s 46 are each amended to read as follows:

(1) A nurse may delegate specific care tasks to nursing assistants meeting the requirements of this section and who provide care to individuals in community residential programs for the developmentally disabled certified by the department of social and health services under chapter 71A.12 RCW, to individuals residing in adult family homes licensed under chapter 70.128 RCW, and to individuals residing in boarding homes licensed under chapter 18.20 RCW contracting with the department of social and health services to provide assisted living services pursuant to RCW 74.39A.010.

(2) For the purposes of this section, "nursing assistant" means a nursing assistant-registered or a nursing assistant-certified. Nothing in this section may be construed to affect the authority of nurses to delegate nursing tasks to other persons, including licensed practical nurses, as authorized by law.

(3) Before commencing any specific nursing care tasks authorized under this chapter, the nursing assistant must (a) provide to the delegating nurse a certificate of completion issued by the department of social and health services indicating the completion of basic core training as provided in this section, (b) be regulated by the department of health pursuant to this chapter, subject to the uniform disciplinary act under chapter 18.130 RCW, and (c) meet any additional training requirements identified by the nursing care quality assurance commission and authorized by this section.

(4) A nurse may delegate the following care tasks:

(a) Oral and topical medications and ointments;

(b) Nose, ear, eye drops, and ointments;

(c) Dressing changes and catheterization using clean techniques as defined by the nursing care quality assurance commission;

(d) Suppositories, enemas, ostomy care;

(e) Blood glucose monitoring;

(f) Gastrostomy feedings in established and healed condition.

(5) On or before September 1, 1995, the nursing care quality assurance commission, in conjunction with the professional nursing organizations, shall develop rules for nurse delegation protocols and by December 5, 1995, identify training beyond the core training that is deemed necessary for the delegation of complex tasks and patient care.

(6) Nursing task delegation protocols are not intended to regulate the settings in which delegation may occur but are intended to ensure that nursing care services have a consistent standard of practice upon which the public and profession may rely and to safeguard the authority of the nurse to make independent professional decisions regarding the delegation of a task. Protocols shall include at least the following:

(a) Ensure that determination of the appropriateness of delegation of a nursing task is at the discretion of the nurse;

(b) Allow delegation of a nursing care task only for patients who have a stable and predictable condition. "Stable and predictable condition" means a situation, as defined by rule by the nursing care quality assurance commission, in which the patient's clinical and behavioral status is known and does not require frequent presence and evaluation of a registered nurse;

(c) Assure that the ((delegations of nursing tasks pursuant to this chapter have the written informed consent of the patient consistent with the provisions for informed consent under chapter 7.70 RCW, as well as with the consent of the delegating nurse and nursing assistant. The delegating nurse shall inform patients of the level of training of all care providers in the setting)) initial delegating nurse obtains written consent to the nurse delegation process from the patient or a person authorized under RCW 7.70.065. Written consent is only necessary at the initial use of the nurse delegation process for each patient and is not necessary for task additions or changes or if a different nurse or nursing assistant will be participating in the process. The written consent must include at a minimum the following:

(i) A list of the tasks that could potentially be delegated per RCW 18.88A.210; and

(ii) A statement that a nursing assistant through the nurse delegation process will be performing a task that would previously have been performed by a registered or licensed practical nurse;

(d) Verify that the nursing assistant has completed the core training;

(e) Require assessment by the nurse of the ability and willingness of the nursing assistant to perform the delegated nursing task in the absence of direct nurse supervision and to refrain from delegation if the nursing assistant is not able or willing to perform the task;

(f) Require the nurse to analyze the complexity of the nursing task that is considered for delegation and determine the appropriate level of training and any need of additional training for the nursing assistant;

(g) Require the teaching of the nursing care task to the nursing assistant ((including)) utilizing one or more of the following: (i) Verification of competency via return demonstration ((under observation while performing the task)); (ii) other methods for verification of competency to perform the nursing task; or (iii) assurance that the nursing assistant is competent to perform the nursing task as a result of systems in place in the community residential program for the developmentally disabled, adult family home, or boarding home providing assisted living services;

(h) Require a plan of nursing supervision and reevaluation of the delegated nursing task. "Nursing supervision" means that the registered nurse monitors by direct observation or by whatever means is deemed appropriate by the registered nurse the skill and ability of the nursing assistant to perform delegated nursing tasks. Frequency of supervision is at the discretion of the registered nurse but shall occur at least every sixty days;

(i) Require instruction to the nursing assistant that the delegated nursing task is specific to a patient and is not transferable;

(j) Require documentation and written instruction related to the delegated nursing task be provided to the nursing assistant and a copy maintained in the patient record;

(k) Ensure that the nursing assistant is prepared to effectively deal with the predictable outcomes of performing the nursing task;

(l) Include in the delegation of tasks an awareness of the nature of the condition requiring treatment, risks of the treatment, side effects, and interaction of prescribed medications;

(m) Require documentation in the patient's record of the rationale for delegating or not delegating nursing tasks.

(7) A basic core training curriculum on providing care for individuals in community residential programs for the developmentally disabled certified by the department of social and health services under chapter 71A.12 RCW shall be in addition to the training requirements specified in subsection (5) of this section. Basic core training shall be developed and adopted by rule by the secretary of the department of social and health services. The department of social and health services shall appoint an advisory panel to assist in the development of core training comprised of representatives of the following:

(a) The division of developmental disabilities;

(b) The nursing care quality assurance commission;

(d) A state-wide organization of community residential service providers whose members are programs certified by the department under chapter 71A.12 RCW.

(8) A basic core training curriculum on providing care to residents in residential settings licensed under chapter 70.128 RCW, or in assisted living pursuant to RCW 74.39A.010 shall be mandatory for nursing assistants prior to assessment by a nurse regarding the ability and willingness to perform a delegated nursing task. Core training shall be developed and adopted by rule by the secretary of the department of social and health services, in conjunction with an advisory panel. The advisory panel shall be comprised of representatives from, at a minimum, the following:

(a) The nursing care quality assurance commission;

(b) Professional nurse organizations;

(c) A state-wide association of community residential service providers whose members are programs certified by the department under chapter 71A.12 RCW;

(d) Aging consumer groups;

(e) Associations representing homes licensed under chapters 70.128 and 18.20 RCW; and

(f) Associations representing home health, hospice, and home care agencies licensed under chapter 70.127 RCW.

Sec. 11. RCW 18.88A.230 and 1997 c 275 s 6 are each amended to read as follows:

(1) The nurse and nursing assistant shall be accountable for their own individual actions in the delegation process. Nurses acting within the protocols of their delegation authority shall be immune from liability for any action performed in the course of their delegation duties. Nursing assistants following written delegation instructions from registered nurses performed in the course of their accurately written, delegated duties shall be immune from liability.

(2) No person may coerce a nurse into compromising patient safety by requiring the nurse to delegate if the nurse determines it is inappropriate to do so. Nurses shall not be subject to any employer reprisal or disciplinary action by the Washington nursing care quality assurance commission for refusing to delegate tasks or refusing to provide the required training for delegation if the nurse determines delegation may compromise patient safety. Nursing assistants shall not be subject to any employer reprisal or disciplinary action by the nursing care quality assurance commission for refusing to accept delegation of a nursing task based on patient safety issues. No community residential program, adult family home, or boarding home contracting to provide assisted-living services may discriminate or retaliate in any manner against a person because the person made a complaint or cooperated in the investigation of a complaint.

(3) The department of social and health services ((shall)) may impose a civil fine of not less than two hundred fifty dollars nor more than one thousand dollars on a community residential program, adult family home, or boarding home under chapter 18, Laws of 1995 1st sp. sess. that knowingly permits an employee to perform a nursing task except as delegated by a nurse pursuant to chapter 18, Laws of 1995 1st sp. sess.

Sec. 12. 1995 1st sp.s. c 18 s 54 (uncodified) is amended to read as follows:

A special legislative task force is established to monitor implementation of sections 45 through 53 of this act. The task force shall consist of four members from the house of representatives, no more than two of whom shall be members of the same caucus, who shall be appointed by the speaker of the house of representatives, and four members from the senate, no more than two of whom shall be members of the same caucus, who shall be appointed by the president of the senate. The task force shall:

(1) Review the proposed nurse delegation protocols developed by the nursing care quality assurance commission;

(2) Review the proposed core and specialized training curricula developed by the department of social and health services and by the nursing care quality assurance commission;

(3) Review the program and reimbursement policies, and the identified barriers to nurse delegation, developed by the department of health and department of social and health services;

(4) Submit an interim report of its findings and recommendations on the above actions to the legislature by January 1, 1996;

(5) During 1996, conduct hearings to assess the effectiveness with which the delegation protocols, the core training, and nurse oversight are being implemented, and their impact on patient care and quality of life;

(6) Review and approve the proposed study designs;

(7) By February 1, 1997, recommend to the legislature a mechanism and time frame for extending nurse delegation provisions similar to those described in this act to persons residing in their own homes;

(8) During ((1997)) 1998, receive interim reports on the findings of the studies conducted in accordance with this act, and conduct additional fact-finding hearings on the implementation and impact of the nurse delegation provisions of sections 45 through 53 of this act.

The office of program research and senate committee services shall provide staff support to the task force. The department of health, the department of social and health services, and the nursing care quality assurance commission shall provide technical support as needed. The task force shall cease to exist on January 1, ((1998)) 1999, unless extended by act of the legislature.

NEW SECTION. Sec. 13. A new section is added to chapter 18.20 RCW to read as follows:

(1) Powers and duties regarding boarding homes, previously assigned under this chapter to the department of health and to the secretary of health, are by this section transferred to the department of social and health services and to the secretary of social and health services, respectively. This section further provides that, regarding boarding homes, all references within the Revised Code of Washington to the department of health and to the secretary of health mean the department of social and health services and the secretary of social and health services, respectively.

(2)(a) The department of health shall deliver to the department of social and health services all reports, documents, surveys, books, records, data, files, papers, and written material pertaining to boarding homes and the powers, functions, and duties transferred by this section. The department of health shall make available to the department of social and health services all cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of health in carrying out the powers, functions, and duties transferred by this section. The department of health shall assign to the department of social and health services all funds, credits, and other assets that the department of health possesses in connection with the power, functions, and duties transferred by this section.

(b) On the effective date of this section, the department of health shall transfer to the department of social and health services any appropriations and license fees made to or possessed by the department of health for carrying out the powers, functions, and duties transferred by this section.

(c) When a question arises regarding the transfer of personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers, functions, and duties transferred by this section, the director of financial management shall determine the proper allocation and shall certify that determination to the state agencies concerned.

(3) The department of social and health services shall continue and shall act upon all rules and pending business before the department of health pertaining to the powers, functions, and duties transferred by this section.

(4) The transfer of powers, functions, duties, and personnel from the department of health to the department of social and health services, as mandated by this section, will not affect the validity of any act performed by the department of health regarding boarding homes before the effective date of this section.

(5) If apportionments of budgeted funds are required because of the transfers mandated by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the necessary transfers and adjustments in funds, appropriation accounts, and equipment records in accordance with the certification.

(6) Nothing contained in this section alters any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement expires or until the bargaining unit is modified by action of the personnel board as provided by law.

Sec. 14. RCW 18.20.020 and 1991 c 3 s 34 are each amended to read as follows:

As used in this chapter:

(1) "Aged person" means a person of the age sixty-five years or more, or a person of less than sixty-five years who by reason of infirmity requires domiciliary care.

(2) "Boarding home" means any home or other institution, however named, which is advertised, announced or maintained for the express or implied purpose of providing board and domiciliary care to three or more aged persons not related by blood or marriage to the operator. It shall not include facilities certified as group training homes pursuant to RCW 71A.22.040, nor any home, institution or section thereof which is otherwise licensed and regulated under the provisions of state law providing specifically for the licensing and regulation of such home, institution or section thereof. Nor shall it include any independent senior housing, independent living units in continuing care retirement communities, or other similar living situations including those subsidized by the department of housing and urban development.

(3) "Person" means any individual, firm, partnership, corporation, company, association, or joint stock association, and the legal successor thereof.

(4) "Secretary" means the secretary of social and health services.

(5) "Department" means the state department of social and health services.

(6) "Authorized department" means any city, county, city-county health department or health district authorized by the secretary ((of health)) to carry out the provisions of this chapter.

Sec. 15. RCW 18.20.190 and 1995 1st sp.s. c 18 s 18 are each amended to read as follows:

(1) The department of social and health services is authorized to take one or more of the actions listed in subsection (2) of this section in any case in which the department finds that a boarding home provider has:

(a) Failed or refused to comply with the requirements of this chapter or the rules adopted under this chapter;

(b) Operated a boarding home without a license or under a revoked license;

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

(d) Willfully prevented or interfered with any inspection or investigation by the department.

(2) When authorized by subsection (1) of this section, the department may take one or more of the following actions:

(a) Refuse to issue a license;

(b) Impose reasonable conditions on a license, such as correction within a specified time, training, and limits on the type of clients the provider may admit or serve;

(d) Suspend, revoke, or refuse to renew a license; or

(e) Suspend admissions to the boarding home by imposing stop placement.

(3) When the department orders stop placement, the facility shall not admit any new resident until the stop placement order is terminated. The department may approve readmission of a resident to the facility from a hospital or nursing home during the stop placement. The department shall terminate the stop placement when: (a) The violations necessitating the stop placement have been corrected; and (b) the provider exhibits the capacity to maintain adequate care and service.

(4) Chapter 34.05 RCW applies to department actions under this section, except that orders of the department imposing license suspension, stop placement, or conditions for continuation of a license are effective immediately upon notice and shall continue pending any hearing.

NEW SECTION. Sec. 16. A new section is added to chapter 18.20 RCW to read as follows:

The secretary may adopt rules and policies as necessary to entitle the state to participate in federal funding programs and opportunities and to facilitate state and federal cooperation in programs under the department's jurisdiction. The secretary shall ensure that any internal reorganization carried out under the terms of this chapter complies with prerequisites for the receipt of federal funding for the various programs under the department's control. When interpreting any department-related section or provision of law susceptible to more than one interpretation, the secretary shall construe that section or provision in the manner most likely to comply with federal laws and rules entitling the state to receive federal funds for the various programs of the department. If any law or rule dealing with the department is ruled to be in conflict with federal prerequisites to the allocation of federal funding to the state, the department, or its agencies, the secretary shall declare that law or rule inoperative solely to the extent of the conflict.

NEW SECTION. Sec. 17. (1) The governor shall establish a joint legislative and executive task force on long-term care, safety, quality, and oversight. The joint task force shall consist of seven members. The governor shall appoint three members that include: (a) The secretary of the department of social and health services or his or her designee; (b) the secretary of the department of health or his or her designee; and (c) the state long-term care ombudsman. Four legislative members shall serve on the joint task force as ex officio members and include: Two members of the senate appointed by the president of the senate, one of whom shall be a member of the majority caucus and one whom shall be a member of the minority caucus; and two members of the house of representatives appointed by the speaker of the house of representatives, one of whom shall be a member of the majority caucus and one whom shall be a member of the minority caucus. Primary staff assistance to the joint task force shall be provided by the office of financial management with assistance, as directed by legislative members, by the health care committee of the house of representatives office of program research and the senate health and long-term care committee of senate committee services.

(2) The joint task force shall elect a chair and vice-chair. The chair shall serve a one-year term as the chair of the joint task force. The following year, the previously elected vice-chair shall serve as the chair of the joint task force and a new vice-chair shall be elected by the members of the joint task force.

(3) The joint task force shall have the ability to create advisory committees and appoint individuals from a variety of disciplines and perspectives including but not limited to patient and resident advocates and representatives of provider organizations, to assist the joint task force with specific issues related to chapter . . ., Laws of 1998 (this act).

(4) The joint task force may hold meetings, including hearings, to receive public testimony, which shall be open to the public in accordance with law. Records of the joint task force shall be subject to public disclosure in accordance with law. Members shall not receive compensation, but may be reimbursed for travel expenses as authorized under RCW 43.03.050 and 43.03.060. Advisory committee members, if appointed, shall not receive compensation or reimbursement for travel or expenses.

(5) The joint task force shall:

(a) Review all long-term care quality and safety standards for all long-term care facilities and services developed, revised, and enforced by the department of social and health services;

(b) In cooperation with aging and adult services, the division of developmental disabilities, and the division of mental health and the department of health, develop recommendations to simplify, strengthen, reduce, or eliminate rules, procedures, and burdensome paperwork that prove to be barriers to providing the highest standard of client safety, effective quality of care, effective client protections, and effective coordination of direct services;

(c) Review the need for reorganization and reform of long-term care administration and service delivery, including administration and services provided for the aged, for those with mental health needs, and for the developmentally disabled, and recommend the establishment of a single long-term care department or a division of long-term care within the department of social and health services;

(d) Suggest cost-effective methods for reallocating funds to unmet needs in direct services;

(e) List all nonmeans tested programs and activities funded by the federal older Americans act and state-funded senior citizens act or other such state-funded programs, and recommend methods for integrating such services into existing long-term care programs for the functionally disabled;

(f) Suggest methods to establish a single point of entry for service eligibility and delivery for all functionally disabled persons;

(g) Evaluate the need for long-term care training and review all long-term care training and education programs conducted by the department of social and health services, and suggest modifications to enhance client safety, to create greater access to training through the use of innovative technology, to reduce training costs, to improve coordination of training between the appropriate divisions and departments and, to enhance the overall uniformity of the long-term care training system;

(h) Evaluate the current system used by the department of social and health services for placement of functionally disabled clients, including aging, mentally ill, and developmentally disabled persons, into long-term care settings and services and assess the capacity of each long-term care service or setting to appropriately meet the health and safety needs of functionally disabled clients or residents referred to each service or setting;

(i) Evaluate the need for uniform client assessments for determining functional long-term care needs of all persons who receive state-funded, long-term care services;

(j) Evaluate the success of the transfer of boarding home responsibilities outlined in chapter . . ., Laws of 1998 (this act) and recommend if any further administrative changes should be made; and

(k) Evaluate the need to establish a dementia and Alzheimer's certification requirement for long-term care facilities who choose to provide care to persons who have been diagnosed with Alzheimer's or a related dementia. The evaluation shall also identify the level of disability a resident or client must have before the resident or client is considered for care in a certified long-term care Alzheimer's facility; and

(l) Evaluate the effect of requiring regular visits to bedbound patients of boarding homes and adult family homes by licensed practitioners.

(6) The joint task force shall report its initial findings and recommendations to the governor and appropriate committees of the legislature by January 1, 1999. The joint task force shall report its final findings and recommendations to the governor and appropriate committees of the legislature by December 12, 1999.

Sec. 18. RCW 18.20.160 and 1985 c 297 s 2 are each amended to read as follows:

(1) No person operating a boarding home licensed under this chapter shall admit to or retain in the boarding home any aged person requiring nursing or medical care of a type provided by institutions licensed under chapters 18.51, 70.41 or 71.12 RCW, except that when registered nurses are available, and upon a doctor's order that a supervised medication service is needed, it may be provided. Supervised medication services, as defined by the department, may include an approved program of self-medication or self-directed medication. Such medication service shall be provided only to boarders who otherwise meet all requirements for residency in a boarding home.

(2)(a) Notwithstanding any provision contained in this section, in no case shall a resident be bedbound, as a result of illness or disease, for any continuous period of time exceeding ten days, unless a licensed practitioner has seen the resident and assessed the resident's medical condition, prescribed a plan of care, and determined that a continued stay in the boarding home is appropriate.

(b) Residents who continue to be bedbound for more than ten consecutive days shall be seen by a licensed practitioner at least every thirty days, counting from the date of the initial bedbound-related licensed practitioner visit, for as long as the resident continues to be bedbound.

(c) The licensed practitioner and the boarding home shall document each visit and the licensed practitioner shall, at each visit, prescribe a plan of care and redetermine the appropriateness of the resident's continued stay in the boarding home.

(3) For the purposes of this section, an illness or disease does not include any illness or disease for which the resident has elected to receive hospice care and chooses to remain in the boarding home. When the resident elects to receive hospice care, an outside licensed agency is responsible for performing timely and appropriate visits and for developing a plan of care.

NEW SECTION. Sec. 19. A new section is added to chapter 18.20 RCW to read as follows:

For the purposes of RCW 18.20.160, "licensed practitioner" includes a physician licensed under chapter 18.71 RCW, a registered nurse licensed under chapter 18.79 RCW, an osteopathic physician and surgeon licensed under chapter 18.57 RCW, an advanced registered nurse practitioner licensed under chapter 18.79 RCW, or a physician assistant licensed under chapter 18.71A RCW.

Sec. 20. RCW 70.128.060 and 1995 c 260 s 4 are each amended to read as follows:

(1) An application for license shall be made to the department upon forms provided by it and shall contain such information as the department reasonably requires.

(2) The department shall issue a license to an adult family home if the department finds that the applicant and the home are in compliance with this chapter and the rules adopted under this chapter, unless (a) the applicant has prior violations of this chapter relating to the adult family home subject to the application or any other adult family home, or of any other law regulating residential care facilities within the past five years that resulted in revocation or nonrenewal of a license; or (b) the applicant has a history of significant noncompliance with federal, state, or local laws, rules, or regulations relating to the provision of care or services to vulnerable adults or to children.

(3) The license fee shall be submitted with the application.

(4) The department shall serve upon the applicant a copy of the decision granting or denying an application for a license. An applicant shall have the right to contest denial of his or her application for a license as provided in chapter 34.05 RCW by requesting a hearing in writing within twenty-eight days after receipt of the notice of denial.

(5) The department shall not issue a license to a provider if the department finds that the provider or any partner, officer, director, managerial employee, or owner of five percent or more if the provider has a history of significant noncompliance with federal or state regulations, rules, or laws in providing care or services to vulnerable adults or to children.

(6)(a) The department shall license an adult family home for the maximum level of care that the adult family home may provide. However, in no case shall the adult family home admit or retain residents who are bedbound, as a result of illness or disease, for any continuous period of time exceeding ten days, unless a licensed practitioner has seen the resident to assess their medical condition, prescribed a plan of care, and determined that a continued stay in the adult family home is appropriate.

(c) The licensed practitioner and adult family home shall document each visit and the licensed practitioner shall, at each visit, prescribe a plan of care and redetermine the continued appropriateness of the resident remaining in the adult family home.

(d) The department shall further define, in rule, license levels based upon the education, training, and caregiving experience of the licensed provider or staff.

(e) For the purposes of this section, an illness or disease does not include any illness or disease for which the resident has elected to receive hospice care and chooses to remain in the adult family home. When the resident elects to receive hospice care, an outside licensed agency is responsible for performing timely and appropriate visits and for developing a plan of care.

(7) The department shall establish, by rule, standards used to license nonresident providers and multiple facility operators.

(8) The department shall establish, by rule, for multiple facility operators educational standards substantially equivalent to recognized national certification standards for residential care administrators.

(9) The license fee shall be set at fifty dollars per year for each home. The licensing fee is due each year within thirty days of the anniversary date of the license. A fifty dollar processing fee shall also be charged each home when the home is initially licensed.

NEW SECTION. Sec. 21. A new section is added to chapter 70.128 RCW to read as follows:

For the purposes of RCW 70.128.060, "licensed practitioner" includes a physician licensed under chapter 18.71 RCW, a registered nurse licensed under chapter 18.79 RCW, an osteopathic physician and surgeon licensed under chapter 18.57 RCW, an advanced registered nurse practitioner licensed under chapter 18.79 RCW, or a physician assistant licensed under chapter 18.71A RCW.

NEW SECTION. Sec. 22. The sum of fifty thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 1999, from the general fund to the office of financial management solely for the purposes of implementing section 17 of this act.

NEW SECTION. Sec. 23. Section 5 of this act takes effect July 1, 1998.

NEW SECTION. Sec. 24. (1) Sections 13 through 16 of this act expire July 1, 2000, unless reauthorized by the legislature.

(2) Section 17 of this act expires December 12, 1999.

NEW SECTION. Sec. 25. 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. 26. Except for section 5 of this act, 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 1 of the title, after "care;" strike the remainder of the title and insert "amending RCW 70.128.070, 70.129.030, 18.88A.210, 18.88A.230, 18.20.020, 18.20.190, 18.20.160, and 70.128.060; amending 1995 1st sp.s. c 18 s 54 (uncodified); adding new sections to chapter 18.20 RCW; adding new sections to chapter 70.128 RCW; adding new sections to chapter 18.48 RCW; creating new sections; making an appropriation; providing an effective date; providing an expiration date; providing a contingent expiration date; and declaring an emergency."

There being no objection, the House adopted the Report of the Conference Committee on Second Substitute Senate Bill No. 6544 and advanced the bill to Final Passage.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Second Substitute Senate Bill No. 6544 as recommended by the Conference Committee.

Representatives Dyer and Cody spoke in favor of passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Second Substitute Senate Bill No. 6544 as recommended by the Conference Committee, and the bill passed the House by the following vote: Yeas - 96, Nays - 2, Absent - 0, Excused - 0.

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, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, 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 Alexander and Parlette - 2.

Second Substitute Senate Bill No. 6544, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

MESSAGE FROM THE SENATE

March 11, 1998

Mr. Speaker:

The Senate has adopted:

SENATE CONCURRENT RESOLUTION NO. 8429,

and the same is herewith transmitted.

Mike O'Connell, Secretary

The Speaker assumed the chair.

There being no objection, the House reverted to the fourth order of business.

INTRODUCTIONS AND FIRST READING

SCR 8429 By Senators McDonald and Snyder

Honoring Senator Irv Newhouse and renaming the Institutions Building after the Senator.

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

There being no objection, the rules were suspended and Senate Concurrent Resolution No. 8429 was advanced to second reading and read the second time in full.

There being no objection, the rules were suspended, the second reading considered the third and the memorial was placed on final adoption.

Representatives Lisk, Appelwick, K. Schmidt, Conway, Honeyford, Chandler and Van Luven spoke in favor of the adoption of the resolution.

Senate Concurrent Resolution No. 8429 was adopted.

The Speaker recognized Senator Newhouse, his wife Ruth and family members in the gallery. Senator Newhouse addressed the House.

RECONSIDERATION

There being no objection, the rules be suspended, and the House immediately reconsider the vote on Second Substitute Senate Bill No. 6544 as recommended by the Conference Committee.

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Second Substitute Senate Bill No. 6544 as recommended by the Conference Committee on reconsideration.

ROLL CALL

The Clerk called the roll on the final passage of Second Substitute Senate Bill No. 6544 as recommended by the Conference Committee on reconsideration and the bill passed the House by the following vote: Yeas - 95, Nays - 3, 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, 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, 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 and Zellinsky - 95.

Voting nay: Representatives Dunn, Parlette and Mr. Speaker - 3.

Second Substitute Senate Bill No. 6544 as recommended by the Conference Committee, on reconsideration, having received the constitutional majority, was declared passed.

REPORT OF CONFERENCE COMMITTEE

Bill No: SSB 6181 Date: March 10, 1998

Prepared by: Bill Perry (7123) Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your Conference Committee, to whom was referred SUBSTITUTE SENATE BILL NO. 6181, regulating probate, trusts, and estates, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and the striking amendment by the Conference Committee be adopted; and

that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"PART I--TESTAMENTARY DISPOSITION OF NONPROBATE ASSETS

NEW SECTION. Sec. 101. SHORT TITLE. This chapter may be known and cited as the testamentary disposition of nonprobate assets act.

NEW SECTION. Sec. 102. PURPOSES. The purposes of this chapter are to:

(1) Enhance and facilitate the power of testators to control the disposition of assets that pass outside their wills;

(2) Provide simple procedures for resolution of disputes regarding entitlement to such assets; and

(3) Protect any financial institution or other third party having possession of or control over such an asset and transferring it to a beneficiary duly designated by the testator, unless that third party has been provided notice of a testamentary disposition as required in this chapter.

NEW SECTION. Sec. 103. CONSTRUCTION--JURISDICTION. (1) When construing sections and provisions of this chapter, the sections and provisions must:

(a) Be liberally construed and applied to promote the purposes of this chapter;

(b) Be considered part of a general act that is intended as unified coverage of the subject matter, and no part of this chapter may be deemed impliedly repealed by subsequent legislation if the construction can be reasonably avoided;

(c) Not be held invalid because of the invalidity of other sections or provisions of this chapter as long as the section or provision in question can be given effect without regard to the invalid section or provision, and to this end the sections or provisions of this chapter are severable;

(d) Not be construed by reference to section or subsection headings as used in this chapter, since these do not constitute any part of the law;

(e) Not be deemed to alter the community or separate property nature of any asset passing outside a testator's will or any individual's community or separate rights to the asset, and a testator's community or separate property rights to the asset are not affected by whether it passes outside the will or, under this chapter, by disposition under the will; and

(f) Not be construed as authorizing or extending the authority of any financial institution or other third party to sell or otherwise create assets that would pass outside a testator's will upon such terms as would contravene any other applicable federal or state law.

(2) The sections and provisions of this chapter apply to an owner who dies while a resident of this state on or after the effective date of this section and to a nonprobate asset the disposition of which on the death of the owner would otherwise be governed by the law of this state.

NEW SECTION. Sec. 104. DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1)(a) "Actual knowledge" means:

(i) For a financial institution, whether acting as personal representative or otherwise, or other third party in possession or control of a nonprobate asset, receipt of written notice that: (A) Complies with section 109 of this act; (B) pertains to the testamentary disposition or ownership of a nonprobate asset in its possession or control; and (C) is received by the financial institution or third party after the death of the owner in a time sufficient to afford the financial institution or third party a reasonable opportunity to act upon the knowledge; and

(ii) For a personal representative that is not a financial institution, personal knowledge or possession of documents relating to the testamentary disposition or ownership of a nonprobate asset of the owner sufficient to afford the personal representative reasonable opportunity to act upon the knowledge, including reasonable opportunity for the personal representative to provide the written notice under section 109 of this act.

(b) For the purposes of (a) of this subsection, notice of more than thirty days is presumed to be notice that is sufficient to afford the party a reasonable opportunity to act upon the knowledge, but notice of less than five business days is presumed not to be a sufficient notice for these purposes. These presumptions may be rebutted only by clear and convincing evidence to the contrary.

(2) "Beneficiary" means the person designated to receive a nonprobate asset upon the death of the owner by means other than the owner's will.

(3) "Broker" means a person defined as a broker or dealer under the federal securities laws.

(4) "Date of will" means, as to any nonprobate asset, the date of signature of the will or codicil that refers to the asset and disposes of it.

(5) "Designate" means a written means by which the owner selects a beneficiary, including but not limited to instruments under contractual arrangements and registration of accounts, and "designation" means the selection.

(6) "Financial institution" means: A bank, trust company, mutual savings bank, savings and loan association, credit union, broker, or issuer of stock or its transfer agent.

(7)(a) "Nonprobate asset" means a nonprobate asset within the meaning of RCW 11.02.005, but excluding the following:

(i) A right or interest in real property passing under a joint tenancy with right of survivorship;

(ii) A deed or conveyance for which possession has been postponed until the death of the owner;

(iii) A right or interest passing under a community property agreement; and

(iv) An individual retirement account or bond.

(b) For the definition of "nonprobate asset" relating to revocation of a provision for a former spouse upon dissolution of marriage or declaration of invalidity of marriage, see RCW 11.07.010(5).

(8) "Owner" means a person who, during life, has beneficial ownership of the nonprobate asset.

(9) "Request" means a request by the beneficiary for transfer of a nonprobate asset after the death of the owner, if it complies with all conditions of the arrangement, including reasonable special requirements concerning necessary signatures and regulations of the financial institution or other third party, or by the personal representative of the owner's estate or the testamentary beneficiary, if it complies with the owner's will and any additional conditions of the financial institution or third party for such transfer.

(10) "Testamentary beneficiary" means a person named under the owner's will to receive a nonprobate asset under this chapter, including but not limited to the trustee of a testamentary trust.

(11) "Third party" means a person, including a financial institution, having possession of or control over a nonprobate asset at the death of the owner, including the trustee of a revocable living trust and surviving joint tenant or tenants.

NEW SECTION. Sec. 105. DISPOSITION OF NONPROBATE ASSETS UNDER WILL. (1) Subject to community property rights, upon the death of an owner the owner's interest in any nonprobate asset specifically referred to in the owner's will belongs to the testamentary beneficiary named to receive the nonprobate asset, notwithstanding the rights of any beneficiary designated before the date of the will.

(2) A general residuary gift in an owner's will, or a will making general disposition of all of the owner's property, does not entitle the devisees or legatees to receive nonprobate assets of the owner.

(3) A disposition in a will of the owner's interest in "all nonprobate assets" or of all of a category of nonprobate asset under section 104(7) of this act, such as "all of my payable on death bank accounts" or similar language, is deemed to be a disposition of all the nonprobate assets the beneficiaries of which are designated before the date of the will.

(4) If the owner designates a beneficiary for a nonprobate asset after the date of the will, the will does not govern the disposition of that nonprobate asset. If the owner revokes the later beneficiary designation, the prior will does not govern the disposition of the nonprobate asset. A beneficiary designation with respect to an asset that renews without the signature of the owner is deemed to have been made on the date on which the account was first opened.

NEW SECTION. Sec. 106. WAIVER OF RIGHT TO DISPOSE OF A NONPROBATE ASSET UNDER WILL. An owner may waive the right to dispose of a specific nonprobate asset by will under this chapter, with or without consideration, by a written instrument signed by the owner and delivered to the financial institution or other third party, including but not limited to signature cards or deposit agreements. The waiver is revocable by written instrument delivered to the financial institution or other third party unless the owner has stated that the waiver is to be irrevocable.

NEW SECTION. Sec. 107. CONTROVERSIES BETWEEN BENEFICIARIES AND TESTAMENTARY BENEFICIARIES. This chapter is intended to establish ownership rights to nonprobate assets upon the death of the owner, as between beneficiaries and testamentary beneficiaries. This chapter is relevant only as to controversies between these persons, and has no bearing on the right of a person to transfer a nonprobate asset under its terms in the absence of a testamentary provision under this chapter.

NEW SECTION. Sec. 108. RIGHT TO RELY ON FORM OF NONPROBATE ASSET--DISCHARGE OF FINANCIAL INSTITUTION OR OTHER THIRD PARTY. In transferring nonprobate assets, a financial institution or other third party may rely conclusively and entirely upon the form of the nonprobate asset and the terms of the nonprobate asset arrangement in effect on the date of death of the owner, unless the financial institution or other third party has actual knowledge of the existence of a claim by a testamentary beneficiary. A financial institution or other third party is not required to inquire as to either the source or ownership of any nonprobate asset in its possession or under its control, or as to the proposed application of an asset so transferred. A transfer of a nonprobate asset in accordance with this section constitutes a complete release and discharge of the financial institution or other third party from all claims relating to the nonprobate asset, regardless of whether or not the transfer is consistent with the actual ownership of the nonprobate asset.

NEW SECTION. Sec. 109. NOTICE--FORM--LIMITATION ON LIABILITY FOR FAILURE TO PROVIDE NOTICE. (1) Written notice under this chapter must be served personally or by certified mail, return receipt requested and postage prepaid, on the financial institution or other third party having the nonprobate asset in its possession or control, on the beneficiary, on the testamentary beneficiary, and on the personal representative, and proof of the mailing or service must be made by affidavit and filed under the cause number assigned to the owner's estate. Notice to a financial institution must include notice delivered as follows:

(a) If the nonprobate asset was maintained at a specific office of the financial institution, notice must be delivered to the office at which the nonprobate asset was maintained, which notice must be directed to the manager of the office;

(b) If the nonprobate asset was held in a trust administered by a financial institution, notice must be delivered to the office at which the trust was administered, which notice must be directed to a named officer responsible for the administration of the trust; and

(c) In all cases, notice must be delivered to any other location and in any other manner specifically designated in a written agreement signed by the owner and the financial institution, including but not limited to a signature card or deposit agreement.

(2) Written notice to a financial institution or other third party of the testamentary disposition of a nonprobate asset under this chapter must be in a form substantially similar to the following:

NOTICE OF TESTAMENTARY

DISPOSITION OF NONPROBATE ASSET

The undersigned personal representative, petitioner for appointment as personal representative, attorney for the personal representative or petitioner, or testamentary beneficiary under the will of the decedent named above (as that term is defined in section 104 of this act) hereby notifies you that the decedent named above died on (DATE MUST BE SUPPLIED) and left a will dated (DATE OF WILL MUST BE SUPPLIED) disposing of the following nonprobate asset or assets in your possession or control:

(EACH SUCH ASSET MUST BE DESCRIBED WITH REASONABLE SPECIFICITY. FOR ACCOUNTS AT FINANCIAL INSTITUTIONS, THE WRITTEN NOTICE MUST SPECIFY THE OFFICE AT WHICH THE ACCOUNT WAS MAINTAINED, THE NAME OR NAMES IN WHICH THE ACCOUNT WAS HELD, AND THE FULL ACCOUNT NUMBER. FOR ASSETS HELD IN TRUST, THE WRITTEN NOTICE MUST SPECIFY THE NAME OR NAMES OF THE GRANTOR, THE NAME OF THE TRUST, IF ANY, AND THE DATE OF THE TRUST INSTRUMENT.)

Under chapter 11.-- RCW (sections 101 through 116 of this act), you may not transfer, deliver, or otherwise dispose of the asset or assets listed above in accordance with the beneficiary designation, account registration, or other arrangement made with you by the decedent. You may transfer, deliver, or otherwise dispose of the asset or assets listed above only upon receipt of the written direction of the personal representative or of the testamentary beneficiary, if the personal representative consents.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(CAPACITY OF SIGNER)

(3) The personal representative of the estate of the owner, a petitioner for appointment as personal representative, or the testamentary beneficiary may provide written notice under this section. The personal representative has no duty to provide written notice under this section and has no liability for failing or refusing to give the notice.

(4) Written notice under this section may be provided at any time after the death of the owner and before discharge of the personal representative on closing of the estate, and may be provided before admission to probate of the will.

NEW SECTION. Sec. 110. VESTING OF RIGHTS AND POWERS UNDER CHAPTER. The right to provide notice under section 109 of this act and the entitlement of the testamentary beneficiary to the nonprobate asset vest immediately upon death of the owner. The power of the personal representative to direct the financial institution or other third party having the nonprobate asset in its possession or under its control to transfer or otherwise dispose of the asset arises upon the later of appointment of the personal representative or admission of the will to probate.

NEW SECTION. Sec. 111. OWNERSHIP RIGHTS AS BETWEEN INDIVIDUALS PRESERVED--TESTAMENTARY BENEFICIARY MAY RECOVER NONPROBATE ASSET FROM BENEFICIARY--LIMITATION ON ACTION TO RECOVER. (1) The protection accorded to financial institutions and other third parties under section 108 of this act has no bearing on the actual rights of ownership to nonprobate assets as between beneficiaries and testamentary beneficiaries, and their heirs, successors, personal representatives, and assigns.

(2) A testamentary beneficiary entitled to a nonprobate asset otherwise transferred to a beneficiary not so entitled, and a personal representative of the owner's estate on behalf of the testamentary beneficiary, may petition the superior court having jurisdiction over the owner's estate for an order declaring that the testamentary beneficiary is so entitled, the hearing of the petition to be held in accordance with chapter 11.96 RCW.

(3) A testamentary beneficiary claiming a nonprobate asset who has not filed such a petition within the earlier of: (a) Six months from the date of admission of the will to probate; and (b) one year from the date of the owner's death, shall be forever barred from making such a claim or commencing such an action.

NEW SECTION. Sec. 112. NONPROBATE ASSETS NOT PROPERTY OF ESTATE. (1) Notwithstanding any provision of this chapter, a nonprobate asset disposed of under the owner's will may not be treated as a part of the owner's probate estate for any other purpose under this title, unless:

(a) The nonprobate asset is subject to liabilities and claims, estate taxes, and expenses of administration under RCW 11.18.200; or

(b) Any section of this title directs otherwise, by specifically referring to this section.

(2) Provision of notice under this chapter has no effect on the administration of other assets of the estate of the owner. The personal representative has no duty to administer upon a nonprobate asset because of providing the notice, unless specifically required by this chapter or under RCW 11.18.200.

(3) RCW 11.12.110, regarding death of a devisee or legatee before the testator, does not apply to disposition of a nonprobate asset under a will.

NEW SECTION. Sec. 113. TRANSFER OF NONPROBATE ASSET TO TESTAMENTARY BENEFICIARY. (1) A financial institution's or third party's obligation to transfer a nonprobate asset to a testamentary beneficiary arises only after it has actual knowledge of the claim of the testamentary beneficiary, and after receiving written direction from the personal representative of the owner's estate, or if the personal representative consents in writing, from the testamentary beneficiary, to make the transfer. The financial institution may also require that its customary procedures be followed in effectuating a transfer of the nonprobate asset.

(2) Subject to subsection (1) of this section, financial institutions and other third parties may transfer a nonprobate asset that has not already been distributed to the testamentary beneficiary entitled to the nonprobate asset under the owner's will, subject to liabilities and claims, estate taxes, and expenses of administration under RCW 11.18.200.

NEW SECTION. Sec. 114. AUTHORITY TO WITHHOLD TRANSFER. (1) This chapter does not require any financial institution or other third party to transfer a nonprobate asset to a beneficiary, testamentary beneficiary, or other person claiming an interest in the nonprobate asset if the financial institution or third party has actual knowledge of the existence of a dispute between beneficiaries, testamentary beneficiaries, or other persons concerning rights or ownership to the nonprobate asset under this chapter, or if the financial institution or third party is otherwise uncertain as to who is entitled to receive the nonprobate asset under this chapter. In any such case, the financial institution or third party may, without liability, notify in writing all beneficiaries, testamentary beneficiaries, or other persons claiming an interest in the nonprobate asset of either its uncertainty as to who is entitled to transfer of the nonprobate asset or the existence of any dispute, and it may also, without liability, refuse to transfer a nonprobate asset to a beneficiary or a testamentary beneficiary until such time as either:

(a) All the beneficiaries, testamentary beneficiaries, and other interested persons have consented in writing to the transfer; or

(b) The transfer is authorized or directed by a court of proper jurisdiction.

(2) The expense of obtaining the written consent or court authorization or direction may, by order of the court, be paid by the personal representative as an expense of administration.

NEW SECTION. Sec. 115. ADVERSE CLAIM BOND. Notwithstanding section 114 of this act, a financial institution or other third party having actual knowledge of the existence of a dispute between beneficiaries, a testamentary beneficiary, or other persons concerning rights to a nonprobate asset under this chapter may condition transfer of the nonprobate asset on execution, in form and with security acceptable to the financial institution or other third party, of a bond in an amount that is double the fair market value of the nonprobate asset on the date of the owner's death or the amount of any adverse claim, whichever is the lesser, indemnifying the financial institution or other third party from any and all liability, loss, damage, costs, and expenses, for and on account of transfer of the nonprobate asset.

NEW SECTION. Sec. 116. APPLICATION OF CHAPTER. This chapter applies to any will of an owner who dies while a resident of this state on or after the effective date of this section, regardless of whether the will was executed or republished before or after the effective date of this section and regardless of whether the beneficiary of the nonprobate asset was designated before or after the effective date of this section.

Sec. 117. RCW 11.02.005 and 1997 c 252 s 1 are each amended to read as follows:

When used in this title, unless otherwise required from the context:

(1) "Personal representative" includes executor, administrator, special administrator, and guardian or limited guardian and special representative.

(2) "Net estate" refers to the real and personal property of a decedent exclusive of homestead rights, exempt property, the family allowance and enforceable claims against, and debts of, the deceased or the estate.

(3) "Representation" refers to a method of determining distribution in which the takers are in unequal degrees of kinship with respect to the intestate, and is accomplished as follows: After first determining who, of those entitled to share in the estate, are in the nearest degree of kinship, the estate is divided into equal shares, the number of shares being the sum of the number of persons who survive the intestate who are in the nearest degree of kinship and the number of persons in the same degree of kinship who died before the intestate but who left issue surviving the intestate; each share of a deceased person in the nearest degree shall be divided among those of the deceased person's issue who survive the intestate and have no ancestor then living who is in the line of relationship between them and the intestate, those more remote in degree taking together the share which their ancestor would have taken had he or she survived the intestate. Posthumous children are considered as living at the death of their parent.

(4) "Issue" includes all the lawful lineal descendants of the ancestor and all lawfully adopted children.

(5) "Degree of kinship" means the degree of kinship as computed according to the rules of the civil law; that is, by counting upward from the intestate to the nearest common ancestor and then downward to the relative, the degree of kinship being the sum of these two counts.

(6) "Heirs" denotes those persons, including the surviving spouse, who are entitled under the statutes of intestate succession to the real and personal property of a decedent on the decedent's death intestate.

(7) "Real estate" includes, except as otherwise specifically provided herein, all lands, tenements, and hereditaments, and all rights thereto, and all interest therein possessed and claimed in fee simple, or for the life of a third person.

(8) "Will" means an instrument validly executed as required by RCW 11.12.020.

(9) "Codicil" means a will that modifies or partially revokes an existing earlier will. A codicil need not refer to or be attached to the earlier will.

(10) "Guardian" or "limited guardian" means a personal representative of the person or estate of an incompetent or disabled person as defined in RCW 11.88.010 and the term may be used in lieu of "personal representative" wherever required by context.

(11) "Administrator" means a personal representative of the estate of a decedent and the term may be used in lieu of "personal representative" wherever required by context.

(12) "Executor" means a personal representative of the estate of a decedent appointed by will and the term may be used in lieu of "personal representative" wherever required by context.

(13) "Special administrator" means a personal representative of the estate of a decedent appointed for limited purposes and the term may be used in lieu of "personal representative" wherever required by context.

(14) "Trustee" means an original, added, or successor trustee and includes the state, or any agency thereof, when it is acting as the trustee of a trust to which chapter 11.98 RCW applies.

(15) "Nonprobate asset" means those rights and interests of a person having beneficial ownership of an asset that pass on the person's death under a written instrument or arrangement other than the person's will. "Nonprobate asset" includes, but is not limited to, a right or interest passing under a joint tenancy with right of survivorship, joint bank account with right of survivorship, payable on death or trust bank account, transfer on death security or security account, deed or conveyance if possession has been postponed until the death of the person, trust of which the person is grantor and that becomes effective or irrevocable only upon the person's death, community property agreement, individual retirement account or bond, or note or other contract the payment or performance of which is affected by the death of the person. "Nonprobate asset" does not include: A payable-on-death provision of a life insurance policy, annuity, or other similar contract, or of an employee benefit plan; a right or interest passing by descent and distribution under chapter 11.04 RCW; a right or interest if, before death, the person has irrevocably transferred the right or interest, the person has waived the power to transfer it or, in the case of contractual arrangement, the person has waived the unilateral right to rescind or modify the arrangement; or a right or interest held by the person solely in a fiduciary capacity. For the definition of "nonprobate asset" relating to revocation of a provision for a former spouse upon dissolution of marriage or declaration of invalidity of marriage, RCW 11.07.010(5) applies. For the definition of "nonprobate asset" relating to revocation of a provision for a former spouse upon dissolution of marriage or declaration of invalidity of marriage, see RCW 11.07.010(5). For the definition of "nonprobate asset" relating to testamentary disposition of nonprobate assets, see section 104(7) of this act.

(16) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended or renumbered on January 1, ((1997)) 1998.

Words that import the singular number may also be applied to the plural of persons and things.

Words importing the masculine gender only may be extended to females also.

Sec. 118. RCW 11.07.010 and 1997 c 252 s 2 are each amended to read as follows:

(1) This section applies to all nonprobate assets, wherever situated, held at the time of entry by a superior court of this state of a decree of dissolution of marriage or a declaration of invalidity.

(2)(a) If a marriage is dissolved or invalidated, a provision made prior to that event that relates to the payment or transfer at death of the decedent's interest in a nonprobate asset in favor of or granting an interest or power to the decedent's former spouse is revoked. A provision affected by this section must be interpreted, and the nonprobate asset affected passes, as if the former spouse failed to survive the decedent, having died at the time of entry of the decree of dissolution or declaration of invalidity.

(b) This subsection does not apply if and to the extent that:

(i) The instrument governing disposition of the nonprobate asset expressly provides otherwise;

(ii) The decree of dissolution or declaration of invalidity requires that the decedent maintain a nonprobate asset for the benefit of a former spouse or children of the marriage, payable on the decedent's death either outright or in trust, and other nonprobate assets of the decedent fulfilling such a requirement for the benefit of the former spouse or children of the marriage do not exist at the decedent's death; or

(iii) If not for this subsection, the decedent could not have effected the revocation by unilateral action because of the terms of the decree or declaration, or for any other reason, immediately after the entry of the decree of dissolution or declaration of invalidity.

(3)(a) A payor or other third party in possession or control of a nonprobate asset at the time of the decedent's death is not liable for making a payment or transferring an interest in a nonprobate asset to a decedent's former spouse whose interest in the nonprobate asset is revoked under this section, or for taking another action in reliance on the validity of the instrument governing disposition of the nonprobate asset, before the payor or other third party has actual knowledge of the dissolution or other invalidation of marriage. A payor or other third party is liable for a payment or transfer made or other action taken after the payor or other third party has actual knowledge of a revocation under this section.

(b) This section does not require a payor or other third party to pay or transfer a nonprobate asset to a beneficiary designated in a governing instrument affected by the dissolution or other invalidation of marriage, or to another person claiming an interest in the nonprobate asset, if the payor or third party has actual knowledge of the existence of a dispute between the former spouse and the beneficiaries or other persons concerning rights of ownership of the nonprobate asset as a result of the application of this section among the former spouse and the beneficiaries or among other persons, or if the payor or third party is otherwise uncertain as to who is entitled to the nonprobate asset under this section. In such a case, the payor or third party may, without liability, notify in writing all beneficiaries or other persons claiming an interest in the nonprobate asset of either the existence of the dispute or its uncertainty as to who is entitled to payment or transfer of the nonprobate asset. The payor or third party may also, without liability, refuse to pay or transfer a nonprobate asset in such a circumstance to a beneficiary or other person claiming an interest until the time that either:

(i) All beneficiaries and other interested persons claiming an interest have consented in writing to the payment or transfer; or

(ii) The payment or transfer is authorized or directed by a court of proper jurisdiction.

(c) Notwithstanding subsections (1) and (2) of this section and (a) and (b) of this subsection, a payor or other third party having actual knowledge of the existence of a dispute between beneficiaries or other persons concerning rights to a nonprobate asset as a result of the application of this section may condition the payment or transfer of the nonprobate asset on execution, in a form and with security acceptable to the payor or other third party, of a bond in an amount that is double the fair market value of the nonprobate asset at the time of the decedent's death or the amount of an adverse claim, whichever is the lesser, or of a similar instrument to provide security to the payor or other third party, indemnifying the payor or other third party for any liability, loss, damage, costs, and expenses for and on account of payment or transfer of the nonprobate asset.

(d) As used in this subsection, "actual knowledge" means, for a payor or other third party in possession or control of the nonprobate asset at or following the decedent's death, written notice to the payor or other third party, or to an officer of a payor or third party in the course of his or her employment, received after the decedent's death and within a time that is sufficient to afford the payor or third party a reasonable opportunity to act upon the knowledge. The notice must identify the nonprobate asset with reasonable specificity. The notice also must be sufficient to inform the payor or other third party of the revocation of the provisions in favor of the decedent's spouse by reason of the dissolution or invalidation of marriage, or to inform the payor or third party of a dispute concerning rights to a nonprobate asset as a result of the application of this section. Receipt of the notice for a period of more than thirty days is presumed to be received within a time that is sufficient to afford the payor or third party a reasonable opportunity to act upon the knowledge, but receipt of the notice for a period of less than five business days is presumed not to be a sufficient time for these purposes. These presumptions may be rebutted only by clear and convincing evidence to the contrary.

(4)(a) A person who purchases a nonprobate asset from a former spouse or other person, for value and without actual knowledge, or who receives from a former spouse or other person payment or transfer of a nonprobate asset without actual knowledge and in partial or full satisfaction of a legally enforceable obligation, is neither obligated under this section to return the payment, property, or benefit nor is liable under this section for the amount of the payment or the value of the nonprobate asset. However, a former spouse or other person who, with actual knowledge, not for value, or not in satisfaction of a legally enforceable obligation, receives payment or transfer of a nonprobate asset to which that person is not entitled under this section is obligated to return the payment or nonprobate asset, or is personally liable for the amount of the payment or value of the nonprobate asset, to the person who is entitled to it under this section.

(b) As used in this subsection, "actual knowledge" means, for a person described in (a) of this subsection who purchases or receives a nonprobate asset from a former spouse or other person, personal knowledge or possession of documents relating to the revocation upon dissolution or invalidation of marriage of provisions relating to the payment or transfer at the decedent's death of the nonprobate asset, received within a time after the decedent's death and before the purchase or receipt that is sufficient to afford the person purchasing or receiving the nonprobate asset reasonable opportunity to act upon the knowledge. Receipt of the personal knowledge or possession of the documents for a period of more than thirty days is presumed to be received within a time that is sufficient to afford the payor or third party a reasonable opportunity to act upon the knowledge, but receipt of the notice for a period of less than five business days is presumed not to be a sufficient time for these purposes. These presumptions may be rebutted only by clear and convincing evidence to the contrary.

(5) As used in this section, "nonprobate asset" means those rights and interests of a person having beneficial ownership of an asset that pass on the person's death under only the following written instruments or arrangements other than the decedent's will:

(a) A payable-on-death provision of a life insurance policy, employee benefit plan, annuity or similar contract, or individual retirement account;

(b) A payable-on-death, trust, or joint with right of survivorship bank account;

(d) Transfer on death beneficiary designations of a transfer on death or pay on death security, if such designations are authorized under Washington law.

((However, for the general definition of "nonprobate asset" in this title, RCW 11.02.005 applies.)) For the general definition in this title of "nonprobate asset," see RCW 11.02.005(15) and for the definition of "nonprobate asset" relating to testamentary disposition of nonprobate assets, see section 104(7) of this act.

(6) This section is remedial in nature and applies as of July 25, 1993, to decrees of dissolution and declarations of invalidity entered after July 24, 1993, and this section applies as of January 1, 1995, to decrees of dissolution and declarations of invalidity entered before July 25, 1993.

PART II--PROBATE

Sec. 201. RCW 11.54.070 and 1997 c 252 s 54 are each amended to read as follows:

(1) Except as provided in ((subsection)) RCW 11.54.060(2) ((of this section)), property awarded and cash paid under this chapter is immune from all debts, including judgments and judgment liens, of the decedent and of the surviving spouse existing at the time of death.

(2) Both the decedent's and the surviving spouse's interests in any community property awarded to the spouse under this chapter are immune from the claims of creditors.

Sec. 202. RCW 11.68.110 and 1997 c 252 s 68 are each amended to read as follows:

(1) If a personal representative who has acquired nonintervention powers does not apply to the court for either of the final decrees provided for in RCW 11.68.100 as now or hereafter amended, the personal representative shall, when the administration of the estate has been completed, file a declaration that must state as follows:

(a) The date of the decedent's death and the decedent's residence at the time of death;

(b) Whether or not the decedent died testate or intestate;

(c) If the decedent died testate, the date of the decedent's last will and testament and the date of the order probating the will;

(d) That each creditor's claim which was justly due and properly presented as required by law has been paid or otherwise disposed of by agreement with the creditor, and that the amount of estate taxes due as the result of the decedent's death has been determined, settled, and paid;

(e) That the personal representative has completed the administration of the decedent's estate without court intervention, and the estate is ready to be closed;

(f) If the decedent died intestate, the names, addresses (if known), and relationship of each heir of the decedent, together with the distributive share of each heir; and

(g) The amount of fees paid or to be paid to each of the following: (i) Personal representative or representatives; (ii) lawyer or lawyers; (iii) appraiser or appraisers; and (iv) accountant or accountants; and that the personal representative believes the fees to be reasonable and does not intend to obtain court approval of the amount of the fees or to submit an estate accounting to the court for approval.

(2) Subject to the requirement of notice as provided in this section, unless an heir, devisee, or legatee of a decedent petitions the court either for an order requiring the personal representative to obtain court approval of the amount of fees paid or to be paid to the personal representative, lawyers, appraisers, or accountants, or for an order requiring an accounting, or both, within thirty days from the date of filing a declaration of completion of probate, the personal representative will be automatically discharged without further order of the court and the representative's powers will cease thirty days after the filing of the declaration of completion of probate, and the declaration of completion of probate shall, at that time, be the equivalent of the entry of a decree of distribution in accordance with chapter 11.76 RCW for all legal intents and purposes.

(3) Within five days of the date of the filing of the declaration of completion, the personal representative or the personal representative's lawyer shall mail a copy of the declaration of completion to each heir, legatee, or devisee of the decedent, who: (a) Has not waived notice of the filing, in writing, filed in the cause((, or who, not having waived notice,)); and (b) either has not received the full amount of the distribution to which the heir, legatee, or devisee is entitled or has a property right that might be affected adversely by the discharge of the personal representative under this section, together with a notice which shall be substantially as follows:

CAPTION NOTICE OF FILING OF

OF DECLARATION OF COMPLETION

CASE OF PROBATE

NOTICE IS GIVEN that the attached Declaration of Completion of Probate was filed by the undersigned in the above-entitled court on the . . . . day of . . . . . ., 19. . .; unless you shall file a petition in the above-entitled court requesting the court to approve the reasonableness of the fees, or for an accounting, or both, and serve a copy thereof upon the personal representative or the personal representative's lawyer, within thirty days after the date of the filing, the amount of fees paid or to be paid will be deemed reasonable, the acts of the personal representative will be deemed approved, the personal representative will be automatically discharged without further order of the court, and the Declaration of Completion of Probate will be final and deemed the equivalent of a Decree of Distribution entered under chapter 11.76 RCW.

If you file and serve a petition within the period specified, the undersigned will request the court to fix a time and place for the hearing of your petition, and you will be notified of the time and place thereof, by mail, or personal service, not less than ten days before the hearing on the petition.

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

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Personal Representative

(4) If all heirs, devisees, and legatees of the decedent entitled to notice under this section waive, in writing, the notice required by this section, the personal representative will be automatically discharged without further order of the court and the declaration of completion of probate will become effective as a decree of distribution upon the date of filing thereof. In those instances where the personal representative has been required to furnish bond, and a declaration of completion is filed pursuant to this section, any bond furnished by the personal representative shall be automatically discharged upon the discharge of the personal representative.

Sec. 203. RCW 11.68.114 and 1997 c 252 s 70 are each amended to read as follows:

(1) The personal representative retains the powers to: Deal with the taxing authority of any federal, state, or local government; hold a reserve in an amount not to exceed three thousand dollars, for the determination and payment of any additional taxes, interest, and penalties, and of all reasonable expenses related directly or indirectly to such determination or payment; pay from the reserve the reasonable expenses, including compensation for services rendered or goods provided by the personal representative or by the personal representative's employees, independent contractors, and other agents, in addition to any taxes, interest, or penalties assessed by a taxing authority; receive and hold any credit, including interest, from any taxing authority; and distribute the residue of the reserve to the intended beneficiaries of the reserve; if:

(a) In lieu of the statement set forth in RCW 11.68.110(1)(e), the declaration of completion of probate states that:

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

and

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

CAPTION NOTICE OF FILING OF

OF DECLARATION OF COMPLETION

CASE OF PROBATE

NOTICE IS GIVEN that the attached Declaration of Completion of Probate was filed by the undersigned in the above-entitled court on the . . . day of . . . . , . . . .; unless you file a petition in the above-entitled court requesting the court to approve the reasonableness of the fees, or for an accounting, or both, and serve a copy thereof upon the personal representative or the personal representative's lawyer, within thirty days after the date of the filing:

(i) The schedule of fees set forth in the Declaration of Completion of Probate will be deemed reasonable;

(ii) The Declaration of Completion of Probate will be final and deemed the equivalent of a Decree of Distribution entered under chapter 11.76 RCW;

(iii) The acts that the personal representative performed before the Declaration of Completion of Probate was filed will be deemed approved, and the personal representative will be automatically discharged without further order of the court with respect to all such acts; and

(iv) The personal representative will retain the power to deal with the taxing authorities, together with $. . . . for the determination and payment of all remaining tax obligations. Only that portion of the reserve that remains after the settlement of any tax liability, and the payment of any expenses associated with such settlement, will be distributed to the persons legally entitled to the reserve.

(2) If the requirements in subsection (1) of this section are met, the personal representative is discharged from all claims other than those relating to the settlement of any tax obligations and the actual distribution of the reserve, at the effective date of the declaration of completion. The personal representative is discharged from liability from the settlement of any tax obligations and the distribution of the reserve, and the personal representative's powers cease, thirty days after the personal representative((:

(a))) has mailed to those persons who would have shared in the distribution of the reserve had the reserve remained intact((;)) and

(((b))) has filed with the court copies of checks or receipts showing how the reserve was in fact distributed, unless a person with an interest in the reserve petitions the court earlier within the thirty-day period for an order requiring an accounting of the reserve or an order determining the reasonableness, or lack of reasonableness, of distributions made from the reserve. If the personal representative has been required to furnish a bond, any bond furnished by the personal representative is automatically discharged upon the final discharge of the personal representative.

Sec. 204. 1997 c 252 s 87 (uncodified) is amended to read as follows:

The following acts or parts of acts are each repealed, effective December 31, 1997, for estates of decedents dying after December 31, 1997:

(1) RCW 11.40.011 and 1989 c 333 s 2, 1983 c 201 s 1, & 1967 ex.s. c 106 s 3;

(2) RCW 11.40.012 and 1989 c 333 s 3;

(3) RCW 11.40.013 and 1994 c 221 s 26 & 1989 c 333 s 4;

(4) RCW 11.40.014 and 1989 c 333 s 5;

(5) RCW 11.40.015 and 1994 c 221 s 27 & 1989 c 333 s 6;

(6) RCW 11.42.160 and 1994 c 221 s 46;

(7) RCW 11.42.170 and 1994 c 221 s 47;

(8) RCW 11.42.180 and 1994 c 221 s 48;

(9) RCW 11.44.066 and 1990 c 180 s 1 & 1974 ex.s. c 117 s 49;

(10) RCW 11.52.010 and 1987 c 442 s 1116, 1984 c 260 s 17, 1974 ex.s. c 117 s 7, 1971 ex.s. c 12 s 2, 1967 c 168 s 12, & 1965 c 145 s 11.52.010;

(11) RCW 11.52.012 and 1985 c 194 s 1, 1984 c 260 s 18, 1977 ex.s. c 234 s 9, 1974 ex.s. c 117 s 8, & 1965 c 145 s 11.52.012;

(12) RCW 11.52.014 and 1965 c 145 s 11.52.014;

(13) RCW 11.52.016 and 1988 c 202 s 18, 1972 ex.s. c 80 s 1, & 1965 c 145 s 11.52.016;

(14) RCW 11.52.020 and 1985 c 194 s 2, 1984 c 260 s 19, 1974 ex.s. c 117 s 9, 1971 ex.s. c 12 s 3, 1967 c 168 s 13, & 1965 c 145 s 11.52.020;

(15) RCW 11.52.022 and 1985 c 194 s 3, 1984 c 260 s 20, 1977 ex.s. c 234 s 10, 1974 ex.s. c 117 s 10, 1971 ex.s. c 12 s 4, & 1965 c 145 s 11.52.022;

(16) RCW 11.52.024 and 1972 ex.s. c 80 s 2 & 1965 c 145 s 11.52.024;

(17) RCW 11.52.030 and 1965 c 145 s 11.52.030;

(18) RCW 11.52.040 and 1965 c 145 s 11.52.040;

(19) RCW 11.52.050 and 1967 c 168 s 14;

(20) RCW 11.68.010 and 1994 c 221 s 50, 1977 ex.s. c 234 s 18, 1974 ex.s. c 117 s 13, 1969 c 19 s 1, & 1965 c 145 s 11.68.010;

(21) RCW 11.68.020 and 1974 ex.s. c 117 s 14 & 1965 c 145 s 11.68.020;

(22) RCW 11.68.030 and 1977 ex.s. c 234 s 19, 1974 ex.s. c 117 s 15, & 1965 c 145 s 11.68.030; and

(23) RCW 11.68.040 and 1977 ex.s. c 234 s 20, 1974 ex.s. c 117 s 16, & 1965 c 145 s 11.68.040.

Sec. 205. 1997 c 252 s 89 (uncodified) is amended to read as follows:

Sections 1 through ((73 of this act)) 72, chapter 252, Laws of 1997 apply to estates of decedents dying after December 31, 1997. Sections 81 through 86, chapter 252, Laws of 1997 apply to all estates, trusts, and governing instruments in existence on or at any time after March 7, 1984, and to all proceedings with respect thereto after March 7, 1984, whether the proceedings commenced before or after March 7, 1984, and including distributions made after March 7, 1984. Sections 81 through 86, chapter 252, Laws of 1997 do not apply to any governing instrument, the terms of which expressly or by necessary implication make the application of sections 81 through 86, chapter 252, Laws of 1997 inapplicable. The judicial and nonjudicial dispute resolution procedures of chapter 11.96 RCW apply to sections 81 through 86, chapter 252, Laws of 1997.

PART III--UNIFORM TRANSFERS TO MINORS ACT

Sec. 301. RCW 11.114.030 and 1991 c 193 s 3 are each amended to read as follows:

(1) A person having the right to designate the recipient of property transferable upon the occurrence of a future event may revocably nominate a custodian to receive the property for a minor beneficiary upon the occurrence of the event by naming the custodian followed in substance by the words: ". . . . . . as custodian for . . . . . . (name of minor) under the Washington uniform transfers to minors act." The nomination may name one or more persons as substitute custodians to whom the property shall be transferred, in the order named, if the first nominated custodian dies before the transfer or is unable, declines, or is ineligible to serve. The nomination may be made in a will, a trust, a deed, an instrument exercising a power of appointment, or in a writing designating a beneficiary of contractual rights which is registered with or delivered to the payor, issuer, or other obligor of the contractual rights.

As an alternative to naming a specific person as custodian, the nomination may provide that the custodian may be designated by the legal representative of, or other person specified by, the person having the right to designate the recipient of the property described in this subsection. The person having the right of designation of the custodian is authorized to designate himself or herself as custodian, if he or she falls within the class of persons eligible to serve as custodian under RCW 11.114.090(1).

(2) A custodian nominated under this section shall be a person to whom a transfer of property of that kind may be made under RCW 11.114.090(1).

(3) Instead of designating one specific minor, the designation may specify multiple persons or a class or classes of persons, but when the custodial property is actually created under subsection (4) of this section, it must be constituted as a separate custodianship for each beneficiary, and each beneficiary's interest in it must be determined in accordance with the governing instrument and applicable law.

(4) The nomination of a custodian under this section does not create custodial property until the nominating instrument becomes irrevocable or a transfer to the nominated custodian is completed under RCW 11.114.090. Unless the nomination of a custodian has been revoked, upon the occurrence of the future event the custodianship becomes effective and the custodian shall enforce a transfer of the custodial property pursuant to RCW 11.114.090.

PART IV--INTERNAL REVENUE CODE REFERENCES

Sec. 401. RCW 83.100.020 and 1994 c 221 s 70 are each amended to read as follows:

As used in this chapter:

(1) "Decedent" means a deceased individual;

(2) "Department" means the department of revenue, the director of that department, or any employee of the department exercising authority lawfully delegated to him by the director;

(3) "Federal credit" means (a) for a transfer, the maximum amount of the credit for state taxes allowed by section 2011 of the Internal Revenue Code; and (b) for a generation-skipping transfer, the maximum amount of the credit for state taxes allowed by section 2604 of the Internal Revenue Code;

(4) "Federal return" means any tax return required by chapter 11 or 13 of the Internal Revenue Code;

(5) "Federal tax" means (a) for a transfer, a tax under chapter 11 of the Internal Revenue Code; and (b) for a generation-skipping transfer, the tax under chapter 13 of the Internal Revenue Code;

(6) "Generation-skipping transfer" means a "generation-skipping transfer" as defined and used in section 2611 of the Internal Revenue Code;

(7) "Gross estate" means "gross estate" as defined and used in section 2031 of the Internal Revenue Code;

(8) "Nonresident" means a decedent who was domiciled outside Washington at his death;

(9) "Person" means any individual, estate, trust, receiver, cooperative association, club, corporation, company, firm, partnership, joint venture, syndicate, or other entity and, to the extent permitted by law, any federal, state, or other governmental unit or subdivision or agency, department, or instrumentality thereof;

(10) "Person required to file the federal return" means any person required to file a return required by chapter 11 or 13 of the Internal Revenue Code, such as the personal representative of an estate; or a transferor, trustee, or beneficiary of a generation-skipping transfer; or a qualified heir with respect to qualified real property, as defined and used in section 2032A(c) of the Internal Revenue Code;

(11) "Property" means (a) for a transfer, property included in the gross estate; and (b) for a generation-skipping transfer, all real and personal property subject to the federal tax;

(12) "Resident" means a decedent who was domiciled in Washington at time of death;

(13) "Transfer" means "transfer" as used in section 2001 of the Internal Revenue Code, or a disposition or cessation of qualified use as defined and used in section 2032A(c) of the Internal Revenue Code;

(14) "Trust" means "trust" under Washington law and any arrangement described in section 2652 of the Internal Revenue Code; and

(15) "Internal Revenue Code" means, for the purposes of this chapter and RCW 83.110.010, the United States Internal Revenue Code of 1986, as amended or renumbered on January 1, ((1995)) 1998.

Sec. 402. RCW 83.110.010 and 1994 c 221 s 71 are each amended to read as follows:

As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.

(1) "Estate" means the gross estate of a decedent as determined for the purpose of federal estate tax and the estate tax payable to this state;

(2) "Excise tax" means the federal excise tax imposed by section 4980A(d) of the Internal Revenue Code, and interest and penalties imposed in addition to the excise tax;

(3) "Fiduciary" means executor, administrator of any description, and trustee;

(4) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, as ((amended or renumbered on January 1, 1995)) defined in and as of the date specified in RCW 83.100.020;

(5) "Person" means any individual, partnership, association, joint stock company, corporation, government, political subdivision, governmental agency, or local governmental agency;

(6) "Persons interested in retirement distributions" means any person determined as of the date the excise tax is due, including a personal representative, guardian, trustee, or beneficiary, entitled to receive, or who has received, by reason of or following the death of a decedent, any property or interest therein which constitutes a retirement distribution as defined in section 4980A(e) of the Internal Revenue Code, but this definition excludes any alternate payee under a qualified domestic relations order as such terms are defined in section 414(p) of the Internal Revenue Code;

(7) "Person interested in the estate" means any person, including a personal representative, guardian, or trustee, entitled to receive, or who has received, from a decedent while alive or by reason of the death of a decedent any property or interest therein included in the decedent's taxable estate;

(8) "Qualified heir" means a person interested in the estate who is entitled to receive, or who has received, an interest in qualified real property;

(9) "Qualified real property" means real property for which the election described in section 2032A of the Internal Revenue Code has been made;

(10) "State" means any state, territory, or possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico; and

(11) "Tax" means the federal estate tax, the excise tax defined in subsection (2) of this section, and the estate tax payable to this state and interest and penalties imposed in addition to the tax.

PART V--SLAYER'S STATUTE

NEW SECTION. Sec. 501. A new section is added to chapter 41.04 RCW to read as follows:

(1) For purposes of this section, the following definitions shall apply:

(a) "Slayer" means a slayer as defined in RCW 11.84.010.

(b) "Decedent" means any person whose life is taken by a slayer, and who is entitled to benefits from the Washington state department of retirement systems by written designation or by operation of law.

(2) Property that would have passed to or for the benefit of a beneficiary under one of the retirement systems listed in RCW 41.50.030 shall not pass to that beneficiary if the beneficiary was a slayer of the decedent and the property shall be distributed as if the slayer had predeceased the decedent.

(3) A slayer is deemed to have predeceased the decedent as to property which, by designation or by operation of law, would have passed from the decedent to the slayer because of the decedent's entitlement to benefits under one of the retirement systems listed in RCW 41.50.030.

(4)(a) The department of retirement systems has no affirmative duty to determine whether a beneficiary is, or is alleged to be, a slayer. However, upon receipt of written notice that a beneficiary is a defendant in a civil lawsuit that alleges the beneficiary is a slayer or is charged with a crime that, if committed, means the beneficiary is a slayer, the department of retirement systems shall determine whether the beneficiary is a defendant in such a civil suit or has been formally charged in court with the crime, or both. If so, the department shall withhold payment of any benefits until:

(i) The case or charges, or both if both are pending, are dismissed;

(ii) The beneficiary is found not guilty in the criminal case or prevails in the civil suit, or both if both are pending; or

(iii) The beneficiary is convicted or is found to be a slayer in the civil suit.

(b) If the case or charges, or both if both are pending, are dismissed or if a beneficiary is found not guilty or prevails in the civil suit, or both if both are pending, the department shall pay the beneficiary the benefits the beneficiary is entitled to receive. If the beneficiary is convicted or found to be a slayer in a civil suit, the department shall distribute the benefits according to subsection (2) of this section.

(5) The slayer's conviction for having participated in the willful and unlawful killing of the decedent shall be admissible in evidence against a claimant of property in any civil action arising under this section.

(6) This section shall not subject the department of retirement systems to liability for payment made to a slayer or alleged slayer prior to the department's receipt of written notice that the slayer has been convicted of, or the alleged slayer has been formally criminally or civilly charged in court with, the death of the decedent. If the conviction or civil judgment of a slayer is reversed on appeal, the department of retirement systems shall not be liable for payment made prior to the receipt of written notice of the reversal to a beneficiary other than the person whose conviction or civil judgment is reversed.

NEW SECTION. Sec. 502. A new section is added to chapter 11.84 RCW to read as follows:

Proceeds payable to a slayer as the beneficiary of any benefits flowing from one of the retirement systems listed in RCW 41.50.030, by virtue of the decedent's membership in the department of retirement systems or by virtue of the death of decedent, shall be paid instead as designated in section 501 of this act.

Sec. 503. RCW 11.84.900 and 1965 c 145 s 11.84.900 are each amended to read as follows:

This chapter shall ((not be considered penal in nature, but shall)) be construed broadly ((in order)) to effect the policy of this state that no person shall be allowed to profit by his own wrong, wherever committed.

Sec. 504. RCW 11.02.070 and 1967 c 168 s 1 are each amended to read as follows:

Except as provided in sections 501 and 502 of this act, upon the death of a decedent, a one-half share of the community property shall be confirmed to the surviving spouse, and the other one-half share shall be subject to testamentary disposition by the decedent, or shall descend as provided in chapter 11.04 RCW. The whole of the community property shall be subject to probate administration for all purposes of this title, including the payment of obligations and debts of the community, the award in lieu of homestead, the allowance for family support, and any other matter for which the community property would be responsible or liable if the decedent were living.

Sec. 505. RCW 26.16.120 and Code 1881 s 2416 are each amended to read as follows:

Nothing contained in any of the provisions of this chapter or in any law of this state, shall prevent the husband and wife from jointly entering into any agreement concerning the status or disposition of the whole or any portion of the community property, then owned by them or afterwards to be acquired, to take effect upon the death of either. But such agreement may be made at any time by the husband and wife by the execution of an instrument in writing under their hands and seals, and to be witnessed, acknowledged and certified in the same manner as deeds to real estate are required to be, under the laws of the state, and the same may at any time thereafter be altered or amended in the same manner((: PROVIDED, HOWEVER, That)). Such agreement shall not derogate from the right of creditors((,)); nor be construed to curtail the powers of the superior court to set aside or cancel such agreement for fraud or under some other recognized head of equity jurisdiction, at the suit of either party; nor prevent the application of laws governing the community property and inheritance rights of slayers under chapter 11.84 RCW.

NEW SECTION. Sec. 506. Sections 501 through 505 of this act apply to acts that result in unlawful killings of decedents by slayers on and after the effective date of this section.

NEW SECTION. Sec. 507. If any part of sections 501 through 505 of this act is found to be in conflict with federal requirements, the conflicting part of sections 501 through 505 of this act is hereby declared to be inoperative solely to the extent of the conflict, and such finding or determination does not affect the operation of the remainder of sections 501 through 505 of this act. Rules adopted under sections 501 through 505 of this act must meet federal requirements.

PART VI--MISCELLANEOUS--EFFECTIVE DATES

NEW SECTION. Sec. 601. Part headings and section captions used in this act are not any part of the law.

NEW SECTION. Sec. 602. Sections 101 through 116 of this act constitute a new chapter in Title 11 RCW.

NEW SECTION. Sec. 603. (1) Sections 101 through 116 and 118 of this act take effect July 1, 1999.

(2) Sections 117, 201 through 205, 301, 401, 501 through 507, and 604 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately.

NEW SECTION. Sec. 604. (1) Sections 201 through 205 of this act are remedial in nature and apply retroactively to July 27, 1997, and thereafter.

(2) Section 301 of this act is remedial in nature and applies retroactively to July 1, 1991, and thereafter."

On page 1, line 1 of the title, after "law;" strike the remainder of the title and insert "amending RCW 11.02.005, 11.07.010, 11.54.070, 11.68.110, 11.68.114, 11.114.030, 83.100.020, 83.110.010, 11.84.900, 11.02.070, and 26.16.120; amending 1997 c 252 s 87 (uncodified); amending 1997 c 252 s 89 (uncodified); adding a new section to chapter 41.04 RCW; adding a new section to chapter 11.84 RCW; adding a new chapter to Title 11 RCW; creating new sections; providing an effective date; and declaring an emergency."

There being no objection, the House adopted the Report of the Conference Committee on Substitute Senate Bill No. 6181 and advanced the bill to Final Passage.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker stated the question before the House to be final passage of Substitute Senate Bill No. 6181 as recommended by the Conference Committee.

Representatives Carlson and Costa spoke in favor of passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 6181 as recommended by the Conference Committee, 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 Senate Bill No. 6181, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

SIGNED BY THE SPEAKER

The Speaker announced he was signing:

ENGROSSED HOUSE BILL NO. 1042,

SUBSTITUTE HOUSE BILL NO. 1184,

SUBSTITUTE HOUSE BILL NO. 2459,

SUBSTITUTE HOUSE BILL NO. 3015,

SUBSTITUTE SENATE BILL NO. 5309,

SENATE BILL NO. 5631,

SUBSTITUTE SENATE BILL NO. 6077,

SUBSTITUTE SENATE BILL NO. 6161,

SENATE BILL NO. 6270,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6418,

SENATE BILL NO. 6449,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6509,

SENATE BILL NO. 6539,

SENATE BILL NO. 6552,

SENATE BILL NO. 6599,

SUBSTITUTE SENATE BILL NO. 6602,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6622,

SENATE BILL NO. 6662,

SENATE BILL NO. 6668,

SENATE BILL NO. 6699,

SUBSTITUTE SENATE BILL NO. 6727,

The Speaker called upon Representative Pennington to preside.

MESSAGE FROM THE SENATE

March 11, 1998

Mr. Speaker:

The Senate has adopted the report of the Conference Committee on SUBSTITUTE HOUSE BILL NO. 1126, and has passed the bill as recommended by the Conference Committee,

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

REPORT OF CONFERENCE COMMITTEE

SHB 1126 March 10, 1998

Prepared by: Terry Wilson Includes "NEW ITEM": YES

MR. PRESIDENT:

Mr. Speaker:

We of your CONFERENCE COMMITTEE, to whom was referred SUBSTITUTE HOUSE BILL NO. 1126, #911 funding, have had the same under consideration and we recommend that:

All previous proposed amendments not be adopted, and the striking amendment by the Conference Committee be adopted, and

and that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that:

(1) The state enhanced 911 excise tax imposed at the current rate of twenty cents per switched access line per month generates adequate tax revenues to enhance the 911 telephone system for switched access lines state-wide by December 31, 1998, as mandated in RCW 38.52.510;

(2) The tax revenues generated from the state enhanced 911 excise tax when the tax rate decreases to a maximum of ten cents per switched access line on January 1, 1999, will not be adequate to fund the long-term operation and equipment replacement costs for the enhanced 911 telephone systems in the counties or multicounty regions that receive financial assistance from the state enhanced 911 office;

(3) Some counties or multicounty regions will need financial assistance from the state enhanced 911 office to implement and maintain enhanced 911 because the tax revenue generated from the county enhanced 911 excise tax is not adequate;

(4) Counties with populations of less than seventy-five thousand will need salary assistance to create multicounty regions and counties with populations of seventy-five thousand or more, if requested by smaller counties, will need technical assistance and incentives to provide multicounty services; and

(5) Counties should not request state financial assistance for implementation and maintenance of enhanced 911 for switched access lines unless the county has imposed the maximum enhanced 911 tax authorized in RCW 82.14B.030.

Sec. 2. RCW 82.14B.020 and 1994 c 96 s 2 are each amended to read as follows:

As used in this chapter:

(1) "Emergency services communication system" means a multicounty, county-wide, or district-wide radio or landline communications network, including an enhanced 911 telephone system, which provides rapid public access for coordinated dispatching of services, personnel, equipment, and facilities for police, fire, medical, or other emergency services.

(2) "Enhanced 911 telephone system" means a public telephone system consisting of a network, data base, and on-premises equipment that is accessed by dialing 911 and that enables reporting police, fire, medical, or other emergency situations to a public safety answering point. The system includes the capability to selectively route incoming 911 calls to the appropriate public safety answering point that operates in a defined 911 service area and the capability to automatically display the name, address, and telephone number of incoming 911 calls at the appropriate public safety answering point.

(3) "Switched access line" means the telephone service line which connects a subscriber's main telephone(s) or equivalent main telephone(s) to the local exchange company's switching office.

(4) "Local exchange company" has the meaning ascribed to it in RCW 80.04.010.

(5) "Radio access line" means the telephone number assigned to or used by ((an end user)) a subscriber for two-way local wireless voice service available to the public for hire from a radio communications service company. Radio access lines include, but are not limited to, radio-telephone communications lines used in cellular telephone service, personal communications services, and network radio access lines, or their functional and competitive equivalent. Radio access lines do not include lines that provide access to one-way signaling service, such as paging service, or to communications channels suitable only for data transmission, or to nonlocal radio access line service, such as wireless roaming service, or to a private telecommunications system.

(6) "Radio communications service company" has the meaning ascribed to it in RCW 80.04.010.

(7) "Private telecommunications system" has the meaning ascribed to it in RCW 80.04.010.

(8) "Subscriber" means the retail purchaser of telephone service as telephone service is defined in RCW 82.04.065(3).

Sec. 3. RCW 82.14B.030 and 1994 c 96 s 3 are each amended to read as follows:

(1) The legislative authority of a county may impose a county enhanced 911 excise tax on the use of switched access lines in an amount not exceeding fifty cents per month for each switched access line. The amount of tax shall be uniform for each switched access line. Each county shall provide notice of such tax to all local exchange companies serving in the county at least sixty days in advance of the date on which the first payment is due.

(2) The legislative authority of a county may also impose a county 911 excise tax on the use of radio access lines located within the county in an amount not exceeding twenty-five cents per month for each radio access line. The amount of tax shall be uniform for each radio access line. The county shall provide notice of such tax to all radio communications service companies serving in the county at least sixty days in advance of the date on which the first payment is due. Any county imposing this tax shall include in its ordinance a refund mechanism whereby the amount of any tax ordered to be refunded by the judgment of a court of record, or as a result of the resolution of any appeal therefrom, shall be refunded to the radio communications service company or local exchange company that collected the tax, and those companies shall reimburse the ((users)) subscribers who paid the tax. The ordinance shall further provide that to the extent the ((users)) subscribers who paid the tax cannot be identified or located, the tax paid by those ((users)) subscribers shall be returned to the county.

(3) ((Beginning January 1, 1992,)) A state enhanced 911 excise tax is imposed on all switched access lines in the state. ((For 1992, the tax shall be set at a rate of twenty cents per month for each switched access line. Until December 31, 1998,)) The amount of tax shall not exceed twenty cents per month for each switched access line ((and thereafter shall not exceed ten cents per month for each switched access line)). The tax shall be uniform for each switched access line. The tax imposed under this subsection shall be remitted to the department of revenue by local exchange companies on a tax return provided by the department. Tax proceeds shall be deposited by the treasurer in the enhanced 911 account created in RCW 38.52.540.

(4) By August 31st of each year the state enhanced 911 coordinator shall recommend the level for the next year of the state enhanced 911 excise tax, based on a systematic cost and revenue analysis, to the utilities and transportation commission. The commission shall by the following October 31st determine the level of the state enhanced 911 excise tax for the following year.

Sec. 4. RCW 82.14B.040 and 1994 c 96 s 4 are each amended to read as follows:

The state enhanced 911 tax and the county enhanced 911 tax on switched access lines shall be collected from the ((user)) subscriber by the local exchange company providing the switched access line. The county 911 tax on radio access lines shall be collected from the ((end user)) subscriber by the radio communications service company providing the radio access line to the ((end user)) subscriber. The amount of the tax shall be stated separately on the billing statement which is sent to the ((user)) subscriber.

Sec. 5. RCW 82.14B.060 and 1981 c 160 s 6 are each amended to read as follows:

A county legislative authority imposing a tax under this chapter shall establish by ordinance all necessary and appropriate procedures for the administration and collection of the tax, which ordinance shall provide for reimbursement to the telephone companies for actual costs of administration and collection of the tax imposed. The ordinance shall also provide that the due date for remittance of the tax collected shall be ((thirty days following the collection month)) on or before the last day of the month following the month in which the tax liability accrues.

NEW SECTION. Sec. 6. A new section is added to chapter 82.14B RCW to read as follows:

(1) The department of revenue shall administer and shall adopt such rules as may be necessary to enforce and administer the state enhanced 911 excise tax imposed by this chapter. Chapter 82.32 RCW, with the exception of RCW 82.32.045, 82.32.145, and 82.32.380, applies to the administration, collection, and enforcement of the state enhanced 911 excise tax.

(2) The state enhanced 911 excise tax imposed by this chapter, along with reports and returns on forms prescribed by the department, are due monthly on or before the last day of the month following the month in which the tax liability accrues.

(3) The department of revenue may relieve any taxpayer or class of taxpayers from the obligation of remitting monthly and may require the return to cover other longer reporting periods, but in no event may returns be filed for a period greater than one year. For these taxpayers, tax payments are due on or before the last day of the month next succeeding the end of the period covered by the return.

(4) The state enhanced 911 excise tax imposed by this chapter is in addition to any taxes imposed upon the same persons under chapters 82.08 and 82.12 RCW.

NEW SECTION. Sec. 7. A new section is added to chapter 82.14B RCW to read as follows:

(1) A local exchange company or radio communications service company shall file tax returns on a cash receipts or accrual basis according to which method of accounting is regularly employed in keeping the books of the company. A local exchange company or radio communications service company filing returns on a cash receipts basis is not required to pay tax on debts that are deductible as worthless for federal income tax purposes.

(2) A local exchange company or radio communications service company is entitled to a credit or refund for state enhanced 911 excise taxes previously paid on debts that are deductible as worthless for federal income tax purposes.

NEW SECTION. Sec. 8. A new section is added to chapter 82.14B RCW to read as follows:

The taxes imposed by this chapter do not apply to any activity that the state or county is prohibited from taxing under the constitution of this state or the constitution or laws of the United States.

NEW SECTION. Sec. 9. A new section is added to chapter 82.14B RCW to read as follows:

(1) The state enhanced 911 excise tax imposed by this chapter must be paid by the subscriber to the local exchange company providing the switched access line, and each local exchange company shall collect from the subscriber the full amount of the tax payable. The state enhanced 911 excise tax required by this chapter to be collected by the local exchange company is deemed to be held in trust by the local exchange company until paid to the department. Any local exchange company that appropriates or converts the tax collected to its own use or to any use other than the payment of the tax to the extent that the money collected is not available for payment on the due date as prescribed in this chapter is guilty of a gross misdemeanor.

(2) If any local exchange company fails to collect the state enhanced 911 excise tax or, after collecting the tax, fails to pay it to the department in the manner prescribed by this chapter, whether such failure is the result of its own act or the result of acts or conditions beyond its control, the local exchange company is personally liable to the state for the amount of the tax, unless the local exchange company has taken from the buyer in good faith a properly executed resale certificate under section 10 of this act.

(3) The amount of tax, until paid by the subscriber to the local exchange company or to the department, constitutes a debt from the subscriber to the local exchange company. Any local exchange company that fails or refuses to collect the tax as required with intent to violate the provisions of this chapter or to gain some advantage or benefit, either direct or indirect, and any subscriber who refuses to pay any tax due under this chapter is guilty of a misdemeanor. The state enhanced 911 excise tax required by this chapter to be collected by the local exchange company must be stated separately on the billing statement that is sent to the subscriber.

(4) If a subscriber has failed to pay to the local exchange company the state enhanced 911 excise tax imposed by this chapter and the local exchange company has not paid the amount of the tax to the department, the department may, in its discretion, proceed directly against the subscriber for collection of the tax, in which case a penalty of ten percent may be added to the amount of the tax for failure of the subscriber to pay the tax to the local exchange company, regardless of when the tax is collected by the department. For the sole purpose of applying the various provisions of chapter 82.32 RCW, the last day of the month following the tax period in which the tax liability accrued is to be considered as the due date of the tax.

NEW SECTION. Sec. 10. A new section is added to chapter 82.14B RCW to read as follows:

(1) Unless a local exchange company has taken from the buyer a resale certificate or equivalent document under RCW 82.04.470, the burden of proving that a sale of the use of a switched access lines was not a sale to a subscriber is upon the person who made the sale.

(2) If a local exchange company does not receive a resale certificate at the time of the sale, have a resale certificate on file at the time of the sale, or obtain a resale certificate from the buyer within a reasonable time after the sale, the local exchange company remains liable for the tax as provided in section 9 of this act, unless the local exchange company can demonstrate facts and circumstances according to rules adopted by the department of revenue that show the sale was properly made without payment of the state enhanced 911 excise tax.

(3) The penalty imposed by RCW 82.32.291 may not be assessed on state enhanced 911 excise taxes due but not paid as a result of the improper use of a resale certificate. This subsection does not prohibit or restrict the application of other penalties authorized by law.

NEW SECTION. Sec. 11. A new section is added to chapter 82.14B RCW to read as follows:

(1) Upon termination, dissolution, or abandonment of a corporate or limited liability company business, any officer, member, manager, or other person having control or supervision of state enhanced 911 excise tax funds collected and held in trust under section 9 of this act, or who is charged with the responsibility for the filing of returns or the payment of state enhanced 911 excise tax funds collected and held in trust under section 9 of this act, is personally liable for any unpaid taxes and interest and penalties on those taxes, if such officer or other person willfully fails to pay or to cause to be paid any state enhanced 911 excise taxes due from the corporation under this chapter. For the purposes of this section, any state enhanced 911 excise taxes that have been paid but not collected are deductible from the state enhanced 911 excise taxes collected but not paid. For purposes of this subsection "willfully fails to pay or to cause to be paid" means that the failure was the result of an intentional, conscious, and voluntary course of action.

(2) The officer, member, manager, or other person is liable only for taxes collected that became due during the period he or she had the control, supervision, responsibility, or duty to act for the corporation described in subsection (1) of this section, plus interest and penalties on those taxes.

(3) Persons liable under subsection (1) of this section are exempt from liability if nonpayment of the state enhanced 911 excise tax funds held in trust is due to reasons beyond their control as determined by the department by rule.

(4) Any person having been issued a notice of assessment under this section is entitled to the appeal procedures under RCW 82.32.160 through 82.32.200.

(5) This section applies only if the department has determined that there is no reasonable means of collecting the state enhanced 911 excise tax funds held in trust directly from the corporation.

(6) This section does not relieve the corporation or limited liability company of other tax liabilities or otherwise impair other tax collection remedies afforded by law.

(7) Collection authority and procedures prescribed in chapter 82.32 RCW apply to collections under this section.

Sec. 12. RCW 82.32.010 and 1984 c 204 s 26 are each amended to read as follows:

The provisions of this chapter shall apply with respect to the taxes imposed under chapters 82.04 through 82.14 RCW, under RCW 82.14B.030(3), under chapters 82.16 through 82.29A RCW of this title, under chapter 84.33 RCW, and under other titles, chapters, and sections in such manner and to such extent as indicated in each such title, chapter, or section.

Sec. 13. RCW 82.32.105 and 1996 c 149 s 17 are each amended to read as follows:

(1) If the department of revenue finds that the payment by a taxpayer of a tax less than that properly due or the failure of a taxpayer to pay any tax by the due date was the result of circumstances beyond the control of the taxpayer, the department of revenue shall waive or cancel any penalties imposed under this chapter with respect to such tax.

(2) The department shall waive or cancel the penalty imposed under RCW 82.32.090(1) when the circumstances under which the delinquency occurred do not qualify for waiver or cancellation under subsection (1) of this section if:

(a) The taxpayer requests the waiver for a tax return required to be filed under RCW 82.32.045, section 6 of this act, 82.23B.020, 82.27.060, 82.29A.050, or 84.33.086; and

(b) The taxpayer has timely filed and remitted payment on all tax returns due for that tax program for a period of twenty-four months immediately preceding the period covered by the return for which the waiver is being requested.

(3) The department shall waive or cancel interest imposed under this chapter if:

(a) The failure to timely pay the tax was the direct result of written instructions given the taxpayer by the department; or

(b) The extension of a due date for payment of an assessment of deficiency was not at the request of the taxpayer and was for the sole convenience of the department.

(4) The department of revenue shall adopt rules for the waiver or cancellation of penalties and interest imposed by this chapter.

Sec. 14. RCW 38.52.540 and 1994 c 96 s 7 are each amended to read as follows:

The enhanced 911 account is created in the state treasury. All receipts from the state enhanced 911 excise tax imposed by RCW 82.14B.030 shall be deposited into the account. Moneys in the account shall be used only to help implement and operate enhanced 911 state-wide((, and to conduct a study of the tax base and rate for the 911 excise tax)). Moneys in the account may be used to provide salary assistance on a temporary basis not to exceed three years to counties with a population of less than seventy-five thousand that need additional resources to cover unfunded costs that can be shown to result from handling 911 calls. Moneys in the account may be used to assist multicounty regions, including ongoing salary assistance for multicounty regions consisting of counties with populations of less than seventy-five thousand. However, funds shall not be distributed to any county that has not imposed the maximum county enhanced 911 taxes allowed under RCW 82.14B.030 (1) and (2). The state enhanced 911 coordinator, with the advice and assistance of the enhanced 911 advisory committee, shall specify by rule the purposes for which moneys may be expended from this account.

NEW SECTION. Sec. 15. This act takes effect January 1, 1999, except section 14 of this act which takes effect July 1, 1998."

On page 1, line 3 of the title, after "funding;" strike the remainder of the title and insert "amending RCW 82.14B.020, 82.14B.030, 82.14B.040, 82.14B.060, 82.32.010, 82.32.105, and 38.52.540; adding new sections to chapter 82.14B RCW; creating a new section; prescribing penalties; and providing effective dates."

There being no objection, the House adopted the Report of the Conference Committee on Substitute House Bill No. 1126 and advanced the bill to Final Passage.

FINAL PASSAGE OF HOUSE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Substitute House Bill No. 1126 as recommended by the Conference Committee.

Representatives Mastin and Dunshee spoke in favor of passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 1126 as recommended by the Conference Committee, 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. 1126, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 11, 1998

Mr. Speaker:

The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2933 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 82.04 RCW to read as follows:

(1) Upon every person engaging within this state in the business of warehousing and reselling prescription drugs; as to such persons, the amount of the tax shall be equal to the gross income of the business multiplied by the rate of 0.138 percent.

(2) For the purposes of this section:

(a) "Prescription drug" has the same meaning as that term is given in RCW 82.08.0281; and

(b) "Warehousing and reselling prescription drugs" means the buying of prescription drugs from a manufacturer or another wholesaler, and reselling of the drugs to persons selling at retail or to hospitals, clinics, health care providers, or other providers of health care services, by a wholesaler or retailer who is registered with the federal drug enforcement administration and licensed by the state board of pharmacy.

Sec. 2. RCW 82.04.270 and 1994 c 124 s 2 are each amended to read as follows:

(1) Upon every person except persons taxable under ((subsections (1) or (8) of)) RCW 82.04.260 (1) or (8) or section 1 of this act engaging within this state in the business of making sales at wholesale; as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds of sales of such business multiplied by the rate of 0.484 percent.

(2) The tax imposed by this section is levied and shall be collected from every person engaged in the business of distributing in this state articles of tangible personal property, owned by them from their own warehouse or other central location in this state to two or more of their own retail stores or outlets, where no change of title or ownership occurs, the intent hereof being to impose a tax equal to the wholesaler's tax upon persons performing functions essentially comparable to those of a wholesaler, but not actually making sales. The tax designated in this section may not be assessed twice to the same person for the same article. The amount of the tax as to such persons shall be computed by multiplying 0.484 percent of the value of the article so distributed as of the time of such distribution. The department of revenue shall prescribe uniform and equitable rules for the purpose of ascertaining such value, which value shall correspond as nearly as possible to the gross proceeds from sales at wholesale in this state of similar articles of like quality and character, and in similar quantities by other taxpayers. Delivery trucks or vans will not under the purposes of this section be considered to be retail stores or outlets.

Sec. 3. RCW 82.04.280 and 1994 c 112 s 1 are each amended to read as follows:

Upon every person engaging within this state in the business of: (1) Printing, and of publishing newspapers, periodicals, or magazines; (2) building, repairing or improving any street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used, primarily for foot or vehicular traffic including mass transportation vehicles of any kind and including any readjustment, reconstruction or relocation of the facilities of any public, private or cooperatively owned utility or railroad in the course of such building, repairing or improving, the cost of which readjustment, reconstruction, or relocation, is the responsibility of the public authority whose street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle is being built, repaired or improved; (3) extracting for hire or processing for hire; (4) operating a cold storage warehouse or storage warehouse, but not including the rental of cold storage lockers; (5) representing and performing services for fire or casualty insurance companies as an independent resident managing general agent licensed under the provisions of RCW 48.05.310; (6) radio and television broadcasting, excluding network, national and regional advertising computed as a standard deduction based on the national average thereof as annually reported by the Federal Communications Commission, or in lieu thereof by itemization by the individual broadcasting station, and excluding that portion of revenue represented by the out-of-state audience computed as a ratio to the station's total audience as measured by the 100 micro-volt signal strength and delivery by wire, if any; (7) engaging in activities which bring a person within the definition of consumer contained in RCW 82.04.190(6); as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of 0.484 percent.

As used in this section, "cold storage warehouse" means a storage warehouse used to store fresh and/or frozen perishable fruits or vegetables, meat, seafood, dairy products, or fowl, or any combination thereof, at a desired temperature to maintain the quality of the product for orderly marketing.

As used in this section, "storage warehouse" means a building or structure, or any part thereof, in which goods, wares, or merchandise are received for storage for compensation, except field warehouses, fruit warehouses, fruit packing plants, warehouses licensed under chapter 22.09 RCW, public garages storing automobiles, railroad freight sheds, docks and wharves, and "self-storage" or "mini storage" facilities whereby customers have direct access to individual storage areas by separate entrance. "Storage warehouse" does not include a building or structure, or that part of such building or structure, in which an activity taxable under section 1 of this act is conducted.

As used in this section, "periodical or magazine" means a printed publication, other than a newspaper, issued regularly at stated intervals at least once every three months, including any supplement or special edition of the publication.

Sec. 4. RCW 82.04.290 and 1997 c 7 s 2 are each amended to read as follows:

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

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

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

Sec. 5. RCW 82.04.250 and 1993 sp.s. c 25 s 103 are each amended to read as follows:

(1) Upon every person except persons taxable under RCW 82.04.260(8), section 1 of this act, or subsection (2) of this section engaging within this state in the business of making sales at retail, as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales of the business, multiplied by the rate of 0.471 percent.

(2) Upon every person engaging within this state in the business of making sales at retail that are exempt from the tax imposed under chapter 82.08 RCW by reason of RCW 82.08.0261, 82.08.0262, or 82.08.0263, as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales of the business, multiplied by the rate of 0.484 percent.

NEW SECTION. Sec. 6. This act takes effect July 1, 2001."

On page 1, line 4 of the title, after "pharmacy;" strike the remainder of the title and insert "amending RCW 82.04.270, 82.04.280, 82.04.290, and 82.04.250; adding a new section to chapter 82.04 RCW; and providing an effective date."

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House concurred in the Senate amendment(s) to Engrossed Substitute House Bill No. 2933 and advanced the bill as amended by the Senate to final passage.

Representatives Radcliff and Dunshee spoke in favor of final passage of the bill.

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. 2933 as amended by the Senate.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2933 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.

Engrossed Substitute House Bill No. 2933, as amended by the Senate, having received the constitutional majority, was declared passed.

SENATE AMENDMENTS TO HOUSE BILL

March 10, 1998

Mr. Speaker:

Under suspension of rules, SUBSTITUTE HOUSE BILL NO. 1541 was returned to second reading for purposes of amendment. The Senate adopted the attached striking amendment (S-5524.1) Floor No. 1011, and passed SUBSTITUTE HOUSE BILL NO. 1541,

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that sport shooting ranges in this state offer valuable hunter and firearm safety training, offer legitimate and important forms of recreation to the general public, and provide the opportunity for many law enforcement agencies to maintain necessary firearms skills efficiently and at little or no cost. The continued existence and viability of sport shooting ranges is impacted by burdensome retroactive regulation and lawsuits, thereby potentially threatening the availability of low-cost firearms training to some local law enforcement agencies, as well as hunter and firearms safety training and recreation to the general public.

NEW SECTION. Sec. 2. A new section is added to chapter 9.41 RCW to read as follows:

(1)(a) Notwithstanding any other provision of law, a person who operates or uses a sport shooting range in this state shall not be subject to civil liability or criminal prosecution in any matter relating to noise or noise pollution resulting from the operation or use of the range if the range is in compliance with any noise control laws or ordinances that applied to the range and its operation on the effective date of this act.

(b) A person who operates or uses a sport shooting range is not subject to an action for nuisance, and a court of the state shall not enjoin the use or operation of a range on the basis of noise or noise pollution, if the range is in compliance with any noise control laws or ordinances that applied to the range and its operation on the effective date of this act.

(c) Rules adopted by any state department or agency for limiting levels of noise in terms of decibel level that may occur in the outdoor atmosphere do not apply to a sport shooting range exempted from liability under this section.

(2) A person who acquires title to or who owns real property adversely affected by the use of property with a permanently located and improved sport shooting range shall not maintain a nuisance action against the person who owns the range to restrain, enjoin, or impede the use of the range where there has not been a substantial change in the nature of the use of the range. This subsection does not prohibit actions for negligence or recklessness in the operation of the range or by a person using the range.

(3) A sport shooting range that is operated and is not in violation of existing law at the time of the enactment of an ordinance must be permitted to continue in operation even if the operation of the sport shooting range at a later date does not conform to the new ordinance or an amendment to an existing ordinance.

(4) A person who participates in sport shooting at a sport shooting range accepts the risks associated with the sport to the extent the risks are obvious and inherent. Those risks include, but are not limited to, injuries that may result from noise, discharge of a projectile or shot, malfunction of sport shooting equipment not owned by the shooting range, natural variations in terrain, surface or subsurface snow or ice conditions, bare spots, rocks, trees, and other forms of natural growth or debris.

(5) The owner or operator of any sport shooting range shall have in place an insurance policy providing insurance for personal and property damage which occurs as a result of acts at the range, with liability limits of at least two hundred fifty thousand dollars per occurrence. This subsection applies beginning January 1, 1999.

(6) Except as otherwise provided in this section, this section does not prohibit a local government from regulating the location and construction of a sport shooting range after the effective date of this act.

(7) As used in this section:

(a) "Local government" means a county, city, or town.

(b) "Person" means an individual, proprietorship, partnership, corporation, club, or other legal entity.

(c) "Sport shooting range" or "range" means an area designed and operated for the use of rifles, shotguns, pistols, silhouettes, skeet, trap, black powder, or any other similar sport shooting.

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."

In line 1 of the title, after "ranges;" strike the remainder of the title and insert "adding a new section to chapter 9.41 RCW; creating a new section; 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 Substitute House Bill No. 1541 and advanced the bill as amended by the Senate to final passage.

Representatives Sump, Costa and Sump (again) spoke in favor of final passage of the bill.

Representative Constantine spoke against the final passage of the bill.

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. 1541 as amended by the Senate.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 1541 as amended by the Senate and the bill passed the House by the following vote: Yeas - 81, Nays - 17, Absent - 0, Excused - 0.

Voting yea: Representatives Alexander, Anderson, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Conway, Cooke, Cooper, Costa, Crouse, DeBolt, Delvin, Doumit, Dunn, Dunshee, Dyer, Eickmeyer, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mastin, McCune, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, O'Brien, Parlette, Pennington, 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, Wood, Zellinsky and Mr. Speaker - 81.

Voting nay: Representatives Appelwick, Butler, Cody, Cole, Constantine, Dickerson, Fisher, Mason, Murray, Ogden, Poulsen, Regala, Romero, Sommers, H., Tokuda, Veloria and Wolfe - 17.

Substitute House Bill No. 1541, as amended by the Senate, having received the constitutional majority, was declared passed.

The Speaker assumed the chair.

REPORT OF CONFERENCE COMMITTEE

Bill No: ESSB 6108 Date: March 10, 1998

Prepared by: Kristen Reiber (7148) Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your Conference Committee, to whom was referred ENGROSSED SUBSTITUTE SENATE BILL NO. 6108, Relating to fiscal matters, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and the striking amendment by the Conference Committee (see attached S-5528.2/98) be adopted: and

that the bill do pass as amended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. (1) A budget is hereby adopted and, subject to the provisions set forth in the following sections, the several amounts specified in parts I through VIII of this act, or so much thereof as shall be sufficient to accomplish the purposes designated, are hereby appropriated and authorized to be incurred for salaries, wages, and other expenses of the agencies and offices of the state and for other specified purposes for the fiscal biennium beginning July 1, 1997, and ending June 30, 1999, except as otherwise provided, out of the several funds of the state hereinafter named.

(2) Unless the context clearly requires otherwise, the definitions in this section apply throughout this act.

(a) "Fiscal year 1998" or "FY 1998" means the fiscal year ending June 30, 1998.

(b) "Fiscal year 1999" or "FY 1999" means the fiscal year ending June 30, 1999.

(d) "Lapse" or "revert" means the amount shall return to an unappropriated status.

(e) "Provided solely" means the specified amount may be spent only for the specified purpose. Unless otherwise specifically authorized in this act, any portion of an amount provided solely for a specified purpose which is unnecessary to fulfill the specified purpose shall lapse.

PART I

GENERAL GOVERNMENT

Sec. 101. 1997 c 149 s 101 (uncodified) is amended to read as follows:

FOR THE HOUSE OF REPRESENTATIVES

General Fund Appropriation (FY 1998). .. . . . . . .$ ((24,241,000))

24,221,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((25,637,000))

25,907,000

Department of Retirement Systems Expense Account Appropriation. . . . . . . . . . . . . . . . . . . . . . $ 25,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .$ ((49,878,000))

50,153,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $75,000 of the general fund fiscal year 1998 appropriation and $75,000 of the general fund fiscal year 1999 appropriation are provided solely for the independent operations of the legislative ethics board. Expenditure decisions of the board, including employment of staff, shall be independent of the senate and house of representatives.

(2) (($25,000 of the general fund fiscal year 1998 appropriation is provided solely to implement Substitute Senate Concurrent Resolution No. 8408 (water policy report). If the concurrent resolution is not enacted by June 30, 1997, the amount provided in this subsection shall lapse)) The department of retirement systems expense account appropriation is provided solely to implement the provisions relating to the actuarial audit of the pension contribution rates in Substitute House Bill No. 2544 (funding state retirement systems). If the bill is not enacted by June 30, 1998, the appropriation shall lapse.

(3) $125,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for a review of the memorandum of agreement signed between the United States environmental protection agency and the department of ecology. The agreement requires the department to conduct total maximum daily loads on polluted water bodies as defined by the federal clean water act. The review may include but is not limited to the department's program for implementing the settlement, an examination of the decisions that affect how water quality problems are defined, the causes of those problems, and the means by which solutions to these problems are to be developed and implemented.

Sec. 102. 1997 c 149 s 102 (uncodified) is amended to read as follows:

FOR THE SENATE

General Fund Appropriation (FY 1998). .. . . . . . .$ 19,357,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((20,663,000))

20,838,000

Department of Retirement Systems Expense Account Appropriation. . . . . . . . . . . . . . . . . . . . . . $ 25,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((40,020,000))

40,220,000

The appropriations in this section are subject to the following conditions and limitations:

(3))) $100,000 of the general fund appropriation for fiscal year 1998 is provided solely for a study of financial aid and tuition by the senate committee on ways and means and the house of representatives committee on appropriations.

(a) The study shall report on the current usage and distribution of financial aid, investigate other resources available to financial aid recipients, and shall compare alternative methods of financial aid distribution and their impacts on the sectors of higher education and students served within each sector.

(b) The study shall also provide comparative data from other states on methods of establishing tuition rates and the relationship of tuition to state funding.

(3) The department of retirement systems expense account appropriation is provided solely to implement the provisions relating to the actuarial audit of the pension contribution rates in Substitute House Bill No. 2544 (funding state retirement systems). If the bill is not enacted by June 30, 1998, the appropriation shall lapse.

(4) $25,000 of the general fund--state appropriation for fiscal year 1998 and $50,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the legislature and the office of financial management to contract jointly for a performance review of the state long-term care system. The review shall result in recommendations by October 1, 1998, on strategies for increasing the long-term affordability and cost-effectiveness of the system, and shall include a review of topics such as methods for matching service levels to recipient needs, options for managing growth in entitlement caseloads, and techniques for projecting the number of persons in need of publicly funded services.

(5) $125,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for a review of the memorandum of agreement signed between the United States environmental protection agency and the department of ecology. The agreement requires the department to conduct total maximum daily loads on polluted water bodies as defined by the federal clean water act. The review may include but is not limited to the department's program for implementing the settlement, an examination of the decisions that affect how water quality problems are defined, the causes of those problems, and the means by which solutions to these problems are to be developed and implemented.

Sec. 103. 1997 c 454 s 101 (uncodified) is amended to read as follows:

FOR THE JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEE

General Fund Appropriation (FY 1998). .. . . . . . .$ ((1,421,000))

1,371,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((1,425,000))

1,890,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,846,000))

3,261,000

The appropriations in this section are subject to the following conditions and limitations: (($50,000 of the general fund appropriation for fiscal year 1998 is provided solely to implement Substitute Senate Bill No. 5071 (school district territory). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.))

(1) $340,000 of the general fund appropriation for fiscal year 1999 is provided solely for a study of the system of finance of the Washington common schools as required by section 501 of this act.

(2) $75,000 of the general fund appropriation for fiscal year 1999 is provided solely for completion of a management audit of the division of developmental disabilities within the department of social and health services. The objectives of the review shall include, but are not limited to: (a) An analysis and evaluation of the current organizational structures, management practices, and performance measures that are in place to fulfill statutory responsibilities; (b) an assessment of the impact of overlapping statutory or administrative code responsibilities with other department of social and health services divisions and other state agencies; and (c) development of recommendations, as appropriate, that would result in significant management improvements in the division's operations. The audit report shall be provided to the senate committee on ways and means and the house of representatives committee on appropriations by January 8, 1999.

(3) $50,000 of the general fund appropriation for fiscal year 1999 is provided solely for a study of: (a) The effect of the state certificate of need program under chapter 70.38 RCW on the cost, quality, and availability of hospital, ambulatory surgery, home health, hospice, and kidney disease treatment services; and (b) the effect the repeal of the program would have on the cost, quality, and availability of any of these services, and on the availability of charity care and of health facilities and services in rural areas, including the experience in other states where such programs have been fully or partially repealed. The study shall be submitted to the legislature by January 1, 1999.

Sec. 104. 1997 c 149 s 104 (uncodified) is amended to read as follows:

FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEE

General Fund Appropriation (FY 1998). .. . . . . . .$ 1,263,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((1,332,000))

1,482,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,595,000))

2,745,000

The appropriations in this section are subject to the following conditions and limitations: The committee shall conduct an inventory and examination of state data processing projects funded in this act and make recommendations to improve the accountability and legislative evaluation and oversight of these projects.

Sec. 105. 1997 c 149 s 110 (uncodified) is amended to read as follows:

FOR THE COURT OF APPEALS

General Fund Appropriation (FY 1998). .. . . . . . .$ ((10,225,000))

10,340,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((10,133,000))

10,307,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((20,358,000))

20,647,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $271,000 of the general fund fiscal year 1999 appropriation is provided solely for an additional judge position and related support staff in division I in King county, effective July 1, 1998.

(2) $490,000 of the general fund fiscal year 1998 appropriation is provided solely for remodeling existing space in division I court facilities to house additional staff.

Sec. 106. 1997 c 149 s 111 (uncodified) is amended to read as follows:

FOR THE COMMISSION ON JUDICIAL CONDUCT

General Fund Appropriation (FY 1998). .. . . . . . .$ ((652,000))

692,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((653,000))

714,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,305,000))

1,406,000

Sec. 107. 1997 c 149 s 112 (uncodified) is amended to read as follows:

FOR THE ADMINISTRATOR FOR THE COURTS

General Fund Appropriation (FY 1998). . $ 12,723,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((12,595,000))

12,770,000

Public Safety and Education Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((31,134,000))

27,709,000

Judicial Information Systems Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((16,305,000))

17,489,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((72,757,000))

70,691,000

The appropriations in this section are subject to the following conditions and limitations:

(1) Funding provided in the judicial information systems account appropriation shall be used for the operations and maintenance of technology systems that improve services provided by the supreme court, the court of appeals, the office of public defense, and the office of the administrator for the courts. $400,000 of the judicial information systems account appropriation is provided solely for the year 2000 date conversion.

(2) No moneys appropriated in this section may be expended by the administrator for the courts for payments in excess of fifty percent of the employer contribution on behalf of superior courts judges for insurance and health care plans and federal social security and medicare and medical aid benefits. Consistent with Article IV, section 13 of the state Constitution and 1996 Attorney General's Opinion No. 2, it is the intent of the legislature that the cost of these employer contributions shall be shared equally between the state and county or counties in which the judges serve. The administrator for the courts shall continue to implement procedures for the collection and disbursement of these employer contributions.

(3) (($6,510,000)) $3,255,000 of the public safety and education account appropriation is provided solely for the continuation of treatment alternatives to street crimes (TASC) programs in Pierce, Snohomish, Clark, King, Spokane, and Yakima counties.

(4) $125,000 of the public safety and education account appropriation is provided solely for the workload associated with the increase in state cases filed in Thurston county superior court.

(5) $223,000 of the public safety and education account appropriation is provided solely for the gender and justice commission.

(6) $308,000 of the public safety and education account appropriation is provided solely for the minority and justice commission.

(7) $100,000 of the general fund fiscal year 1998 appropriation and $100,000 of the general fund fiscal year 1999 appropriation are provided solely for judicial program enhancements. Within the funding provided in this subsection, the office of administrator of courts in consultation with the supreme court shall determine the program or programs to receive an enhancement.

(8) $35,000 of the general fund fiscal year 1998 appropriation is provided solely for the implementation of Engrossed Substitute House Bill No. 1771 (guardian certification). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(9) $100,000 of the general fund fiscal year 1998 appropriation is provided solely for the Snohomish county preprosecution diversion program.

(10) $175,000 of the general fund appropriation for fiscal year 1999 is provided solely for costs associated with the publication and distribution of a judicial voter pamphlet for the 1998 primary election.

Sec. 108. 1997 c 149 s 113 (uncodified) is amended to read as follows:

FOR THE OFFICE OF PUBLIC DEFENSE

Public Safety and Education Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((12,187,000))

12,103,000

The appropriation in this section is subject to the following conditions and limitations:

(1) The cost of defending indigent offenders in death penalty cases has escalated significantly over the last four years. The office of public defense advisory committee shall analyze the current methods for reimbursing private attorneys and shall develop appropriate standards and criteria designed to control costs and still provide indigent defendants their constitutional right to representation at public expense. The office of public defense advisory committee shall report its findings and recommendations to the supreme court and the appropriate legislative committees by September 30, 1998.

(2) $688,000 of the public safety and education account appropriation is provided solely to increase the reimbursement for private attorneys providing constitutionally mandated indigent defense in nondeath penalty cases.

Sec. 109. 1997 c 149 s 114 (uncodified) is amended to read as follows:

FOR THE OFFICE OF THE GOVERNOR

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((5,047,000))

5,068,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((4,963,000))

5,520,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((188,000))

553,000

Water Quality Account Appropriation. . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 700,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((10,898,000))

11,841,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $1,618,000 of the general fund--state appropriation for fiscal year 1998, $1,520,000 of the general fund--state appropriation for fiscal year 1999, $700,000 of the water quality account appropriation, and $188,000 of the general fund--federal appropriation are provided solely for the implementation of the Puget Sound work plan and agency action items PSAT-01 through PSAT-06.

(2) $12,000 of the general fund--state appropriation for fiscal year 1998 and $13,000 of the general fund--state appropriation for fiscal year 1999 are provided for the state law enforcement medal of honor committee for the purposes of recognizing qualified law enforcement officers as provided by chapter 41.72 RCW.

(3) $21,000 of the general fund--state appropriation for fiscal year 1998 and $57,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the office of the family and children's ombudsman for the Wenatchee investigation, support staff, and increased travel costs.

(4) $500,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for implementation of the salmon recovery office in accordance with sections 3 through 5 of Engrossed Substitute House Bill No. 2496 (salmon recovery planning). If any of sections 3 through 5 of the bill are not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 110. 1997 c 149 s 116 (uncodified) is amended to read as follows:

FOR THE PUBLIC DISCLOSURE COMMISSION

General Fund Appropriation (FY 1998). .. . . . . . .$ ((1,457,000))

1,568,000

General Fund Appropriation (FY 1999). . $ ((1,206,000))

1,262,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,663,000))

2,830,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $306,000 of the general fund fiscal year 1998 appropriation and $72,000 of the general fund fiscal year 1999 appropriation are provided solely for technology for customer service improvements.

(2) $111,000 of the fiscal year 1998 general fund appropriation is provided for attorney general services for the public disclosure commission's investigations of the Washington education association and the building industry association of Washington, and other cases.

Sec. 111. 1997 c 149 s 117 (uncodified) is amended to read as follows:

FOR THE SECRETARY OF STATE

General Fund Appropriation (FY 1998). . $ ((8,055,000))

7,970,000

General Fund Appropriation (FY 1999). . $ ((5,901,000))

7,899,000

Archives & Records Management Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . $ 4,032,000

Archives & Records Management Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . $ ((2,553,000))

2,833,000

Department of Personnel Service Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 663,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((21,204,000))

23,397,000

The appropriations in this section are subject to the following conditions and limitations:

(1) (($2,355,000)) $2,255,000 of the general fund appropriation for fiscal year 1998 is provided solely to reimburse counties for the state's share of primary and general election costs and the costs of conducting mandatory recounts on state measures.

(2) $2,011,000 of the general fund appropriation for fiscal year 1998 and $2,536,000 of the general fund appropriation for fiscal year 1999 are provided solely for the verification of initiative and referendum petitions, maintenance of related voter registration records, and the publication and distribution of the voters and candidates pamphlet.

(3) $99,000 of the general fund appropriation is provided solely for the state's participation in the United States census block boundary suggestion program.

(4) $125,000 of the fiscal year 1998 general fund appropriation is provided solely for legal advertising of state measures under RCW 29.27.072.

(5) $45,000 of the general fund fiscal year 1998 appropriation is provided solely for an economic feasibility study of a state horse park.

(6) The election review section under chapter 29.60 RCW shall be administered in a manner consistent with Engrossed Senate Bill No. 5565 (election procedures review).

(7)(a) $1,850,000 of the general fund appropriation for fiscal year 1999 is provided solely for contracting with a nonprofit organization to produce gavel-to-gavel television coverage of state government deliberations and other events of state-wide significance during fiscal year 1999. An eligible nonprofit organization must be formed solely for the purpose of, and be experienced in, providing gavel-to-gavel television coverage of state government deliberations and other events of state-wide significance and must have received a determination of tax-exempt status under section 501(c)(3) of the federal internal revenue code.

(b) The legislature finds that the commitment of on-going funding is necessary to ensure continuous, autonomous, and independent coverage of public affairs. For that purpose, the secretary of state shall enter into a four-year contract with the nonprofit organization to provide public affairs coverage through June 30, 2002. The funding level for each year of the contract shall be based on the amount provided in this subsection and adjusted to reflect the implicit price deflator for the previous year. The nonprofit organization shall be required to raise contributions or commitments to make contributions, in cash or in kind, in an amount equal to forty percent of the state contribution.

(c) The nonprofit organization shall prepare an annual independent audit, an annual financial statement, and an annual report, including benchmarks that measure the success of the nonprofit organization in meeting the intent of the program.

(d) No portion of any amounts disbursed pursuant to this subsection may be used, directly or indirectly, for any of the following purposes:

(i) Attempting to influence the passage or defeat of any legislation by the legislature of the state of Washington, by any county, city, town, or other political subdivision of the state of Washington, or by the congress, or the adoption or rejection of any rule, standard, rate, or other legislative enactment of any state agency;

(ii) Making contributions reportable under chapter 42.17 RCW; or

(iii) Providing any: (A) Gift; (B) honoraria; or (C) travel, lodging, meals, or entertainment to a public officer or employee.

(8) $280,000 of the archives and records management account--private/local appropriation is provided solely for preserving and restoring security microfilm.

Sec. 112. 1997 c 149 s 120 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER

State Treasurer's Service Account Appropriation. $ ((11,567,000))

12,382,000

Sec. 113. 1997 c 149 s 121 (uncodified) is amended to read as follows:

FOR THE STATE AUDITOR

General Fund Appropriation (FY 1998). . $ ((678,000))

688,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((678,000))

1,193,000

State Auditing Services Revolving Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((11,928,000))

12,373,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((13,284,000))

14,254,000

The appropriations in this section are subject to the following conditions and limitations:

(1) Audits of school districts by the division of municipal corporations shall include findings regarding the accuracy of: (a) Student enrollment data; and (b) the experience and education of the district's certified instructional staff, as reported to the superintendent of public instruction for allocation of state funding.

(2) $420,000 of the general fund appropriation for fiscal year 1998 and $420,000 of the general fund appropriation for fiscal year 1999 are provided solely for staff and related costs to audit special education programs that exhibit unusual rates of growth, extraordinarily high costs, or other characteristics requiring attention of the state safety net committee, and other school districts for baseline purposes and to determine if there are common errors. The auditor shall consult with the superintendent of public instruction regarding training and other staffing assistance needed to provide expertise to the audit staff.

(3) $250,000 of the general fund fiscal year 1998 appropriation and $250,000 of the general fund fiscal year 1999 appropriation are provided solely for the budget and reporting system (BARS) to improve the reporting of local government fiscal data. Audits of counties and cities by the division of municipal corporations shall include findings regarding the completeness, accuracy, and timeliness of BARS data reported to the state auditor's office.

(4) The state auditor shall develop recommendations and curricula for preventing instances of improper governmental actions as defined in chapter 42.20 RCW, the state whistleblower act. In developing these recommendations and curricula, the state auditor shall involve the office of financial management, office of the attorney general, executive ethics board, department of personnel, employee organizations, and other interested parties. These recommendations shall be submitted to the governor and the legislature by June 30, 1998.

(5) $120,000 of the auditing services revolving fund appropriation is provided solely to implement Engrossed Second Substitute House Bill No. 2881 (auditing state contractors). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(6) $25,000 of the general fund fiscal year 1999 appropriation is provided solely to implement Engrossed Second Substitute House Bill No. 2831 (a joint report to the legislature on the results of cost studies and service quality and reliability reports from electric utilities). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse. No fee may be collected from the electric utilities for this joint report.

(7) $10,000 of the general fund fiscal year 1998 appropriation and $490,000 of the general fund fiscal year 1999 appropriation are provided solely for staff and related costs to: Verify the accuracy of reported school district data submitted for state funding purposes or program audits of state funded public school programs; and establish the specific amount of funds to be recovered whenever the amount is not firmly established in the course of any public school audits conducted by the state auditor's office. The results of the audits shall be submitted to the superintendent of public instruction for corrections of data and adjustments of funds.

Sec. 114. 1997 c 149 s 122 (uncodified) is amended to read as follows:

FOR THE CITIZENS' COMMISSION ON SALARIES FOR ELECTED OFFICIALS

General Fund Appropriation (FY 1998). .. . . . . . .$ ((4,000))

11,000

General Fund Appropriation (FY 1999). .. . . . . . .$ 63,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((67,000))

74,000

Sec. 115. 1997 c 149 s 123 (uncodified) is amended to read as follows:

FOR THE ATTORNEY GENERAL

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((4,361,000))

4,161,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((3,631,000))

3,831,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,248,000

Public Safety and Education Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,300,000))

1,291,000

New Motor Vehicle Arbitration Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,094,000

Legal Services Revolving Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((125,008,000))

125,758,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((137,642,000))

138,383,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The attorney general shall report each fiscal year on actual legal services expenditures and actual attorney staffing levels for each agency receiving legal services. The report shall be submitted to the office of financial management and the fiscal committees of the senate and house of representatives no later than ninety days after the end of each fiscal year.

(2) The attorney general shall include, at a minimum, the following information with each bill sent to agencies receiving legal services: (a) The number of hours and cost of attorney services provided during the billing period; (b) cost of support staff services provided during the billing period; (c) attorney general overhead and central support costs charged to the agency for the billing period; (d) direct legal costs, such as filing and docket fees, charged to the agency for the billing period; and (e) other costs charged to the agency for the billing period. The attorney general may, with approval of the office of financial management change its billing system to meet the needs of its user agencies.

(3) $300,000 of the fiscal year 1998 general fund--state appropriation is provided for a comprehensive assessment of environmental and public health impacts and for other costs related to pursuing remedies for pollution in the Spokane river basin.

(4) (($640,000)) $440,000 of the fiscal year 1998 general fund--state appropriation and (($210,000)) $410,000 of the fiscal year 1999 general fund--state appropriation are provided solely to implement the supervision management and recidivist tracking program to allow the department of corrections and local law enforcement agencies to share information concerning the activities of offenders on community supervision. ((No information on any person may be entered into or retained in the program unless the person is under the jurisdiction of the department of corrections.))

(5) Within the amounts provided in this section, the attorney general shall implement Second Substitute House Bill No. 2027 (regulating travel sales). If the bill is not enacted by June 30, 1998, this subsection is null and void.

Sec. 116. 1997 c 149 s 124 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FINANCIAL INSTITUTIONS

Securities Regulation Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((5,445,000))

5,482,000

The appropriation in this section is subject to the following conditions and limitations: $34,000 of the securities regulation account appropriation is provided solely for the implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amount provided shall lapse.

Sec. 117. 1997 c 454 s 103 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((57,361,000))

57,078,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((56,351,000))

61,451,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((155,278,000))

164,000,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 6,903,000

Public Safety and Education Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((8,781,000))

8,720,000

Public Works Assistance Account Appropriation.$ 2,223,000

Building Code Council Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,318,000))

1,366,000

Administrative Contingency Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,776,000

Low-Income Weatherization Assistance Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . .$ 923,000

Violence Reduction and Drug Enforcement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ 6,042,000

Manufactured Home Installation Training Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . $ 250,000

Washington Housing Trust Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 7,999,000

Public Facility Construction Loan Revolving Account Appropriation. . . . . . . . . . . . . . . . . . . . . .$ 515,000

Clean Washington Account Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 11,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((305,720,000))

319,257,000

The appropriations in this section are subject to the following conditions and limitations:

(1) (($3,282,500)) $2,962,500 of the general fund--state appropriation for fiscal year 1998 and (($3,282,500)) $3,602,500 of the general fund--state appropriation for fiscal year 1999 are provided solely for a contract with the Washington technology center. For work essential to the mission of the Washington technology center and conducted in partnership with universities, the center shall not pay any increased indirect rate nor increases in other indirect charges above the absolute amount paid during the 1995-97 biennium.

(2) $155,000 of the general fund--state appropriation for fiscal year 1998 and (($155,000)) $445,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for a contract with the Washington manufacturing extension partnership.

(3) $9,964,000 of the general fund--federal appropriation is provided solely for the drug control and system improvement formula grant program, to be distributed in state fiscal year 1998 as follows:

(a) $3,603,250 to local units of governments to continue the multi-jurisdictional narcotics task forces;

(b) $500,000 to the department to continue the state-wide drug prosecution assistance program in support of multijurisdictional narcotics task forces;

(c) $1,306,075 to the Washington state patrol for coordination, investigative, and supervisory support to the multijurisdictional narcotics task forces and for methamphetamine education and response;

(d) $240,000 to the department for grants to support tribal law enforcement needs;

(e) $900,000 to drug courts in eastern and western Washington;

(f) $300,000 to the department for grants to provide sentencing alternatives training programs to defenders;

(g) $200,000 for grants to support substance-abuse treatment in county jails;

(h) $517,075 to the department for legal advocacy for victims of domestic violence and for training of local law enforcement officers and prosecutors on domestic violence laws and procedures;

(i) $903,000 to the department to continue youth violence prevention and intervention projects;

(j) $91,000 for the governor's council on substance abuse;

(k) $99,000 for program evaluation and monitoring;

(l) $100,000 for the department of corrections for a feasibility study of replacing or updating the offender based tracking system.

(m) $498,200 for development of a state-wide system to track criminal history records; and

(n) No more than $706,400 to the department for grant administration and reporting.

These amounts represent the maximum Byrne grant expenditure authority for each program. No program may expend Byrne grant funds in excess of the amounts provided in this section. If moneys in excess of those appropriated in this section become available, whether from prior or current fiscal year Byrne grant distributions, the department shall hold these moneys in reserve and may not expend them without a specific appropriation. These moneys shall be carried forward and applied to the pool of moneys available for appropriation for programs and projects in the succeeding fiscal year. As part of its budget request for the succeeding fiscal year, the department shall estimate and request authority to spend any funds remaining in reserve as a result of this subsection.

(4) $11,715,000 of the general fund--federal appropriation is provided solely for the drug control and system improvement formula grant program, to be distributed in state fiscal year 1999 as follows:

(a) $3,878,250 to local units of government to continue multijurisdictional narcotics task forces;

(b) $531,000 to the department to continue the drug prosecution assistance program in support of multijurisdictional narcotics task forces;

(c) $1,363,075 to the Washington state patrol for coordination, investigative, and supervisory support to the multijurisdictional narcotics task forces and for methamphetamine education and response;

(d) $256,000 to the department for grants to support tribal law enforcement needs;

(e) $1,093,000 to drug courts in eastern and western Washington;

(f) $312,000 to the department for grants assisting in the development, conduct, and training on sentencing alternatives;

(g) $261,000 to the department to continue a substance-abuse treatment in jails program, to test the effect of treatment on future criminal behavior;

(h) $581,075 to the department to continue domestic violence legal advocacy;

(i) $949,000 to the department to continue youth violence prevention and intervention projects;

(j) $91,000 to the department to continue the governor's council on substance abuse;

(k) $99,000 to the department to continue evaluation of Byrne formula grant programs;

(l) $1,496,200 to the office of financial management for the criminal history records improvement program; and

(m) $804,400 to the department for required grant administration, monitoring and reporting on Byrne formula grant programs.

These amounts represent the maximum Byrne grant expenditure authority for each program. No program may expend Byrne grant funds in excess of the amounts provided in this subsection. If moneys in excess of those appropriated in this subsection become available, whether from prior or current fiscal year Byrne grant distributions, the department shall hold these moneys in reserve and may not expend them without specific appropriation. These moneys shall be carried forward and applied to the pool of moneys available for appropriation for programs and projects in the succeeding fiscal year. As part of its budget request for the succeeding year, the department shall estimate and request authority to spend any funds remaining in reserve as a result of this subsection.

(((4))) (5) $1,000,000 of the general fund fiscal year 1998 appropriation and $1,000,000 of the general fund fiscal year 1999 appropriation are provided solely to implement Engrossed Substitute House Bill No. 1576 (buildable lands) or Senate Bill No. 6094 (growth management). If neither bill is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(((5) $4,800,000)) (6) $4,766,000 of the public safety and education account appropriation, $1,000,000 of the fiscal year 1998 general fund--state appropriation, and (($1,000,000)) $1,034,000 of the fiscal year 1999 general fund--state appropriation are provided solely for indigent civil legal representation services contracts and contracts administration. The amounts provided in this subsection are contingent upon enactment of section 2 of Engrossed Substitute House Bill No. 2276 (civil legal services for indigent persons). If section 2 of the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(((6))) (7) $643,000 of the general fund--state fiscal year 1998 appropriation and $643,000 of the general fund--state fiscal year 1999 appropriation are provided solely to increase payment rates for contracted early childhood education assistance program providers. It is the legislature's intent that these amounts shall be used primarily to increase compensation for persons employed in direct, front-line service delivery.

(((7))) (8) $75,000 of the general fund--state fiscal year 1998 appropriation and $75,000 of the general fund--state fiscal year 1999 appropriation are provided solely as a grant for the community connections program in Walla Walla county.

(((8))) (9) $300,000 of the general fund--state fiscal year 1998 appropriation and $300,000 of the general fund--state fiscal year 1999 appropriation are provided solely to contract with the Washington state association of court-appointed special advocates/guardians ad litem (CASA/GAL) to establish pilot programs in three counties to recruit additional community volunteers to represent the interests of children in dependency proceedings. Of this amount, a maximum of $30,000 shall be used by the department to contract for an evaluation of the effectiveness of CASA/GAL in improving outcomes for dependent children. The evaluation shall address the cost-effectiveness of CASA/GAL and to the extent possible, identify savings in other programs of the state budget where the savings resulted from the efforts of the CASA/GAL volunteers. The department shall report to the governor and legislature by October 15, 1998.

(((9))) (10) $75,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for state sponsorship of the "BIO 99" international biotechnology conference and exhibition in the Seattle area in 1999.

(((10))) (11) $698,000 of the general fund--state appropriation for fiscal year 1998, $697,000 of the general fund--state appropriation for fiscal year 1999, and $1,101,000 of the administrative contingency account appropriation are provided solely for contracting with associate development organizations.

(((11))) (12) $50,000 of the general fund--state appropriation for fiscal year 1998 and $50,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to expand the long-term care ombudsman program.

(((12))) (13) $60,000 of the general fund--state appropriation for fiscal year 1998 and $60,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of the Puget Sound work plan action item DCTED-01.

(((13))) (14) $20,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for a task force on tourism promotion and development. The task force shall report to the legislature on its findings and recommendations by January 31, 1998.

(((14))) (15) $61,000 of the general fund--state appropriation for fiscal year 1998 and $60,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the pacific northwest economic region (PNWER).

(((15))) (16) $123,000 of the general fund--state appropriation for fiscal year 1998 and $124,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the community development finance program.

(((16))) (17) Within the appropriations provided in this section, the department shall conduct a study of possible financial incentives to assist in revitalization of commercial areas and report its findings and recommendations to the appropriate committees of the legislature by November 15, 1997.

(18) $49,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to implement section 11 of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If section 11 of the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(19) $1,000,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the development of housing for low-income temporary or migrant farm workers through grants awarded after the effective date of this act. The legislature finds that providing housing for low-income temporary or migrant workers is a public purpose. The department shall prioritize grants and shall award grants on a competitive basis to local governments, nonprofit corporations, or other nonprofit entities. Grant moneys awarded by the department under this subsection may be matched by nonstate sources on a dollar-for-dollar basis, in cash or in-kind. Of the amount provided in this subsection, $100,000 is provided solely for restroom and shower facilities at the Horn Rapids Park in Benton county; no match need be provided for this project. The amount provided in this subsection is contingent upon enactment of sections 1 through 8 of Second Substitute Senate Bill No. 6168. If any of these sections of the bill are not enacted by June 30, 1998, this subsection is null and void, and the amounts provided in this subsection shall lapse. Any amounts provided in this subsection not committed to grants by June 30, 1999, shall lapse.

(20) $275,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for coastal erosion project grants to the city of Ocean Shores.

(21) $191,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the implementation of Substitute House Bill No. 2556 (child abuse prevention and treatment). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(22) $965,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the implementation of Substitute Senate Bill No 6655 (Spokane intercollegiate research and technology institute).

(23) $92,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the implementation of Engrossed Substitute Senate Bill No. 6560 (electric power customer rights). For any portion of the appropriation that is expended for contracted services, the department shall: (a) Form an advisory committee consisting of representatives from public utility districts and residential, commercial, and industrial customers; and (b) submit for review and approval by the advisory committee the request for proposal and selection of the successful bidder or bidders. If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(24) $383,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the emergency food assistance program.

(25) $120,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for grants to licensed overnight youth shelters for the purpose of assisting the shelters in meeting the minimum requirements for receiving a license under chapter 74.15 RCW. The department may provide grants of up to twenty thousand dollars per year for each shelter. Only shelters that are currently licensed are eligible to receive the grants. Funds may be used for the following purposes, including but not limited to: Additional staff, food, facility maintenance, or beds, provided that these costs are necessary to meet the licensing and facility standards adopted by the department of social and health services. For purposes of this subsection, "overnight youth shelter" means a licensed facility operated by a nonprofit agency that provides overnight shelter to homeless or runaway youth because of family problems or dysfunctions.

(26) $27,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the sexual assault program within the office of crime victims advocacy.

(27) $37,000 of the general fund--state appropriation for fiscal year 1998 and $128,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for deposit in the state trade fair fund. If Engrossed Second Substitute Senate Bill No. 6562 is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(28) $1,100,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the early childhood education and assistance program.

Sec. 118. 1997 c 454 s 104 (uncodified) is amended to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((10,530,000))

10,626,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((10,253,000))

11,160,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 23,331,000

General Fund--Local Appropriation. . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 190,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((44,114,000))

45,307,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The office of financial management, in cooperation with the higher education coordinating board and the state board for community and technical colleges, shall develop long-term higher education enrollment forecasting models for consideration by the legislature. To the extent possible, the pilot models shall incorporate trends in demography, higher education applications, K-12 graduation rates, labor market needs, and state and national higher education policy and economic considerations. The public institutions of education shall cooperate in the development of models by providing any necessary data in a timely and organized manner. The private education institutions of the state are encouraged to participate in this effort. A preliminary report shall be provided to the appropriate committees of the legislature by November 1, 1998, and a final report shall be provided by January 15, 1999.

(2) $139,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to implement Engrossed Second Substitute House Bill No. 2880 (task force on vendor contracting practices). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(3) $250,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to contract with an outside management consultant to review the department of fish and wildlife's financial operations and management practices.

Sec. 119. 1997 c 149 s 129 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF PERSONNEL

Department of Personnel Service Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((16,493,000))

16,593,000

Higher Education Personnel Services Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,632,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((18,125,000))

18,225,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The department shall reduce its charge for personnel services to the lowest rate possible.

(2) $32,000 of the department of personnel service fund appropriation is provided solely for the creation, printing, and distribution of the personal benefits statement for state employees.

(3) The department of personnel service account appropriation contains sufficient funds to continue the employee exchange program with the Hyogo prefecture in Japan.

(4) $500,000 of the department of personnel service account appropriation is provided solely for the career transition program to assist state employees who are separated or are at risk of lay-off due to reduction-in-force. Services shall include employee retraining and career counseling.

(5) $800,000 of the department of personnel service account appropriation is provided solely for the human resource data warehouse to: Expand the type and amount of information available on the state-wide work force; and to provide the office of financial management, legislature, and state agencies with direct access to the data for policy and planning purposes. The department of personnel shall establish uniform reporting procedures, applicable to all state agencies and higher education institutions, for reporting data to the data warehouse by June 30, 1998. The department of personnel will report quarterly to the legislative fiscal committees, the office of financial management, the information services board, and the office of information technology oversight of the department of information services the following items: (a) The number of state agencies that have received access to the data warehouse (it is anticipated that approximately 40 agencies will receive access during the 1997-99 biennium); (b) the change in requests for downloads from the mainframe computer by agencies with access to the data warehouse, to reflect transferring customers use of the mainframe computer to the more economical use of data warehouse information; and (c) a summary of customer feedback from agencies with access to the data warehouse. Authority to expend this amount is conditioned on compliance with section 902 of this act.

(6) The department of personnel has the authority to charge agencies for expenses associated with converting its payroll/personnel computer system to accommodate the year 2000 date change. Funding to cover these expenses shall be realized from the agency FICA savings associated with the pretax benefits contributions plan.

(7) The department of personnel shall charge all administrative services costs incurred by the department of retirement systems for the deferred compensation program. The billings to the department of retirement systems shall be for actual costs only.

Sec. 120. 1997 c 149 s 130 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE LOTTERY

Industrial Insurance Premium Refund Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 9,000

Lottery Administrative Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 19,966,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 19,975,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The state lottery shall apportion 30 percent of fiscal year 1999 gross revenue to the state general fund. If a lower percentage is apportioned to the general fund in fiscal year 1999, a dollar amount equal to the difference between the actual apportionment and 30 percent of fiscal year 1999 gross revenue shall lapse from the lottery administrative account appropriation.

(2) If the state lottery provides cash bonuses or cash marketing incentives to retailers, a dollar amount equal to the total cash bonuses and marketing incentives shall lapse from the lottery administrative account appropriation.

(3) The requirements of subsections (1) and (2) of this section are contingent upon the enactment of Engrossed House Bill No. 3120 (lottery revenues). If the bill is not enacted by June 30, 1998, subsections (1) and (2) of this section are null and void.

Sec. 121. 1997 c 149 s 134 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF RETIREMENT SYSTEMS--OPERATIONS

Dependent Care Administrative Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 357,000

Department of Retirement Systems Expense Account Appropriation. . . . . . . . . . . . . . . . . . . . . . $ ((31,415,000))

34,481,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((31,772,000))

34,838,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $1,373,000 of the department of retirement systems expense account appropriation is provided solely for the information systems project known as the electronic document image management system. Authority to expend this amount is conditioned on compliance with section 902 of this act.

(2) $1,259,000 of the department of retirement systems expense account appropriation is provided solely for the information systems project known as the receivables management system. Authority to expend this amount is conditioned on compliance with section 902 of this act.

(3) The department of retirement systems shall complete a study examining whether it would be cost-effective to contract out the administration functions for the dependent care assistance program and shall report to the fiscal committees of the legislature by December 15, 1997.

(4) $118,000 of the department of retirement systems expense account appropriation is provided solely to implement Engrossed Substitute House Bill No. 2491 (TRS/PERS plan I gain sharing). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(5) $920,000 of the department of retirement systems expense account appropriation is provided solely to implement Substitute Senate Bill No. 6306 (creating the Washington school employees' retirement system). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(6) $42,000 of the department of retirement systems expense account appropriation is provided solely for the implementation of Engrossed Senate Bill No. 6305 (death benefits for port and university police). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 122. 1997 c 149 s 136 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF REVENUE

General Fund Appropriation (FY 1998). .. . . . . . .$ 65,033,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((65,320,000))

65,623,000

Timber Tax Distribution Account Appropriation. $ 4,778,000

Enhanced 911 Account Appropriation. . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 100,000

Waste Reduction/Recycling/Litter Control Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 100,000

State Toxics Control Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 67,000

Solid Waste Management Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 92,000

Oil Spill Administration Account Appropriation. .$ 14,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((135,404,000))

135,807,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $1,540,000 of the general fund appropriation for fiscal year 1998 and (($1,710,000)) $1,799,000 of the general fund appropriation for fiscal year 1999 are provided solely for senior citizen property tax deferral distribution. If neither Substitute Senate Bill No. 6321 nor Engrossed Substitute Senate Bill No. 6533 (senior/disabled property tax) is enacted by June 30, 1998, $89,000 of the general fund appropriation for fiscal year 1999 shall lapse.

(2) Within the amounts appropriated in this section the department shall conduct a study identifying the impacts of exempting all shellfish species from the tax imposed on enhanced food fish under chapter 82.27 RCW. The study shall include an estimate of the fiscal impacts to state revenues as well as an examination of how such an exemption would impact shellfish-based industries and communities where shellfish-based industries are located. The department shall complete this study and report its findings to the legislature by December 1, 1997.

(3) $60,000 of the general fund appropriation for fiscal year 1999 is provided solely for a study of the costs incurred by retailers in collecting and remitting state and local sales taxes. The department shall (a) identify and estimate the costs for small, medium, and large retailers, (b) estimate the cost to retailers of implementing changes in tax rates and/or the tax base, (c) identify current statutory and regulatory procedures that impose costs and burdens on retailers, as well as alternatives that would lessen these costs and burdens, (d) estimate any direct or indirect compensation retailers currently receive, if any, and (e) review how many other states provide compensation to retailers and the nature of the compensation. The department shall report its findings to the fiscal committees of the house of representatives and senate by December 31, 1998.

(4) $100,000 of the enhanced 911 account appropriation is provided solely for costs associated with convening a study group on enhanced 911 wireless implementation. The department of revenue shall convene a study group consisting of, but not limited to, representatives of the following: The office of financial management, the military department, the state enhanced 911 advisory committee, the department of revenue, and the utilities and transportation commission. The study shall evaluate the most efficient and cost-effective manner to implement state-wide enhanced 911 emergency communications services for radio access telephone lines. The study will also include an evaluation of the technical issues affecting the implementation of wireless enhanced 911 and may hire a telecommunications consultant to conduct this evaluation. The study group shall present its findings and recommendations to the governor and the appropriate committees of the legislature no later than December 31, 1998.

(5) $104,000 of the general fund appropriation for fiscal year 1999 is provided solely for the implementation of tax legislation enacted during the 1998 legislative session.

(6) $50,000 of the general fund appropriation for fiscal year 1999 is provided solely to implement sections 3 and 4 of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If sections 3 and 4 of the bill are not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 123. 1997 c 149 s 141 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF INFORMATION SERVICES

Data Processing Revolving Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,577,000

Education Savings Account Appropriation. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 6,900,000

K-20 Technology Account Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 44,028,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((47,605,000))

54,505,000

The appropriations in this section ((is)) are subject to the following conditions and limitations:

(1) The department shall provide a toll-free telephone number and operator service staff for the general public to call for information about state agencies. The department may provide such staff, equipment, and facilities as are necessary for this purpose. The director shall adopt rules to fix terms and charges for these services. All state agencies and the legislature shall participate in the information program and shall reimburse the department of information services in accordance with rules established by the director. The department shall also provide conference calling services for state and other public agencies on a fee-for-service basis.

(2) $44,028,000 of the K-20 technology account appropriation shall be expended in accordance with the expenditures authorized by the K-20 telecommunications oversight and policy committee as currently existing or as modified by Substitute House Bill No. 1698, Substitute Senate Bill No. 5002, or substantially similar legislation (K-20 telecommunications network).

(3) $6,900,000 of the education savings account appropriation is provided solely to complete the build-out of phase II of the K-12 portion of the K-20 network.

Sec. 124. 1997 c 149 s 142 (uncodified) is amended to read as follows:

FOR THE INSURANCE COMMISSIONER

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 106,000

Insurance Commissioners Regulatory Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 22,431,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 22,537,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $532,000 of the insurance commissioner's regulatory account appropriation is provided solely for the expenditure of funds received under the consent order with the Prudential insurance company. These funds are provided solely for implementing the Prudential remediation process and for examinations of the Prudential company.

(2) (($206,000 of the insurance commissioner's regulatory account appropriation is provided solely to implement Substitute House Bill No. 1387 (basic health plan benefits). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(3))) $298,000 of the insurance commissioner's regulatory account appropriation is provided solely for technology improvements that will support the electronic filing of insurance rates and contracts and enable regulators and the industry to share information about licensed agents to protect the public from fraudulent sales practices.

(3) $50,000 of the insurance commissioner's regulatory account appropriation is provided solely to implement sections 10 and 12 of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If sections 10 and 12 of the bill are not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(4) $100,000 of the insurance commissioner's regulatory account appropriation is provided solely for allocation to the traffic safety commission for implementation of Engrossed Substitute House Bill No. 2439, the Cooper Jones Act (bicycle/pedestrian safety education). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 125. 1997 c 149 s 145 (uncodified) is amended to read as follows:

FOR THE HORSE RACING COMMISSION

Horse Racing Commission Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,828,000

The appropriation in this section is subject to the following conditions and limitations: Within the amounts appropriated in this section, the horse racing commission, in consultation with the gambling commission, shall study the impact on the major live race tracks and the horse racing and breeding industry of allowing gambling activity currently authorized in Washington by state law or under a state/tribal compact agreement to be conducted at the live race track facilities. The horse racing commission shall report to the appropriate committees of the legislature by December 15, 1998.

Sec. 126. 1997 c 149 s 146 (uncodified) is amended to read as follows:

FOR THE LIQUOR CONTROL BOARD

General Fund Appropriation (FY 1998). .. . . . . . .$ 1,603,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((1,242,000))

1,294,000

Liquor Control Board Construction and Maintenance

Account Appropriation. . . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 9,919,000

Liquor Revolving Account Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((121,391,000))

122,607,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((134,155,000))

135,423,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $1,250,000 of the liquor revolving account appropriation is provided solely for the agency information technology upgrade. This item is conditioned on satisfying the requirements of section 902 of this act, including the development of a project management plan, a project schedule, a project budget, a project agreement, and incremental funding based on completion of key milestones.

(2) $1,603,000 of the general fund fiscal year 1998 appropriation and $1,242,000 of the general fund fiscal year 1999 appropriation are provided solely to implement Substitute Senate Bill No. 6084 or Engrossed Substitute House Bill No. 2272 (transferring enforcement provisions regarding cigarette and tobacco taxes to the liquor control board). If neither bill is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(3) $459,000 of the liquor revolving account appropriation is provided solely for implementation of Substitute Senate Bill No. 5664 (credit and debit cards purchases in state liquor stores). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(4) $154,000 of the liquor revolving account appropriation is provided solely for the implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(5) $944,000 of the liquor revolving account appropriation is provided solely for the increase in vendor commissions due to the higher than expected growth in sales volume.

(6) Within the amounts provided in this section, the liquor control board shall prepare and submit a report on the liquor agency vendor system to the legislature by December 1, 1998. The report shall provide information on: (a) The development and changes to the liquor agency vendor store system during the last twenty years; (b) the business profile of liquor agency vendors, including the number of liquor agency vendors that sell only liquor and the number of liquor agency vendors that sell other items besides liquor; (c) the growth in the number of liquor agency vendors during the last twenty years; (d) the locations served by liquor agency vendors; (e) the criteria used for establishing liquor agency vendors and determining whether to open a state liquor store in a particular location; (f) the average annual commission paid per liquor agency vendor during the last twenty years; (g) the commission rate and components of the commissions provided to liquor agency vendors during the last twenty years; (h) the basis for any changes to the commission rate or components of the commissions provided to liquor agency vendors during the last twenty years; and (i) gross liquor sales by liquor agency vendors during the last twenty years.

(7) $272,000 of the liquor revolving account appropriation is provided solely for the implementation of Substitute Senate Bill No. 6253 (credit and debit card purchases in state liquor agency vendors). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(8) $52,000 of the general fund appropriation for fiscal year 1999 is provided solely for equipment for cigarette tax enforcement activities.

Sec. 127. 1997 c 149 s 147 (uncodified) is amended to read as follows:

FOR THE UTILITIES AND TRANSPORTATION COMMISSION

Public Service Revolving Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((24,313,000))

24,754,000

Public Service Revolving Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 292,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((24,605,000))

25,046,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $133,000 of the public service revolving account--state appropriation is provided solely for the implementation of Engrossed Substitute Senate Bill No. 6560 (electric power customer rights). For any portion of the appropriation that is expended for contracted services, the commission shall: (a) Form an advisory committee consisting of representatives from electrical companies regulated by the commission, and residential, commercial, and industrial customers served by those companies; and (b) submit for review and approval by the advisory committee the request for proposal and selection of the successful bidder or bidders. If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(2) $308,000 of the public service revolving account--state appropriation is provided solely for the implementation of Engrossed Substitute Senate Bill No. 6622 (federal telecommunications act). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 128. 1997 c 454 s 105 (uncodified) is amended to read as follows:

FOR THE MILITARY DEPARTMENT

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((8,151,000))

8,602,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((8,154,000))

9,390,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 34,314,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 238,000

Flood Control Assistance Account Appropriation$ 3,000,000

Enhanced 911 Account Appropriation. . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 26,782,000

Disaster Response Account--State Appropriation$ ((23,977,000))

25,487,000

Disaster Response Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((95,419,000))

110,812,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((200,035,000))

218,625,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $365,000 of the general fund--state appropriation for fiscal year 1998, $1,145,000 of the general fund--state appropriation for fiscal year 1999, $3,000,000 of the flood control assistance account appropriation, and $6,197,000 of the general fund--federal appropriation are provided solely for deposit in the disaster response account to cover costs pursuant to subsection (2) of this section.

(2) (($23,977,000)) $25,122,000 of the disaster response account--state appropriation is provided solely for the state share of response and recovery costs associated with federal emergency management agency (FEMA) disaster number 1079 (November/December 1995 storms), FEMA disaster 1100 (February 1996 floods), FEMA disaster 1152 (November 1996 ice storm), FEMA disaster 1159 (December 1996 holiday storm), FEMA disaster 1172 (March 1997 floods) and to assist local governmental entities with the matching funds necessary to earn FEMA funds for FEMA disaster 1100 (February 1996 floods). $356,000 of the disaster response account--state appropriation is provided solely for fire mobilization costs. $9,000 of the disaster response account--state appropriation is provided solely for costs associated with FEMA disaster 1182 (Pend Oreille county 1997 spring flood).

(3) $100,000 of the general fund--state fiscal year 1998 appropriation and $100,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the implementation of a conditional scholarship program pursuant to chapter 28B.103 RCW.

(4) $35,000 of the general fund--state fiscal year 1998 appropriation and $35,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the north county emergency medical service.

(5) $36,000 of the general fund--state fiscal year 1998 appropriation and $72,000 of the general fund--state fiscal year 1999 appropriation are provided solely for emergency worker claims pursuant to chapter 38.52 RCW.

Sec. 129. 1997 c 149 s 152 (uncodified) is amended to read as follows:

FOR THE STATE CONVENTION AND TRADE CENTER

State Convention and Trade Center Operating Account Appropriation. . . . . . . . . . . . . . . . . . . . . $ ((27,175,000))

27,394,000

PART II

HUMAN SERVICES

Sec. 201. 1997 c 149 s 201 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES. (1) Appropriations made in this act to the department of social and health services shall initially be allotted as required by this act. Subsequent allotment modifications shall not include transfers of moneys between sections of this act except as expressly provided in ((this act)) subsection (3) of this section, nor shall allotment modifications permit moneys that are provided solely for a specified purpose to be used for other than that purpose.

(2) The department of social and health services shall not initiate any services that will require expenditure of state general fund moneys unless expressly authorized in this act or other law. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation providing appropriation authority, and an equal amount of appropriated state general fund moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.

(3) ((The appropriations in sections 202 through 213 of this act shall be expended for the programs and in the amounts listed in those sections.))

(a) The appropriations to the department of social and health services in chapters 149 and 454, Laws of 1997, as amended, shall be expended for the programs and in the amounts specified therein. However, after May 1, 1998, unless specifically prohibited by this act, the department may transfer general fund--state appropriations for fiscal year 1998 among programs after approval by the director of financial management. However, the department shall not transfer general fund--state appropriations from the economic services program for the 1997-99 fiscal biennium.

(b) To the extent that the transfer of appropriations under subsection (a) of this section is insufficient to fund actual expenditures in fiscal year 1998 in the medical assistance program that exceed the expenditures projected in the November 1997 medical assistance caseload forecast, the department may transfer general fund appropriations, not to exceed five million dollars, within the medical assistance program from fiscal year 1999 into fiscal year 1998.

(c) The director of financial management shall notify the appropriate fiscal committees of the senate and house of representatives in writing prior to approving any allotment modifications.

Sec. 202. 1997 c 454 s 202 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--CHILDREN AND FAMILY SERVICES PROGRAM

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((196,437,000))

201,453,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((208,861,000))

213,035,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((252,269,000))

252,300,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 400,000

Violence Reduction and Drug Enforcement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ ((4,230,000))

4,332,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((662,197,000))

671,520,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $16,510,000 of the general fund--state appropriation for fiscal year 1998 and $17,508,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for purposes consistent with the maintenance of effort requirements under the federal temporary assistance for needy families program established under P.L. 104-193.

(2) $((837,000)) 4,332,000 of the violence reduction and drug enforcement account appropriation and $((7,228,000)) 3,733,000 of the general fund--federal appropriation are provided solely for the operation of the family policy council, the community public health and safety networks, and delivery of services authorized under the federal family preservation and support act. Within the funds provided, the family policy council shall contract for an evaluation of the community networks with the institute for public policy and shall provide for audits of ten networks. Within the funds provided, the family policy council may build and maintain a geographic information system database tied to community network geography.

(3) $577,000 of the general fund--state fiscal year 1998 appropriation and $577,000 of the general fund--state fiscal year 1999 appropriation are provided solely to contract for the operation of one pediatric interim care facility. The facility shall provide residential care for up to twelve children through two years of age. Seventy-five percent of the children served by the facility must be in need of special care as a result of substance abuse by their mothers. The facility also shall provide on-site training to biological, adoptive, or foster parents. The facility shall provide at least three months of consultation and support to parents accepting placement of children from the facility. The facility may recruit new and current foster and adoptive parents for infants served by the facility. The department shall not require case management as a condition of the contract.

(4) $481,000 of the general fund--state fiscal year 1998 appropriation and $481,000 of the general fund--state fiscal year 1999 appropriation are provided solely for up to three nonfacility-based programs for the training, consultation, support, and recruitment of biological, foster, and adoptive parents of children through age three in need of special care as a result of substance abuse by their mothers, except that each program may serve up to three medically fragile nonsubstance-abuse-affected children. In selecting nonfacility-based programs, preference shall be given to programs whose federal or private funding sources have expired or that have successfully performed under the existing pediatric interim care program.

(5) $640,000 of the general fund--state appropriation for fiscal year 1998 and $640,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to fund Second Substitute Senate Bill No. 5710 (juvenile care and treatment), including section 2 of the bill. Amounts provided in this subsection to implement Second Substitute Senate Bill No. 5710 must be used to serve families who are screened from the child protective services risk assessment process. Services shall be provided through contracts with community-based organizations. If neither bill is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(6) $594,000 of the general fund--state appropriation for fiscal year 1998, $556,000 of the general fund--state appropriation for fiscal year 1999, and $290,000 of the general fund--federal appropriation are provided solely to fund the provisions of Engrossed Second Substitute House Bill No. 2046 (foster parent liaison). The department shall establish a foster parent liaison in each department of social and health services region of the state and contract with a private provider to implement a recruitment and retention program for foster parents and adoptive families. The department shall provide a minimum of two hundred additional adoptive and foster home placements by June 30, 1998. If the bill is not enacted by June 30, 1997, the amounts in this subsection shall lapse.

(7) $433,000 of the fiscal year 1998 general fund--state appropriation, $395,000 of the fiscal year 1999 general fund--state appropriation, and $894,000 of the general fund--federal appropriation are provided solely to increase the rate paid to private child-placing agencies.

(8) $580,000 of the general fund--state appropriation for fiscal year 1998 and $580,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for development and expansion of child care training requirements and optional training programs. The department shall adopt rules to require annual training in early childhood development of all directors, supervisors, and lead staff at child care facilities. Directors, supervisors, and lead staff at child care facilities include persons licensed as family child care providers, and persons employed at child care centers or school age child care centers. The department shall establish a program to fund scholarships and grants to assist persons in meeting these training requirements. The department shall also develop criteria for approving training programs and establish a system for tracking who has received the required level of training. In adopting rules, developing curricula, setting up systems, and administering scholarship programs, the department shall consult with the child care coordinating committee and other community stakeholders.

(9) The department shall provide a report to the legislature by November 1997 on the growth in additional rates paid to foster parents beyond the basic monthly rate. This report shall explain why exceptional, personal, and special rates are being paid for an increasing number of children and why the amount paid for these rates per child has risen in recent years. This report must also recommend methods by which the legislature may improve the current foster parent compensation system, allow for some method of controlling the growth in costs per case, and improve the department's and the legislature's ability to forecast the program's needs in future years.

(10) $100,000 of the general fund--state appropriation for fiscal year 1998 and $100,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for legal costs associated with the defense of vendors operating a secure treatment facility, for actions arising from the good faith performance of treatment services for behavioral difficulties or needs.

(11) $2,745,000 of the fiscal year 1998 general fund--state appropriation, $2,745,000 of the fiscal year 1999 general fund--state appropriation, and $1,944,000 of the general fund--federal appropriation are provided solely for the category of services titled "intensive family preservation services."

(12) $((2,200,000)) 1,642,000 of the fiscal year 1998 general fund--state appropriation and $((2,200,000)) 1,207,000 of the fiscal year 1999 general fund--state appropriation and $1,551,000 of the general fund--federal appropriation are provided solely to continue existing continuum of care and street youth projects.

(13) $1,456,000 of the general fund--state appropriation for fiscal year 1998, $1,474,000 of the general fund--state appropriation for fiscal year 1999 and $1,141,000 of the general fund--federal appropriation are provided solely for the improvement of quality and capacity of the child care system and related consumer education. The activities funded by this appropriation shall include, but not be limited to: Expansion of child care resource and referral network services to serve additional families, to provide technical assistance to child care providers, and to cover currently unserved areas of the state; development of and incentives for child care during nonstandard work hours; and the development of care for infants, toddlers, preschoolers, and school age youth. These amounts are provided in addition to funding for child care training and fire inspections of child care facilities. These activities shall also improve the quality and capacity of the child care system.

(14)(a) $6,565,000 of the general fund--state appropriation for fiscal year 1998 and $7,454,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for distribution to county juvenile court administrators to fund the costs of processing truancy, children in need of services, and at-risk youth petitions. The department shall not retain any portion of these funds to cover administrative or any other departmental costs. The department, in conjunction with the juvenile court administrators, shall develop an equitable funding distribution formula. The formula shall neither reward counties with higher than average per petition processing costs nor shall it penalize counties with lower than average per petition processing costs.

(b) Each quarter during the 1997-1999 fiscal biennium, each county shall report the number of petitions processed and the total costs of processing the petitions in each of the following categories: Truancy, children in need of services, and at-risk youth. Counties shall submit the reports to the department no later than 45 days after the end of the quarter. The department shall forward this information to the chair and ranking minority member of the house appropriations committee and the senate ways and means committee no later than 60 days after a quarter ends. These reports are deemed informational in nature and are not for the purpose of distributing funds.

(15) $70,000 of the fiscal year 1999 general fund--state appropriation is provided solely for foster parent intervention support teams.

(16) $255,000 of the general fund--state appropriation for fiscal year 1999 and $67,000 of the general fund--federal appropriation are provided solely for implementation of Substitute House Bill No. 2556 (child abuse prevention and treatment). If the bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(17) The department and the attorney general shall jointly make recommendations to the legislature to reduce or limit the state's liability for damages in child welfare cases, including shelter care and dependency proceedings. The recommendations shall be submitted to the appropriate committees of the legislature by December 1, 1998.

(18) To the extent funds are available, the department shall pay the expense of fingerprint criminal history record checks for low-income family day care homes through the federal bureau of investigation. The department may promulgate rules to set eligibility levels.

(19) Sufficient funding is provided in this section to implement Engrossed Substitute Senate Bill No. 6238 (dependent children).

Sec. 203. 1997 c 454 s 203 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--JUVENILE REHABILITATION PROGRAM

(1) COMMUNITY SERVICES

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((32,305,000))

35,894,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((32,348,000))

35,522,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((16,125,000))

13,365,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 378,000

Violence Reduction and Drug Enforcement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ ((11,256,000))

14,080,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((92,412,000))

99,239,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $527,000 of the violence reduction and drug enforcement account appropriation is provided solely for deposit in the county criminal justice assistance account solely for costs to the criminal justice system associated with the implementation of Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If Engrossed Third Substitute House Bill No. 3900 is not enacted by June 30, 1997, the amount provided in this subsection shall lapse. The amount provided in this subsection is intended to provide funding for county adult court costs associated with the implementation of Engrossed Third Substitute House Bill No. 3900 and shall be distributed in accordance with RCW 82.14.310.

(b) $2,917,000 of the violence reduction and drug enforcement account is provided solely for the implementation of Engrossed Third Substitute Senate Bill No. 3900 (revising the juvenile code). The amount provided in this subsection is intended to provide funding for county impacts associated with the implementation of Third Substitute Senate Bill No. 3900 and shall be distributed to counties as prescribed in the current consolidated juvenile services (CJS) formula. If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(c) $2,350,000 of the general fund--state fiscal year 1998 appropriation and $2,350,000 of the general fund--state fiscal year 1999 appropriation are provided solely for an early intervention program to be administered at the county level. Moneys shall be awarded on a competitive basis to counties that have submitted plans for implementation of an early intervention program consistent with proven methodologies currently in place in the state. The juvenile rehabilitation administration shall develop criteria for evaluation of plans submitted and a timeline for awarding funding and shall assist counties in creating and submitting plans for evaluation.

(d) $1,221,000 of the violence reduction and drug enforcement appropriation is provided solely to implement alcohol and substance abuse treatment for locally committed offenders. The juvenile rehabilitation administration shall award these moneys on a competitive basis to counties that have submitted a plan for the provision of treatment services approved by the division of alcohol and substance abuse. The juvenile rehabilitation administration shall develop criteria for evaluation of plans submitted and a timeline for awarding funding and shall assist counties in creating and submitting plans for evaluation. If Engrossed Third Substitute House Bill No. 3900 (juvenile code revisions) is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(e) $100,000 of the general fund--state fiscal year 1998 appropriation and $100,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the juvenile rehabilitation administration to contract with the institute for public policy for the responsibilities assigned in Engrossed Third Substitute House Bill No. 3900 (juvenile code revisions). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(f) $400,000 of the violence reduction and drug enforcement account appropriation is provided solely for the development of standards measuring the effectiveness of chemical dependency treatment and for conducting evaluations of chemical dependency programs pursuant to Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse. The juvenile rehabilitation administration shall consult with the division of alcohol and substance abuse and contract with the University of Washington to develop the standards and conduct the evaluations.

(g) $150,000 of the general fund--state fiscal year 1998 appropriation and $150,000 of the general fund--state fiscal year 1999 appropriation are provided solely for a contract to expand the services of the teamchild project to additional sites. Priority use of these funds shall be to provide teamchild service to early repeat offenders to help ensure they receive appropriate child welfare and educational services.

(h) $2,700,000 of the violence reduction and drug enforcement account appropriation is provided solely to implement community juvenile accountability grants pursuant to chapter 338, Laws of 1997 (juvenile justice). Funds provided in this subsection may be used solely for community juvenile accountability grants, administration of the grants, and evaluations of programs funded by the grants.

(i) $2,175,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the implementation of Second Substitute Senate Bill No. 6445 (child community facility placement). If the bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse. The funds are intended to improve the security of state-operated and privately contracted group homes. By June 30, 1999, the juvenile rehabilitation administration shall report to the appropriate policy and fiscal committees of the legislature on the specific actions, and the cost of each action, taken to improve security at both state-operated and contracted group homes.

(j) $150,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the Skagit county delinquency prevention project.

(2) INSTITUTIONAL SERVICES

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((44,782,000))

43,909,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((44,662,000))

45,977,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 727,000

Violence Reduction and Drug Enforcement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ 15,281,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((105,452,000))

105,894,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $3,680,000 of the violence reduction and drug enforcement account appropriation is provided solely for the implementation of Engrossed Third Substitute House Bill No. 3900 (juvenile code revisions). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(b) $105,000 of the general fund--state appropriation for fiscal year 1998 and $377,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for costs associated with implementing chapter 386, Laws of 1997 (juvenile care and treatment).

(c) $44,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to implement House Bill No. 1172 (sex offender registration). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(3) PROGRAM SUPPORT

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,922,000))

1,930,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,610,000))

1,654,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 156,000

Violence Reduction and Drug Enforcement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ 421,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((4,109,000))

4,161,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $92,000 of the general fund--state fiscal year 1998 appropriation and $36,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the implementation of Substitute Senate Bill No. 5759 (risk classification). If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(b) $206,000 of the general fund--state fiscal year 1998 appropriation is provided solely for the implementation of Engrossed Second Substitute Senate Bill No. 5710 (juvenile care and treatment). If the bill is not enacted by June 30, 1997, the amount provided shall lapse.

(c) $97,000 of the general fund--state fiscal year 1998 appropriation and $36,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the implementation of Engrossed Third Substitute House Bill No. 3900 (juvenile code revisions). If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(d) Within the amounts provided in this subsection, the juvenile rehabilitation administration (JRA) shall develop by January 1, 1998, a staffing model for noncustody functions at JRA institutions and work camps. The models should, whenever possible, reflect the most efficient practices currently being used within the system.

(e) $15,000 of the general fund--state appropriation for fiscal year 1998 and $175,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the study required in Second Substitute Senate Bill No. 6445 (child community facility placement). If the bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse. The juvenile rehabilitation administration (JRA) shall contract with the institute for public policy for the studies required by the bill.

Sec. 204. 1997 c 149 s 204 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--MENTAL HEALTH PROGRAM

(1) COMMUNITY SERVICES/REGIONAL SUPPORT NETWORKS

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((167,577,000))

170,940,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((170,803,000))

173,645,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((296,006,000))

299,651,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,000,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((638,386,000))

648,236,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) Regional support networks shall use portions of the general fund--state appropriation for implementation of working agreements with the vocational rehabilitation program which will maximize the use of federal funding for vocational programs.

(b) From the general fund--state appropriations in this subsection, the secretary of social and health services shall assure that regional support networks reimburse the aging and adult services program for the general fund--state cost of medicaid personal care services that enrolled regional support network consumers use because of their psychiatric disability.

(c) (($2,413,000 of the general fund--state appropriation for fiscal year 1998 and $2,393,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to directly reimburse eligible providers for the medicaid share of mental health services provided to persons eligible for both medicaid and medicare. To be reimbursed, the service must be covered by and provided in accordance with the state medicaid plan.

(d))) $1,304,000 of the general fund--state appropriation for fiscal year 1998, $3,356,000 of the general fund--state appropriation for fiscal year 1999, and $5,056,000 of the general fund--federal appropriation are provided solely for distribution to those regional support networks whose 1997-99 allocation would otherwise be less than the regional support network would receive if all funding appropriated in this subsection (1) of this section for medicaid outpatient mental health services were distributed among all regional support networks at the state-wide average per capita rate for each eligibility category.

(((e))) (d) At least thirty days prior to entering contracts that would capitate payments for voluntary psychiatric hospitalizations, the mental health division shall report the proposed capitation rates, and the assumptions and calculations by which they were established, to the budget and forecasting divisions of the office of financial management, the appropriations committee of the house of representatives, and the ways and means committee of the senate.

(e) $533,000 of the general fund--state appropriation for fiscal year 1999 and $587,000 of the general fund--federal appropriation are provided solely for the implementation of the Second Substitute Senate Bill No. 6214 (mentally ill commitment). If the bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(2) INSTITUTIONAL SERVICES

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((59,496,000))

62,368,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((59,508,000))

60,698,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((127,118,000))

133,504,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((30,940,000))

25,007,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((277,062,000))

281,577,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) The state mental hospitals may use funds appropriated in this subsection to purchase goods and supplies through hospital group purchasing organizations when it is cost-effective to do so.

(b) The mental health program at Western state hospital shall continue to use labor provided by the Tacoma prerelease program of the department of corrections.

(c) $246,000 of the general fund--state fiscal year 1998 appropriation and $318,000 of the general fund--state fiscal year 1999 appropriation are provided solely for funding outside medical costs. The mental health division shall provide a report on outside medical costs to the fiscal committees of the legislature by September 30, 1998, and September 30, 1999. The report shall detail the monthly and per capita expenditures for outside medical costs at each state hospital.

(d) $256,000 of the general fund--state fiscal year 1998 appropriation and $254,000 of the general fund--state fiscal year 1999 appropriation are provided solely for funding pharmacy and new drug costs. The mental health division shall provide a report on pharmacy and new drug costs to the fiscal committees of the legislature by September 30, 1998, and September 30, 1999. The report shall detail monthly and per capita expenditures for pharmacy and new drug costs for each state hospital. Expenditures for each new generation atypical antipsychotic medication including clozapine, resperidone, olanzapine, and any newly introduced medications of this nature shall be specifically reported.

(e) $1,700,000 of the general fund--state fiscal year 1998 appropriation is provided solely for replacing lost federal revenues in fiscal year 1998 due to a changed definition of discharge for medicare reimbursement purposes. The mental health division must aggressively pursue the prompt resolution of issues resulting in this loss of revenues with the federal health care financing administration. In the event any or all of the lost federal revenues are restored, an equal amount of the general fund--state fiscal year 1998 appropriation shall lapse.

(f) Within the funds provided in this section, the mental health division shall develop by October 1, 1998, a staffing model for direct and indirect functions for the wards at each of the state hospitals. The model should, whenever possible, reflect the most efficient practices for providing treatment and therapeutic services appropriate to the characteristics and needs of the individual patient.

(g) $1,508,000 of the general fund--state appropriation for fiscal year 1999, $92,000 of the general fund--federal appropriation, and $107,000 of the general fund private/local appropriation are provided solely for the implementation of the Second Substitute Senate Bill No. 6214 (mentally ill commitment). If the bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(3) CIVIL COMMITMENT

General Fund Appropriation (FY 1998). .. . . . . . .$ ((5,423,000))

7,174,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((6,082,000))

7,779,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((11,505,000))

14,953,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $2,088,000 of the general fund--state fiscal year 1998 appropriation and $2,415,000 of the general fund--state fiscal year 1999 appropriation are provided solely for court-related costs for residents at the special commitment center.

(b) Within the funds provided in this subsection, the mental health division shall develop by October 1, 1998, a staffing model for direct and indirect functions at the special commitment center. The model should, whenever possible, reflect the most efficient practices for providing treatment and therapeutic services appropriate to the characteristics and needs of the individual patient.

(4) SPECIAL PROJECTS

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 50,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 450,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,826,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,326,000

The appropriations in this subsection are subject to the following conditions and limitations: $50,000 of the general fund--state appropriation for fiscal year 1998 and $450,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for development and operation of the pilot project for mentally ill offenders described in Substitute Senate Bill No. 6002 (mentally ill offenders). If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(5) PROGRAM SUPPORT

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,560,000))

2,537,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,395,000))

2,569,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((3,111,000))

3,085,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((8,066,000))

8,191,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $60,000 of the general fund--state appropriation for fiscal year 1998 is provided solely to increase the department's capacity to carry out legislative intent set forth in RCW 71.24.400 through 71.24.415. To facilitate this activity, the secretary shall appoint an oversight committee of project stakeholders including representatives from: Service providers, mental health regional support networks, the department's mental health division, the department's division of alcohol and substance abuse, the department's division of children and family services, and the department's medical assistance administration. The oversight group shall continue to seek ways to streamline service delivery as set forth in RCW 71.24.405 until at least July 1, 1998.

(b) $96,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the implementation of Second Substitute Senate Bill No. 6214 (mentally ill commitment). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(c) $100,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the evaluation required by Second Substitute Senate Bill No. 6214 (mentally ill commitment). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse. The mental health division shall contract with the institute for public policy for this evaluation.

Sec. 205. 1997 c 149 s 205 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--DEVELOPMENTAL DISABILITIES PROGRAM

Notwithstanding any other limitations in this section, the secretary shall transfer $1,140,000 of the general fund--state appropriation, and $1,060,000 of the general fund--federal appropriation, or so much thereof as may be necessary, among subsections of this section to implement Second Substitute Senate Bill No. 6751 (developmental disabilities service options).

(1) COMMUNITY SERVICES

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((140,172,000))

147,757,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((142,643,000))

166,773,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((194,347,000))

226,737,000

Health Services Account Appropriation. .. . . . . . .$ ((1,695,000))

639,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((478,857,000))

541,906,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) (($1,695,000 of)) The health services account appropriation and $((1,835,000)) 692,000 of the general fund--federal appropriation are provided solely for the enrollment in the basic health plan of home care workers with family incomes below 200 percent of the federal poverty level who are employed through state contracts. Enrollment in the basic health plan for home care workers with family incomes at or above 200 percent of poverty shall be covered with general fund--state and matching general fund--federal revenues that were identified by the department to have been previously appropriated for health benefits coverage, to the extent that these funds had not been contractually obligated for worker wage increases prior to March 1, 1996.

(b) $365,000 of the general fund--state appropriation for fiscal year 1998 and $1,543,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for employment, or other day activities and training programs, for young people who complete their high school curriculum in 1997 or 1998.

(c) $((22,974,000)) 24,399,000 of the general fund--state appropriation for fiscal year 1998 and $((25,111,000)) 28,729,000 of the general fund--state appropriation for fiscal year 1999((, plus any vendor rate increases allotted in accordance with section 213 of this act,)) are provided solely to deliver personal care services ((to an average of 6,250 children and adults in fiscal year 1998 and an average of 7,100 children and adults in fiscal year 1999)). Within these amounts, sufficient funding is provided to restore funding for medicaid personal care exceptional rates to the fiscal year 1997 level. If the secretary of social and health services determines that total expenditures are likely to exceed these appropriated amounts, the secretary shall take action as required by RCW 74.09.520 to adjust either functional eligibility standards or service levels or both sufficiently to maintain expenditures within appropriated levels. Such action may include the adoption of emergency rules and may not be taken to the extent that projected over-expenditures are offset by under-expenditures elsewhere within the program's general fund--state appropriation. Prior to making eligibility changes which would terminate all services to some persons, the secretary should first exercise all opportunities to manage the average cost per person served, through methods such as promoting the use of informal care; assuring that local offices are effectively and consistently authorizing the least expensive level of care which can meet recipient needs; and reducing on a sliding-scale basis the amount of service authorized per functional need level, with smaller reductions for greater levels of need.

(d) $((453,000)) 144,000 of the general fund--state appropriation for fiscal year 1998, $((214,000)) 453,000 of the general fund--state appropriation for fiscal year 1999, and $((719,000)) 654,000 of the general fund--federal appropriation are provided solely to continue operation of the united cerebral palsy residential center during the period in which its residents are phasing into new community residences.

(e) $197,000 of the general fund--state appropriation for fiscal year 1998 and $197,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to contract with the Washington initiative for supported employment for the purpose of continuing the promotion of supported employment services for persons with disabilities.

(f) The department shall not reduce the number of persons served in community residential, employment and day program, or family support services below the levels identified in the Legislative Budget Notes, 1997-99 Biennium, (August 1997) as published by the legislative fiscal committees, in order to undertake activities proposed by the department but not funded in this 1998 supplemental appropriations act.

(g) $2,151,000 of the general fund--state appropriation for fiscal year 1998, $5,782,000 of the general fund--state appropriation for fiscal year 1999, and $8,362,000 of the general fund--federal appropriation are provided solely to develop and operate secure residential and day program placements for persons who seem likely to present a significant risk to the public safety if their current residential arrangement were to continue.

(h) $426,000 of the general fund--state appropriation for fiscal year 1999 and $469,000 of the general fund--federal appropriation are provided solely to develop and operate community services for persons residing at eastern and western state hospitals whose needs are such that they cannot be served in existing community vacancies.

(i) $200,000 of the general fund--state appropriation for fiscal year 1998 and $1,592,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for employment and day program services for adults who are not currently able to participate in such services because of funding limitations.

(j) $105,000 of the general fund--state appropriation for fiscal year 1998, $933,000 of the general fund--state appropriation for fiscal year 1999, and $1,029,000 of the general fund--federal appropriation are provided solely to develop and operate community services for persons moving from the residential habilitation centers as a result of an agreement with the federal department of justice or a settlement agreement to a lawsuit.

(k) Within amounts appropriated in this subsection, the division shall contract for a pilot program to test an alternative service delivery model for services to persons with autism. The division must use a competitive process to determine the site of the pilot. The pilot program must be time-limited and subject to an evaluation of client outcomes to determine the effectiveness and efficiency of the pilot program compared to the standard service model for persons with autism.

(2) INSTITUTIONAL SERVICES

General Fund--State Appropriation (FY 1998) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((63,982,000))

65,277,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((63,206,000))

64,187,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((142,955,000))

145,897,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 9,729,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((279,872,000))

285,090,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) With the funds appropriated in this subsection, the secretary of social and health services shall develop an eight-bed program at Yakima valley school specifically for the purpose of providing respite services to all eligible individuals on a state-wide basis, with an emphasis on those residing in central Washington.

(b) $112,000 of the general fund--state appropriation for fiscal year 1998, $113,000 of the general fund--state appropriation for fiscal year 1999, and $75,000 of the general fund--federal appropriation are provided solely for a nursing community outreach project at Yakima valley school. Registered nursing staff are to provide nursing assessments, consulting services, training, and quality assurance on behalf of individuals residing in central Washington.

(c) $200,000 of the general fund--state appropriation for fiscal year 1998, $200,000 of the general fund--state appropriation for fiscal year 1999, and $400,000 of the general fund--federal appropriation are provided solely for the development of a sixteen-bed program at Yakima valley school specifically for the purpose of providing respite services to all eligible individuals on a state-wide basis, with an emphasis on those residing in central Washington.

(3) PROGRAM SUPPORT

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,543,000))

2,530,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,517,000))

2,501,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,645,000))

1,637,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((6,705,000))

6,668,000

(4) SPECIAL PROJECTS

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 12,030,000

Sec. 206. 1997 c 149 s 206 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--AGING AND ADULT SERVICES PROGRAM

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((392,045,000))

409,469,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((416,304,000))

425,130,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((878,169,000))

910,685,000

General Fund--Local Appropriation. . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,781,000

Health Services Account Appropriation. .. . . . . . .$ ((6,087,000))

2,232,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,692,605,000))

1,749,297,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The entire health services account appropriation and $((6,076,000)) 2,175,000 of the general fund--federal appropriation are provided solely for the enrollment in the basic health plan of home care workers with family incomes below 200 percent of the federal poverty level who are employed through state contracts. Enrollment in the basic health plan for home care workers with family incomes at or above 200 percent of poverty shall be covered with general fund--state and matching general fund--federal revenues that were identified by the department to have been previously appropriated for health benefits coverage, to the extent that these funds had not been contractually obligated for worker wage increases prior to March 1, 1996.

(2) $1,277,000 of the general fund--state appropriation for fiscal year 1998 and $1,277,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for operation of the volunteer chore program.

(3) $((107,997,000)) 113,534,000 of the general fund--state appropriation for fiscal year 1998 ((and $120,397,000)), $125,310,000 of the general fund--state appropriation for fiscal year 1999, ((plus any vendor rate increases allocated to these services in accordance with section 213 of this act)) of which no less than forty-nine percent shall be allotted for expenditure during the first six months of fiscal year 1999, and $7,374,000 of the general fund--federal social services block grant appropriation, are provided solely to deliver chore, COPES, and medicaid personal care services. If the secretary of social and health services determines that total expenditures are likely to exceed these amounts, the secretary shall take action as required by RCW 74.09.520, 74.39A.120, and 74.09.530 to adjust functional eligibility standards and/or service levels sufficiently to maintain expenditures within appropriated levels. Such action may include the adoption of emergency rules, and shall not be taken to the extent that projected over-expenditures are offset by under-expenditures resulting from lower than budgeted nursing home caseloads. Prior to making eligibility changes which would terminate all services to some persons, the secretary should first exercise all opportunities to manage the average cost per person served, through methods such as promoting the use of informal care; assuring that local offices are effectively and consistently authorizing the least expensive level of care that can meet recipient needs; using waiting lists for individuals with lower levels of need in order to limit monthly growth; and reducing on a sliding-scale basis the amount of service authorized per functional need level, with smaller reductions for greater levels of need.

(4) $1,080,000 of the general fund--state appropriation for fiscal year 1999 is provided to maintain service eligibility for persons receiving services through the chore, COPES, or medicaid personal care programs in the event eligibility adjustments may be necessary or are made in accordance with subsection (3) of this section. The department may use seventy-five percent of amounts not needed for that purpose to implement quality of care enhancements.

(5) $26,000 of the general fund--state appropriation for fiscal year 1998, $59,000 of the general fund--state appropriation for fiscal year 1999, and $85,000 of the general fund--federal appropriation are provided solely to employ registered nurses rather than social workers to fill six of the new field positions to be filled in fiscal year 1998 and seven more of the new positions to be filled in fiscal year 1999. These registered nurses shall conduct assessments, develop and monitor service plans, and consult with social work staff to assure that persons with medical needs are placed in and receive the appropriate level of care.

(((5))) (6) $425,000 of the general fund--state appropriation for fiscal year 1998 and $882,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Second Substitute Senate Bill No. 5179 (nursing facility reimbursement). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(((6) A maximum of $2,193,000 of the general fund--state appropriation for fiscal year 1998 and $2,351,000 of the general fund--federal appropriation for fiscal year 1998 are provided to fund the medicaid share of any new prospective payment rate adjustments as may be necessary in accordance with RCW 74.46.460.))

(7) $242,000 of the general fund--state appropriation for fiscal year 1998, $212,000 of the general fund--state appropriation for fiscal year 1999, and $498,000 of the general fund--federal appropriation are provided solely for operation of a system for investigating allegations of staff abuse and neglect in nursing homes, as provided in Second Substitute House Bill No. 1850 (long-term care standards of care).

(((8) $350,000 of the general fund--state appropriation for fiscal year 1998 and $382,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to supplement the incomes of disabled legal immigrants who, because of loss of their federal supplemental security income benefit, would otherwise be at risk of placement into a more expensive long-term care setting.

(9)(a) The department shall establish a shadow case mix payment system to educate facilities about payment system alternatives. The department shall provide shadow rates beginning July 1, 1997, based on the following:

(i) The direct care portion of the rate, usually called "nursing services," shall be set under a case mix methodology that classifies residents under the Resource Utilization Group III (RUG-III) Version 5.10 (or subsequent revision) 44 group index maximizing model based on the Minimum Data Set (MDS) Version 2.0.

(ii) Payment to a facility shall be based on facility weighted average case mix data which provides one rate to a facility reflecting its mix of residents. For purposes of determining the facility's cost per case mix unit, the facility average case mix score will be based on the case mix of all residents. For purposes of determining the facility's payment rate, the facility average case mix score shall be based on the case mix of medicaid residents.

(iii) The direct care rates shall be adjusted prospectively each quarter based on the facility's MDS 2.0 data from the quarter commencing six months preceding the rate effective date. For example, the MDSs for 1/1/97 - 3/31/97 shall be used to establish shadow rates for 7/1/97 - 9/30/97.

(iv) Those costs which currently comprise nursing services as defined by chapter 74.46 RCW, excluding therapies, shall be included in the direct care component for case mix.

(v) Data from 1994 cost reports (allowable and audited costs) shall be used to establish the shadow rates. The costs shall be inflated comparable to fiscal year 1998 payment rates, according to RCW 74.46.420.

(vi) Separate prices, ceilings, and corridors shall be established for the peer groups of metropolitan statistical area and nonmetropolitan statistical area.

(b) The following methods shall be used to establish the shadow case mix rates:

(i) A pricing system in which payment to a facility shall be based on a price multiplied by each facility's medicaid case mix. The price, per peer group, shall be established at the median direct care cost per case mix unit.

(ii) A pricing system in which payment to a facility shall be based on a price multiplied by each facility's medicaid case mix. The price, per peer group, shall be based on the cost per case-mix unit of a group of cost-effective benchmark facilities which meet quality standards.

(iii) A corridor-based system in which payment to a facility shall be the facility's allowable cost per case-mix unit adjusted for case mix up to a ceiling and no less than a floor. The floor, per peer group, shall be established at 90 percent of the cost per case-mix unit of a group of cost-effective benchmark facilities which meet quality standards. The ceiling, per peer group, shall be established at 110 percent of the cost per case-mix unit of the group of benchmark facilities.

(iv) A corridor-based system in which payment to a facility shall be the facility's allowable cost per case-mix unit adjusted for case mix up to a ceiling and no less than a floor. The floor, per peer group, shall be established at 90 percent of the industry-wide median direct care cost per case-mix unit. The ceiling, per peer group, shall be established at 110 percent of the industry-wide median direct care cost per case-mix unit.

(c) The department shall provide all data, information, and specifications of the methods used in establishing the shadow case mix rates to the nursing home provider associations.

(d) It is the legislature's intent that the average state payment for nursing facility services under the new system increase by no more than 175 percent of the health care financing administration nursing home input price index, excluding capital costs. In designing the new payment system, the department shall develop and propose options for the combined direct and indirect rate components that assure this.

(10))) (8) For purposes of implementing Second Substitute House Bill No. 2935 (nursing facility payment rates), the weighted average nursing facility payment rate for fiscal year 1999 shall be no more than $117.36, excluding nurse's aide training. Each nursing facility's July 1 through September 30, 1998, medicaid payment rate shall be its June 30, 1998, rate increased by 2.0 percent, except for the property and return on investment component rates, which shall not be increased. Beginning October 1, 1998, component rates rebased on 1996 costs shall be adjusted for economic trends and conditions by 5.18 percent.

(9) $50,000 of the general fund--state appropriation for fiscal year 1998 and $50,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for payments to any nursing facility licensed under chapter 18.51 RCW which meets all of the following criteria: (a) The nursing home entered into an arm's length agreement for a facility lease prior to January 1, 1980; (b) the lessee purchased the leased nursing home after January 1, 1980; and (c) the lessor defaulted on its loan or mortgage for the assets of the home after January 1, 1991, and prior to January 1, 1992. Payments provided pursuant to this subsection shall not be subject to the settlement, audit, or rate-setting requirements contained in chapter 74.46 RCW.

(((11) $546,000)) (10) $506,000 of the general fund--state appropriation for fiscal year 1998, (($583,000)) $502,000 of the general fund--state appropriation for fiscal year 1999, and (($1,220,000)) $1,095,000 of the general fund--federal appropriation are provided solely for an increase in the state payment rates for adult residential care and enhanced adult residential care.

(11) $274,000 of the general fund--state appropriation for fiscal year 1998, $1,357,000 of the general fund--state appropriation for fiscal year 1999, and the entire general fund--local appropriation are provided solely for boarding home licensure and quality assurance by the department of social and health services only if Engrossed House Bill No. 2410 (boarding home administration) is enacted by June 30, 1998. If the bill is not enacted, the amounts provided in this subsection shall be allocated to the department of health, which will manage the boarding home licensure and quality assurance program.

Sec. 207. 1997 c 454 s 204 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--ECONOMIC SERVICES PROGRAM

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((543,150,000))

508,243,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((529,985,000))

512,200,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((952,618,000))

951,615,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,025,753,000))

1,972,058,000

The appropriations in this section are subject to the following conditions and limitations:

(((2))) (1) The legislature finds that, with the passage of the federal personal responsibility and work opportunity act and Engrossed House Bill No. 3901, the temporary assistance for needy families is no longer an entitlement. The legislature declares that the currently appropriated level for the program is sufficient for the next few budget cycles. To the extent, however, that currently appropriated amounts exceed costs during the 1997-99 biennium, the department is encouraged to set aside excess federal funds for use in future years.

(((3))) (2) $485,000 of the general fund--state fiscal year 1998 appropriation, $3,186,000 of the general fund--state fiscal year 1999 appropriation, and $3,168,000 of the general fund--federal appropriation are provided solely to continue to implement the previously competitively procured electronic benefits transfer system through the western states EBT alliance for distribution of cash grants and food stamps so as to meet the requirements of P.L. 104-193.

(((4))) (3) $50,000 of the fiscal year 1998 general fund--state appropriation is provided solely for a study of child care affordability as directed in section 403 of Engrossed House Bill No. 3901 (implementing welfare reform). The study shall be performed by the Washington institute for public policy. If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(((5))) (4) $500,000 of the fiscal year 1998 general fund--state appropriation and $500,000 of the fiscal year 1999 general fund--state appropriation are provided solely for an evaluation of the WorkFirst program as directed in section 705 of Engrossed House Bill No. 3901 (implementing welfare reform). The study shall be performed by the joint legislative audit and review committee. If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(((6))) (5) $73,129,000 of the general fund--federal appropriation is provided solely for child care assistance for low-income families in the WorkFirst program and for low-income working families as authorized in Engrossed House Bill No. 3901 (implementing welfare reform). All child care assistance provided shall be subject to a monthly copay to be paid by the family receiving the assistance.

(((7))) (6) $7,624,000 of the fiscal year 1998 general fund--state appropriation, $18,489,000 of the fiscal year 1999 general fund--state appropriation, and $29,781,000 of the general fund--federal appropriation are provided solely for implementation of Engrossed House Bill No. 3901 (implementing welfare reform), including sections 404 and 405. If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse. The level of benefits in the food program for legal immigrants authorized in the bill shall be equivalent to benefits provided by the federal food stamp program.

(((8) $89,722,000)) (7) $56,461,000 of the fiscal year 1998 general fund--state appropriation and $((75,466,000)) 59,393,000 of the fiscal year 1999 general fund--state appropriation are provided solely for cash assistance to recipients in the general assistance--unemployable program. The department shall take any and all actions necessary to maintain expenditures within these amounts.

(((9))) (8) $55,995,000 of the fiscal year 1998 general fund--state appropriation, $55,995,000 of the fiscal year 1999 general fund--state appropriation, and $184,510,000 of the general fund--federal appropriation are provided solely to administer a low-income child care program as authorized in Engrossed House Bill No. 3901 (implementing welfare reform). The child care program funds shall be allotted as follows:

(a) Each six-month period shall have $27,997,500 general fund--state and $46,127,500 general fund--federal funds allotted to be spent during that six-month period for low-income child care assistance.

(b) The department may spend up to the allotted amount for child care assistance during each six-month period. Any funds not spent during the six-month period may be held over and allotted in the next six-month period, subject to the provisions of subsection (((6))) (5) of this section.

(c) Federal funds allotted for child care but not spent in fiscal year 1998 may be transferred to fiscal year 1999 for allotment but state funds must be spent in the year appropriated.

(9) $5,000,000 of the general fund--federal appropriation from the temporary assistance for needy families block grant is provided solely for allocation to the department of community, trade, and economic development to implement the WorkFirst grants to community action agencies or other local nonprofit organizations. The grants shall be used to provide job opportunities, transitional support services, one-on-one assistance, case management, and job retention services to basic skills training program participants.

(10) Within the amounts provided in this section, the department shall implement the study requirements of Engrossed Substitute House Bill No. 2900 (pro rata calculation of temporary assistance for needy families grants).

Sec. 208. 1997 c 454 s 205 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--ALCOHOL AND SUBSTANCE ABUSE PROGRAM

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((14,466,000))

15,459,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((14,334,000))

15,330,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((80,497,000))

81,112,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 630,000

Public Safety and Education Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,210,000

Violence Reduction and Drug Enforcement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ ((72,900,000))

74,889,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((182,827,000))

190,630,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $2,062,000 of the general fund--federal appropriation and $7,482,000 of the violence reduction and drug enforcement account appropriation are provided solely for the grant programs for school districts and educational service districts set forth in RCW 28A.170.080 through 28A.170.100, including state support activities, as administered through the office of the superintendent of public instruction.

(2) $1,902,000 of the general fund--state fiscal year 1998 appropriation, $1,902,000 of the general fund--state fiscal year 1999 appropriation, and $1,592,000 of the general fund--federal appropriation are provided solely for alcohol and substance abuse assessment, treatment, including treatment for drug affected infants and toddlers, and child care services for clients of the division of children and family services. Assessment shall be provided by approved chemical dependency treatment programs as requested by child protective services personnel in the division of children and family services. Child care shall be provided as deemed necessary by the division of children and family services while parents requiring alcohol and substance abuse treatment are attending treatment programs.

(3) $760,000 of the fiscal year 1998 general fund--state appropriation and $760,000 of the fiscal year 1999 general fund--state appropriation are provided solely to fund a program serving mothers of children affected by fetal alcohol syndrome and related conditions, known as the birth-to-three program. The program may be operated in two cities in the state.

(4) $3,210,000 of the public safety and education account appropriation is provided solely for the continuation of treatment alternatives to street crimes (TASC) programs in Pierce, Snohomish, Clark, King, Spokane, and Yakima counties.

Sec. 209. 1997 c 149 s 209 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--MEDICAL ASSISTANCE PROGRAM

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((684,033,000))

666,815,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((684,885,000))

681,372,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,038,101,000))

2,086,149,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((223,900,000))

306,601,000

Health Services Account Appropriation. . $ ((253,004,000))

254,506,000

Emergency Medical and Trauma Care Services Account Appropriation. . . . . . . . . . . . . . . . . . . . $ 4,600,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((3,888,523,000))

4,000,043,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The department shall continue to make use of the special eligibility category created for children through age 18 and in households with incomes below 200 percent of the federal poverty level made eligible for medicaid as of July 1, 1994.

(2) It is the intent of the legislature that Harborview medical center continue to be an economically viable component of the health care system and that the state's financial interest in Harborview medical center be recognized.

(3) Funding is provided in this section for the adult dental program for Title XIX categorically eligible and medically needy persons and to provide foot care services by podiatric physicians and surgeons.

(4) $1,622,000 of the general fund--state appropriation for fiscal year 1998 and $1,622,000 of the general fund--state appropriation for fiscal year 1999 are provided for treatment of low-income kidney dialysis patients.

(5) $80,000 of the general fund--state appropriation for fiscal year 1998, $80,000 of the general fund--state appropriation for fiscal year 1999, and $160,000 of the general fund--federal appropriation are provided solely for the prenatal triage clearinghouse to provide access and outreach to reduce infant mortality.

(6) The department shall employ the managed care contracting and negotiation strategies defined in Substitute Senate Bill No. 5125 to assure that the average per-recipient cost of managed care services for temporary assistance to needy families and expansion populations increases by no more than two percent per year in calendar years 1998 and 1999.

(7) The department shall seek federal approval to require adult medicaid recipients who are not elderly or disabled to contribute ten dollars per month toward the cost of their medical assistance coverage. The department shall report on the progress of this effort to the house of representatives and senate health care and fiscal committees by September 1 and November 15, 1997.

(8) $325,000 of the general fund--state appropriation for fiscal year 1998 and $325,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to increase rates paid for air ambulance services.

(9) $1,468,000 of the general fund--state appropriation for fiscal year 1999 is to be expended solely to the extent necessary because the federal government has not approved the department's request to require certain recipients to pay ten dollars per month toward the cost of their medical assistance.

(10) By November 1, 1998, the department shall report to the health care and fiscal committees of the legislature on the estimated average monthly number of nongrant medical assistance recipients who do not meet the earned income eligibility standards that were in effect prior to November 1997.

Sec. 210. 1997 c 149 s 210 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--VOCATIONAL REHABILITATION PROGRAM

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((8,652,000))

9,046,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((8,592,000))

8,603,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((79,542,000))

79,080,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,904,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((99,690,000))

99,633,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The division of vocational rehabilitation shall negotiate cooperative interagency agreements with local organizations, including higher education institutions, mental health regional support networks, and county developmental disabilities programs to improve and expand employment opportunities for people with severe disabilities served by those local agencies.

(2) $363,000 of the general fund--state appropriation for fiscal year 1998, $506,000 of the general fund--state appropriation for fiscal year 1999, and $3,208,000 of the general fund--federal appropriation are provided solely for vocational rehabilitation services for individuals enrolled for services with the developmental disabilities program who complete their high school curriculum in 1997 or 1998.

Sec. 211. 1997 c 454 s 206 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--ADMINISTRATION AND SUPPORTING SERVICES PROGRAM

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((24,572,000))

25,818,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((23,956,000))

25,744,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((40,352,000))

43,037,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 270,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((89,150,000))

94,869,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The department may transfer up to $1,289,000 of the general fund--state appropriation for fiscal year 1998, $1,757,000 of the general fund--state appropriation for fiscal year 1999, and $2,813,000 of the general fund--federal appropriation to the administration and supporting services program from various other programs to implement administrative reductions.

(2) The secretary of social and health services and the director of labor and industries shall report to the appropriate fiscal and policy committees of the legislature by July 1, 1997, and every six months thereafter on the measurable changes in employee injury and time-loss rates that have occurred in the state developmental disabilities, juvenile rehabilitation, and mental health institutions as a result of the upfront loss-control discount agreement between the agencies.

(((4))) (3) $60,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for a welfare fraud pilot program as described by House Bill No. 1822 (welfare fraud investigation).

(((5))) (4) $55,000 of the fiscal year 1998 general fund--state appropriation, $64,000 of the fiscal year 1999 general fund--state appropriation, and $231,000 of the general fund--federal appropriation are provided solely for implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(5) $192,000 of the general fund--state appropriation for fiscal year 1999 and $131,000 of the general fund--federal appropriation are provided solely to implement sections 3, 4, and 11 of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If sections 3, 4, and 11 of the bill are not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(6) The department shall report on the allowance for clothing, personal maintenance, and necessary incidentals provided to persons who receive services funded by state and federal moneys under Title XIX of the social security act. The report shall discuss the range of allowances granted for different populations and programs and compare the allowances to those provided to similar populations in other western states. The report shall also evaluate the need for a uniform amount provided to all populations and, if a uniform allowance is provided, at what level that allowance should be set. In compiling the report, the department shall consult with affected parties and divisions. The report shall be submitted by December 1, 1998, to the chairs and the ranking minority members of the appropriate committees of the legislature.

Sec. 212. 1997 c 454 s 207 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--CHILD SUPPORT PROGRAM

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((21,122,000))

21,344,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((20,877,000))

20,965,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((145,739,000))

145,321,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((33,207,000))

32,673,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((220,945,000))

220,303,000

The appropriations provided in this section are subject to the following conditions and limitations:

(1) The department shall contract with private collection agencies to pursue collection of AFDC child support arrearages in cases that might otherwise consume a disproportionate share of the department's collection efforts. The department's child support collection staff shall determine which cases are appropriate for referral to private collection agencies. In determining appropriate contract provisions, the department shall consult with other states that have successfully contracted with private collection agencies to the extent allowed by federal support enforcement regulations.

(((3))) (2) The amounts appropriated in this section for child support legal services shall be expended only by means of contracts with local prosecutor's offices.

(((4))) (3) $305,000 of the general fund--state fiscal year 1998 appropriation, $494,000 of the general fund--state fiscal year 1999 appropriation, and $1,408,000 of the general fund--federal appropriation are provided solely to implement Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

Sec. 213. 1997 c 454 s 208 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--PAYMENTS TO OTHER AGENCIES PROGRAM

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((47,435,000))

25,292,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((47,514,000))

24,792,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((54,366,000))

18,966,000

((Health Services Account Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,502,000

Violence Reduction and Drug Enforcement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ 2,215,000))

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((153,032,000))

69,050,000

The appropriations in this section are subject to the following conditions and limitations:

(((1) $22,893,000 of the general fund--state appropriation for fiscal year 1998, $22,835,000 of the general fund--state appropriation for fiscal year 1999, $35,431,000 of the general fund--federal appropriation, $2,215,000 of the violence reduction and drug enforcement account appropriation, and $1,502,000 of the health services account appropriation are provided solely to increase the rates of contracted service providers. The department need not provide all vendors with the same percentage rate increase. Rather, the department is encouraged to use these funds to help assure an adequate supply of qualified vendors. Vendors providing services in markets where recruitment and retention of qualified providers is a problem may receive larger rate increases than other vendors. It is the legislature's intent that these amounts shall be used primarily to increase compensation for persons employed in direct, front-line service delivery. Any rate increases granted as a result of this section must be implemented so that the carry-forward costs into the 1999-01 biennium do not exceed the amounts provided in this subsection. Within thirty days of granting a vendor rate increase under this section, the department shall report the following information to the fiscal committees of the legislature: (a) The amounts and effective dates of any increases granted; (b) the process and criteria used to determine the increases; and (c) any data used in that process. In accordance with RCW 43.88.110(1), the department and the office of financial management shall allot funds appropriated in this section to the programs and budget units from which the funds will be expended. Such allotments shall be completed no later than September 15, 1997.

(2))) (1) $263,000 of the fiscal year 1998 general fund--state appropriation, $349,000 of the fiscal year 1999 general fund--state appropriation, and $1,186,000 of the general fund--federal appropriation are provided solely for implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(2) $113,000 of the fiscal year 1999 general fund--state appropriation and $31,000 of the general fund--federal appropriation are provided solely for the implementation of Substitute House Bill No. 2556 (child abuse prevention and treatment). If this bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

Sec. 214. 1997 c 454 s 210 (uncodified) is amended to read as follows:

FOR THE STATE HEALTH CARE AUTHORITY

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 6,316,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 6,317,000

State Health Care Authority Administration Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ ((14,719,000))

14,969,000

Health Services Account Appropriation. .. . . . . . .$ ((330,628,000))

341,800,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((357,980,000))

369,402,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The general fund--state appropriations are provided solely for health care services provided through local community clinics.

(2) Within funds appropriated in this section and sections 205 and 206 of chapter 149, Laws of 1997, the health care authority shall continue to provide an enhanced basic health plan subsidy option for foster parents licensed under chapter 74.15 RCW and workers in state-funded homecare programs. Under this enhanced subsidy option, foster parents and homecare workers with family incomes below 200 percent of the federal poverty level shall be allowed to enroll in the basic health plan at a cost of ten dollars per covered worker per month.

(3)(a) Effective October 1997, the health care authority shall require organizations and individuals that are paid to deliver basic health plan services to contribute a minimum of thirty dollars per enrollee per month if the organization or individual chooses to sponsor an individual's enrollment in the subsidized basic health plan.

(b) Effective July 1998, the health care authority shall require organizations and individuals which are paid to deliver basic health plan services and which choose to sponsor enrollment in the subsidized basic health plan to pay the following: (i) A minimum of fifteen dollars per enrollee per month for persons below 100 percent of the federal poverty level; and (ii) a minimum of twenty dollars per enrollee per month for persons whose family income is 100 percent to 200 percent of the federal poverty level.

(4) $150,000 of the health services account appropriation is provided solely to implement health care savings accounts. If legislation requiring a pilot project of such accounts is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(((6))) (5) $270,000 of the health services account appropriation is provided solely to pay commissions to agents and brokers in accordance with RCW 70.47.015(5) for application assistance provided to persons on the reservation list as of June 30, 1997, who enroll in the subsidized basic health plan on or after July 1, 1997.

(6) $250,000 of the state health care authority administrative account appropriation is provided solely to process claims arising from the settlement in Retired State Employees v. State of Washington (Thurston county superior court cause no. 92-2-01294-1).

(7) The health care authority administrator is directed to pay claims resulting from a court-approved stipulated settlement in Retired State Employees et al. v. State of Washington (Thurston county superior court cause no. 92-2-01294-1) using funds in the public employees' and retirees' insurance account. The legislature recognizes that payment of these claims may reduce premium stabilization reserves below target levels on an interim basis. It is the legislature's intent that the viability of health care authority-administered programs be preserved and that the benefit levels for health care authority-administered programs not be reduced in the event premium stabilization reserves are used to pay such claims.

(8) $330,000 of the health services account appropriation is provided solely to implement Substitute House Bill No. 3109 (basic health plan enrollee income verification). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 215. 1997 c 149 s 215 (uncodified) is amended to read as follows:

FOR THE HUMAN RIGHTS COMMISSION

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,019,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,036,000))

2,538,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,444,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 259,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((5,758,000))

6,260,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $432,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for elimination of caseload backlog by January 1, 1999, and reduction of case processing time.

(2) $70,000 of the general fund appropriation for fiscal year 1999 is provided solely to implement section 4 of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If section 4 of the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 216. 1997 c 149 s 217 (uncodified) is amended to read as follows:

FOR THE CRIMINAL JUSTICE TRAINING COMMISSION

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 15,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 285,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 100,000

Death Investigations Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 38,000

Public Safety and Education Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((13,434,000))

13,341,000

Violence Reduction and Drug Enforcement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ 346,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((13,918,000))

14,125,000

The appropriations made in this section are subject to the following conditions and limitations:

(1) $80,000 of the public safety and education account appropriation is provided solely to continue the study of law enforcement and corrections training begun in 1996. In conducting the study, the criminal justice training commission shall consult with the appropriate policy and fiscal committees of the legislature. Specific elements to be addressed in the study include: (a) The feasibility and the rationale for increasing basic law enforcement training from 440 to 600 hours; (b) the feasibility and rationale for creating a certification process for law enforcement officers; (c) the feasibility and rationale for expanding the correctional officers academy; (d) the feasibility and rationale for expanding the juvenile service workers academy and/or the adult services academy; and (e) any other items considered relevant by the commission. Any recommendations made shall include a plan and timeline for how they would be implemented. The board on correctional training standards and education and the board on law enforcement training standards and education shall be actively involved in the study effort. Copies of the study shall be provided to the appropriate policy and fiscal committees of the legislature and the director of financial management by October 1, 1997.

(2) $50,000 of the public safety and education account appropriation is provided solely to prepare a cost and fee study of the current and proposed criminal justice course offerings. The analysis shall identify total costs and major cost components for: (a) Any current training classes which are considered mandatory; and (b) any proposed or modified training courses which are considered mandatory. Mandatory classes include, but are not limited to, the following: Basic law enforcement academy, correctional officers academy, supervisory and management training of law enforcement officers, supervisory and management training of correctional officers, juvenile service workers academy, and the adult service academy. The study shall also recommend a methodology for estimating the future demand for these classes. The study shall also estimate the cost of implementing any recommendations made pursuant to subsection (1) of this section. The study shall be conducted by a private sector consultant selected by the office of financial management in consultation with the executive director of the criminal justice training commission. The final report shall be completed by January 1, 1998.

(3) $92,000 of the public safety and education account appropriation is provided solely for the purpose of training law enforcement managers and supervisors.

(4) $40,000 of the public safety and education account appropriation is provided solely to implement the provisions of Substitute House Bill No. 1423 (criminal justice training commission). If this bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(5) $225,000 of the general fund--state fiscal year 1999 appropriation is provided solely for information technology upgrades and improvements for the criminal justice training commission.

(6) $15,000 of the general fund--state fiscal year 1998 appropriation and $25,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the relocation and new lease costs of the criminal justice training commission's headquarters in Thurston county.

(7) $35,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for costs associated with the implementation of incident-based crime reporting.

Sec. 217. 1997 c 454 s 211 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LABOR AND INDUSTRIES

General Fund Appropriation (FY 1998). .. . . . . . .$ 6,805,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((6,848,000))

7,069,000

Public Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((16,246,000))

16,082,000

Public Safety and Education Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 6,002,000

Public Safety and Education Account--

Private/Local Appropriation. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,014,000))

2,178,000

Electrical License Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 22,542,000

Farm Labor Revolving Account Appropriation. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 28,000

Worker and Community Right-to-Know Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,187,000

Public Works Administration Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((1,975,000))

1,975,000

Accident Account--State Appropriation. . $ ((146,901,000))

151,634,000

Accident Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 9,112,000

Medical Aid Account--State Appropriation. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((155,276,000))

154,142,000

Medical Aid Account--Federal Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,592,000

Plumbing Certificate Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 947,000

Pressure Systems Safety Account Appropriation. $ 2,106,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((380,581,000))

384,401,000

The appropriations in this section are subject to the following conditions and limitations:

(1) Expenditures of funds appropriated in this section for the information systems projects identified in agency budget requests as "claims service delivery", "electrical permitting and inspection system", and "credentialing information system" are conditioned upon compliance with section 902 of this act.

(2) Pursuant to RCW 7.68.015, the department shall operate the crime victims compensation program within the public safety and education account funds appropriated in this section. In the event that cost containment measures are necessary, the department may (a) institute copayments for services; (b) develop preferred provider and managed care contracts; (c) coordinate with the department of social and health services to use the public safety and education account as matching funds for federal Title XIX reimbursement, to the extent this maximizes total funds available for services to crime victims.

(3) $54,000 of the general fund appropriation for fiscal year 1998 and $54,000 of the general fund appropriation for fiscal year 1999 are provided solely for an interagency agreement to reimburse the board of industrial insurance appeals for crime victims appeals.

(4) The secretary of social and health services and the director of labor and industries shall report to the appropriate fiscal and policy committees of the legislature by July 1, 1997, and every six months thereafter on the measurable changes in employee injury and time-loss rates that have occurred in the state developmental disabilities, juvenile rehabilitation, and mental health institutions as a result of the upfront loss-control discount agreement between the agencies.

(5) The expenditures of the elevator, factory assembled structures, and contractors' registration and compliance programs may not exceed the revenues generated by these programs.

(6) $101,000 of the plumbing certificate account appropriation is provided solely for the implementation of Substitute Senate Bill No. 5749 (pipe installer). If the bill is not enacted by June 30, 1997, the amount provided shall lapse.

(7) $56,000 of the medical aid account appropriation and $52,000 of the accident account appropriation are provided solely for evaluating agency operational improvements.

(8) $593,000 of nonappropriated funds from the medical aid account shall be provided solely for allocation to the joint legislative audit and review committee for a performance audit and operations review of the state workers' compensation system pursuant to Substitute Senate Bill No. 6030.

(9) $170,000 of the accident account--state appropriation and $170,000 of the medical aid account--state appropriation are provided solely for payment to the office of the attorney general for legal services provided in the 1995-97 biennium.

(10) $686,000 of the accident account appropriation and $686,000 of the medical aid account appropriation for fiscal year 1999 are provided solely to fund 24 claims manager positions in fiscal year 1999 (12 worker compensation adjudicator 2 and 12 worker compensation adjudicator 3 positions). With these new positions, the department is expected to reduce time-loss duration in claims by 5 percent by June 30, 2000, and an additional 2.5 percent by June 30, 2001. The average caseload for level 2 claims managers should also drop to approximately 190 by June 30, 2000. The director of the department shall report to the appropriate fiscal and policy committees of the legislature and the office of financial management by June 30, 1998, and every year thereafter, on the measurable progress made toward attaining these goals. The 1998 report shall indicate the baseline figures from July 1, 1997. If substantial progress has not been achieved by June 30, 2000, the 24 claims manager positions and the funding associated with these positions shall be discontinued.

(11) $41,000 of the general fund appropriation for fiscal year 1999, $160,000 of the accident account--state appropriation, and $53,000 of the medical aid account--state appropriation are provided solely to implement sections 4 and 11 of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If sections 4 and 11 of the bill are not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

Sec. 218. 1997 c 454 s 209 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF VETERANS AFFAIRS

(1) HEADQUARTERS

General Fund Appropriation (FY 1998). .. . . . . . .$ ((1,409,000))

1,609,000

General Fund Appropriation (FY 1999). .. . . . . . .$ 1,404,000

Industrial Insurance Premium Refund Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 80,000

Charitable, Educational, Penal, and Reformatory Institutions Account App. . . . . . . . . . . . . . . . . $ 4,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,897,000))

3,097,000

The appropriations in this subsection are subject to the following conditions and limitations: $200,000 of the general fund appropriation for fiscal year 1998 is provided solely as the state's contribution to the construction of a memorial on the state capitol grounds to the men and women who served in the nation's armed forces during the second world war. The department shall raise the remaining two-thirds of the memorial's cost from individual and corporate contributions.

(2) FIELD SERVICES

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,418,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,420,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 26,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 85,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,949,000

(3) INSTITUTIONAL SERVICES

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((6,101,000))

6,576,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((5,369,000))

5,522,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((19,556,000))

18,950,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((14,583,000))

14,561,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 45,609,000

Sec. 219. 1997 c 454 s 212 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF HEALTH

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((62,996,000))

63,189,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((65,741,000))

73,170,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((259,139,000))

262,504,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((24,351,000))

23,578,000

Hospital Commission Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,089,000

Health Professions Account Appropriation. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((36,038,000))

36,255,000

Emergency Medical and Trauma Care Services Account Appropriation. . . . . . . . . . . . . . . . . . . . $ 21,042,000

Safe Drinking Water Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,494,000

Death Investigations Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,000,000))

650,000

Drinking Water Assistance Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,385,000

Waterworks Operator Certification Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 588,000

Water Quality Account Appropriation. . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,065,000

Violence Reduction and Drug Enforcement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ 469,000

State Toxics Control Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,854,000

Medical Test Site Licensure Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,624,000

Youth Tobacco Prevention Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,812,000

Health Services Account Appropriation. .. . . . . . .$ ((12,474,000))

6,115,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((504,161,000))

507,883,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $2,134,000 of the health professions account appropriation is provided solely for the development and implementation of a licensing and disciplinary management system. Expenditures are conditioned upon compliance with section 902 of this act. These funds shall not be expended without appropriate project approval by the department of information systems.

(2) Funding provided in this section for the drinking water program data management system shall not be expended without appropriate project approval by the department of information systems. Expenditures are conditioned upon compliance with section 902 of this act.

(3) The department or any successor agency is authorized to raise existing fees charged to the nursing professions and midwives((,)); chemical dependency counselors; by the pharmacy board((,)); and for boarding home; hospital; and home health, home care, and hospice agency licenses, in excess of the fiscal growth factor established by Initiative Measure No. 601, if necessary, to meet the actual costs of conducting business and the appropriation levels in this section.

(4) $((1,633,000)) 1,526,000 of the general fund--state fiscal year 1998 appropriation and $((1,634,000)) 1,741,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the implementation of the Puget Sound water work plan and agency action items, DOH-01, DOH-02, DOH-03, DOH-04, DOH-05, DOH-06, DOH-07, DOH-08, DOH-09, DOH-10, DOH-11, and DOH-12.

(5) $10,000,000 of the health services account appropriation is provided solely for distribution to local health departments for distribution on a per capita basis. Prior to distributing these funds, the department shall adopt rules and procedures to ensure that these funds are not used to replace current local support for public health programs.

(6) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for operation of a youth suicide prevention program at the state level, including a state-wide public educational campaign to increase knowledge of suicide risk and ability to respond and provision of twenty-four hour crisis hotlines, staffed to provide suicidal youth and caregivers a source of instant help.

(7) The department of health shall not initiate any services that will require expenditure of state general fund moneys unless expressly authorized in this act or other law. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation that provides appropriation authority, and an equal amount of appropriated state moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.

(8) $259,000 of the health professions account appropriation is provided solely to implement Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(9) $150,000 of the general fund--state fiscal year 1998 appropriation and $150,000 of the general fund--state fiscal year 1999 appropriation are provided solely for community-based oral health grants that may fund sealant programs, education, prevention, and other oral health interventions. The grants may be awarded to state or federally funded community and migrant health centers, tribal clinics, or public health jurisdictions. Priority shall be given to communities with established oral health coalitions. Grant applications for oral health education and prevention grants shall include (a) an assessment of the community's oral health education and prevention needs; (b) identification of the population to be served; and (c) a description of the grant program's predicted outcomes.

(10) $21,042,000 of the emergency medical and trauma care services account appropriation is provided solely for implementation of Substitute Senate Bill No. 5127 (trauma care services). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(11) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for family support and provider training services for children with special health care needs.

(12) $300,000 of the general fund--federal appropriation is provided solely for an abstinence education program which complies with P.L. 104-193. $400,000 of the general fund--federal appropriation is provided solely for abstinence education projects at the office of the superintendent of public instruction and shall be transferred to the office of the superintendent of public instruction for the 1998-99 school year. The department shall apply for abstinence education funds made available by the federal personal responsibility and work opportunity act of 1996 and implement a program that complies with the requirements of that act.

(13) $50,000 of the general fund--state appropriation for fiscal year 1998 and $50,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the implementation of Second Substitute House Bill No. 1191 (mandated health benefit review). If the bill is not enacted by June 30, 1997, the amounts provided in this section shall lapse.

(14) $100,000 of the general fund--state appropriation for fiscal year 1998 and $100,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the volunteer retired provider program. Funds shall be used to increase children's access to dental care services in rural and underserved communities by paying malpractice insurance and professional licensing fees for retired dentists participating in the program.

(15) $852,000 of the drinking water assistance account--federal appropriation is provided solely for an interagency agreement with the department of community, trade, and economic development to administer, in cooperation with the public works board, loans to local governments and public water systems for projects and activities to protect and improve the state's drinking water facilities and resources.

(16) $3,347,000 of the fiscal year 1998 general fund--state appropriation and $3,347,000 of the fiscal year 1999 general fund--state appropriation are provided solely for the AIDS prescription drug program and HIV intervention program. The department shall operate the program within total appropriations. The department shall take such actions as are necessary to control expenditures, including administrative efficiencies such as reductions to provider reimbursement rates, modifications to financial eligibility, modifications to the scope of services, and client cost sharing mechanisms. The department shall identify program policy changes required to manage within the amounts provided.

(17) Funding provided in this section is sufficient to implement section 8 of Engrossed Substitute House Bill No. 2264 (eliminating the health care policy board).

(18) $2,075,000 of the fiscal year 1998 general fund--state appropriation and $2,075,000 of the fiscal year 1999 general fund--state appropriation are provided solely for the Washington poison center.

(19) $((1,000,000)) 650,000 of the death investigations account appropriation is provided solely for the implementation of state-wide child mortality reviews. Local health jurisdictions shall coordinate child mortality reviews for children from birth to eighteen years of age, develop local child mortality review protocols, and serve as the appointing authority and lead agency for local child death review teams. The department of health shall develop standard aggregate data elements, collect and analyze local child mortality review data, provide technical assistance to local child mortality review teams, and approve local child death review protocols. If House Bill No. 1269 (death investigations account) is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(20) $1,125,000 of the fiscal year 1998 general fund--state appropriation and $1,125,000 of the fiscal year 1999 general fund--state appropriation are provided solely for deposit in the county public health account.

(21) $60,000 of the general fund--state appropriation for fiscal year 1998 and $60,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for attorney general services and such other activities not covered by fee revenues as are necessary for implementation of Engrossed Substitute House Bill No. 2264 (health care policy). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(22) $250,000 of the fiscal year 1998 general fund--state appropriation $250,000 of the fiscal year 1999 general fund--state appropriation are provided solely for operation of a naturopathic health clinic constructed in 1996.

(23) $60,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the implementation of Second Substitute Senate Bill No. 6168 (temporary worker housing). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(24) $250,000 of the general fund--federal appropriation is provided solely to conduct monitoring for thyroid diseases for eligible people exposed to radiation from Hanford between 1945 and 1951, and is contingent upon the execution of an agreement with the state of Oregon that the state of Washington will function as a subrecipient for the Hanford medical monitoring program grant. If such an agreement is not executed by September 30, 1998, the amount provided in this subsection shall lapse.

(25) $730,000 of the health professions account appropriation is provided solely for the purposes of the impaired physician program. If Second Substitute House Bill No. 1618 (impaired physician program) or substantially similar legislation is enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(26) $1,000,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the breast and cervical cancer screening program.

(27) Within existing resources, the department shall maintain funding support for neurodevelopmental centers and in no case shall that support in fiscal year 1999 be reduced below the total sum awarded by contract to neurodevelopmental centers in fiscal year 1998.

(28) $37,000 of the general fund--state appropriation and $3,000 of the health professions account appropriation for fiscal year 1999 are provided solely to implement sections 1, 4, and 11 of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If sections 1, 4, and 11 of the bill are not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(29) $300,000 of the general fund--state appropriation is provided solely for the implementation of a hepatitis A emergency vaccination program. This entire amount shall be passed through to county health districts that have employed a public education effort and have infection rates in excess of 100 per 100,000 population.

Sec. 220. 1997 c 454 s 213 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

The appropriations to the department of corrections in chapter 454, Laws of 1997, as amended, shall be expended for the programs and in the amounts specified therein. However, after April 1, 1998, unless specifically prohibited by this act, the department may transfer general fund--state appropriations for fiscal year 1998 between the institutional services and community corrections programs after approval by the director of financial management. The director of financial management shall notify the appropriate fiscal committees of the senate and house of representatives in writing prior to approving any deviations from appropriation levels.

(1) ADMINISTRATION AND PROGRAM SUPPORT

General Fund Appropriation (FY 1998). . $ 13,926,000

General Fund Appropriation (FY 1999). .. . . . . . .$ 13,910,000

Violence Reduction and Drug Enforcement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ 500,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 28,336,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $187,000 of the general fund fiscal year 1998 appropriation and $155,000 of the general fund fiscal year 1999 appropriation are provided solely for implementation of Substitute Senate Bill No. 5759 (risk classification). If the bill is not enacted by July 1, 1997, the amounts provided shall lapse.

(b) $500,000 of the violence reduction and drug enforcement account appropriation is provided solely for a feasibility study regarding the replacement of the department's offender based tracking system. This appropriation is conditioned on the department satisfying the requirements of section 902, chapter 149, Laws of 1997.

(2) INSTITUTIONAL SERVICES

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((291,745,000))

289,665,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((304,000,000))

303,830,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 18,097,000

Industrial Insurance Premium Rebate Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 673,000

Violence Reduction and Drug Enforcement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ 1,614,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((616,129,000))

613,879,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) The department shall provide funding for the pet partnership program at the Washington corrections center for women at a level at least equal to that provided in the 1995-97 biennium.

(b) (($4,839,000)) $3,978,000 of the general fund--state fiscal year 1998 appropriation and (($6,481,000)) $5,381,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the criminal justice costs associated with the implementation of Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If Engrossed Third Substitute House Bill No. 3900 is not enacted by June 30, 1997, the amounts provided shall lapse.

(c) The department of corrections shall accomplish personnel reductions with the least possible impact on correctional custody staff, community custody staff, and correctional industries. For the purposes of this subsection, correctional custody staff means employees responsible for the direct supervision of offenders.

(((e))) (d) $296,000 of the general fund--state appropriation for fiscal year 1998 and $297,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to increase payment rates for contracted education providers. It is the legislature's intent that these amounts shall be used primarily to increase compensation for persons employed in direct, front-line service delivery.

(((f))) (e) The department may expend funds generated by contractual agreements entered into for mitigation of severe overcrowding in local jails. If any funds are generated in excess of actual costs, they shall be deposited in the state general fund. Expenditures shall not exceed revenue generated by such agreements and shall be treated as recovery of costs.

(f) $70,000 of the general fund--state fiscal year 1999 appropriation is provided solely for the implementation of Senate Bill No. 6139 (amphetamine crimes). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(g) $36,000 of the general fund--state fiscal year 1999 appropriation is provided solely for the implementation of House Bill No. 1172 (sex offender registration). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(h) $8,000 of the general fund--state fiscal year 1999 appropriation is provided solely for the implementation of House Bill No. 2628 (methamphetamine manufacture). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(3) COMMUNITY CORRECTIONS

General Fund Appropriation (FY 1998). .. . . . . . .$ ((89,377,000))

88,830,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((90,495,000))

90,670,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((179,872,000))

179,500,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $27,000 of the general fund fiscal year 1998 appropriation and $185,000 of the general fund fiscal year 1999 appropriation are provided solely for the criminal justice costs associated with the implementation of Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If Engrossed Third Substitute House Bill No. 3900 is not enacted by June 30, 1997, the amounts provided shall lapse.

(b) The department of corrections shall accomplish personnel reductions with the least possible impact on correctional custody staff, community custody staff, and correctional industries. For the purposes of this subsection, correctional custody staff means employees responsible for the direct supervision of offenders.

(c) $467,000 of the general fund appropriation for fiscal year 1998 and $505,000 of the general fund appropriation for fiscal year 1999 are provided solely to increase payment rates for contracted education providers and contracted work release facilities. It is the legislature's intent that these amounts shall be used primarily to increase compensation for persons employed in direct, front-line service delivery.

(d) $45,000 of the general fund--state fiscal year 1999 appropriation is provided solely for the implementation of Substitute Senate Bill No. 5760 (mentally ill offenders). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(e) $609,000 of the general fund--state fiscal year 1998 appropriation and $226,000 of the general fund--state fiscal year 1999 appropriation are provided solely for costs associated with allowing community corrections officers to carry firearms.

(4) CORRECTIONAL INDUSTRIES

General Fund Appropriation (FY 1998). .. . . . . . .$ 4,055,000

General Fund Appropriation (FY 1999). .. . . . . . .$ 4,167,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 8,222,000

The appropriations in this subsection are subject to the following conditions and limitations:

(a) $100,000 of the general fund fiscal year 1998 appropriation and $100,000 of the general fund fiscal year 1999 appropriation are provided solely for transfer to the jail industries board. The board shall use the amounts provided only for administrative expenses, equipment purchases, and technical assistance associated with advising cities and counties in developing, promoting, and implementing consistent, safe, and efficient offender work programs.

(b) $50,000 of the general fund appropriation for fiscal year 1998 and $50,000 of the general fund appropriation for fiscal year 1999 are provided solely for the correctional industries board of directors to hire one staff person, responsible directly to the board, to assist the board in fulfilling its duties.

(5) INTERAGENCY PAYMENTS

General Fund Appropriation (FY 1998). .. . . . . . .$ ((6,945,000))

6,851,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((6,444,000))

6,538,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 13,389,000

Sec. 221. 1997 c 149 s 224 (uncodified) is amended to read as follows:

FOR THE SENTENCING GUIDELINES COMMISSION

General Fund Appropriation (FY 1998). .. . . . . . .$ 714,000

General Fund Appropriation (FY 1999). .. . . . . . .$ 713,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,427,000

The appropriations in this section are subject to the following conditions and limitations: The commission shall study the feasibility and desirability of allowing certain older or physically infirm offenders to be released from institutional confinement, with the assumption that these released offenders would remain on community custody for the remainder of their length of confinement. The study shall identify: (1) Groups who would be potential candidates for such a program; (2) how individual offenders in these groups could be screened to maintain public safety; (3) how these offenders, if released, could be supervised in such a way as to maintain public safety; (4) what statutory changes would be necessary to implement such a program; (5) how much savings such a program would generate; and (6) any other items the commission deems relevant. The study shall be transmitted to the chairs and ranking minority members of the appropriate policy and fiscal committees of the legislature not later than December 15, 1998.

Sec. 222. 1997 c 454 s 214 (uncodified) is amended to read as follows:

FOR THE EMPLOYMENT SECURITY DEPARTMENT

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,260,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,261,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((173,595,000))

198,628,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((24,842,000))

28,650,000

Unemployment Compensation Administration Account--Federal Appropriation. . . . . . . . . . . . . .$ ((181,985,000))

182,312,000

Administrative Contingency Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((12,579,000))

13,527,000

Employment Service Administrative Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((13,176,000))

14,500,000

Employment & Training Trust Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 600,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((409,298,000))

440,738,000

The appropriations in this section are subject to the following conditions and limitations:

(1) Expenditures of funds appropriated in this section for the information systems projects identified in agency budget requests as "claims and adjudication call centers", "data/wage quality initiative", and "one stop information connectivity" are conditioned upon compliance with section 902 of this act.

(2) $600,000 of the employment and training trust account appropriation is provided solely for the account's share of unemployment insurance tax collection costs.

(3) $1,126,000 of the general fund--federal appropriation is provided solely for the continuation of job placement centers colocated on community and technical college campuses. The department shall maintain the current level of service at all 32 colocation sites through the remainder of the 1997-99 biennium.

(4) The employment security department shall spend no more than $25,049,511 of the unemployment compensation administration account--federal appropriation for the general unemployment insurance development effort (GUIDE) project, except that the department may exceed this amount by up to $2,600,000 to offset the cost associated with any vendor-caused delay. The additional spending authority is contingent upon the department fully recovering these moneys from any project vendors failing to perform in full. Authority to spend the amount provided by this subsection is conditioned on compliance with section 902 of this act.

(5) $60,000 of the general fund--state fiscal year 1998 appropriation and $61,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the King county reemployment support center.

(6) $1,200,000 of the general fund--state fiscal year 1998 appropriation and $1,200,000 of the general fund--state fiscal year 1999 appropriation are provided solely for labor market information and employer outreach activities.

(7) $948,000 of the administrative contingency account appropriation and $838,000 of the employment service administrative account appropriation are provided solely for the department to evaluate the tax determination system compared to other systems, improve the disclosure of information on the employer rate notice, and address deficiencies in the tax information system (TAXIS).

(8)(a) Within the amounts appropriated in this section, the commissioner shall improve the disclosure of information on the employer rate notice for 1999 rate year unemployment contributions. The information disclosed on the notice must be for the 1997 calendar year and for the period used to calculate the employer's experience rating for the 1999 rate year. The notice must include an explanation in plain language of the disclosed information and the disclosed information relationship to the employer's contributions. The information disclosed must include to the greatest extent possible:

(i) The contributions paid by the employer;

(ii) The benefits charged to the employer's experience rating account; and

(iii) The dollar amount that represents the difference between (a)(i) and (ii) of this subsection.

(b) In addition, the commissioner shall include the following information paid from the trust fund for each of the three most recently completed calendar years for: (i) Total benefits paid; (ii) benefits paid that were in excess of one percent of the base year earnings of all claimants; (iii) benefits paid to claimants and not charged to any employer due to a voluntary quit; and (iv) benefits paid to a claimant but not charged to any employer because of marginal labor force attachment, along with a generic explanation of why these benefits were paid.

(9) $20,156,000 of the general fund--federal appropriation is provided solely to implement the federal welfare-to-work program only if the governor successfully obtains an approved federal waiver for use of an alternative agency or agents to administer the welfare-to-work grants. If this waiver is not obtained, the amount provided in this subsection shall lapse.

(10) $327,000 of the unemployment compensation administration account--federal appropriation and $486,000 of the employment service administrative account appropriation are provided solely for the department to replace field office computers that are not compliant with Year 2000 conversion standards.

PART III

NATURAL RESOURCES

Sec. 301. 1997 c 454 s 301 (uncodified) is amended to read as follows:

FOR THE COLUMBIA RIVER GORGE COMMISSION

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 213,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 222,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((435,000))

442,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((870,000))

877,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $120,000 of the general fund--state appropriation for fiscal year 1998((,)) and $120,000 of the general fund--state appropriation for fiscal year 1999((, and $240,000 of the general fund--local appropriation)) are provided solely for each Washington Columbia river gorge county to receive an $80,000 grant for the purposes of implementing the scenic area management plan. If a Columbia river gorge county has not adopted an ordinance to implement the scenic area management plan in accordance with the national scenic area act (P.L. 99-663), then the grant funds for that county may be used by the commission to implement the plan for that county.

(2) $30,000 of the general fund--state appropriation for fiscal year 1998 and $30,000 of the general fund--state appropriation for fiscal year 1999 provided to Clark county under subsection (1) of this section shall be transferred through an inter-local agreement to Skamania county solely for implementing the national scenic area act.

Sec. 302. 1997 c 454 s 302 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((27,748,000))

26,013,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((27,795,000))

25,860,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((45,315,000))

46,240,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((643,000))

1,200,000

Special Grass Seed Burning Research Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((42,000))

71,000

Reclamation Revolving Account Appropriation. . $ 2,441,000

Flood Control Assistance Account Appropriation.$ 4,850,000

State Emergency Water Projects Revolving Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ 319,000

Waste Reduction/Recycling/Litter Control Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 10,316,000

State and Local Improvements Revolving Account (Waste Facilities) App. . . . . . . . . . . . . . . . . .$ 601,000

State and Local Improvements Revolving Account (Water Supply Facilities) App. . . . . . . . . . . .$ 1,366,000

Basic Data Account Appropriation. . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 182,000

Vehicle Tire Recycling Account Appropriation. . $ ((1,194,000))

357,000

Water Quality Account Appropriation. . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,892,000

Wood Stove Education and Enforcement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,055,000))

848,000

Worker and Community Right-to-Know Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . .$ 469,000

State Toxics Control Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 53,715,000

Local Toxics Control Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((4,342,000))

4,759,000

Water Quality Permit Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 20,378,000

Underground Storage Tank Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,443,000))

2,638,000

Solid Waste Management Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,021,000))

971,000

Hazardous Waste Assistance Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,615,000

Air Pollution Control Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 16,224,000

Oil Spill Administration Account Appropriation. .$ ((6,958,000))

6,998,000

Air Operating Permit Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((4,033,000))

3,808,000

Freshwater Aquatic Weeds Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,829,000

Oil Spill Response Account Appropriation. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 7,078,000

Metals Mining Account Appropriation. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 42,000

Water Pollution Control Revolving Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . $ 349,000

Water Pollution Control Revolving Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . $ 1,726,000

Biosolids Permit Account Appropriation. $ 567,000

Environmental Excellence Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 247,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((251,795,000))

248,969,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $3,211,000 of the general fund--state appropriation for fiscal year 1998, $3,211,000 of the general fund--state appropriation for fiscal year 1999, $394,000 of the general fund--federal appropriation, $2,017,000 of the oil spill administration account, $819,000 of the state toxics control account appropriation, and $3,591,000 of the water quality permit fee account are provided solely for the implementation of the Puget Sound work plan and agency action items DOE-01, DOE-02, DOE-03, DOE-04, DOE-05, DOE-06, DOE-07, DOE-08, and DOE-09.

(2) $2,000,000 of the state toxics control account appropriation is provided solely for the following purposes:

(a) To conduct remedial actions for sites for which there are no potentially liable persons, for which potentially liable persons cannot be found, or for which potentially liable persons are unable to pay for remedial actions; and

(b) To provide funding to assist potentially liable persons under RCW 70.105D.070(2)(d)(xi) to pay for the cost of the remedial actions; and

(c) To conduct remedial actions for sites for which potentially liable persons have refused to conduct remedial actions required by the department; and

(d) To contract for services as necessary to support remedial actions.

(((6))) (3) $200,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for the implementation of Engrossed Substitute House Bill No. 1118 (reopening a water rights claim filing period). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(((7))) (4) $3,600,000 of the general fund--state appropriation for fiscal year 1998 and $3,600,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the auto emissions inspection and maintenance program. Expenditures of the amounts provided in this subsection are contingent upon a like amount being deposited in the general fund from the auto emission inspection fees in accordance with RCW 70.120.170(4).

(((8))) (5) $170,000 of the oil spill administration account appropriation is provided solely for implementation of the Puget Sound work plan action item UW-02 through a contract with the University of Washington's Sea Grant program in order to develop an educational program that targets small spills from commercial fishing vessels, ferries, cruise ships, ports, and marinas.

(((9))) (6) The merger of the office of marine safety into the department of ecology shall be accomplished in a manner that will maintain a priority focus on oil spill prevention, as well as maintain a strong oil spill response capability. The merged program shall be established to provide a high level of visibility and ensure that there shall not be a diminution of the existing level of effort from the merged programs.

(((10))) (7) The entire environmental excellence account appropriation is provided solely for the implementation of Engrossed Second Substitute House Bill No. 1866 (environmental excellence). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse. In implementing the bill, the department shall organize the needed expertise to process environmental excellence applications after an application has been received.

(((11))) (8) $200,000 of the freshwater aquatic weeds account appropriation is provided solely to address saltcedar weed problems.

(((12))) (9) $4,498,000 of the waste reduction, recycling, and litter control account appropriation is provided for fiscal year 1998 and $5,818,000 is provided for fiscal year 1999 to be expended in the following ratios: Fifty percent for a litter patrol program to employ youth and correctional work crews to remove litter from places that are most visible to the public; twenty percent for grants to local governments for litter cleanup under RCW 70.93.250; and thirty percent for public education and awareness programs and programs to foster local waste reduction and recycling efforts. From the amounts provided in this subsection, the department shall provide $352,000 through an interagency agreement to the department of corrections to hire correctional crews to remove litter in areas that are not accessible to youth crews.

(((13))) (10) The entire biosolids permit account appropriation is provided solely for implementation of Engrossed Senate Bill No. 5590 (biosolids management). If the bill is not enacted by June 30, 1997, the entire appropriation is null and void.

(((14))) (11) $29,000 of the general fund--state appropriation for fiscal year 1998 and $99,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the implementation of Substitute House Bill No. 1985 (landscape management plans). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(((15))) (12) $60,000 of the freshwater aquatic weeds account appropriation is provided solely for a grant to the department of fish and wildlife to control and eradicate purple loosestrife using the most cost-effective methods available, including chemical control where appropriate.

(((16))) (13) $250,000 of the flood control assistance account appropriation is provided solely as a reappropriation to complete the Skokomish valley flood reduction plan. The amount provided in this subsection shall be reduced by the amount expended from this account for the Skokomish valley flood reduction plan during the biennium ending June 30, 1997.

(((18))) (14) $600,000 of the flood control assistance account appropriation is provided solely to complete flood control projects that were awarded funds during the 1995-97 biennium. These funds shall be spent only to complete projects that could not be completed during the 1995-97 biennium due to delays caused by weather or delays in the permitting process.

(((19))) (15) $113,000 of the general fund--state appropriation for fiscal year 1998 and $112,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 5505 (assistance to water applicants). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(((20))) (16) $70,000 of the general fund--state appropriation for fiscal year 1998 and $70,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 5785 (consolidation of groundwater rights). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(((21))) (17) $20,000 of the general fund--state appropriation for fiscal year 1998 and $20,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 5276 (water right applications). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(((23))) (18) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the continuation of the southwest Washington coastal erosion study and for coastal erosion project grants. Fifty percent of the amount for fiscal year 1999 shall be allocated to the department of community, trade, and economic development for coastal erosion project grants.

(19) It is the intent of the legislature that, within the general fund--state appropriations provided in this section, the department shall prioritize its resources to provide expedited assistance to businesses seeking permitting and technical assistance for rural economic development projects. Top priority shall be given to pending economic development projects which are located in rural counties and which have invoked the coordinated permit process pursuant to chapter 90.60 RCW, and the relative priority among such projects shall be based upon the date of execution of the project's coordinated permit agreement, with the earliest agreement having top priority.

(20) Within the amounts provided in this section, the department shall contract for a scientific review by a panel selected by the society of environmental toxicology and chemistry of the following documents: 1992 environmental impact statement on aquatic weeds; the KCM phase 1 study of Lake Steilacoom; the conditions and requirements of the first permit issued for the 1997 treatment season for Lake Steilacoom; and, studies done in respect to the listing of Lake Steilacoom as a possible model toxic control act site.

(21) $195,000 of the underground storage tank account appropriation is provided solely for the implementation of Substitute Senate Bill No. 6130 (underground storage tanks). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(22) $417,000 of the local toxics control account appropriation is provided solely to implement Substitute Senate Bill No. 6474 (fertilizer regulation). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(23) Using up to $19,000 of the special grass seed burning research account appropriation the department shall provide funding to Washington State University to conduct a grass burning emissions study.

(24) Within the amounts provided in this section, the department shall conduct a demonstration project on the effectiveness of the state-registered herbicide "Navigate" for the control of Eurasian water milfoil in Loon Lake in Stevens county. The department shall provide a grant to the Stevens county weed board to cover fifty percent of the cost of application of the herbicide. A local match of fifty percent of the cost of application of the herbicide is required. Permits and approvals necessary to implement the demonstration project may be conditioned by the department to protect public health and the environment, but approval may not be withheld.

(25) Within the amounts provided in this section, the department shall provide funds to Yakima county superior court for staff and associated costs to support the Yakima river basin water rights adjudication.

NEW SECTION. Sec. 303. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,700,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,420,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 18,000

Water Quality Permit Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 9,000

Air Pollution Control Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 9,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 6,156,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $1,400,000 of the general fund--state appropriation for fiscal year 1998 and $3,600,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement sections 1 through 9 of Engrossed Substitute House Bill No. 2514 (integrated watershed management). If any of these sections of the bill are not enacted by June 30, 1998, the amount provided in this subsection shall lapse. Of the amounts in this subsection, $1,400,000 of the general fund--state appropriation for fiscal year 1998 and $2,500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for grants to local watershed planning units, and $1,100,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for technical assistance to local watershed planning groups. The department may provide moneys to other state agencies that provide technical assistance to local watershed planning groups through an interagency agreement.

(2) $400,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to implement Substitute Senate Bill No. 6161 (dairy nutrient management). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(3) $300,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for the department to conduct a preconstruction analysis of Pine Hollow, located near the communities of Wiley City and Tampico in Yakima county, regarding its suitability as a site for the construction of a retainment dam and water storage reservoir and the reservoir site's potential to enhance and maintain anadromous fish and other aquatic life and agriculture. The analysis shall include, but is not limited to, a hydrologic and water rights assessment of the Ahtanum Creek watershed to determine water availability to Pine Hollow, an analysis of the geology and hydrology of the site and appropriate dam design and dynamics, its impact on water-related issues, and on Yakama Indian Nation and other water rights. Using amounts appropriated in this section and the associated local match, the department shall conduct portions of its analysis through contracts with private entities and through contracts with, or by providing grant moneys to, the Yakama Indian Nation and other public entities, which may include other state agencies, irrigation districts local to the area, cities, Yakima county, and federal agencies. The department shall consult with stakeholders before conducting this preconstruction analysis. The analysis shall be completed by June 30, 1999. The amount provided in this subsection is contingent upon the provision of an equal cash match from the Ahtanum irrigation district, and if such a match is not received the amount provided in this subsection shall lapse.

(4) $200,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to implement Engrossed Substitute Senate Bill No. 5703 (water right beneficial use). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(5) $24,000 of the general fund--state appropriation for fiscal year 1999, $18,000 of the general fund--federal appropriation, $9,000 of the water quality permit account appropriation, and $9,000 of the air pollution control account appropriation are provided solely to implement sections 1, 4, and 11 of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If sections 1, 4, and 11 of the bill are not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(6) $196,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to implement Engrossed Second Substitute House Bill No. 2339 (wetlands mitigation banking). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 304. 1997 c 454 s 303 (uncodified) is amended to read as follows:

FOR THE STATE PARKS AND RECREATION COMMISSION

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((20,526,000))

20,489,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((20,335,000))

20,595,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,428,000))

3,122,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 59,000

Winter Recreation Program Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((759,000))

779,000

Off Road Vehicle Account Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 251,000

Snowmobile Account Appropriation. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,290,000))

3,260,000

Aquatic Lands Enhancement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 321,000

Public Safety and Education Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 48,000

Industrial Insurance Premium Refund Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 10,000

Waste Reduction/Recycling/Litter Control Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 34,000

Water Trail Program Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 14,000

Parks Renewal and Stewardship Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((25,344,000))

25,894,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((72,419,000))

74,876,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $189,000 of the aquatic lands enhancement account appropriation is provided solely for the implementation of the Puget Sound work plan agency action items P&RC-01 and P&RC-03.

(2) $264,000 of the general fund--federal appropriation is provided for boater programs state-wide and for implementation of the Puget Sound work plan.

(3) $45,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for a feasibility study of a public/private effort to establish a reserve for recreation and environmental studies in southwest Kitsap county.

(4) Within the funds provided in this section, the state parks and recreation commission shall provide to the legislature a status report on implementation of the recommendations contained in the 1994 study on the restructuring of Washington state parks. This status report shall include an evaluation of the campsite reservation system including the identification of any incremental changes in revenues associated with implementation of the system and a progress report on other enterprise activities being undertaken by the commission. The report may also include recommendations on other revenue generating options. In preparing the report, the commission is encouraged to work with interested parties to develop a long-term strategy to support the park system. The commission shall provide this report by December 1, 1997.

(5) (($85,000)) $48,000 of the general fund--state appropriation for fiscal year 1998 and (($165,000)) $202,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for development of underwater park programs and facilities. The department shall work with the underwater parks program task force to develop specific plans for the use of these funds.

(6) Fees approved by the state parks and recreation commission in 1997 for camping, snow parks, wood debris collection, and Fort Worden state park are authorized to exceed the fiscal growth factor under RCW 43.135.055.

(7) $20,000 of the winter recreation program account appropriation and $20,000 of the snowmobile account appropriation are provided solely for a grant for the operation of the Northwest avalanche center.

Sec. 305. 1997 c 149 s 304 (uncodified) is amended to read as follows:

FOR THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION

Firearms Range Account Appropriation. .. . . . . . .$ 46,000

Recreation Resources Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,352,000

Recreation Resources Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 11,000

NOVA Program Account Appropriation. . . . . . . .$ 590,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,988,000))

2,999,000

The appropriations in this section are subject to the following conditions and limitations: Any proceeds from the sale of the PRISM software system shall be deposited into the recreation resources account.

Sec. 306. 1997 c 149 s 306 (uncodified) is amended to read as follows:

FOR THE CONSERVATION COMMISSION

General Fund Appropriation (FY 1998). .. . . . . . .$ 838,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((840,000))

3,840,000

Water Quality Account Appropriation. . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 440,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,118,000))

5,118,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $181,000 of the general fund appropriation for fiscal year 1998, $181,000 of the general fund appropriation for fiscal year 1999, and $130,000 of the water quality account appropriation are provided solely for the implementation of the Puget Sound work plan agency action item CC-01.

(2) $1,000,000 of the general fund appropriation for fiscal year 1999 is provided solely for grants to conservation districts to provide technical assistance to landowners enrolling in the conservation reserve enhancement program.

(3) $200,000 of the general fund appropriation for fiscal year 1999 is provided solely for technical assistance for dairy farmers to implement Substitute Senate Bill No. 6161 (dairy nutrient management). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(4) $800,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to conduct limiting factor analysis in accordance with sections 7 through 10 of Engrossed Substitute House Bill No. 2496 (salmon recovery planning). If any of these sections of the bill are not enacted by June 30, 1998, the amount provided in this subsection shall lapse. To the extent possible, the commission shall establish partnerships with the federal natural resources conservation service and other entities conducting watershed or limiting factor analysis. Of this amount, $150,000 is provided for limiting factor analysis in the Snake river evolutionarily significant unit.

(5) $1,000,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for a contract with a nonprofit entity on a pilot program basis to develop and implement a volunteer habitat initiative. The initiative must include: A training program for volunteers; a public outreach and education program; and a program to encourage landowners and land managers to use volunteers in salmon habitat improvement projects.

Sec. 307. 1997 c 454 s 304 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((36,049,000))

35,857,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((36,571,000))

44,998,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((73,015,000))

75,037,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((26,758,000))

26,983,000

Off Road Vehicle Account Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 488,000

Aquatic Lands Enhancement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,593,000

Public Safety and Education Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((590,000))

586,000

Industrial Insurance Premium Refund Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 120,000

Recreational Fisheries Enhancement Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,387,000

Warm Water Game Fish Account Appropriation. $ 2,419,000

Wildlife Account Appropriation.. . . . . . .. . . . . . .$ ((52,372,000))

44,122,000

Game Special Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,911,000

Game Special Wildlife Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,844,000

Game Special Wildlife Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 350,000

Oil Spill Administration Account Appropriation $ 843,000

Environmental Excellence Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,000

Eastern Washington Pheasant Enhancement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ 547,000

Regional Fisheries Enhancement--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 750,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((250,877,000))

253,855,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $1,181,000 of the general fund--state appropriation for fiscal year 1998 and $1,181,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the implementation of the Puget Sound work plan agency action items DFW-01, DFW-03, DFW-04, and DFW-8 through DFW-15.

(2) $188,000 of the general fund--state appropriation for fiscal year 1998 and $155,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for a maintenance and inspection program for department-owned dams. The department shall submit a report to the governor and the appropriate legislative committees by October 1, 1998, on the status of department-owned dams. This report shall provide a recommendation, including a cost estimate, on whether each facility should continue to be maintained or should be decommissioned.

(3) $832,000 of the general fund--state appropriation for fiscal year 1998 and $825,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement salmon recovery activities and other actions required to respond to federal listings of salmon species under the endangered species act.

(4) $350,000 of the wildlife account appropriation, $72,000 of the general fund--state appropriation for fiscal year 1998, and $73,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for control and eradication of class B designate weeds on department owned and managed lands. The amounts from the general fund--state appropriations are provided solely for control of spartina.

(5) $140,000 of the wildlife account appropriation is provided solely for a cooperative effort with the department of agriculture for research and eradication of purple loosestrife on state lands.

(6) In controlling weeds on state-owned lands, the department shall use the most cost-effective methods available, including chemical control where appropriate, and the department shall report to the appropriate committees of the legislature by January 1, 1998, on control methods, costs, and acres treated during the previous year.

(7) ((A maximum of $1,000,000 is provided from the wildlife fund for fiscal year 1998. The amount provided in this subsection is for the emergency feeding of deer and elk that may be starving and that are posing a risk to private property due to severe winter conditions during the winter of 1997-98. The amount expended under this subsection must not exceed the amount raised pursuant to section 3 of Substitute House Bill No. 1478. Of the amount expended under this subsection, not more than fifty percent may be from fee revenue generated pursuant to section 3 of Substitute House Bill No. 1478. If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(8))) $193,000 of the general fund--state appropriation for fiscal year 1998, $194,000 of the general fund--state appropriation for fiscal year 1999, and $300,000 of the wildlife account appropriation are provided solely for the design and development of an automated license system.

(((9))) (8) The department is directed to offer for sale its Cessna 421 aircraft by June 30, 1998. Proceeds from the sale shall be deposited in the wildlife account.

(((10))) (9) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to continue the department's habitat partnerships program during the 1997-99 biennium.

(((11))) (10) $350,000 of the general fund--state appropriation for fiscal year 1998 and $350,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for purchase of monitoring equipment necessary to fully implement mass marking of coho salmon.

(((12))) (11) $238,000 of the general fund--state appropriation for fiscal year 1998 and $219,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the implementation of Substitute House Bill No. 1985 (landscape management plans). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(((13))) (12) $150,000 of the general fund--state appropriation for fiscal year 1998 and $150,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for a contract with the United States department of agriculture to carry out animal damage control projects throughout the state related to cougars, bears, and coyotes.

(((14))) (13) $97,000 of the general fund--state appropriation for fiscal year 1998 and $98,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement animal damage control programs for Canada geese in the lower Columbia river basin.

(((15))) (14) $170,000 of the general fund--state appropriation for fiscal year 1998, $170,000 of the general fund--state appropriation for fiscal year 1999, and $360,000 of the wildlife account appropriation are provided solely to hire additional enforcement officers to address problem wildlife throughout the state.

(((17))) (15) $133,000 of the general fund--state appropriation for fiscal year 1998 and $133,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Substitute Senate Bill No. 5442 (flood control permitting). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(((18))) (16) $100,000 of the aquatic lands enhancement account appropriation is provided solely for grants to the regional fisheries enhancement groups.

(((19))) (17) $547,000 of the eastern Washington pheasant enhancement account appropriation is provided solely for implementation of Substitute Senate Bill No. 5104 (pheasant enhancement program). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(((20))) (18) $150,000 of the general fund--state appropriation for fiscal year 1998 and $150,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to hire Washington conservation corps crews to maintain department-owned and managed lands.

(((21))) (19) The entire environmental excellence account appropriation is provided solely for implementation of Engrossed Second Substitute House Bill No. 1866 (environmental excellence). If the bill is not enacted by June 30, 1997, the entire appropriation is null and void.

(((22))) (20) $156,000 of the recreational fisheries enhancement appropriation is provided solely for Substitute Senate Bill No. 5102 (fishing license surcharge). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(((23))) (21) $25,000 of the general fund--state appropriation for fiscal year 1998 and $25,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for staffing and operation of the Tennant Lake interpretive center.

(22) It is the intent of the legislature that, within the general fund--state appropriations provided in this section, the department shall prioritize its resources to provide expedited assistance to businesses seeking permitting and technical assistance for rural economic development projects.

(23) $750,000 of the regional fisheries enhancement--federal appropriation is provided solely for the regional fisheries enhancement groups. The amount in this section may be spent for project identification, design, permitting, and implementation; volunteer coordination; and administrative costs as approved under RCW 75.50.100 and 75.50.115(1)(d). All amounts not committed to approved project, volunteer coordination, or administrative costs by May 31, 1998, shall be made available to any of the regional fisheries enhancement groups that have submitted project approval requests that exceed their available funding from the regional fisheries enhancement group account and the regional fisheries enhancement salmonid recovery account. Redistribution of the moneys shall be based on the criteria established in RCW 75.50.115(1)(e), and shall ensure to the greatest extent possible that the funds are spent during the 1998 in-stream season.

(24) $700,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for grants to habitat restoration lead entities formed in accordance with sections 7 through 10 of Engrossed Substitute House Bill No. 2496 (salmon recovery planning) for administrative activities and development of habitat-restoration project lists. If any of these sections of the bill are not enacted by June 30, 1998, the amounts provided in this subsection shall lapse. Of this amount, $100,000 is provided as a grant to the regional committee lead entity for administrative activities in the Snake river evolutionarily significant unit.

(25) $50,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for operation of the independent science panel in accordance with section 6 of Engrossed Substitute House Bill No. 2496 (salmon recovery planning). If this section of the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(26) $450,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for fish passage technical assistance to local governments, volunteer groups, and regional fisheries enhancement groups in accordance with Engrossed Substitute House Bill No. 2496 (salmon recovery planning). The department shall also contract with the department of transportation to train staff at the department of transportation to become proficient in providing fish passage technical assistance. If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(27) $250,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for excessive deer and elk damage claims.

(28) $393,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the implementation of Substitute Senate Bill No. 6324 (fish remote site incubators). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(29) $1,000,000 of the general fund--state appropriation for fiscal year 1999, $400,000 of the general fund--federal appropriation, and $225,000 of the general fund--local appropriation are provided solely to contract for the mass marking of all appropriate state-wide department chinook salmon hatchery production in accordance with Second Substitute Senate Bill No. 6264 (chinook salmon mass marking). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(30) $3,500,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for salmon restoration projects funded according to sections 7 through 10 of Second Substitute House Bill No. 2496 (salmon recovery planning). Of this amount, $500,000 is provided solely for a block grant to the conservation districts located in the Snake river evolutionarily significant unit for habitat restoration projects. If any of these sections of the bill are not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(31) $1,170,000 of the general fund--state appropriation for fiscal year 1999 and $3,500,000 of the general fund--federal appropriation are provided solely to implement a license buy-back program for commercial fishing licenses.

(32) $5,000 of the general fund--state appropriation for fiscal year 1998 and $40,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 6114 (nonindigenous aquatic species). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(33) $1,000,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for purchasing computer equipment to support implementation of Second Substitute Senate Bill No. 6330 (fish and wildlife licenses). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(34) $70,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to implement sections 1, 4, and 11 of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If sections 1, 4, and 11 of the bill are not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 308. 1997 c 454 s 305 (uncodified) is each amended to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 23,767,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((24,168,000))

24,410,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,156,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 422,000

Forest Development Account Appropriation. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((49,923,000))

49,963,000

Off Road Vehicle Account Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,628,000

Surveys and Maps Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,088,000

Aquatic Lands Enhancement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,869,000

Resource((s)) Management Cost Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((89,613,000))

89,769,000

Waste Reduction/Recycling/Litter Control Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 450,000

Surface Mining Reclamation Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,420,000

Aquatic Land Dredged Material Disposal Site Account Appropriation. . . . . . . . . . . . . . . . . . . . . $ 751,000

Natural Resources Conservation Areas Stewardship Account Appropriation. . . . . . . . . . . . . . . . $ 77,000

Air Pollution Control Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 890,000

Metals Mining Account Appropriation. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 62,000

Natural Resources Equipment Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 750,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((203,284,000))

204,472,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $7,017,000 of the general fund--state appropriation for fiscal year 1998 and $6,900,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for emergency fire suppression.

(2) $18,000 of the general fund--state appropriation for fiscal year 1998, $18,000 of the general fund--state appropriation for fiscal year 1999, and $957,000 of the aquatic lands enhancement account appropriation are provided solely for the implementation of the Puget Sound work plan agency action items DNR-01, DNR-02, and DNR-04.

(3) $450,000 of the resource management cost account appropriation is provided solely for the control and eradication of class B designate weeds on state lands. The department shall use the most cost-effective methods available, including chemical control where appropriate, and report to the appropriate committees of the legislature by January 1, 1998, on control methods, costs, and acres treated during the previous year.

(4) $1,332,000 of the general fund--state appropriation for fiscal year 1998 and $1,713,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for fire protection activities.

(5) $541,000 of the general fund--state appropriation for fiscal year 1998 and $549,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the stewardship of natural area preserves, natural resource conservation areas, and the operation of the natural heritage program.

(6) $2,300,000 of the aquatic lands enhancement account appropriation is provided for the department's portion of the Eagle Harbor settlement.

(7) $195,000 of the general fund--state appropriation for fiscal year 1998 and $220,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the implementation of Substitute House Bill No. 1985 (landscape management plans). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(8) $600,000 of the general fund--state appropriation for fiscal year 1998 and $600,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the cooperative monitoring, evaluation, and research projects related to implementation of the timber-fish-wildlife agreement.

(9) $6,568,000 of the forest development account appropriation is provided solely for silviculture activities on forest board lands. To the extent that forest board counties apply for reconveyance of lands pursuant to Substitute Senate Bill No. 5325 (county land transfers), the amount provided in this subsection shall be reduced by an amount equal to the estimated silvicultural expenditures planned in each county that applies for reconveyance.

(10) The entire natural resources equipment account appropriation is provided solely for replacement of equipment and development of infrastructure necessary to meet new federal communications commission regulations.

(11) $75,000 of the general fund--state appropriation for fiscal year 1999, $35,000 from the resource management cost account appropriation, and $40,000 from the forest development account appropriation are provided solely to implement sections 1, 4, and 11 of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If sections 1, 4, and 11 of the bill are not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(12) $71,000 of the resource management cost account appropriation is provided solely for a study of the current method for determining water-dependent rents in accordance with Second Substitute Senate Bill No. 6156 (state aquatic lands leases). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(13) $117,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for a geographic information systems inventory of Washington sand, gravel, and construction rock resources.

(14) $50,000 of the resource management cost account appropriation is provided solely for a field study of biological control methods for eradication of spartina.

(15) $50,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for a study of potential finfish net-pen aquaculture sites in the Strait of Juan de Fuca and along the Pacific coast.

Sec. 309. 1997 c 149 s 309 (uncodified) is each amended to read as follows:

FOR THE DEPARTMENT OF AGRICULTURE

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((7,596,000))

7,605,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((7,008,000))

8,285,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((4,716,000))

5,077,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 405,000

Aquatic Lands Enhancement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 806,000

Industrial Insurance Premium Refund Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 184,000

State Toxics Control Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,338,000

Local Toxics Control Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 258,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((22,053,000))

23,958,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $35,000 of the general fund--state appropriation for fiscal year 1998 and $36,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for technical assistance on pesticide management including the implementation of the Puget Sound work plan agency action item DOA-01.

(2) $461,000 of the general fund--state appropriation for fiscal year 1998, $421,000 of the general fund--state appropriation for fiscal year 1999, and (($361,000)) $722,000 of the general fund--federal appropriation are provided solely to monitor and eradicate the Asian gypsy moth.

(3) $138,000 of the general fund--state appropriation for fiscal year 1998 and $138,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for two additional staff positions in the plant protection program.

(4) $12,000 of the general fund--state appropriation for fiscal year 1998 and $13,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the implementation of Substitute Senate Bill No. 5077 (integrated pest management). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(5) $258,000 of the local toxics control account appropriation is provided solely to implement Senate Bill No. 6474 (fertilizer regulation). The amount provided in this subsection shall be used to conduct a comprehensive study of plant uptake of metals and to implement new fertilizer registration requirements. If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(6) $50,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to implement section 11 of Engrossed Second Substitute House Bill No. 2345 (revising administrative law). If section 11 of the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(7) $95,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for deposit into the livestock identification account to implement sections 2 and 98 of Engrossed Substitute Senate Bill No. 6204 (livestock identification). If either of these sections of the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

Sec. 310. 1997 c 149 s 310 (uncodified) is each amended to read as follows:

FOR THE WASHINGTON POLLUTION LIABILITY REINSURANCE PROGRAM

Pollution Liability Insurance Program Trust Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .. . .$ ((909,000))

1,009,000

PART IV

TRANSPORTATION

Sec. 401. 1997 c 149 s 401 (uncodified) is each amended to read as follows:

FOR THE DEPARTMENT OF LICENSING

General Fund Appropriation (FY 1998). .. . . . . . .$ ((4,536,000))

4,686,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((4,409,000))

4,717,000

Architects' License Account Appropriation. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((857,000))

829,000

Cemetery Account Appropriation. . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((188,000))

197,000

Professional Engineers' Account Appropriation. . $ ((2,674,000))

2,700,000

Real Estate Commission Account Appropriation. $ ((6,708,000))

7,062,000

Master License Account Appropriation. . . . . . . . .$ ((6,998,000))

6,963,000

Uniform Commercial Code Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((4,291,000))

3,521,000

Real Estate Education Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 606,000

Funeral Directors And Embalmers Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((409,000))

418,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((31,676,000))

31,699,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $21,000 of the general fund fiscal year 1998 appropriation and $22,000 of the general fund fiscal year 1999 appropriation are provided solely to implement House Bill No. 1827 or Senate Bill No. 5754 (boxing, martial arts, wrestling). If neither bill is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(2) $40,000 of the master license account appropriation is provided solely to implement Substitute Senate Bill No. 5483 (whitewater river outfitters). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(3) $229,000 of the general fund fiscal year 1998 appropriation and $195,000 of the general fund fiscal year 1999 appropriation are provided solely for the implementation of Senate Bill No. 5997 (cosmetology inspections). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(4) $31,000 of the general fund fiscal year 1998 appropriation, $1,000 of the general fund fiscal 1999 appropriation, $7,000 of the architects' license account appropriation, $18,000 of the professional engineers' account appropriation, $14,000 of the real estate commission account appropriation, $40,000 of the master license account appropriation, and $3,000 of the funeral directors and embalmers account appropriation are provided solely for the implementation of Engrossed House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(5) $17,000 of the professional engineers' account appropriation is provided solely to implement Senate Bill No. 5266 (engineers/land surveyors). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(6) $110,000 of the general fund fiscal year 1998 appropriation is provided solely to implement Senate Bill No. 5998 (cosmetology advisory board). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(7) (($74,000 of the uniform commercial code account appropriation is provided solely to implement Engrossed Senate Bill No. 5163 (UCC filing). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(8))) $11,000 of the general fund fiscal year 1998 appropriation and $2,000 of the general fund fiscal year 1999 appropriation are provided solely to implement Substitute House Bill No. 1748 or Substitute Senate Bill No. 5513 (vessel registration). If neither bill is enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(8)(a) Pursuant to RCW 43.135.055, during the 1997-99 fiscal biennium, the department may increase fees in excess of the fiscal growth factor in the appraisers and camp resorts programs; however, such increases shall not exceed an annual increase of eight percent.

(b) Pursuant to RCW 43.135.055, during the 1997-99 fiscal biennium, the department may increase fees in excess of the fiscal growth factor in the professional athletics, employment agencies, and security guards programs to the extent necessary to defray the costs of the administration of these programs as set forth in RCW 43.24.086.

(c) Before raising fees in excess of the fiscal growth factor pursuant to this subsection, the department shall notify the chairs and ranking minority members of the appropriate fiscal committees of the legislature.

(9) Within the amounts provided in this section, the department shall provide information detailing each specific component of the overhead costs allocated to each program within the business and professions division. The department shall establish procedures to allow each program within the business and professions division to review and modify its business processes in order to reduce administrative costs. The department of licensing shall provide a report to the fiscal committees of the legislature by October 1, 1998, detailing the specific procedures established pursuant to the requirements of this subsection.

(10) $110,000 of the general fund fiscal year 1999 appropriation is provided solely for the implementation of the Substitute Senate Bill No. 6507 (cosmetology advisory board). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(11) $75,000 of the general fund fiscal year 1999 appropriation is provided solely for costs associated with fully implementing chapter 178, Laws of 1997 (cosmetology inspections).

Sec. 402. 1997 c 149 s 402 (uncodified) is each amended to read as follows:

FOR THE STATE PATROL

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((7,712,000))

8,312,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((7,850,000))

21,791,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((3,990,000))

5,784,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 341,000

Public Safety and Education Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((4,652,000))

4,483,000

County Criminal Justice Assistance Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,905,000

Municipal Criminal Justice Assistance Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,573,000

Fire Service Trust Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 92,000

Fire Service Training Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,762,000))

2,295,000

State Toxics Control Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 439,000

Violence Reduction and Drug Enforcement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ ((310,000))

570,000

Fingerprint Identification Account Appropriation.$ ((3,082,000))

3,220,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((35,708,000))

52,805,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $254,000 of the fingerprint identification account appropriation is provided solely for an automated system that will facilitate the access of criminal history records remotely by computer or telephone for preemployment background checks and other non-law enforcement purposes. The agency shall submit an implementation status report to the office of financial management and the legislature by September 1, 1997.

(2) $264,000 of the general fund--federal appropriation is provided solely for a feasibility study to develop a criminal investigation computer system. The study will report on the feasibility of developing a system that uses incident-based reporting as its foundation, consistent with FBI standards. The system will have the capability of connecting with local law enforcement jurisdictions as well as fire protection agencies conducting arson investigations. The study will report on the system requirements for incorporating case management, intelligence data, imaging, and geographic information. The system will also provide links to existing crime information databases such as WASIS and WACIC. The agency shall submit a copy of the proposed study workplan to the office of financial management and the department of information services for approval prior to expenditure. A final report shall be submitted to the appropriate committees of the legislature, the office of financial management, and the department of information services no later than June 30, 1998.

(3) Pursuant to chapter 43.135 RCW, during the 1997-99 fiscal biennium, the Washington state patrol is authorized to raise existing fees charged for background fingerprint checks on current and potential school district and educational service district employees by six dollars.

(4) $166,000 of the general fund--state appropriation for fiscal year 1998 and $499,000 of the general fund--state appropriation for fiscal year 1999 are provided solely as state matching funds required to complete changes to the WACIC and WASIS systems.

(5) To address year 2000 concerns about the automated fingerprint identification system (AFIS), the Washington state patrol may contract with an intergovernmental consortium for the use of a year 2000 compatible AFIS system. Under this approach, the state patrol would begin paying a monthly usage fee starting in fiscal year 2000.

(6) $58,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to implement House Bill No. 1172 (sex offender registration). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

PART V

EDUCATION

NEW SECTION. Sec. 501. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR A STUDY OF K-12 FINANCE. A study of the system of finance of the Washington common schools shall be conducted by the joint legislative audit and review committee subject to the following conditions and limitations:

(1) The study shall address:

(a) The revenue and expenditure practices of local school districts. To the extent data is available, the study shall identify patterns of resource allocations to selected districts, buildings, and classrooms. The study shall document the extent to which meaningful analysis of resource allocations is limited by data currently available and shall identify means necessary to obtain information necessary to analyze the efficiency and effectiveness of common school expenditures. The study shall also seek to identify districts that have financial data available in a form that facilitates understanding by persons without specialized expertise in public finance.

(b) The ratio of students to teachers and other personnel in selected districts, buildings, and classrooms. To the extent data is obtainable, class-size shall include analysis of the use of certificated and noncertificated classroom instructors and assistants, the education and experience of instructional staff, the composition of students in classrooms by status including students who qualify for special education, learning assistance, bilingual education, gifted education, free and reduced-price lunch and other characteristics, including educational outcomes relevant to understanding the nature of class-size and the nature of students and teachers in those classes.

(2) The final report shall be presented no later than June 30, 1999. Before the final report is presented, an interim briefing shall be presented to the fiscal committees of the legislature for review and comment.

(3) Funds appropriated to the joint legislative audit and review committee for the study specified in this section may be used for consulting services as deemed necessary, including, but not limited to, review of studies of a similar nature and consultation with experts in the field of public school finance on the feasibility and best approaches to a state fiscal study with the objectives specified in this section.

Sec. 502. 1997 c 454 s 501 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR STATE ADMINISTRATION

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((20,758,000))

20,423,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((40,775,000))

58,171,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 49,439,000

Public Safety and Education Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,598,000

Violence Reduction and Drug Enforcement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ 3,672,000

Education Savings Account Appropriation. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 39,312,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((156,554,000))

173,615,000

The appropriations in this section are subject to the following conditions and limitations:

(1) AGENCY OPERATIONS

(a) $394,000 of the general fund--state appropriation for fiscal year 1998 and $394,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the operation and expenses of the state board of education, including basic education assistance activities.

(b)(i) $250,000 of the general fund--state appropriation for fiscal year 1998 and $250,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for enhancing computer systems and support in the office of superintendent of public instruction. These amounts shall be used to: Make a database of school information available electronically to schools, state government, and the general public; reduce agency and school district administrative costs through more effective use of technology; and replace paper reporting and publication to the extent feasible with electronic media. The superintendent, in cooperation with the commission on student learning, shall develop a state student record system including elements reflecting student achievement. The system shall be made available to the office of financial management and the legislature with suitable safeguards of student confidentiality. The superintendent shall report to the office of financial management and the legislative fiscal committees by December 1 of each year of the biennium on the progress and plans for the expenditure of these amounts.

(ii) The superintendent, in cooperation with the commission on student learning, shall develop a feasibility plan for a state student record system, including elements reflecting student academic achievement on goals 1 and 2 under RCW 28A.150.210. The feasibility plan shall be made available to the office of financial management and the fiscal and education committees of the legislature for approval before a student records database is established, and shall identify data elements to be collected and suitable safeguards of student confidentiality and proper use of database records, with particular attention to eliminating unnecessary and intrusive data about nonacademic related information.

(c) $348,000 of the public safety and education account appropriation is provided solely for administration of the traffic safety education program, including in-service training related to instruction in the risks of driving while under the influence of alcohol and other drugs.

(d) $50,000 of the general fund--state appropriation for fiscal year 1998 and $50,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Substitute Senate Bill No. 5394 (school audit resolutions).

(e) The superintendent shall conduct a study and make recommendations to the 1999 legislature regarding a definition of and standards for skills centers. The standards shall be related to the cost differential of skills centers as compared to secondary vocational education allocations provided in the appropriations act and other relevant factors. The study shall also address proposals for new skills centers known as of August 31, 1998, and compare and analyze, insofar as possible, the proposals with the recommended standards. The study shall be submitted to the governor and the appropriate committees of the legislature by November 25, 1998.

(f) The superintendent shall prepare a study which compares the state's administrative and statutory requirements to provide special education with the requirements of federal law. A preliminary report shall be provided to the policy and fiscal committees of the legislature by October 15, 1998, and a final report shall be provided by December 15, 1998.

(2) STATE-WIDE PROGRAMS

(a) $2,174,000 of the general fund--state appropriation is provided for in-service training and educational programs conducted by the Pacific Science Center.

(b) $63,000 of the general fund--state appropriation is provided for operation of the Cispus environmental learning center.

(c) $2,754,000 of the general fund--state appropriation is provided for educational centers, including state support activities. $100,000 of this amount is provided to help stabilize funding through distribution among existing education centers that are currently funded by the state at an amount less than $100,000 a biennium.

(d) $100,000 of the general fund--state appropriation is provided for an organization in southwest Washington that received funding from the Spokane educational center in the 1995-97 biennium and provides educational services to students who have dropped out.

(e) (($2,500,000)) $2,148,000 of the general fund--state fiscal year 1998 appropriation and (($2,500,000)) $2,151,000 of the general fund--state fiscal year 1999 appropriation are provided solely for implementation of reading initiatives to improve reading in early grades as enacted by the 1997 legislature. Of this amount((: (ii))), $4,300,000 is provided solely to implement Engrossed Substitute House Bill No. 2042. Funds shall be used solely for the selection and purchase of the second grade reading tests in accordance with section 2 of the bill, scoring costs associated with the administration of the tests in the 1998-99 school year in accordance with section 5 of the bill, and grants to school districts in accordance with sections 4 and 7 of the bill.

(f) $3,672,000 of the violence reduction and drug enforcement account appropriation and $2,250,000 of the public safety education account appropriation are provided solely for matching grants to enhance security in schools. Not more than seventy-five percent of a district's total expenditures for school security in any school year may be paid from a grant under this subsection. The grants shall be expended solely for the costs of employing or contracting for building security monitors in schools during school hours and school events. Of the amount provided in this subsection, at least $2,850,000 shall be spent for grants to districts that, during the 1988-89 school year, employed or contracted for security monitors in schools during school hours. However, these grants may be used only for increases in school district expenditures for school security over expenditure levels for the 1988-89 school year.

(g) $200,000 of the general fund--state appropriation for fiscal year 1998, $200,000 of the general fund--state appropriation for fiscal year 1999, and $400,000 of the general fund--federal appropriation transferred from the department of health are provided solely for a program that provides grants to school districts for media campaigns promoting sexual abstinence and addressing the importance of delaying sexual activity, pregnancy, and childbearing until individuals are ready to nurture and support their children. Grants to the school districts shall be for projects that are substantially designed and produced by students. The grants shall require a local private sector match equal to one-half of the state grant, which may include in-kind contribution of technical or other assistance from consultants or firms involved in public relations, advertising broadcasting, and graphics or video production or other related fields.

(h) $1,500,000 of the general fund--state appropriation for fiscal year 1998 and $1,500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for school district petitions to juvenile court for truant students as provided in RCW 28A.225.030 and 28A.225.035. Allocation of this money to school districts shall be based on the number of petitions filed.

(i) $300,000 of the general fund--state appropriation is provided for alcohol and drug prevention programs pursuant to RCW 66.08.180.

(j)(i) $19,656,000 of the education savings account appropriation for fiscal year 1998 and $19,656,000 of the education savings account appropriation for fiscal year 1999 are provided solely for matching grants and related state activities to provide school district consortia with programs utilizing technology to improve learning. A maximum of (($100,000)) $150,000 each fiscal year of this amount is provided for administrative support and oversight of the K-20 network by the superintendent of public instruction. The superintendent of public instruction shall convene a technology grants committee representing private sector technology, school districts, and educational service districts to recommend to the superintendent grant proposals that have the best plans for improving student learning through innovative curriculum using technology as a learning tool and evaluating the effectiveness of the curriculum innovations. After considering the technology grants committee recommendations, the superintendent shall make matching grant awards, including granting at least fifteen percent of funds on the basis of criteria in (ii)(A) through (C) of this subsection (2)(j).

(ii) Priority for award of funds will be to (A) school districts most in need of assistance due to financial limits, (B) school districts least prepared to take advantage of technology as a means of improving student learning, and (C) school districts in economically distressed areas. The superintendent of public instruction, in consultation with the technology grants committee, shall propose options to the committee for identifying and prioritizing districts according to criteria in (i) and (ii) of this subsection (2)(j).

(iii) Options for review criteria to be considered by the superintendent of public instruction include, but are not limited to, free and reduced lunches, levy revenues, ending fund balances, equipment inventories, and surveys of technology preparedness. An "economically distressed area" is (A) a county with an unemployment rate that is at least twenty percent above the state-wide average for the previous three years; (B) a county that has experienced sudden and severe or long-term and severe loss of employment, or erosion of its economic base resulting in decline of its dominant industries; or (C) a district within a county which (I) has at least seventy percent of its families and unrelated individuals with incomes below eighty percent of the county's median income for families and unrelated individuals; and (II) has an unemployment rate which is at least forty percent higher than the county's unemployment rate.

(k) $50,000 of the general fund--state appropriations is provided as matching funds for district contributions to provide analysis of the efficiency of school district business practices. The superintendent of public instruction shall establish criteria, make awards, and provide a report to the fiscal committees of the legislature by December 15, 1997, on the progress and details of analysis funded under this subsection (2)(k).

(l) (($19,977,000)) $19,797,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the purchase of classroom instructional materials and supplies. The superintendent shall allocate the funds at a maximum rate of $20.82 per full-time equivalent student, beginning September 1, 1998, and ending June 30, 1999. The expenditure of the funds shall be determined at each school site by the ((school building staff, parents, and the community)) individual teacher. School districts shall distribute all funds received to school buildings without deduction.

(m) $15,000 of the general fund--state appropriation is provided solely to assist local districts vocational education programs in applying for low frequency FM radio licenses with the federal communications commission.

(n) $35,000 of the general fund--state appropriation is provided solely to the state board of education to design a program to encourage high school students and other adults to pursue careers as vocational education teachers in the subject matter of agriculture.

(o) $25,000 of the general fund--state appropriation for fiscal year 1998 and $25,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for allocation to the primary coordinators of the state geographic alliance to improve the teaching of geography in schools.

(p) $1,000,000 of the general fund--state appropriation is provided for state administrative costs and start-up grants for alternative programs and services that improve instruction and learning for at-risk and expelled students consistent with the objectives of Engrossed House Bill No. 1581 (disruptive students/offenders). Each grant application shall contain proposed performance indicators and an evaluation plan to measure the success of the program and its impact on improved student learning. Applications shall contain the applicant's plan for maintaining the program and/or services after the grant period, shall address the needs of students who cannot be accommodated within the framework of existing school programs or services and shall address how the applicant will serve any student within the proposed program's target age range regardless of the reason for truancy, suspension, expulsion, or other disciplinary action. Up to $50,000 per year may be used by the superintendent of public instruction for grant administration. The superintendent shall submit an evaluation of the alternative program start-up grants provided under this section, and section 501(2)(q), chapter 283, Laws of 1996, to the fiscal and education committees of the legislature by November 15, 1998. Grants shall be awarded to applicants showing the greatest potential for improved student learning for at-risk students including:

(i) Students who have been suspended, expelled, or are subject to other disciplinary actions;

(ii) Students with unexcused absences who need intervention from community truancy boards or family support programs;

(iii) Students who have left school; and

(iv) Students involved with the court system.

The office of the superintendent of public instruction shall prepare a report describing student recruitment, program offerings, staffing practices, and available indicators of program effectiveness of alternative education programs funded with state and, to the extent information is available, local funds. The report shall contain a plan for conducting an evaluation of the educational effectiveness of alternative education programs.

(q) $1,600,000 of the general fund--state appropriation is provided for grants for magnet schools to be distributed as recommended by the superintendent of public instruction pursuant to chapter 232, section 516(13), Laws of 1992.

(r) $4,300,000 of the general fund--state appropriation is provided for complex need grants. Grants shall be provided according to amounts shown in LEAP Document 30C as developed on April 27, 1997, at 03:00 hours.

(s) $17,000,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to implement Engrossed Second Substitute Senate Bill No. 6509 (successful readers act). Of this amount, $9,000,000 is provided solely for beginning reading instructional programs pursuant to section 2(1) of the bill and $8,000,000 is provided solely for volunteer tutor and mentor programs pursuant to section 2(2) of the bill. The superintendent shall notify districts of the availability of the funds by April 15th, 1998, and shall include in the notification limitations on rates for stipends and other cost factors. Stipends authorized under section 2(5) of the bill shall not exceed five days per program at a rate not to exceed $222 per five-hour day, including fringe benefits. The superintendent shall establish allocation guidelines for other cost factors associated with providing the programs. If the bill is not enacted by June 30, 1998, the amounts provided in this subsection shall lapse.

(t) $15,000 of the general fund--state appropriation for fiscal year 1998 and $100,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for a study and recommendations related to education of offenders prosecuted as adults in accordance with Engrossed Substitute Senate Bill No. 6600 (correctional facilities education program). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(u) $375,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for increased costs of providing a norm-referenced test to all third grade students and retests of certain third grade students and other costs in accordance with Second Substitute House Bill No. 2849 (student achievement). If the bill is not enacted by June 30, 1998, the amount provided in this subsection shall lapse.

(v) $50,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for development and operation of a skills center in Port Angeles, contingent on meeting the standard for qualifying for skills center funding as developed by the superintendent of public instruction in subsection (1)(e) of this section.

(w) $400,000 of the fiscal year 1999 general fund--state appropriation is provided solely for matching funds to improve the fiscal and student data capabilities of the Washington school information processing cooperative. The funds shall be allocated only if at least 267 school districts remain members of the cooperative for the 1998-99 school year.

Sec. 503. 1997 c 149 s 502 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR GENERAL APPORTIONMENT (BASIC EDUCATION)

General Fund Appropriation (FY 1998). .. . . . . . .$ ((3,429,727,000))

3,405,645,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((3,511,157,000))

3,473,603,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((6,940,884,000))

6,879,248,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996-97 school year.

(2) Allocations for certificated staff salaries for the 1997-98 and 1998-99 school years shall be determined using formula-generated staff units calculated pursuant to this subsection. Staff allocations for small school enrollments in (d) through (f) of this subsection shall be reduced for vocational full-time equivalent enrollments. Staff allocations for small school enrollments in grades K-6 shall be the greater of that generated under (a) of this subsection, or under (d) and (e) of this subsection. Certificated staffing allocations shall be as follows:

(a) On the basis of each 1,000 average annual full-time equivalent enrollments, excluding full-time equivalent enrollment otherwise recognized for certificated staff unit allocations under (c) through (f) of this subsection:

(i) Four certificated administrative staff units per thousand full-time equivalent students in grades K-12;

(ii) 49 certificated instructional staff units per thousand full-time equivalent students in grades K-3;

(iii) An additional 5.3 certificated instructional staff units for grades K-3. Any funds allocated for these additional certificated units shall not be considered as basic education funding;

(A) Funds provided under this subsection (2)(a)(iii) in excess of the amount required to maintain the statutory minimum ratio established under RCW 28A.150.260(2)(b) shall be allocated only if the district documents an actual ratio equal to or greater than 54.3 certificated instructional staff per thousand full-time equivalent students in grades K-3. For any school district documenting a lower certificated instructional staff ratio, the allocation shall be based on the district's actual grades K-3 certificated instructional staff ratio achieved in that school year, or the statutory minimum ratio established under RCW 28A.150.260(2)(b), if greater;

(B) Districts at or above 51.0 certificated instructional staff per one thousand full-time equivalent students in grades K-3 may dedicate up to 1.3 of the 54.3 funding ratio to employ additional classified instructional assistants assigned to basic education classrooms in grades K-3. For purposes of documenting a district's staff ratio under this section, funds used by the district to employ additional classified instructional assistants shall be converted to a certificated staff equivalent and added to the district's actual certificated instructional staff ratio. Additional classified instructional assistants, for the purposes of this subsection, shall be determined using the 1989-90 school year as the base year;

(C) Any district maintaining a ratio equal to or greater than 54.3 certificated instructional staff per thousand full-time equivalent students in grades K-3 may use allocations generated under this subsection (2)(a)(iii) in excess of that required to maintain the minimum ratio established under RCW 28A.150.260(2)(b) to employ additional basic education certificated instructional staff or classified instructional assistants in grades 4-6. Funds allocated under this subsection (2)(a)(iii) shall only be expended to reduce class size in grades K-6. No more than 1.3 of the certificated instructional funding ratio amount may be expended for provision of classified instructional assistants; and

(iv) Forty-six certificated instructional staff units per thousand full-time equivalent students in grades 4-12;

(b) For school districts with a minimum enrollment of 250 full-time equivalent students whose full-time equivalent student enrollment count in a given month exceeds the first of the month full-time equivalent enrollment count by 5 percent, an additional state allocation of 110 percent of the share that such increased enrollment would have generated had such additional full-time equivalent students been included in the normal enrollment count for that particular month;

(i) Vocational education programs approved by the superintendent of public instruction, a maximum of 0.92 certificated instructional staff units and 0.08 certificated administrative staff units for each 18.3 full-time equivalent vocational students for the 1997-98 school year and for each 19.5 full-time equivalent vocational students in the 1998-99 school year. Beginning with the 1998-99 school year, districts documenting staffing ratios of less than 1 certificated staff per ((18.3)) 19.5 students shall be allocated the greater of the total ratio in subsections (2)(a)(i) and (iv) of this section or the actual documented ratio;

(ii) Skills center programs approved by the superintendent of public instruction for skills centers approved prior to September 1, 1997, 0.92 certificated instructional staff units and 0.08 certificated administrative units for each 16.67 full-time equivalent vocational students;

(iii) Indirect cost charges, as defined by the superintendent of public instruction, to vocational-secondary programs shall not exceed 10 percent; and

(iv) Vocational full-time equivalent enrollment shall be reported on the same monthly basis as the enrollment for students eligible for basic support, and payments shall be adjusted for reported vocational enrollments on the same monthly basis as those adjustments for enrollment for students eligible for basic support.

(d) For districts enrolling not more than twenty-five average annual full-time equivalent students in grades K-8, and for small school plants within any school district which have been judged to be remote and necessary by the state board of education and enroll not more than twenty-five average annual full-time equivalent students in grades K-8:

(i) For those enrolling no students in grades 7 and 8, 1.76 certificated instructional staff units and 0.24 certificated administrative staff units for enrollment of not more than five students, plus one-twentieth of a certificated instructional staff unit for each additional student enrolled; and

(ii) For those enrolling students in grades 7 or 8, 1.68 certificated instructional staff units and 0.32 certificated administrative staff units for enrollment of not more than five students, plus one-tenth of a certificated instructional staff unit for each additional student enrolled;

(e) For specified enrollments in districts enrolling more than twenty-five but not more than one hundred average annual full-time equivalent students in grades K-8, and for small school plants within any school district which enroll more than twenty-five average annual full-time equivalent students in grades K-8 and have been judged to be remote and necessary by the state board of education:

(i) For enrollment of up to sixty annual average full-time equivalent students in grades K-6, 2.76 certificated instructional staff units and 0.24 certificated administrative staff units; and

(ii) For enrollment of up to twenty annual average full-time equivalent students in grades 7 and 8, 0.92 certificated instructional staff units and 0.08 certificated administrative staff units;

(f) For districts operating no more than two high schools with enrollments of less than three hundred average annual full-time equivalent students, for enrollment in grades 9-12 in each such school, other than alternative schools:

(i) For remote and necessary schools enrolling students in any grades 9-12 but no more than twenty-five average annual full-time equivalent students in grades K-12, four and one-half certificated instructional staff units and one-quarter of a certificated administrative staff unit;

(ii) For all other small high schools under this subsection, nine certificated instructional staff units and one-half of a certificated administrative staff unit for the first sixty average annual full time equivalent students, and additional staff units based on a ratio of 0.8732 certificated instructional staff units and 0.1268 certificated administrative staff units per each additional forty-three and one-half average annual full time equivalent students.

Units calculated under (f)(ii) of this subsection shall be reduced by certificated staff units at the rate of forty-six certificated instructional staff units and four certificated administrative staff units per thousand vocational full-time equivalent students.

(g) For each nonhigh school district having an enrollment of more than seventy annual average full-time equivalent students and less than one hundred eighty students, operating a grades K-8 program or a grades 1-8 program, an additional one-half of a certificated instructional staff unit; and

(h) For each nonhigh school district having an enrollment of more than fifty annual average full-time equivalent students and less than one hundred eighty students, operating a grades K-6 program or a grades 1-6 program, an additional one-half of a certificated instructional staff unit.

(3) Allocations for classified salaries for the 1997-98 and 1998-99 school years shall be calculated using formula-generated classified staff units determined as follows:

(a) For enrollments generating certificated staff unit allocations under subsection (2)(d) through (h) of this section, one classified staff unit for each three certificated staff units allocated under such subsections;

(b) For all other enrollment in grades K-12, including vocational full-time equivalent enrollments, one classified staff unit for each sixty average annual full-time equivalent students; and

(c) For each nonhigh school district with an enrollment of more than fifty annual average full-time equivalent students and less than one hundred eighty students, an additional one-half of a classified staff unit.

(4) Fringe benefit allocations shall be calculated at a rate of 20.22 percent in the 1997-98 and 1998-99 school years for certificated salary allocations provided under subsection (2) of this section, and a rate of 18.65 percent in the 1997-98 and 1998-99 school years for classified salary allocations provided under subsection (3) of this section.

(5) Insurance benefit allocations shall be calculated at the maintenance rate specified in section 504(2) of this act, based on the number of benefit units determined as follows:

(a) The number of certificated staff units determined in subsection (2) of this section; and

(b) The number of classified staff units determined in subsection (3) of this section multiplied by 1.152. This factor is intended to adjust allocations so that, for the purposes of distributing insurance benefits, full-time equivalent classified employees may be calculated on the basis of 1440 hours of work per year, with no individual employee counted as more than one full-time equivalent.

(6)(a) For nonemployee-related costs associated with each certificated staff unit allocated under subsection (2)(a), (b), and (d) through (h) of this section, there shall be provided a maximum of $7,950 per certificated staff unit in the 1997-98 school year and a maximum of (($8,165)) $8,053 per certificated staff unit in the 1998-99 school year.

(b) For nonemployee-related costs associated with each vocational certificated staff unit allocated under subsection (2)(c)(i) of this section, there shall be provided a maximum of $15,147 per certificated staff unit in the 1997-98 school year and a maximum of (($15,556)) $19,775 per certificated staff unit in the 1998-99 school year.

(c) For nonemployee-related costs associated with each vocational certificated staff unit allocated under subsection (2)(c)(ii) of this section, there shall be provided a maximum of $15,147 per certificated staff unit in the 1997-98 school year and a maximum of $15,344 per certificated staff unit in the 1998-99 school year.

(7) Allocations for substitute costs for classroom teachers shall be distributed at a maintenance rate of $354.64 per allocated classroom teachers exclusive of salary increase amounts provided in section 504 of this act. Solely for the purposes of this subsection, allocated classroom teachers shall be equal to the number of certificated instructional staff units allocated under subsection (2) of this section, multiplied by the ratio between the number of actual basic education certificated teachers and the number of actual basic education certificated instructional staff reported state-wide for the 1996-97 school year.

(8) Any school district board of directors may petition the superintendent of public instruction by submission of a resolution adopted in a public meeting to reduce or delay any portion of its basic education allocation for any school year. The superintendent of public instruction shall approve such reduction or delay if it does not impair the district's financial condition. Any delay shall not be for more than two school years. Any reduction or delay shall have no impact on levy authority pursuant to RCW 84.52.0531 and local effort assistance pursuant to chapter 28A.500 RCW.

(9) The superintendent may distribute a maximum of (($6,124,000)) $6,114,000 outside the basic education formula during fiscal years 1998 and 1999 as follows:

(a) For fire protection for school districts located in a fire protection district as now or hereafter established pursuant to chapter 52.04 RCW, a maximum of $447,000 may be expended in fiscal year 1998 and a maximum of (($459,000)) $453,000 may be expended in fiscal year 1999;

(b) For summer vocational programs at skills centers, a maximum of $1,948,000 may be expended each fiscal year;

(d) A maximum of $500,000 per fiscal year may be expended for programs providing skills training for secondary students who are enrolled in extended day school-to-work programs, as approved by the superintendent of public instruction. The funds shall be allocated at a rate not to exceed $500 per full-time equivalent student enrolled in those programs.

(10) For the purposes of RCW 84.52.0531, the increase per full-time equivalent student in state basic education appropriations provided under this act, including appropriations for salary and benefits increases, is 2.5 percent from the 1996-97 school year to the 1997-98 school year, and 1.1 percent from the 1997-98 school year to the 1998-99 school year.

(11) If two or more school districts consolidate and each district was receiving additional basic education formula staff units pursuant to subsection (2)(b) through (h) of this section, the following shall apply:

(a) For three school years following consolidation, the number of basic education formula staff units shall not be less than the number of basic education formula staff units received by the districts in the school year prior to the consolidation; and

(b) For the fourth through eighth school years following consolidation, the difference between the basic education formula staff units received by the districts for the school year prior to consolidation and the basic education formula staff units after consolidation pursuant to subsection (2)(a) through (h) of this section shall be reduced in increments of twenty percent per year.

Sec. 504. 1997 c 454 s 503 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR SCHOOL EMPLOYEE COMPENSATION ADJUSTMENTS

General Fund Appropriation (FY 1998). .. . . . . . .$ ((79,966,000))

79,412,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((116,310,000))

115,187,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((196,276,000))

194,599,000

The appropriations in this section are subject to the following conditions and limitations:

(1) (($176,525,000)) $174,999,000 is provided for a cost of living adjustment of 3.0 percent effective September 1, 1997, for state formula staff units. The appropriations include associated incremental fringe benefit allocations at rates of 19.58 percent for certificated staff and 15.15 percent for classified staff.

(a) The appropriations in this section include the increased portion of salaries and incremental fringe benefits for all relevant state-funded school programs in part V of this act. Salary adjustments for state employees in the office of superintendent of public instruction and the education reform program are provided in part VII of this act. Increases for general apportionment (basic education) are based on the salary allocation schedules and methodology in section 502 of this act. Increases for special education result from increases in each district's basic education allocation per student. Increases for educational service districts and institutional education programs are determined by the superintendent of public instruction using the methodology for general apportionment salaries and benefits in section 502 of this act.

(b) The appropriations in this section provide salary increase and incremental fringe benefit allocations based on formula adjustments as follows:

(i) For pupil transportation, an increase of $0.60 per weighted pupil-mile for the 1997-98 school year and maintained for the 1998-99 school year;

(ii) For education of highly capable students, an increase of $6.81 per formula student for the 1997-98 school year and maintained for the 1998-99 school year; and

(iii) For transitional bilingual education, an increase of $17.69 per eligible bilingual student for the 1997-98 school year and maintained for the 1998-99 school year; and

(iv) For learning assistance, an increase of $8.74 per entitlement unit for the 1997-98 school year and maintained for the 1998-99 school year.

(c) The appropriations in this section include (($912,000)) $903,000 for salary increase adjustments for substitute teachers at a rate of $10.64 per unit in the 1997-98 school year and maintained in the 1998-99 school year.

(2) (($19,751,000)) $19,600,000 is provided for adjustments to insurance benefit allocations. The maintenance rate for insurance benefit allocations is $314.51 per month for the 1997-98 and 1998-99 school years. The appropriations in this section provide ((increases of $2.83)) for a rate increase to $317.34 per month for the 1997-98 school year and (($18.41)) $335.75 per month for the 1998-99 school year at the following rates:

(a) For pupil transportation, an increase of $0.03 per weighted pupil-mile for the 1997-98 school year and $0.19 for the 1998-99 school year;

(b) For education of highly capable students, an increase of $0.20 per formula student for the 1997-98 school year and $1.35 for the 1998-99 school year;

(c) For transitional bilingual education, an increase of $.46 per eligible bilingual student for the 1997-98 school year and $3.44 for the 1998-99 school year; and

(d) For learning assistance, an increase of $.36 per funded unit for the 1997-98 school year and $2.70 for the 1998-99 school year.

(3) The rates specified in this section are subject to revision each year by the legislature.

(4)(((a))) For the 1997-98 school year, the superintendent shall prepare a report showing the allowable derived base salary for certificated instructional staff in accordance with RCW 28A.400.200 and LEAP Document 12D, and the actual derived base salary paid by each school district as shown on the S-275 report and shall make the report available to the fiscal committees of the legislature no later than February 15, 1998.

Sec. 505. 1997 c 149 s 505 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR PUPIL TRANSPORTATION

General Fund Appropriation (FY 1998). .. . . . . . .$ ((174,344,000))

175,168,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((179,560,000))

179,439,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((353,904,000))

354,607,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996-97 school year.

(2) A maximum of (($1,451,000)) $1,441,000 may be expended for regional transportation coordinators and related activities. The transportation coordinators shall ensure that data submitted by school districts for state transportation funding shall, to the greatest extent practical, reflect the actual transportation activity of each district.

(3) $30,000 of the fiscal year 1998 appropriation and $40,000 of the fiscal year 1999 appropriation are provided solely for the transportation of students enrolled in "choice" programs. Transportation shall be limited to low-income students who are transferring to "choice" programs solely for educational reasons.

(4) Allocations for transportation of students shall be based on reimbursement rates of $34.47 per weighted mile in the 1997-98 school year and (($34.76)) $34.61 per weighted mile in the 1998-99 school year exclusive of salary and benefit adjustments provided in section 504 of this act. Allocations for transportation of students transported more than one radius mile shall be based on weighted miles as determined by superintendent of public instruction times the per mile reimbursement rates for the school year pursuant to the formulas adopted by the superintendent of public instruction. Allocations for transportation of students living within one radius mile shall be based on the number of enrolled students in grades kindergarten through five living within one radius mile of their assigned school times the per mile reimbursement rate for the school year times 1.29.

Sec. 506. 1997 c 149 s 506 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR SCHOOL FOOD SERVICE PROGRAMS

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,075,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((3,075,000))

3,100,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 194,483,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((200,633,000))

200,658,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $6,000,000 of the general fund--state appropriations are provided for state matching money for federal child nutrition programs.

(2) (($150,000)) $175,000 of the general fund--state appropriations are provided for summer food programs for children in low-income areas.

Sec. 507. 1997 c 149 s 507 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR SPECIAL EDUCATION PROGRAMS

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((370,486,000))

371,687,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((374,327,000))

378,405,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((135,106,000))

143,106,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((879,919,000))

893,198,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996-97 school year.

(2) The superintendent of public instruction shall distribute state funds to school districts based on two categories, the optional birth through age two program for special education eligible developmentally delayed infants and toddlers, and the mandatory special education program for special education eligible students ages three to twenty-one. A "special education eligible student" means a student receiving specially designed instruction in accordance with a properly formulated individualized education program.

(3) For the 1997-98 and 1998-99 school years, the superintendent shall distribute state funds to each district based on the sum of:

(a) A district's annual average headcount enrollment of developmentally delayed infants and toddlers ages birth through two, times the district's average basic education allocation per full-time equivalent student, times 1.15; and

(b) A district's annual average full-time equivalent basic education enrollment times the funded enrollment percent determined pursuant to subsection (4)(c) of this section, times the district's average basic education allocation per full-time equivalent student times 0.9309.

(4) The definitions in this subsection apply throughout this section.

(a) "Average basic education allocation per full-time equivalent student" for a district shall be based on the staffing ratios required by RCW 28A.150.260 (i.e., 49/1000 certificated instructional staff in grades K-3, and 46/1000 in grades 4-12) and shall not include enhancements for K-3, secondary vocational education, or small schools.

(b) "Annual average full-time equivalent basic education enrollment" means the resident enrollment including students enrolled through choice (RCW 28A.225.225) and students from nonhigh districts (RCW 28A.225.210) and excluding students residing in another district enrolled as part of an interdistrict cooperative program (RCW 28A.225.250).

(c) "Enrollment percent" means the district's resident special education annual average enrollment including those students counted under the special education demonstration projects, excluding the birth through age two enrollment, as a percent of the district's annual average full-time equivalent basic education enrollment. For the 1997-98 and the 1998-99 school years, each district's funded enrollment percent shall be:

(i) For districts whose enrollment percent for 1994-95 was at or below 12.7 percent, the lesser of the district's actual enrollment percent for the school year for which the allocation is being determined or 12.7 percent.

(ii) For districts whose enrollment percent for 1994-95 was above 12.7 percent, the lesser of:

(A) The district's actual enrollment percent for the school year for which the special education allocation is being determined; or

(B) The district's actual enrollment percent for the school year immediately prior to the school year for which the special education allocation is being determined if greater than 12.7 percent; or

(C) For 1997-98, the 1994-95 enrollment percent reduced by 75 percent of the difference between the district's 1994-95 enrollment percent and 12.7 percent and for 1998-99, 12.7 percent.

(5) At the request of any interdistrict cooperative of at least 15 districts in which all excess cost services for special education students of the districts are provided by the cooperative, the maximum enrollment percent shall be 12.7, and shall be calculated in the aggregate rather than individual district units. For purposes of this subsection (4) of this section, the average basic education allocation per full-time equivalent student shall be calculated in the aggregate rather than individual district units.

(6) A maximum of $12,000,000 of the general fund--state appropriation for fiscal year 1998 and a maximum of $12,000,000 of the general fund--state appropriation for fiscal year 1999 are provided as safety net funding for districts with demonstrated needs for state special education funding beyond the amounts provided in subsection (3) of this section. Safety net funding shall be awarded by the state safety net oversight committee.

(a) The safety net oversight committee shall first consider the needs of districts adversely affected by the 1995 change in the special education funding formula. Awards shall be based on the amount required to maintain the 1994-95 state special education excess cost allocation to the school district in aggregate or on a dollar per funded student basis.

(b) The committee shall then consider unusual needs of districts due to a special education population which differs significantly from the assumptions of the state funding formula. Awards shall be made to districts that convincingly demonstrate need due to the concentration and/or severity of disabilities in the district. Differences in program costs attributable to district philosophy or service delivery style are not a basis for safety net awards.

(7) Prior to June 1st of each year, the superintendent shall make available to each school district from available data the district's maximum funded enrollment percent for the coming school year.

(8) The superintendent of public instruction may adopt such rules and procedures as are necessary to administer the special education funding and safety net award process. Prior to revising any standards, procedures, or rules in place for the 1996-97 school year, the superintendent shall consult with the office of financial management and the fiscal committees of the legislature.

(9) The safety net oversight committee appointed by the superintendent of public instruction shall consist of:

(a) Staff of the office of superintendent of public instruction;

(b) Staff of the office of the state auditor;

(d) One or more representatives from school districts or educational service districts knowledgeable of special education programs and funding.

(10) A maximum of $4,500,000 of the general fund--federal appropriation shall be expended for safety net funding to meet the extraordinary needs of one or more individual special education students.

(11) A maximum of $678,000 may be expended from the general fund--state appropriations to fund 5.43 full-time equivalent teachers and 2.1 full-time equivalent aides at children's orthopedic hospital and medical center. This amount is in lieu of money provided through the home and hospital allocation and the special education program.

(12) A maximum of $1,000,000 of the general fund--federal appropriation is provided for projects to provide special education students with appropriate job and independent living skills, including work experience where possible, to facilitate their successful transition out of the public school system. The funds provided by this subsection shall be from federal discretionary grants.

(13) A school district may carry over up to 10 percent of general fund--state funds allocated under this program; however, carry over funds shall be expended in the special education program.

(14) Beginning in the 1997-98 school year, the superintendent shall increase the percentage of federal flow-through to school districts to at least 84 percent. In addition to other purposes, school districts may use increased federal funds for high cost students, for purchasing regional special education services from educational service districts, and for staff development activities particularly relating to inclusion issues.

(15) Up to one percent of the general fund--federal appropriation shall be expended by the superintendent for projects related to use of inclusion strategies by school districts for provision of special education services. The superintendent shall prepare an information database on laws, best practices, examples of programs, and recommended resources. The information may be disseminated in a variety of ways, including workshops and other staff development activities.

(16) Amounts appropriated within this section are sufficient to fund ((section 5 of Second Substitute House Bill No. 1709 (mandate on school districts))) the provisions of House Bill No. 2682 (school medicaid incentive payments).

Sec. 508. 1997 c 149 s 508 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR TRAFFIC SAFETY EDUCATION PROGRAMS

Public Safety and Education Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((17,179,000))

16,883,000

The appropriation in this section is subject to the following conditions and limitations:

(1) The appropriation includes such funds as are necessary for the remaining months of the 1996-97 school year.

(2) A maximum of $507,000 shall be expended for regional traffic safety education coordinators.

(3) The maximum basic state allocation per student completing the program shall be $137.16 in the 1997-98 and 1998-99 school years.

(4) Additional allocations to provide tuition assistance for students from low-income families who complete the program shall be a maximum of $66.81 per eligible student in the 1997-98 and 1998-99 school years.

Sec. 509. 1997 c 454 s 504 (uncodified) is each amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR LOCAL EFFORT ASSISTANCE

General Fund Appropriation (FY 1998). .. . . . . . .$ ((84,347,000))

82,079,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((89,605,000))

86,272,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((173,952,000))

168,351,000

Sec. 510. 1997 c 454 s 505 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR INSTITUTIONAL EDUCATION PROGRAMS

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((18,026,000))

16,897,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((18,983,000))

18,596,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 8,548,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((45,557,000))

44,041,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The general fund--state appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996-97 school year.

(2) State funding provided under this section is based on salaries and other expenditures for a 220-day school year. The superintendent of public instruction shall monitor school district expenditure plans for institutional education programs to ensure that districts plan for a full-time summer program.

(3) State funding for each institutional education program shall be based on the institution's annual average full-time equivalent student enrollment. Staffing ratios for each category of institution shall remain the same as those funded in the 1995-97 biennium.

(4) (($341,000 of the general fund--state fiscal year 1998 appropriation and $407,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the implementation of Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code).)) $1,196,000 of the fiscal year 1999 general fund--state appropriation is provided to implement Engrossed Substitute Senate Bill No. 6600 (correctional facilities education programs). If Engrossed Substitute Senate Bill No. 6600 is enacted, beginning in the 1998-99 school year, the funded staffing ratios for education programs for juveniles age 18 or less in department of corrections facilities shall be the same as those provided for education programs in delinquent institutions under the department of social and health services. If the bill is not enacted by June 30, ((1997)) 1998, the amounts provided in this subsection shall lapse.

Sec. 511. 1997 c 149 s 513 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR PROGRAMS FOR HIGHLY CAPABLE STUDENTS

General Fund Appropriation (FY 1998). .. . . . . . .$ ((5,752,000))

5,701,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((6,176,000))

6,121,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((11,928,000))

11,822,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996-97 school year.

(2) Allocations for school district programs for highly capable students shall be distributed at a maximum rate of $311.12 per funded student for the 1997-98 school year and (($311.58)) $311.35 per funded student for the 1998-99 school year, exclusive of salary and benefit adjustments pursuant to section 504 of this act. The number of funded students shall be a maximum of two percent of each district's full-time equivalent basic education enrollment.

(3) $350,000 of the appropriation is for the centrum program at Fort Worden state park.

(4) $186,000 of the appropriation is for the odyssey of the mind and future problem-solving programs.

Sec. 512. 1997 c 454 s 506 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--EDUCATION REFORM PROGRAMS

General Fund Appropriation (FY 1998). .. . . . . . .$ ((18,905,000))

18,605,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((21,868,000))

22,017,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((40,773,000))

40,622,000

The appropriations in this section are subject to the following conditions and limitations:

(1) (($18,103,000)) $17,153,000 is provided for the operation of the commission on student learning and the development and implementation of student assessments. The commission shall cooperate with the superintendent of public instruction in defining measures of student achievement to be included in the student record system developed by the superintendent pursuant to section 501(1)(b) of this act.

(2) $2,190,000 is provided solely for training of paraprofessional classroom assistants and certificated staff who work with classroom assistants as provided in RCW 28A.415.310.

(3) $2,970,000 is provided for mentor teacher assistance, including state support activities, under RCW 28A.415.250 and 28A.415.260. Funds for the teacher assistance program shall be allocated to school districts based on the number of beginning teachers.

(4) $4,050,000 is provided for improving technology infrastructure, monitoring and reporting on school district technology development, promoting standards for school district technology, promoting statewide coordination and planning for technology development, and providing regional educational technology support centers, including state support activities, under chapter 28A.650 RCW.

(5) $7,200,000 is provided for grants to school districts to provide a continuum of care for children and families to help children become ready to learn. Grant proposals from school districts shall contain local plans designed collaboratively with community service providers. If a continuum of care program exists in the area in which the school district is located, the local plan shall provide for coordination with existing programs to the greatest extent possible. Grant funds shall be allocated pursuant to RCW 70.190.040.

(6) $5,000,000 is provided solely for the meals for kids program under RCW 28A.235.145 through 28A.235.155.

(7) $1,260,000 is provided for technical assistance related to education reform through the office of the superintendent of public instruction, in consultation with the commission on student learning, as specified in RCW 28A.300.130 (center for the improvement of student learning).

(8) $799,000 of the fiscal year 1999 appropriation is provided solely for the leadership internship program for superintendents, principals, and program administrators. The purpose of the program is to provide funds to school districts to provide partial release time for district employees in an internship with an appropriate mentor. The funds shall be distributed by the superintendent to school districts subject to the following conditions and limitations:

(i) The superintendent with the assistance of an advisory board that includes school administrators and higher education representatives shall select internship participants giving priority to candidates who intend to serve in school districts where finding qualified applicants has been difficult.

(ii) Candidates if accepted in the internship program must agree to seek employment in Washington after receiving certification, participate in education improvement training activities, and participate in evaluations of the effectiveness of the internship program.

(iii) The maximum amount of state funding for each internship shall not exceed the daily rate of providing a substitute teacher for the equivalent of up to forty-five days and the funds shall be used to pay for partial release time while the school district employee is completing the internship.

(iv) The superintendent may withhold a maximum of seven percent of the funds for costs of implementing the program.

Sec. 513. 1997 c 454 s 507 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR TRANSITIONAL BILINGUAL PROGRAMS

General Fund Appropriation (FY 1998). .. . . . . . .$ ((31,146,000))

30,711,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((33,414,000))

32,185,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((64,560,000))

62,896,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriation for fiscal year 1998 provides such funds as are necessary for the remaining months of the 1996-97 school year.

(2) The superintendent of public instruction shall study the formula components proposed for the 1998-99 school year and prepare a report to the legislature no later than January 15, 1998.

(3) The superintendent shall distribute a maximum of $643.78 per eligible bilingual student in the 1997-98 and 1998-99 school years, exclusive of salary and benefit adjustments provided in section 503 of this act.

Sec. 514. 1997 c 149 s 516 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR THE LEARNING ASSISTANCE PROGRAM

General Fund Appropriation (FY 1998). .. . . . . . .$ ((60,309,000))

60,224,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((60,862,000))

61,000,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((121,171,000))

121,224,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriation for fiscal year 1998 provides such funds as are necessary for the remaining months of the 1996-97 school year.

(2) For making the calculation of the percentage of students scoring in the lowest quartile as compared with national norms, beginning with the 1991-92 school year, the superintendent shall multiply each school district's 4th and 8th grade test results by 0.86.

(3) Funding for school district learning assistance programs shall be allocated at maximum rates of $378.33 per funded unit for the 1997-98 school year and (($379.47)) $378.88 per funded unit for the 1998-99 school year exclusive of salary and benefit adjustments provided in section 504 of this act. School districts may carryover up to 10 percent of funds allocated under this program; however, carryover funds shall be expended for the learning assistance program.

(a) A school district's funded units for the 1997-98 and 1998-99 school years shall be the sum of the following:

(i) The district's full-time equivalent enrollment in kindergarten through 6th grade, times the 5-year average 4th grade test result as adjusted pursuant to subsection (2) of this section, times 0.92; and

(ii) The district's full-time equivalent enrollment in grades 7 through 9, times the 5-year average 8th grade test result as adjusted pursuant to subsection (2) of this section, times 0.92; and

(iii) If in the prior school year the district's percentage of October headcount enrollment in grades K-12 eligible for free and reduced price lunch exceeded the state average, subtract the state average percentage of students eligible for free and reduced price lunch from the district's percentage and multiply the result by the district's K-12 annual average full-time equivalent enrollment for the current school year times 22.30 percent.

Sec. 515. 1997 c 454 s 508 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--LOCAL ENHANCEMENT FUNDS

General Fund Appropriation (FY 1998). .. . . . . . .$ ((49,815,000))

49,493,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((56,962,000))

55,659,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((106,777,000))

105,152,000

The appropriations in this section are subject to the following conditions and limitations:

(1) A maximum of (($50,841,000)) $50,418,000 is provided for learning improvement allocations to school districts to enhance the ability of instructional staff to teach and assess the essential academic learning requirements for reading, writing, communication, and math in accordance with the timelines and requirements established under RCW 28A.630.885. However, special emphasis shall be given to the successful teaching of reading. Allocations under this section shall be subject to the following conditions and limitations:

(a) In accordance with the timetable for the implementation of the assessment system by the commission on student learning, the allocations for the 1997-98 and 1998-99 school years shall be at a maximum annual rate per full-time equivalent student of $36.69 for students enrolled in grades K-4, $30.00 for students enrolled in grades 5-7, and $22.95 for students enrolled in grades 8-12. Allocations shall be made on the monthly apportionment schedule provided in RCW 28A.510.250.

(b) A district receiving learning improvement allocations shall:

(i) Develop and keep on file at each building a student learning improvement plan to achieve the student learning goals and essential academic learning requirements and to implement the assessment system as it is developed. The plan shall delineate how the learning improvement allocations will be used to accomplish the foregoing. The plan shall be made available to the public upon request;

(ii) Maintain a policy regarding the involvement of school staff, parents, and community members in instructional decisions;

(iii) File a report by October 1, 1998, and October 1, 1999, with the office of the superintendent of public instruction, in a format developed by the superintendent that: Enumerates the activities funded by these allocations; the amount expended for each activity; describes how the activity improved understanding, teaching, and assessment of the essential academic learning requirements by instructional staff; and identifies any amounts expended from this allocation for supplemental contracts; and

(iv) Provide parents and the local community with specific information on the use of this allocation by including in the annual performance report required in RCW 28A.320.205, information on how funds allocated under this subsection were spent and the results achieved.

(c) The superintendent of public instruction shall compile and analyze the school district reports and present the results to the office of financial management and the appropriate committees of the legislature no later than November 15, 1998, and November 15, 1999.

(2) (($55,937,000)) $54,734,000 is provided for local education program enhancements to meet educational needs as identified by the school district, including alternative education programs. This amount includes such amounts as are necessary for the remainder of the 1996-97 school year. Allocations for the 1997-98 ((and 1998-99)) school year shall be at a maximum annual rate of $29.86 per full-time equivalent student and $28.81 per full-time equivalent student for the 1998-99 school year as determined pursuant to subsection (3) of this section. Allocations shall be made on the monthly apportionment payment schedule provided in RCW 28A.510.250.

(3) Allocations provided under this section shall be based on school district annual average full-time equivalent enrollment in grades kindergarten through twelve: PROVIDED, That for school districts enrolling not more than one hundred average annual full-time equivalent students, and for small school plants within any school district designated as remote and necessary schools, the allocations shall be as follows:

(a) Enrollment of not more than 60 average annual full-time equivalent students in grades kindergarten through six shall generate funding based on sixty full-time equivalent students;

(b) Enrollment of not more than 20 average annual full-time equivalent students in grades seven and eight shall generate funding based on twenty full-time equivalent students; and

(c) Enrollment of not more than 60 average annual full-time equivalent students in grades nine through twelve shall generate funding based on sixty full-time equivalent students.

(4) Funding provided pursuant to this section does not fall within the definition of basic education for purposes of Article IX of the state Constitution and the state's funding duty thereunder.

(5) Receipt by a school district of one-fourth of the district's allocation of funds under this section, shall be conditioned on a finding by the superintendent that:

(a) The district is enrolled as a medicaid service provider and is actively pursuing federal matching funds for medical services provided through special education programs, pursuant to RCW 74.09.5241 through 74.09.5256 (Title XIX funding); and

(b) The district is filing truancy petitions as required under chapter 312, Laws of 1995 and RCW 28A.225.030.

PART VI

HIGHER EDUCATION

Sec. 601. 1997 c 454 s 601 (uncodified) is amended to read as follows:

The appropriations in sections 603 through 609 of this act are subject to the following conditions and limitations:

(1) "Institutions" means the institutions of higher education receiving appropriations under sections 603 through 609 of this act.

(2)(a) The salary increases provided or referenced in this subsection shall be the allowable salary increases provided at institutions of higher education, excluding increases associated with normally occurring promotions and increases related to faculty and professional staff retention, and excluding increases associated with employees under the jurisdiction of chapter 41.56 RCW pursuant to the provisions of RCW 28B.16.015.

(b) Each institution of higher education shall provide to each classified staff employee as defined by the office of financial management a salary increase of 3.0 percent on July 1, 1997. Each institution of higher education shall provide to instructional and research faculty, exempt professional staff, academic administrators, academic librarians, counselors, teaching and research assistants as classified by the office of financial management, and all other nonclassified staff, including those employees under RCW 28B.16.015, an average salary increase of 3.0 percent on July 1, 1997. For employees under the jurisdiction of chapter 41.56 RCW pursuant to the provisions of RCW 28B.16.015, distribution of the salary increases will be in accordance with the applicable collective bargaining agreement. However, an increase shall not be provided to any classified employee whose salary is above the approved salary range maximum for the class to which the employee's position is allocated. To collect consistent data for use by the legislature, the office of financial management, and other state agencies for policy and planning purposes, institutions of higher education shall report personnel data to be used in the department of personnel's human resource data warehouse in compliance with uniform reporting procedures established by the department of personnel.

(c) Each institution of higher education receiving appropriations under sections 604 through 609 of this act may provide to instructional and research faculty, exempt professional staff, academic administrators, academic librarians, counselors, teaching and research assistants, as classified by the office of financial management, and all other nonclassified staff, but not including employees under RCW 28B.16.015, an additional average salary increase of 1.0 percent on July 1, 1997, and an average salary increase of 2.0 percent on July 1, 1998. Any salary increases authorized under this subsection (2)(c) shall not be included in an institution's salary base. It is the intent of the legislature that general fund--state support for an institution shall not increase during the current or any future biennium as a result of any salary increases authorized under this subsection (2)(c).

(d) Specific salary increases authorized in sections 603 through 609 of this act are in addition to any salary increase provided in this subsection.

(3)(a) Each institution receiving appropriations under sections 604 through 609 of this act shall submit plans for achieving measurable and specific improvements in academic years 1997-98 and 1998-99 to the higher education coordinating board. The plans, to be prepared at the direction of the board, shall be submitted by August 15, 1997 (for academic year 1997-98) and June 30, 1998 (for academic year 1998-99). The following measures and goals will be used for the 1997-99 biennium:

Goal

(i) Undergraduate graduation efficiency index:

For students beginning as freshmen 95

For transfer students 90

(ii) Undergraduate student retention, defined as the percentage of all undergraduate students who return for the next year at the same

institution, measured from fall to fall:

Research universities 95%

Comprehensive universities and college 90%

(iii) Graduation rates, defined as the percentage of an entering

freshmen class at each institution that graduates within five years:

Research universities 65%

Comprehensive universities and college 55%

(iv) A measure of faculty productivity, with goals and targets in accord with the legislative intent to achieve measurable and specific improvements, to be determined by the higher education coordinating board, in consultation with the institutions receiving appropriations under sections 604 through 609 of this act.

(v) An additional measure and goal to be selected by the higher education coordinating board for each institution, in consultation with each institution.

(b) Academic year 1995-96 shall be the baseline year against which performance in academic year 1997-98 shall be measured. Academic year 1997-98 shall be the baseline year against which performance in academic year 1998-99 shall be measured. The difference between each institution's baseline year and the state-wide performance goals shall be calculated and shall be the performance gap for each institution for each measure for each year. The higher education coordinating board shall set performance targets for closing the performance gap for each measure for each institution. Performance targets shall be set at levels that reflect meaningful and substantial progress towards the state-wide performance goals. Each institution shall report to the higher education coordinating board on its actual performance achievement for each measure for academic year 1997-98 by ((June 30, 1998, except that performance reporting for the student retention measure shall be completed by October 15, 1998)) November 1, 1998.

(4) The state board for community and technical colleges shall develop an implementation plan for measurable and specific improvements in productivity, efficiency, and student retention in academic years 1997-98 and 1998-99 consistent with the performance management system developed by the work force training and education coordinating board and for the following long-term performance goals:

Goal

(a) Hourly wages for vocational graduates $12/hour

(b) Academic students transferring to Washington

higher education institutions 67%

(d) Graduation efficiency index 95

(5) The state's public institutions of higher education increasingly are being called upon to become more efficient in conducting the business operations necessary to support the carrying out of their academic missions. The legislature recognizes that state laws and regulations may have the unintended effect of acting as barriers to efficient operation in some instances, and desires to encourage the institutions of higher education to think beyond the constraints of current law in identifying opportunities for improved efficiency. Accordingly, the legislature requests that the institutions of higher education, working together through the council of presidents' office and the state board for community and technical colleges, identify opportunities for changes in state law that would form the basis for a new efficiency compact with the state, for consideration no later than the 1999 legislative session.

(6) Pursuant to RCW 43.135.055, institutions of higher education receiving appropriations under sections 603 through 609 of this act are authorized to increase summer term tuition in excess of the fiscal growth factor during the 1997-99 fiscal biennium. Tuition levels increased pursuant to this subsection shall not exceed the per credit hour rate calculated from the academic year tuition levels established by the legislature in RCW 28B.15.067.

Sec. 602. 1997 c 454 s 602 (uncodified) is amended to read as follows:

(((1))) The appropriations in sections 603 through 609 of this act provide state general fund support or employment and training trust account support for full-time equivalent student enrollments at each institution of higher education. Listed below are the annual full-time equivalent student enrollments by institution assumed in this act.

1997-98 1998-99

Annual Annual

Average Average

University of Washington

Main campus 31,297 31,527

Bothell branch 775 895

Tacoma branch 847 992

Washington State University

Main campus 17,403 ((17,723))

17,272

Spokane branch 352 442

Tri-Cities branch 754 ((814))

754

Vancouver branch 851 971

Central Washington University 7,346 7,446

Eastern Washington University 7,739 7,739

The Evergreen State College 3,496 3,576

Western Washington University 10,188 10,338

State Board for Community and

Technical Colleges 116,426 118,526

Higher Education Coordinating

Board 50 50

Sec. 603. 1997 c 454 s 603 (uncodified) is amended to read as follows:

FOR THE STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((382,891,000))

380,445,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((420,961,000))

421,647,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 11,404,000

Employment and Training Trust Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((26,346,000))

29,114,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((841,602,000))

842,610,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $2,718,000 of the general fund--state appropriation for fiscal year 1998 and $4,079,000 of the general fund--state appropriation for fiscal year 1999 shall be held in reserve by the board. These funds are provided for improvements in productivity, efficiency, and student retention. The board may approve the fiscal year 1998 allocation of funds under this subsection upon completion of an implementation plan. The implementation plan shall be submitted by the board to the appropriate legislative committees and the office of financial management in accordance with section 601(4) of this act by September 1, 1997. The board may approve the fiscal year 1999 allocation of funds under this subsection based on the board's evaluation of:

(a) College performance compared to the goals for productivity, efficiency, and student retention as submitted in the plan required in section 601(4) of this act; and

(b) The quality and effectiveness of the strategies the colleges propose to achieve continued improvement in quality and efficiency during the 1998-99 academic year.

(2) (($2,553,000 of the general fund--state appropriation for fiscal year 1998, $28,761,000)) $28,546,000 of the general fund--state appropriation for fiscal year 1999((,)) and the entire employment and training trust account appropriation are provided solely as special funds for training and related support services, including financial aid, child care, and transportation, as specified in chapter 226, Laws of 1993 (employment and training for unemployed workers) and Substitute House Bill No. 2214.

(a) Funding is provided to support up to 7,200 full-time equivalent students in each fiscal year.

(b) The state board for community and technical colleges shall submit a plan for the allocation of the full-time equivalent students provided in this subsection to the workforce training and education coordinating board for review and approval.

(3) $1,441,000 of the general fund--state appropriation for fiscal year 1998 and $1,441,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for 500 FTE enrollment slots to implement RCW 28B.50.259 (timber-dependent communities).

(4) $1,862,500 of the general fund--state appropriation for fiscal year 1998 and $1,862,500 of the general fund--state appropriation for fiscal year 1999 are provided solely for assessment of student outcomes at community and technical colleges.

(5) $706,000 of the general fund--state appropriation for fiscal year 1998 and $706,000 of general fund--state appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(6) Up to $1,035,000 of the general fund--state appropriation for fiscal year 1998 and up to $2,102,000 of the general fund--state appropriation for fiscal year 1999 may be used in combination with salary and benefit savings from faculty turnover to provide faculty salary increments and associated benefits. To the extent general salary increase funding is used to pay faculty increments, the general salary increase shall be reduced by the same amount.

(7) To address part-time faculty salary disparities and to increase the ratio of full-time to part-time faculty instructors, the board shall provide salary increases to part-time instructors or hire additional full-time instructional staff under the following conditions and limitations: (a) The amount used for such purposes shall not exceed an amount equivalent to an additional salary increase of 1.0 percent on July 1, 1997, and an additional salary increase of 2.0 percent on July 1, 1998, for instructional faculty as classified by the office of financial management; and (b) at least $2,934,000 shall be spent for the purposes of this subsection.

(8) $83,000 of the general fund--state appropriation for fiscal year 1998 and (($1,567,000)) $867,000 of the general fund--state appropriation for fiscal year 1999 are provided for personnel and expenses to develop curricula, library resources, and operations of Cascadia Community College. It is the legislature's intent to use the opportunity provided by the establishment of the new institution to conduct a pilot project of budgeting based on instructional standards and outcomes. The college shall use a portion of the available funds to develop a set of measurable standards and outcomes as the basis for budget development in the 1999-01 biennium.

(9) The technical colleges may increase tuition and fees to conform with the percentage increase in community college operating fees enacted by the 1997 legislature. The community colleges may charge up to the maximum level authorized for services and activities fees in RCW 28B.15.069.

(10) Community and technical colleges with below-average faculty salaries may use funds identified by the state board in the 1997-98 and 1998-99 operating allocations to increase faculty salaries no higher than the system-wide average.

(11) $1,000,000 of the general fund--state appropriation for fiscal year 1998 and $1,000,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for tuition support for students enrolled in work-based learning programs.

(12) $700,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for a technology equipment matching program for community and technical colleges. Each college district shall match its allocation of this appropriation with an equal amount of cash donations from private sources.

(13) $125,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Burbage et al. v. State of Washington (Thurston county superior court cause no. 94-2-02560-8), as referenced in section 707(1)(c) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

(14) $669,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Retired State Employees et al. v. State of Washington (Thurston county superior court cause no. 92-2-01294-1), as referenced in section 707(1)(d) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

Sec. 604. 1997 c 454 s 604 (uncodified) is amended to read as follows:

FOR UNIVERSITY OF WASHINGTON

General Fund Appropriation (FY 1998). .. . . . . . .$ 283,923,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((289,807,000))

293,988,000

Death Investigations Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,810,000))

2,162,000

Industrial Insurance Premium Refund Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . .$ 514,000

Accident Account Appropriation. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,969,000

Medical Aid Account Appropriation. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,989,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((586,012,000))

590,545,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $2,019,000 of the general fund appropriation for fiscal year 1998 and $3,029,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.

(2) $800,000 of the general fund appropriation for fiscal year 1998 and $1,896,000 of the general fund appropriation for fiscal year 1999 are provided solely to support additional upper-division and graduate level enrollments at the Tacoma branch campus above the 1996-97 budgeted FTE level.

(3) $593,000 of the general fund appropriation for fiscal year 1998 and $1,547,000 of the general fund appropriation for fiscal year 1999 are provided solely to support additional upper-division and graduate level enrollments at the Bothell branch campus above the 1996-97 budgeted FTE level.

(4) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(5) $324,000 of the general fund appropriation for fiscal year 1998 and $324,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(6) $130,000 of the general fund appropriation for fiscal year 1998 and $130,000 of the general fund appropriation for fiscal year 1999 are provided solely for the implementation of the Puget Sound work plan agency action item UW-01.

(7) $1,200,000 of the general fund appropriation for fiscal year 1998 and $1,200,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The university shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.

(8) $47,000 of the fiscal year 1998 general fund appropriation and $47,000 of the fiscal year 1999 general fund appropriation are provided solely to employ a fossil preparator/educator in the Burke Museum. The entire amounts provided in this subsection shall be provided directly to the Burke Museum.

(9) $75,000 of the general fund appropriation for fiscal year 1998 and $75,000 of the general fund appropriation for fiscal year 1999 are provided solely for enhancements to research capabilities at the Olympic natural resources center.

(10) $150,000 of the general fund appropriation for fiscal year 1999 is provided solely for remodeling and equipment necessary to accommodate enrollment growth at the Bothell branch campus.

(11) $560,000 of the general fund appropriation for fiscal year 1999 is provided solely for the disabilities, opportunities, internetworking, and technology program.

(12) $3,000,000 of the general fund appropriation for fiscal year 1999 is provided solely to establish a high speed internet-2 hub.

(13) $150,000 of the general fund appropriation for fiscal year 1999 is provided solely to support the physicians assistant program in Spokane.

(14) $352,000 of the death investigations account appropriation is provided solely for staff and equipment for the state toxicology laboratory to support implementation of quality control procedures and laboratory certification, and for enhanced screening of sexual assault victims, blood alcohol and volatile intoxicants analysis, and blood tests for marijuana in driving cases.

(15) $74,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Burbage et al. v. State of Washington (Thurston county superior court cause no. 94-2-02560-8), as referenced in section 707(1)(c) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

(16) $397,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Retired State Employees et al. v. State of Washington (Thurston county superior court cause no. 92-2-01294-1), as referenced in section 707(1)(d) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

Sec. 605. 1997 c 454 s 605 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE UNIVERSITY

General Fund Appropriation (FY 1998). .. . . . . . .$ ((166,644,000))

169,894,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((172,819,000))

171,125,000

Air Pollution Control Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 206,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((339,669,000))

341,225,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $1,204,000 of the general fund appropriation for fiscal year 1998 and $1,807,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.

(2) $1,059,000 of the general fund appropriation for fiscal year 1999 is provided solely to support additional upper-division and graduate level enrollments at the Vancouver branch campus above the 1996-97 budgeted FTE level.

(3) $263,000 of the general fund appropriation for fiscal year 1998 and (($789,000)) $263,000 of the general fund appropriation for fiscal year 1999 are provided solely to support additional upper-division and graduate level enrollments at the Tri-Cities branch campus above the 1996-97 budgeted FTE level.

(4) $971,000 of the general fund appropriation for fiscal year 1999 is provided solely to support additional upper-division and graduate level enrollments at the Spokane branch campus above the 1996-97 budgeted FTE level.

(5) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(6) $140,000 of the general fund appropriation for fiscal year 1998 and $140,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(7) $157,000 of the general fund appropriation for fiscal year 1998 and $157,000 of the general fund appropriation for fiscal year 1999 are provided solely for the implementation of the Puget Sound work plan agency action item WSU-01.

(8) $600,000 of the general fund appropriation for fiscal year 1998 and $600,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The university shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.

(9) $50,000 of the general fund appropriation for fiscal year 1998 and $50,000 of the general fund appropriation for fiscal year 1999 are provided solely for yellow star thistle research.

(10) $55,000 of the general fund appropriation for fiscal year 1998 and $55,000 of the general fund appropriation for fiscal year 1999 are provided solely for the Goldendale distance learning center.

(11) $3,250,000 of the general fund appropriation for fiscal year 1998 is provided solely for legal costs and settlement payments associated with construction claims for the Vancouver branch campus and the veterinary teaching hospital capital projects.

(12) $590,000 of the general fund appropriation for fiscal year 1999 is provided solely for the management of the Spokane riverpoint campus as provided in Substitute Senate Bill No. 6655.

(13) $100,000 of the fiscal year 1999 general fund appropriation is provided solely for the aquatic animal health diagnostic center to accommodate an unanticipated caseload increase.

(14) $43,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Burbage et al. v. State of Washington (Thurston county superior court cause no. 94-2-02560-8), as referenced in section 707(1)(c) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

(15) $228,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Retired State Employees et al. v. State of Washington (Thurston county superior court cause no. 92-2-01294-1), as referenced in section 707(1)(d) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

Sec. 606. 1997 c 454 s 606 (uncodified) is amended to read as follows:

FOR EASTERN WASHINGTON UNIVERSITY

General Fund Appropriation (FY 1998). .. . . . . . .$ 39,211,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((39,489,000))

39,563,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((78,700,000))

78,774,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $285,000 of the general fund appropriation for fiscal year 1998 and $428,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.

(2) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(3) $93,000 of the general fund appropriation for fiscal year 1998 and $93,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(4) $53,000 of the general fund--state appropriation for fiscal year 1998 and $54,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The university shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.

(5) $3,188,000 of the general fund appropriation for fiscal year 1998 and $3,188,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve pending attainment of budgeted enrollments of 6,942 FTEs. The office of financial management shall approve the allotment of funds under this subsection at the annual rate of $4,000 for annual student FTEs in excess of 6,942 based on tenth day quarterly enrollment and the office of financial management's quarterly budget driver report. In addition, allotments of reserve funds in this section shall be approved by the office of financial management upon approval by the higher education coordinating board for (a) actions that will result in additional enrollment growth, and (b) contractual obligations in fiscal year 1998 to the extent such funds are required.

(6) Pursuant to section 904 of this act and within current appropriation levels, the waiver limit for Eastern Washington University is increased from 11 percent to 14 percent during the 1997-99 fiscal biennium. Eastern Washington University shall report by December 15, 1998, to the appropriate committees of the legislature, the office of financial management, and the higher education coordinating board on its implementation of the increased waiver limit.

(7) $12,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Burbage et al. v. State of Washington (Thurston county superior court cause no. 94-2-02560-8), as referenced in section 707(1)(c) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

(8) $62,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Retired State Employees et al. v. State of Washington (Thurston county superior court cause no. 92-2-01294-1), as referenced in section 707(1)(d) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

Sec. 607. 1997 c 454 s 607 (uncodified) is amended to read as follows:

FOR CENTRAL WASHINGTON UNIVERSITY

General Fund Appropriation (FY 1998). .. . . . . . .$ ((37,214,000))

37,244,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((38,616,000))

38,749,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((75,830,000))

75,993,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $269,000 of the general fund appropriation for fiscal year 1998 and $403,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.

(2) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(3) $70,000 of the general fund appropriation for fiscal year 1998 and $70,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(4) $51,000 of the general fund appropriation for fiscal year 1998 and $51,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The college shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.

(5) $11,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Burbage et al. v. State of Washington (Thurston county superior court cause no. 94-2-02560-8), as referenced in section 707(1)(c) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

(6) $62,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Retired State Employees et al. v. State of Washington (Thurston county superior court cause no. 92-2-01294-1), as referenced in section 707(1)(d) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

Sec. 608. 1997 c 454 s 608 (uncodified) is amended to read as follows:

FOR THE EVERGREEN STATE COLLEGE

General Fund Appropriation (FY 1998). .. . . . . . .$ ((20,151,000))

20,401,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((20,518,000))

20,596,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((40,669,000))

40,997,000

The appropriations in this section is subject to the following conditions and limitations:

(1) $144,000 of the general fund appropriation for fiscal year 1998 and $217,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.

(2) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(3) $47,000 of the general fund appropriation for fiscal year 1998 and $47,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(4) $29,000 of the general fund appropriation for fiscal year 1998 and $29,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The college shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.

(5) $35,000 of the general fund appropriation for fiscal year 1999 is provided solely for the Washington institute for public policy to conduct a study of college students' employment. The study shall include, but need not be limited to, matching student enrollment information with unemployment insurance information. The office of financial management, higher education coordinating board, state board for community and technical colleges, and the employment security department shall assist the institute in the performance of the study. Results of the study are to be reported to the legislature by January 15, 1999.

(6) $250,000 of the general fund appropriation for fiscal year 1998 is provided solely for equipment and expenses necessary to accommodate enrollment growth.

(7) $7,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Burbage et al. v. State of Washington (Thurston county superior court cause no. 94-2-02560-8), as referenced in section 707(1)(c) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

(8) $36,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Retired State Employees et al. v. State of Washington (Thurston county superior court cause no. 92-2-01294-1), as referenced in section 707(1)(d) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

Sec. 609. 1997 c 454 s 609 (uncodified) is amended to read as follows:

FOR WESTERN WASHINGTON UNIVERSITY

General Fund Appropriation (FY 1998). .. . . . . . .$ 47,822,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((48,855,000))

48,951,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((96,677,000))

96,773,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $342,000 of the general fund appropriation for fiscal year 1998 and $514,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management shall approve the allotment of amounts under this subsection upon notification by the higher education coordinating board. These amounts are provided for the preparation of plans and for the achievement of measurable and specific improvements towards performance and accountability goals as outlined in section 601(3) of this act.

(2) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(4) $66,000 of the general fund appropriation for fiscal year 1998 and $67,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The university shall provide a report in their 1999-01 biennial operating budget request submittal on the effective expenditure of funds for the purposes of this subsection.

(5) $15,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Burbage et al. v. State of Washington (Thurston county superior court cause no. 94-2-02560-8), as referenced in section 707(1)(c) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

(6) $81,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Retired State Employees et al. v. State of Washington (Thurston county superior court cause no. 92-2-01294-1), as referenced in section 707(1)(d) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

Sec. 610. 1997 c 454 s 610 (uncodified) is amended to read as follows:

FOR THE HIGHER EDUCATION COORDINATING BOARD--POLICY COORDINATION AND ADMINISTRATION

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,734,000))

2,809,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,615,000))

3,604,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((693,000))

704,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((6,042,000))

7,117,000

The appropriations in this section are provided to carry out the accountability, performance measurement, policy coordination, planning, studies and administrative functions of the board and are subject to the following conditions and limitations:

(1) The board shall set performance targets, review, recommend changes if necessary, and approve plans defined in section 601(3)(a) of this act for achieving measurable and specific improvements in academic years 1997-98 and 1998-99. By October 1, 1997, the board shall notify the office of financial management to allot institutions' fiscal year 1998 performance funds held in reserve, based upon the adequacy of plans prepared by the institutions.

(2) The board shall develop criteria to assess institutions' performance and shall use those criteria in determining the allotment of performance and accountability funds. The board shall evaluate each institution's achievement of performance targets for the 1997-98 academic year and, by ((August 1)) November 15, 1998, the board shall notify the office of financial management to allot institutions' fiscal year 1999 performance funds held in reserve, based upon each institution's performance((, except for performance funds held for achievement of the student retention measure. For the student retention measure, the board shall notify the office of financial management by November 1, 1998, to allot institutions' fiscal year 1999 performance funds held in reserve, based upon each institution's performance)).

(3) By January, 1999, the board shall recommend to the office of financial management and appropriate legislative committees any recommended additions, deletions, or revisions to the performance and accountability measures in sections 601(3) of this act as part of the next master plan for higher education. The recommendations shall be developed in consultation with the institutions of higher education and may include additional performance indicators to measure successful student learning and other student outcomes for possible inclusion in the 1999-01 operating budget. The recommendations shall include measures of performance demonstrating specific and measurable improvements related to distance education and education provided primarily through technology, to be determined by the board, in consultation with the institutions of higher education.

(4) $280,000 of the general fund--state appropriation for fiscal year 1998 and $280,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for enrollment to implement RCW 28B.80.570 through 28B.80.585 (rural natural resources impact areas). The number of students served shall be 50 full-time equivalent students per fiscal year. The board shall ensure that enrollments reported under this subsection meet the criteria outlined in RCW 28B.80.570 through 28B.80.585.

(5) $70,000 of the general fund--state appropriation for fiscal year 1998 and $70,000 of the general fund--state appropriation for fiscal year 1999 are provided to develop a competency based admissions system for higher education institutions. The board shall complete the competency based admissions system and issue a report outlining the competency based admissions system by January 1999.

(6) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for activities related to higher education facilities planning, project monitoring, and access issues related to capital facilities. Of this amount, $50,000 is provided for a study of higher education needs of Okanogan county and surrounding communities with consideration given to alternative approaches to educational service delivery, facility expansion, relocation or partnership, and long-term growth and future educational demands of the region.

(7) $150,000 of the general fund--state appropriation for fiscal year 1998 is provided solely as one-time funding for computer upgrades.

(8) $75,000 of the general fund--state appropriation for fiscal year 1998 and $175,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to conduct a higher education and economic assessment of the Spokane area as described in Substitute Senate Bill No. 6655.

(9) $810,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to complete the cooperative library project for the four-year public higher education institutions. Funds shall be transferred to the University of Washington for one-time equipment acquisition, ongoing support of the system, and acquisition of shared electronic journals for use by all the member institutions.

(10) $1,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Burbage et al. v. State of Washington (Thurston county superior court cause no. 94-2-02560-8), as referenced in section 707(1)(c) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

(11) $3,000 of the general fund--state appropriation for fiscal year 1999 is provided solely to pay the increased employer funding rate resulting from the settlement in Retired State Employees et al. v. State of Washington (Thurston county superior court cause no. 92-2-01294-1), as referenced in section 707(1)(d) of this act. If the stipulated settlement is not approved by the court by August 1, 1998, the amount provided in this subsection shall lapse.

Sec. 611. 1997 c 454 s 611 (uncodified) is amended to read as follows:

FOR THE HIGHER EDUCATION COORDINATING BOARD--FINANCIAL AID AND GRANT PROGRAMS

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((89,369,000))

89,606,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((96,209,000))

97,232,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((8,255,000))

8,278,000

Advanced College Tuition Payment Program Account Appropriation. . . . . . . . . . . . . . . . . . . . .$ 1,198,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((193,833,000))

196,314,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $527,000 of the general fund--state appropriation for fiscal year 1998 and $526,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the displaced homemakers program.

(2) $216,000 of the general fund--state appropriation for fiscal year 1998 and $220,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the western interstate commission for higher education.

(3) $118,000 of the general fund--state appropriation for fiscal year 1998 and $118,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the health personnel resources plan.

(4) $1,000,000 of the general fund--state appropriation for fiscal year 1998 and $1,000,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the scholarships and loans program under chapter 28B.115 RCW, the health professional conditional scholarship program. This amount shall be deposited to the health professional loan repayment and scholarship trust fund to carry out the purposes of the program.

(5) $86,783,000 of the general fund--state appropriation for fiscal year 1998 and $93,728,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for student financial aid, including all administrative costs. The amounts in (a), (b), and (c) of this subsection are sufficient to implement Second Substitute House Bill No. 1851 (higher education financial aid). Of these amounts:

(a) $67,266,000 of the general fund--state appropriation for fiscal year 1998 and $73,968,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the state need grant program. (((ii))) After April 1 of each fiscal year, up to one percent of the annual appropriation for the state need grant program may be transferred to the state work study program.

(b) $15,350,000 of the general fund--state appropriation for fiscal year 1998 and $15,350,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the state work study program. After April 1 of each fiscal year, up to one percent of the annual appropriation for the state work study program may be transferred to the state need grant program;

(c) $2,420,000 of the general fund--state appropriation for fiscal year 1998 and $2,420,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for educational opportunity grants. For the purpose of establishing eligibility for the equal opportunity grant program for placebound students under RCW 28B.101.020, Thurston county lies within the branch campus service area of the Tacoma branch campus of the University of Washington;

(d) A maximum of 2.1 percent of the general fund--state appropriation for fiscal year 1998 and 2.1 percent of the general fund--state appropriation for fiscal year 1999 may be expended for financial aid administration, excluding the four percent state work study program administrative allowance provision;

(e) $230,000 of the general fund--state appropriation for fiscal year 1998 and $201,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the educator's excellence awards. Any educator's excellence moneys not awarded by April 1st of each year may be transferred by the board to either the Washington scholars program or, in consultation with the workforce training and education coordinating board, to the Washington award for vocational excellence;

(f) $1,011,000 of the general fund--state appropriation for fiscal year 1998 and $1,265,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement the Washington scholars program. Any Washington scholars program moneys not awarded by April 1st of each year may be transferred by the board to either the educator's excellence awards or, in consultation with the workforce training and education coordinating board, to the Washington award for vocational excellence;

(g) $456,000 of the general fund--state appropriation for fiscal year 1998 and $474,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Washington award for vocational excellence program. Any Washington award for vocational program moneys not awarded by April 1st of each year may be transferred by the board to either the educator's excellence awards or the Washington scholars program;

(h) $51,000 of the general fund--state appropriation for fiscal year 1998 and $51,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for community scholarship matching grants of $2,000 each. To be eligible for the matching grant, a nonprofit community organization organized under section 501(c)(3) of the internal revenue code must demonstrate that it has raised $2,000 in new moneys for college scholarships after the effective date of this act. No organization may receive more than one $2,000 matching grant; and

(6) (($175,000 of the general fund--state appropriation for fiscal year 1998 and $175,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Engrossed Second Substitute House Bill No. 1372 or Second Substitute Senate Bill No. 5106 (Washington advanced college tuition payment program). If neither Engrossed Second Substitute House Bill No. 1372 nor Second Substitute Senate Bill No. 5106 is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.)) $412,000 of the general fund--state appropriation for fiscal year 1998 and $1,198,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for working capital for the advanced tuition payment program. The funds provided in this subsection may be expended only to the extent that revenue from application fees and interest earnings deposited in the advanced college tuition payment program account are insufficient to support program operation. Prior to the end of fiscal year 1999, expenditures shall be transferred between funds to the extent that program application fees and interest earnings are available to minimize the expenditure from the general fund.

(7) $187,000 of the general fund--state appropriation for fiscal year 1998 and $188,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for a demonstration project in the 1997-99 biennium to provide undergraduate fellowships based upon the graduate fellowship program.

(8) Funding is provided in this section for the development of three models for tuition charges for distance learning programs. Institutions involved in distance education or extended learning shall provide information to the board on the usage, cost, and revenue generated by such programs.

Sec. 612. 1997 c 149 s 612 (uncodified) is amended to read as follows:

FOR THE JOINT CENTER FOR HIGHER EDUCATION

General Fund Appropriation (FY 1998). .. . . . . . .$ 1,469,000

((General Fund Appropriation (FY 1999). . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,470,000))

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,939,000))

1,469,000

Sec. 613. 1997 c 149 s 614 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE LIBRARY

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((7,483,000))

7,533,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((7,281,000))

7,631,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((4,847,000))

6,817,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((19,611,000))

21,981,000

The appropriations in this section are subject to the following conditions and limitations:

(1) At least $2,524,000 shall be expended for a contract with the Seattle public library for library services for the Washington book and braille library.

(2) $198,000 of the general fund--state appropriation for fiscal year 1998 ((is)) and $200,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the state library to continue the government information locator service in accordance with chapter 171, Laws of 1996. The state library, in consultation with interested parties, shall prepare an evaluation of the government information locator service by October 1, 1997. The evaluation shall include a cost-benefit analysis, a determination of fiscal impacts to the state, and programmatic information. The evaluation report shall be provided to the appropriate legislative fiscal committees.

(3) $100,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for enhancement of the state library's collection.

Sec. 614. 1997 c 149 s 616 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE HISTORICAL SOCIETY

General Fund Appropriation (FY 1998). .. . . . . . .$ ((2,502,000))

2,658,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((2,531,000))

2,745,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((5,033,000))

5,403,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $216,200 of the general fund appropriation for fiscal year 1998 and $216,200 of the general fund appropriation for fiscal year 1999 are provided solely for exhibit and educational programming.

(2) $156,000 of the general fund appropriation for fiscal year 1998 and $164,000 of the general fund appropriation for fiscal year 1999 are provided solely for the temporary relocation of research center operations.

(3) $50,000 of the general fund appropriation for fiscal year 1999 is provided solely for activities related to the Lewis and Clark Bicentennial.

Sec. 615. 1997 c 149 s 618 (uncodified) is amended to read as follows:

FOR THE STATE SCHOOL FOR THE BLIND

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((3,714,000))

3,723,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((3,738,000))

3,747,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((192,000))

418,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((7,644,000))

7,888,000

Sec. 616. 1997 c 149 s 619 (uncodified) is amended to read as follows:

FOR THE STATE SCHOOL FOR THE DEAF

General Fund Appropriation (FY 1998). .. . . . . . .$ ((6,458,000))

6,467,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((6,459,000))

6,468,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((12,917,000))

12,935,000

PART VII

SPECIAL APPROPRIATIONS

Sec. 701. 1997 c 149 s 701 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR GENERAL FUND BOND DEBT

General Fund Appropriation (FY 1998). .. . . . . . .$ ((447,283,000))

448,355,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((485,077,000))

484,005,000

General Fund Bonds Subject to the Limit Bond

Retirement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 932,360,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ $1,864,720,000

The appropriations in this section are subject to the following conditions and limitations: The general fund appropriation is for deposit into the general fund bonds subject to the limit bond retirement account.

Sec. 702. 1997 c 149 s 703 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR GENERAL OBLIGATION DEBT TO BE REIMBURSED AS PRESCRIBED BY STATUTE

General Fund Appropriation (FY 1998). .. . . . . . .$ ((23,096,000))

23,186,000

General Fund Appropriation (FY 1999). .. . . . . . .$ ((25,603,000))

25,642,000

General Fund Bonds Excluded from the Limit

Bond Retirement Account Appropriation.$ ((48,699,000))

48,828,000

Reimbursable Bonds Excluded from the Limit Bond

Retirement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 104,933,000

Reimbursable Bonds Subject to the Limit Bond

Retirement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((402,000))

2,264,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((202,733,000))

204,853,000

The appropriations in this section are subject to the following conditions and limitations: The general fund appropriation is for deposit into the general fund bonds excluded from the limit bond retirement account.

Sec. 703. 1997 c 149 s 705 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES

General Fund Appropriation (FY 1998). .. . . . . . .$ 475,000

General Fund Appropriation (FY 1999). .. . . . . . .$ 475,000

Higher Education Construction Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((215,000))

440,000

State Building Construction Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((6,374,000))

7,683,000

Public Safety Reimbursable Bond Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((8,000))

23,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((7,547,000))

9,096,000

Total Bond Retirement and Interest Appropriations

contained in sections 701 through 705 of this act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((2,121,748,000))

2,125,417,000

Sec. 704. 1997 c 149 s 710 (uncodified) is amended to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--YEAR 2000 ALLOCATIONS

((General Fund--State Appropriation (FY 1998). .$ 3,380,000

General Fund--State Appropriation (FY 1999). . .$ 1,960,000))

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,883,000

Liquor Revolving Account Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 131,000

Health Care Authority Administrative Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . $ 631,000

Accident Account Appropriation. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,102,000

Medical Aid Account Appropriation. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,102,000

Unemployment Compensation Administration Account-- Federal Appropriation. . . . . . . . . . . . $ 1,313,000

((Administrative Contingency Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 948,000))

Employment Services Administrative Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((500,000))

461,000

Forest Development Account Appropriation. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 156,000

Off Road Vehicle Account Appropriation. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 7,000

Surveys and Maps Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,000

Aquatic Lands Enhancement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 8,000

Resource Management Cost Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 348,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((14,470,000))

8,143,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriations will be allocated by the office of financial management to agencies to complete Year 2000 date conversion maintenance on their computer systems. Agencies shall submit their estimated costs of conversion to the office of financial management by July 1, 1997.

(2) Up to $10,000,000 of the cash balance of the data processing revolving account may be expended on agency Year 2000 date conversion costs. The $10,000,000 will be taken from the cash balances of the data processing revolving account's two major users, as follows: $7,000,000 from the department of information services and $3,000,000 from the office of financial management. The office of financial management in consultation with the department of information services shall allocate these funds as needed to complete the date conversion projects.

(3) Agencies receiving these allocations shall report at a minimum to the information services board and to the governor every six months on the progress of Year 2000 maintenance efforts.

NEW SECTION. Sec. 705. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--YEAR 2000 CONVERSION

General Fund Appropriation (FY 1998). .. . . . . . .$ 233,000

General Fund Appropriation (FY 1999). .. . . . . . .$ 33,000

Hospital Commission Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 115,000

Architects' License Account Appropriation. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,000

Professional Engineers' Account Appropriation. . $ 9,000

Real Estate Commission Account Appropriation. $ 24,000

Health Professions Account Appropriation. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 275,000

Master License Account Appropriation. . . . . . . . .$ 70,000

Safe Drinking Water Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 50,000

Uniform Commercial Code Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 11,000

Unemployment Compensation Administration Account--Federal Appropriation. . . . . . . . . . . . .$ 3,245,000

Department of Retirement Systems Expense Account Appropriation. . . . . . . . . . . . . . . . . . . . . .$ 890,000

Health Services Account Appropriation. .. . . . . . .$ 254,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,212,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriations will be allocated by the office of financial management to agencies to perform Year 2000 date conversion maintenance on their computer systems and are provided solely for these purposes.

(2) Agencies receiving these allocations shall report at a minimum to the information services board and to the governor every six months on the progress of Year 2000 maintenance efforts.

NEW SECTION. Sec. 706. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--YEAR 2000 CONTINGENCY POOL

General Fund Appropriation (FY 1998). .. . . . . . .$ 800,000

General Fund Appropriation (FY 1999). .. . . . . . .$ 4,200,000

Year 2000 Contingency Revolving Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,000,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 10,000,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriations will be allocated by the office of financial management, in consultation with the department of information systems, to agencies to perform Year 2000 maintenance on their computer systems and are provided solely for these purposes.

(2) To facilitate the transfer of moneys from dedicated funds and accounts, the state treasurer is directed to transfer sufficient moneys from each dedicated fund or account to the Year 2000 contingency revolving account, hereby created in the state treasury, in accordance with schedules provided by the office of financial management for additional Year 2000 maintenance on their computer systems.

(3) All agencies that receive these allocations will report upon request throughout the biennium to the information services board and to the governor on the progress of Year 2000 maintenance efforts.

Sec. 707. 1997 c 149 s 712 (uncodified) is amended to read as follows:

FOR THE GOVERNOR--COMPENSATION--INSURANCE BENEFITS

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 823,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((6,257,000))

8,355,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,431,000))

3,152,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((146,000))

190,000

Salary and Insurance Increase Revolving Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . $ ((5,465,000))

7,081,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((15,122,000))

19,601,000

The appropriations in this section are subject to the following conditions and limitations:

(1)(a) The monthly ((contribution)) employer funding rate for insurance benefit premiums shall not exceed $312.35 per eligible employee for fiscal year 1998, and $331.31 for fiscal year 1999.

(b) The monthly ((contribution)) employer funding rate for the operating costs of the health care authority shall not exceed $4.99 per eligible employee for fiscal year 1998, and (($4.44)) $4.67 for fiscal year 1999.

(c) An additional $1.12 per eligible employee shall be included in the employer funding rate for fiscal year 1999 to increase life insurance coverage in accordance with the stipulated settlement in Burbage et al. v. State of Washington (Thurston county superior court cause no. 94-2-02560-8). $330,000 of the fiscal year 1999 general fund--state appropriation, $113,000 of the general fund--federal appropriation, $7,000 of the general fund--private/local appropriation, and $254,000 of the salary and insurance increase revolving account appropriation are provided solely for the additional $1.12 employer funding rate. If the stipulated settlement is not approved by August 1, 1998, these amounts shall lapse.

(d) An additional $5.77 per eligible employee shall be included in the employer funding rate for fiscal year 1999 to begin repaying the public employees' and retirees' insurance account for any claims paid as a result of a court-approved stipulated settlement in Retired State Employees et al. v. State of Washington (Thurston county superior court cause no. 92-2-01294-1). $1,768,000 of the fiscal year 1999 general fund--state appropriation, $608,000 of the general fund--federal appropriation, $37,000 of the general fund--private/local appropriation, and $1,362,000 of the salary and insurance increase revolving account appropriation are provided solely for the additional $5.77 employer funding rate. If the stipulated settlement is not approved by August 1, 1998, these amounts shall lapse.

(e) Surplus moneys accruing to the public employees' and retirees' insurance account due to lower-than-projected insurance costs may not be reallocated by the health care authority to increase the actuarial value of public employee insurance plans. Such funds shall be held in reserve in the public employees' and retirees' insurance account and may not be expended without prior legislative authorization.

(((d))) (f) In order to achieve the level of funding provided for health benefits, the public employees' benefits board may require employee premium co-payments, increase point-of-service cost sharing, and/or implement managed competition.

(2) To facilitate the transfer of moneys from dedicated funds and accounts, the state treasurer is directed to transfer sufficient moneys from each dedicated fund or account to the special fund salary and insurance contribution increase revolving fund in accordance with schedules provided by the office of financial management.

(3) The health care authority, subject to the approval of the public employees' benefits board, shall provide subsidies for health benefit premiums to eligible retired or disabled public employees and school district employees who are eligible for parts A and B of medicare, pursuant to RCW 41.05.085. From January 1, 1998, through December 31, 1998, the subsidy shall be $41.26 per month. Starting January 1, 1999, the subsidy shall be $43.16 per month.

(4) Technical colleges, school districts, and educational service districts shall remit to the health care authority for deposit in the public employees' and retirees' insurance account established in RCW 41.05.120:

(a) For each full-time employee, $14.80 per month beginning September 1, 1997;

(b) For each part-time employee who, at the time of the remittance, is employed in an eligible position as defined in RCW 41.32.010 or 41.40.010 and is eligible for employer fringe benefit contributions for basic benefits, $14.80 each month beginning September 1, 1997, prorated by the proportion of employer fringe benefit contributions for a full-time employee that the part-time employee receives.

The remittance requirements specified in this subsection shall not apply to employees of a technical college, school district, or educational service district who purchase insurance benefits through contracts with the health care authority.

(5) The salary and insurance increase revolving account appropriation includes amounts sufficient to fund health benefits for ferry workers at the premium levels specified in subsection (1) of this section, consistent with the 1997-99 transportation appropriations act.

NEW SECTION. Sec. 708. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR THE STATE TREASURER--FOR THE PUBLIC EMPLOYEES' AND RETIREES' INSURANCE ACCOUNT

Pension Funding Account Appropriation (FY 1998). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000,000

The appropriation in this section shall be deposited in the public employees' and retirees' insurance account and is provided solely to pay claims resulting from a court-approved stipulated agreement in Retired State Employees et al. v. State of Washington (Thurston county superior court cause no. 92-2-01294-1).

NEW SECTION. Sec. 709. A new section is added to 1997 c 149 (uncodified) to read as follows:

COMMUNITY AND TECHNICAL COLLEGES CAPITAL PROJECTS ACCOUNT

General Fund Appropriation (FY 1999). . $ 5,200,000

The appropriation in this section is provided solely for deposit in the community and technical colleges capital projects account.

Sec. 710. 1997 c 454 s 704 (uncodified) is amended to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--COMPENSATION ACTIONS OF PERSONNEL RESOURCES BOARD

General Fund--State Appropriation (FY 1998). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,289,000

General Fund--State Appropriation (FY 1999). . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 10,642,000

General Fund--Federal Appropriation. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,777,000

Salary and Insurance Increase Revolving Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . $ ((8,862,000))

6,085,000

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 24,793,000

The appropriations in this section shall be expended solely for the purposes designated in this section and are subject to the conditions and limitations in this section.

(1) Funding is provided to fully implement the recommendations of the Washington personnel resources board consistent with the provisions of chapter 319, Laws of 1996.

(2) Implementation of the salary adjustments for the various clerical classes, physicians, dental classifications, pharmacists, maintenance custodians, medical records technicians, fish/wildlife biologists, fish/wildlife enforcement, habitat technicians, and fiscal technician classifications will be effective July 1, 1997. Implementation of the salary adjustments for safety classifications, park rangers, park aides, correctional officers/sergeants, community corrections specialists, tax information specialists, industrial relations specialists, electrical classifications at the department of labor and industries, fingerprint technicians, some labor relations classifications, health benefits specialists, foresters/land managers, and liquor enforcement officers will be effective July 1, 1998.

NEW SECTION. Sec. 711. LEOFF RETIREMENT STUDY. The joint committee on pension policy shall study (1) providing additional benefits to members of the law enforcement officers' and fire fighters' plan II retirement system and funding those benefit increases through the member contribution rate rather than the state and employer contribution rates, and (2) creating a new law enforcement officers' and fire fighters' retirement plan that includes a defined benefit portion and a defined contribution portion. The joint committee on pension policy shall report its findings to the legislature by January 15, 1999.

NEW SECTION. Sec. 712. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR SUNDRY CLAIMS. The following sums, or so much thereof as may be necessary, are appropriated from the general fund, unless otherwise indicated, for relief of various individuals, firms, and corporations for sundry claims. These appropriations are to be disbursed on vouchers approved by the director of general administration, except as otherwise provided, as follows:

(1) Reimbursement of criminal defendants acquitted on the basis of self-defense, pursuant to RCW 9A.16.110:

(a) Steven M. Lauritz, claim number SCJ 97-11 $ 2,534

(b) George Greenland, claim number SCJ 97-13 $ 16,235

(d) Bryan E. Vance, claim number SCJ 97-16 $ 14,866

(e) Jesse L. Smith, claim number SCJ 97-17 $ 23,027

(f) Thomas N. Klein, claim number SCJ 97-18 $ 14,338

(g) John F. Richards, claim number SCJ 97-19 $ 7,335

(h) Anthony C. Otto, claim number SCJ 97-09 $ 16,962

(i) Eric C. Swanson, claim number SCJ 97-21 $ 86,152

(j) Mark J. Campbell, claim number SCJ 98-01 $ 7,218

(2) Payment from the state wildlife account for damage to crops by wildlife, pursuant to RCW 77.36.040:

(a) D.F. Spurgeon, claim number SCG 97-03 $ 980

(b) Kenneth Kunes, claim number SCG 97-06 $ 2,288

NEW SECTION. Sec. 713. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR THE STATE TREASURER--FOR THE COUNTY CRIMINAL JUSTICE ASSISTANCE ACCOUNT

Impaired Driving Safety Account Appropriation. $ 720,000

The appropriation in this section is subject to the following conditions and limitations: The amount appropriated in this section shall be distributed in accordance with RCW 82.14.310. $360,000 of the appropriation shall be distributed in January 1999 and the remaining $360,000 of the appropriation shall be distributed in April 1999. This funding is provided to counties for the costs of implementing criminal justice legislation including, but not limited to, Substitute House Bill No. 2885 (drunk driving penalties), Second Substitute House Bill No. 3070 (DUI penalties), Second Substitute House Bill No. 3089 (deferred prosecution), Engrossed Senate Bill No. 6142 (DUI/license suspension), Engrossed Substitute Senate Bill No. 6165 (ignition interlock violations), Engrossed Substitute Senate Bill No. 6166 (DUI penalties), Engrossed Substitute Senate Bill No. 6187 (DUI penalties), Engrossed Senate Bill No. 6257 (intoxication levels lowered), and Engrossed Second Substitute Senate Bill No. 6293 (DUI penalties).

NEW SECTION. Sec. 714. A new section is added to 1997 c 149 (uncodified) to read as follows:

FOR THE STATE TREASURER--FOR THE MUNICIPAL CRIMINAL JUSTICE ASSISTANCE ACCOUNT

Impaired Driving Safety Account Appropriation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 480,000

The appropriation in this section is subject to the following conditions and limitations: The amount appropriated in this section shall be distributed in accordance with RCW 82.14.320. $240,000 of the appropriation shall be distributed in January 1999 and the remaining $240,000 of the appropriation shall be distributed in April 1999. This funding is provided to cities for the costs of implementing criminal justice legislation including, but not limited to, Substitute House Bill No. 2885 (drunk driving penalties), Second Substitute House Bill No. 3070 (DUI penalties), Second Substitute House Bill No. 3089 (deferred prosecution), Engrossed Senate Bill No. 6142 (DUI/license suspension), Engrossed Substitute Senate Bill No. 6165 (ignition interlock violations), Engrossed Substitute Senate Bill No. 6166 (DUI penalties), Engrossed Substitute Senate Bill No. 6187 (DUI penalties), Engrossed Senate Bill No. 6257 (intoxication levels lowered), and Engrossed Second Substitute Senate Bill No. 6293 (DUI penalties).

NEW SECTION. Sec. 715. A new section is added to 1997 c 149 (uncodified) to read as follows:

TRANSPORTATION FUND. (1) The sum of three million dollars is appropriated from the general fund to the transportation fund for fiscal year 1998.

(2) The sum of nine million six hundred fifty thousand dollars is appropriated from the general fund to the transportation fund for fiscal year 1999.

Sec. 716. 1997 c 149 s 717 (uncodified) is amended to read as follows:

INCENTIVE SAVINGS--FY 1998. The sum of seventy-five million dollars or so much thereof as may be available on June 30, 1998, from the total amount of unspent fiscal year 1998 state general fund appropriations is appropriated for the purposes of House Bill No. 2240 or Substitute Senate Bill No. 6045 in the manner provided in this section.

(1) Of the total appropriated amount, one-half of that portion that is attributable to incentive savings, not to exceed twenty-five million dollars, is appropriated to the savings incentive account for the purpose of improving the quality, efficiency, and effectiveness of agency services, and credited to the agency that generated the savings.

(2) The remainder of the total amount, not to exceed seventy million dollars, is appropriated to the education savings account ((for the purpose of common school construction projects and education technology)).

(3) For purposes of this section, the total amount of unspent state general fund appropriations does not include the appropriations made in this section or any amounts included in across-the-board allotment reductions under RCW 43.88.110.

Sec. 717. 1997 c 149 s 718 (uncodified) is amended to read as follows:

INCENTIVE SAVINGS--FY 1999. The sum of seventy-five million dollars or so much thereof as may be available on June 30, 1999, from the total amount of unspent fiscal year 1999 state general fund appropriations is appropriated for the purposes of House Bill No. 2240 or Substitute Senate Bill No. 6045 in the manner provided in this section.

PART VIII

OTHER TRANSFERS AND APPROPRIATIONS

Sec. 801. 1997 c 454 s 801 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--STATE REVENUES FOR DISTRIBUTION

General Fund Appropriation for fire insurance premiums distribution. . . . . . . . . . . . . . . . . . . . .$ 6,617,250

General Fund Appropriation for public utility district excise tax distribution. . . . . . . . . . . . . . . .$ 35,183,803

General Fund Appropriation for prosecuting attorneys salaries. . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,960,000

General Fund Appropriation for motor vehicle excise tax distribution. . . . . . . . . . . . . . . . . . . . .$ 84,721,573

General Fund Appropriation for local mass transit assistance. . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 383,208,166

General Fund Appropriation for camper and travel trailer excise tax distribution. . . . . . . . . . . . $ 3,904,937

General Fund Appropriation for boating safety/education and law enforcement

distribution. . . . . . . . . . .. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,616,000

Aquatic Lands Enhancement Account Appropriation for harbor improvement revenue

distribution. . . . . . . . . . .. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 142,000

Liquor Excise Tax Account Appropriation for liquor excise tax distribution. . . . . . . . . . . . . . . .$ 22,287,746

Liquor Revolving Fund Appropriation for liquor profits distribution. . . . . . . . . . . . . . . . . . . . . .$ 36,989,000

Timber Tax Distribution Account Appropriation for distribution to "Timber"

counties. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 107,146,000

Municipal Sales and Use Tax Equalization Account Appropriation. . . . . . . . . . . . . . . . . . . . . . .$ 66,860,014

County Sales and Use Tax Equalization Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . $ 11,843,224

Death Investigations Account Appropriation for distribution to counties for

publicly funded autopsies. . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,266,000

County Criminal Justice Account Appropriation. .$ ((80,634,471))

81,354,471

Municipal Criminal Justice Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((32,042,450))

32,522,450

County Public Health Account Appropriation. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((43,773,588))

44,279,086

TOTAL APPROPRIATION. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((923,196,222))

924,901,720

The total expenditures from the state treasury under the appropriations in this section shall not exceed the funds available under statutory distributions for the stated purposes.

NEW SECTION. Sec. 802. WILDLIFE ACCOUNT LOAN. On June 30, 1998, the state treasurer shall lend three million five hundred thousand dollars from the state general fund to the wildlife account. Expenditure of funds is dependent upon the following conditions:

(1) By April 17, 1998, the department of fish and wildlife shall submit an expenditure reduction plan for the 1997-99 biennium for the state wildlife account to the office of financial management, the senate ways and means committee, and the house of representatives appropriations committee. The plan shall specify positions to be eliminated by program. The reductions shall be limited to activities currently funded by the wildlife account.

(2) By April 17, 1998, the department of fish and wildlife shall submit a list of properties proposed for sale, with a site description of each property, to the office of financial management, the senate ways and means committee, and the house of representatives appropriations committee.

(3) Beginning with the fourth quarter of fiscal year 1998, the department of fish and wildlife shall submit quarterly revenue and expenditure reports for the wildlife account to the office of financial management, the senate ways and means committee, and the house of representatives appropriations committee.

(4) The department of fish and wildlife shall develop, with the office of financial management and the department of revenue, a model for forecasting revenues to the state wildlife account. This forecast shall be incorporated into the quarterly revenue and expenditure reports.

(5) By November 1, 1998, the department of fish and wildlife shall submit a six-year financial plan for the state wildlife account for fiscal years 1999-05 to the office of financial management, the senate ways and means committee, and the house of representatives appropriations committee. The plan shall include repayment of this loan by June 30, 2001.

Failure to comply with the terms and conditions of this section shall cause the loan to be immediately payable.

Sec. 803. 1997 c 454 s 802 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--TRANSFERS

General Fund: For transfer to the Water Quality Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((26,607,000))

28,595,900

General Fund: For transfer to the Flood Control Assistance Account. . . . . . . . . . . . . . . . . . . . . $ 4,000,000

State Convention and Trade Center Account: For transfer to the State Convention

and Trade Center Operations Account. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,877,000

Water Quality Account: For transfer to the Water Pollution Control Account.

Transfers shall be made at intervals coinciding with deposits of

federal capitalization grant money into the account. The amounts

transferred shall not exceed the match required for each federal

deposit.. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 21,688,000

State Treasurer's Service Account: For transfer to the general fund on or

before June 30, 1999 an amount up to $3,600,000 in excess of the cash

requirements of the State Treasurer's Service Account. . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,600,000

Public Works Assistance Account: For transfer to the Drinking Water Asst Account. . . . . . . . .$ 9,949,000

County Sales and Use Tax Equalization Account: For transfer to the County

Public Health Account. .. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,686,000))

2,191,498

Sec. 804. 1997 c 235 s 676 (uncodified) is amended to read as follows:

FOR THE STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES

Clover Park Technical College--Aviation trades complex: Design (96-2-998)

The appropriations in this section are subject to the following conditions and limitations:

(1) The reappropriation in this section is subject to the review and allotment procedures under section 712 of this act.

(2) The new appropriation in this section is provided for permits and site work, installation of metal buildings and the completion of aviation hangars.

As used in this section, "CTC Cap Proj Acct" means Community and Technical Colleges Capital Projects Account.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 573,307

Appropriation:

CTC Cap Proj Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,200,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,947,693

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((8,866,700))

3,866,700

-------------

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 11,387,700

Sec. 805. 1997 c 235 s 108 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

Housing assistance, weatherization, and affordable housing program (88-5-015)

The appropriations in this section are subject to the following conditions and limitations:

(1) $3,000,000 of the new appropriation from the state building construction account is provided solely to promote development of safe and affordable housing units for persons eligible for services from the division of developmental disabilities within the department of social and health services.

(2) $2,000,000 of the reappropriation from the state building construction account is provided solely to promote development of safe and affordable housing units for persons eligible for services from the division of developmental disabilities within the department of social and health services.

(3) $1,000,000 of the new appropriation from the state building construction account is provided solely for the development of housing for low-income temporary or migrant farm workers through grants awarded after the effective date of this act. The legislature finds that providing farm worker housing for low-income temporary or migrant workers is a public purpose. The department shall prioritize grants and shall award grants on a competitive basis to local governments, nonprofit corporations, or other nonprofit entities. Grant moneys awarded by the department under this subsection may be matched by nonstate sources on a dollar-for-dollar basis, in cash or in-kind. The amount in this subsection is contingent upon enactment of sections 1 through 8 of Second Substitute Senate Bill No. 6168. If any of these sections of the bill are not enacted by June 30, 1998, this subsection is null and void.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000,000

Washington Housing Trust Acct--State. . . . . . . . . . . . . . . . . . . . . .$ 400,000

-------------

Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,400,000

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 125,116,142

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 200,000,000

-------------

TOTAL. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 400,516,142

PART IX

MISCELLANEOUS

Sec. 901. RCW 50.24.014 and 1994 c 187 s 3 are each amended to read as follows:

(1)(a) A separate and identifiable account to provide for the financing of special programs to assist the unemployed is established in the administrative contingency fund. Contributions to this account shall accrue and become payable by each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, at a basic rate of two one-hundredths of one percent. The amount of wages subject to tax shall be determined under RCW 50.24.010.

(b) For the first calendar quarter of 1994 only, the basic two one-hundredths of one percent contribution payable under (a) of this subsection shall be increased by one-hundredth of one percent to a total rate of three one-hundredths of one percent. The proceeds of this incremental one-hundredth of one percent shall be used solely for the purposes described in section 22, chapter 483, Laws of 1993, and for the purposes described in RCW 50.40.060. During the 1997-1999 fiscal biennium, any surplus from contributions payable under this subsection (b) ((will)) may be deposited in the unemployment compensation trust fund, used to support tax and wage automated systems projects that simplify and streamline employer reporting, or both.

(2)(a) Contributions under this section shall become due and be paid by each employer under rules as the commissioner may prescribe, and shall not be deducted, in whole or in part, from the remuneration of individuals in the employ of the employer. Any deduction in violation of this section is unlawful.

(b) In the payment of any contributions under this section, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

(3) If the commissioner determines that federal funding has been increased to provide financing for the services specified in chapter 50.62 RCW, the commissioner shall direct that collection of contributions under this section be terminated on the following January 1st.

Sec. 902. 1997 c 149 s 902 (uncodified) is amended to read as follows:

INFORMATION SYSTEMS PROJECTS. Agencies shall comply with the following requirements regarding information systems projects when specifically directed to do so by this act.

(((1) The agency shall produce a feasibility study for each information systems project in accordance with published department of information services instructions. In addition to department of information services requirements, the study shall examine and evaluate the costs and benefits of maintaining the status quo and the costs and benefits of the proposed project. The study shall identify when and in what amount any fiscal savings will accrue, and what programs or fund sources will be affected.

(2) The agency shall produce a project management plan for each project. The plan or plans shall address all factors critical to successful completion of each project. The plan shall include, but is not limited to, the following elements: A description of the problem or opportunity that the information systems project is intended to address; a statement of project objectives and assumptions; definition of phases, tasks, and activities to be accomplished and the estimated cost of each phase; a description of how the agency will facilitate responsibilities of oversight agencies; a description of key decision points in the project life cycle; a description of variance control measures; a definitive schedule that shows the elapsed time estimated to complete the project and when each task is to be started and completed; and a description of resource requirements to accomplish the activities within specified time, cost, and functionality constraints.

(3) A copy of each feasibility study and project management plan shall be provided to the department of information services, the office of financial management, and legislative fiscal committees. Authority to expend any funds for individual information systems projects is conditioned on approval of the relevant feasibility study and project management plan by the department of information services and the office of financial management.

(4) A project status report shall be submitted to the department of information services, the office of financial management, and legislative fiscal committees for each project prior to reaching key decision points identified in the project management plan. Project status reports shall examine and evaluate project management, accomplishments, budget, action to address variances, risk management, costs and benefits analysis, and other aspects critical to completion of a project.

Work shall not commence on any task in a subsequent phase of a project until the status report for the preceding key decision point has been approved by the department of information services and the office of financial management.

(5) If a project review is requested in accordance with department of information services policies, the reviews shall examine and evaluate: System requirements specifications; scope; system architecture; change controls; documentation; user involvement; training; availability and capability of resources; programming languages and techniques; system inputs and outputs; plans for testing, conversion, implementation, and postimplementation; and other aspects critical to successful construction, integration, and implementation of automated systems. Copies of project review written reports shall be forwarded to the office of financial management and appropriate legislative committees by the agency.

(6) A written postimplementation review report shall be prepared by the agency for each information systems project in accordance with published department of information services instructions. In addition to the information requested pursuant to the department of information services instructions, the postimplementation report shall evaluate the degree to which a project accomplished its major objectives including, but not limited to, a comparison of original cost and benefit estimates to actual costs and benefits achieved. Copies of the postimplementation review report shall be provided to the department of information services, the office of financial management, and appropriate legislative committees.)) (1) Agency planning and decisions concerning information technology shall be made in the context of its information technology portfolio. "Information technology portfolio" means a strategic management approach in which the relationships between agency missions and information technology investments can be seen and understood, such that: Technology efforts are linked to agency objectives and business plans; the impact of new investments on existing infrastructure and business functions are assessed and understood before implementation; and agency activities are consistent with the development of an integrated, nonduplicative state-wide infrastructure.

(2) Agencies shall use their information technology portfolios in making decisions on matters related to the following:

(a) System refurbishment, acquisitions, and development efforts;

(b) Setting goals and objectives for using information technology in meeting legislatively-mandated missions and business needs;

(d) Ensuring appropriate transfer of technological expertise for the operation of any new systems developed using external resources; and

(e) Progress toward enabling electronic access to public information.

(3) The agency shall produce a feasibility study for information technology projects at the direction of the information services board and in accordance with published department of information services policies and guidelines. At a minimum, such studies shall include a statement of: (a) The purpose or impetus for change; (b) the business value to the agency, including an examination and evaluation of benefits, advantages, and cost; (c) a comprehensive risk assessment based on the proposed project's impact on both citizens and state operations, its visibility, and the consequences of doing nothing; (d) the impact on agency and state-wide information infrastructure; and (e) the impact of the proposed enhancements to an agency's information technology capabilities on meeting service delivery demands.

(4) The agency shall produce a comprehensive management plan for each project. The plan or plans shall address all factors critical to successful completion of each project. The plan(s) shall include, but is not limited to, the following elements: A description of the problem or opportunity that the information technology project is intended to address; a statement of project objectives and assumptions; a definition and schedule of phases, tasks, and activities to be accomplished; and the estimated cost of each phase. The planning for the phased approach shall be such that the business case justification for a project needs to demonstrate how the project recovers cost or adds measurable value or positive cost benefit to the agency's business functions within each development cycle.

(5) The agency shall produce quality assurance plans for information technology projects. Consistent with the direction of the information services board and the published policies and guidelines of the department of information services, the quality assurance plan shall address all factors critical to successful completion of the project and successful integration with the agency and state information technology infrastructure. At a minimum, quality assurance plans shall provide time and budget benchmarks against which project progress can be measured, a specification of quality assurance responsibilities, and a statement of reporting requirements. The quality assurance plans shall set out the functionality requirements for each phase of a project.

(6) A copy of each feasibility study, project management plan, and quality assurance plan shall be provided to the department of information services, the office of financial management, and legislative fiscal committees. The plans and studies shall demonstrate a sound business case that justifies the investment of taxpayer funds on any new project, an assessment of the impact of the proposed system on the existing information technology infrastructure, the disciplined use of preventative measures to mitigate risk, and the leveraging of private-sector expertise as needed. Authority to expend any funds for individual information systems projects is conditioned on the approval of the relevant feasibility study, project management plan, and quality assurance plan by the department of information services and the office of financial management.

(7) Quality assurance status reports shall be submitted to the department of information services, the office of financial management, and legislative fiscal committees at intervals specified in the project's quality assurance plan.

Sec. 903. 1997 c 149 s 905 (uncodified) is amended to read as follows:

STATUTORY APPROPRIATIONS. In addition to the amounts appropriated in this act for revenues for distribution, state contributions to the law enforcement officers' and fire fighters' retirement system, and bond retirement and interest including ongoing bond registration and transfer charges, transfers, interest on registered warrants, and certificates of indebtedness, there is also appropriated such further amounts as may be required or available for these purposes under any statutory formula or under chapters 39.94 and 39.96 RCW or any proper bond covenant made under law.

Sec. 904. RCW 28B.15.910 and 1997 c 433 s 5 are each amended to read as follows:

(1) Except for revenue waived under programs listed in subsection (3) of this section, and unless otherwise expressly provided in the omnibus state appropriations act, the total amount of operating fees revenue waived, exempted, or reduced by a state university, a regional university, The Evergreen State College, or the community colleges as a whole, shall not exceed the percentage of total gross authorized operating fees revenue set forth below. As used in this section, "gross authorized operating fees revenue" means the estimated gross operating fees revenue as estimated under RCW 82.33.020 or as revised by the office of financial management, before granting any waivers. This limitation applies to all tuition waiver programs established before or after July 1, 1992.

(a) University of Washington 21 percent

(b) Washington State University 20 percent

(d) Central Washington University 8 percent

(e) Western Washington University 10 percent

(f) The Evergreen State College 6 percent

(g) Community colleges as a whole 35 percent

(2) The limitations in subsection (1) of this section apply to waivers, exemptions, or reductions in operating fees contained in the following:

(a) RCW 28B.10.265;

(b) RCW 28B.15.014;

(d) RCW 28B.15.225;

(e) RCW 28B.15.380;

(f) ((Ungraded courses under RCW 28B.15.502(4);

(g))) RCW 28B.15.520;

(((h))) (g) RCW 28B.15.526;

(((i))) (h) RCW 28B.15.527;

(((j))) (i) RCW 28B.15.543;

(((k))) (j) RCW 28B.15.545;

(((l))) (k) RCW 28B.15.555;

(((m))) (l) RCW 28B.15.556;

(((n))) (m) RCW 28B.15.615;

(((o))) (n) RCW 28B.15.620;

(((p))) (o) RCW 28B.15.628;

(((q))) (p) RCW 28B.15.730;

(((r))) (q) RCW 28B.15.740;

(((s))) (r) RCW 28B.15.750;

(((t))) (s) RCW 28B.15.756;

(((u))) (t) RCW 28B.50.259;

(((v))) (u) RCW 28B.70.050; ((and

(w))) (v) RCW 28B.80.580; and

(w) During the 1997-99 fiscal biennium, the western interstate commission for higher education undergraduate exchange program for students attending Eastern Washington University.

(3) The limitations in subsection (1) of this section do not apply to waivers, exemptions, or reductions in services and activities fees contained in the following:

(a) RCW 28B.15.522;

(b) ((RCW 28B.15.535;

(c))) RCW 28B.15.540; and

(((d))) (c) RCW 28B.15.558.

Sec. 905. RCW 70.105D.070 and 1997 c 406 s 5 are each amended to read as follows:

(1) The state toxics control account and the local toxics control account are hereby created in the state treasury.

(2) The following moneys shall be deposited into the state toxics control account: (a) Those revenues which are raised by the tax imposed under RCW 82.21.030 and which are attributable to that portion of the rate equal to thirty-three one-hundredths of one percent; (b) the costs of remedial actions recovered under this chapter or chapter 70.105A RCW; (c) penalties collected or recovered under this chapter; and (d) any other money appropriated or transferred to the account by the legislature. Moneys in the account may be used only to carry out the purposes of this chapter, including but not limited to the following activities:

(i) The state's responsibility for hazardous waste planning, management, regulation, enforcement, technical assistance, and public education required under chapter 70.105 RCW;

(ii) The state's responsibility for solid waste planning, management, regulation, enforcement, technical assistance, and public education required under chapter 70.95 RCW;

(iii) The hazardous waste cleanup program required under this chapter;

(iv) State matching funds required under the federal cleanup law;

(v) Financial assistance for local programs in accordance with chapters 70.95, 70.95C, 70.95I, and 70.105 RCW;

(vi) State government programs for the safe reduction, recycling, or disposal of hazardous wastes from households, small businesses, and agriculture;

(vii) Hazardous materials emergency response training;

(viii) Water and environmental health protection and monitoring programs;

(ix) Programs authorized under chapter 70.146 RCW;

(x) A public participation program, including regional citizen advisory committees;

(xi) Public funding to assist potentially liable persons to pay for the costs of remedial action in compliance with cleanup standards under RCW 70.105D.030(2)(e) but only when the amount and terms of such funding are established under a settlement agreement under RCW 70.105D.040(4) and when the director has found that the funding will achieve both (A) a substantially more expeditious or enhanced cleanup than would otherwise occur, and (B) the prevention or mitigation of unfair economic hardship; and

(xii) Development and demonstration of alternative management technologies designed to carry out the top two hazardous waste management priorities of RCW 70.105.150.

(3) The following moneys shall be deposited into the local toxics control account: Those revenues which are raised by the tax imposed under RCW 82.21.030 and which are attributable to that portion of the rate equal to thirty-seven one-hundredths of one percent.

(a) Moneys deposited in the local toxics control account shall be used by the department for grants or loans to local governments for the following purposes in descending order of priority: (i) Remedial actions; (ii) hazardous waste plans and programs under chapter 70.105 RCW; and (iii) solid waste plans and programs under chapters 70.95, 70.95C, 70.95I, and 70.105 RCW. Funds for plans and programs shall be allocated consistent with the priorities and matching requirements established in chapters 70.105, 70.95C, 70.95I, and 70.95 RCW. During the 1997-1999 fiscal biennium, moneys in the account may also be used for the following activities: Conducting a study of whether dioxins occur in fertilizers, soil amendments, and soils; reviewing applications for registration of fertilizers; and conducting a study of plant uptake of metals.

(b) Funds may also be appropriated to the department of health to implement programs to reduce testing requirements under the federal safe drinking water act for public water systems. The department of health shall reimburse the account from fees assessed under RCW 70.119A.115 by June 30, 1995.

(4) Except for unanticipated receipts under RCW 43.79.260 through 43.79.282, moneys in the state and local toxics control accounts may be spent only after appropriation by statute.

(5) One percent of the moneys deposited into the state and local toxics control accounts shall be allocated only for public participation grants to persons who may be adversely affected by a release or threatened release of a hazardous substance and to not-for-profit public interest organizations. The primary purpose of these grants is to facilitate the participation by persons and organizations in the investigation and remedying of releases or threatened releases of hazardous substances and to implement the state's solid and hazardous waste management priorities. No grant may exceed sixty thousand dollars. Grants may be renewed annually. Moneys appropriated for public participation from either account which are not expended at the close of any biennium shall revert to the state toxics control account.

(6) No moneys deposited into either the state or local toxics control account may be used for solid waste incinerator feasibility studies, construction, maintenance, or operation.

(7) The department shall adopt rules for grant or loan issuance and performance.

NEW SECTION. Sec. 906. During the 1997-99 fiscal biennium, the lottery commission shall conduct at least two, but not more than four, scratch games with agricultural fair themes per year. These games are intended to generate additional moneys sufficient to cover the distributions under RCW 67.70.240(6).

Sec. 907. RCW 67.70.240 and 1997 c 220 s 206 are each amended to read as follows:

The moneys in the state lottery account shall be used only:

(1) For the payment of prizes to the holders of winning lottery tickets or shares;

(2) For purposes of making deposits into the reserve account created by RCW 67.70.250 and into the lottery administrative account created by RCW 67.70.260;

(3) For purposes of making deposits into the state's general fund;

(4) For distribution to a county for the purpose of paying the principal and interest payments on bonds issued by the county to construct a baseball stadium, as defined in RCW 82.14.0485, including reasonably necessary preconstruction costs. Three million dollars shall be distributed under this subsection during calendar year 1996. During subsequent years, such distributions shall equal the prior year's distributions increased by four percent. Distributions under this subsection shall cease when the bonds issued for the construction of the baseball stadium are retired, but not more than twenty years after the tax under RCW 82.14.0485 is first imposed;

(5) For distribution to the stadium and exhibition center account, created in RCW 43.99N.060. Subject to the conditions of RCW 43.99N.070, six million dollars shall be distributed under this subsection during the calendar year 1998. During subsequent years, such distribution shall equal the prior year's distributions increased by four percent. No distribution may be made under this subsection after December 31, 1999, unless the conditions for issuance of the bonds under RCW 43.99N.020(2) are met. Distributions under this subsection shall cease when the bonds are retired, but not later than December 31, 2020;

(6) For distribution to the fair fund, created in chapter 15.76 RCW. Five hundred sixty-five thousand dollars shall be distributed under this subsection during the remainder of fiscal year 1998. Two million dollars shall be distributed under this subsection during fiscal year 1999.

(7) For the purchase and promotion of lottery games and game-related services; and

(((7))) (8) For the payment of agent compensation.

The office of financial management shall require the allotment of all expenses paid from the account and shall report to the ways and means committees of the senate and house of representatives any changes in the allotments.

NEW SECTION. Sec. 908. If Engrossed Second Substitute Senate Bill No. 6562 is not enacted by June 30, 1998, sections 906 and 907 of this act are null and void.

Sec. 909. RCW 69.50.520 and 1997 c 451 s 2 and 1997 c 338 s 69 are each reenacted and amended to read as follows:

The violence reduction and drug enforcement account is created in the state treasury. All designated receipts from RCW 9.41.110(8), 66.24.210(4), 66.24.290(2), 69.50.505(h)(1), 82.08.150(5), 82.24.020(2), 82.64.020, and section 420, chapter 271, Laws of 1989 shall be deposited into the account. Expenditures from the account may be used only for funding services and programs under chapter 271, Laws of 1989 and chapter 7, Laws of 1994 sp. sess., including state incarceration costs. Funds from the account may also be appropriated to reimburse local governments for costs associated with implementing criminal justice legislation including chapter 338, Laws of 1997. During the 1997-1999 biennium, funds from the account may also be used for costs associated with conducting a feasibility study of the department of corrections' offender-based tracking system, providing grants to local governments in accordance with chapter 338, Laws of 1997, and for multijurisdictional narcotics task forces. After July 1, 1999, at least seven and one-half percent of expenditures from the account shall be used for providing grants to community networks under chapter 70.190 RCW by the family policy council.

Sec. 910. RCW 43.88.030 and 1997 c 168 s 5 and 1997 c 96 s 4 are each reenacted and amended to read as follows:

(1) The director of financial management shall provide all agencies with a complete set of instructions for submitting biennial budget requests to the director at least three months before agency budget documents are due into the office of financial management. The director shall provide agencies that are required under RCW 44.40.070 to develop comprehensive six-year program and financial plans with a complete set of instructions for submitting these program and financial plans at the same time that instructions for submitting other budget requests are provided. The budget document or documents shall consist of the governor's budget message which shall be explanatory of the budget and shall contain an outline of the proposed financial policies of the state for the ensuing fiscal period, as well as an outline of the proposed six-year financial policies where applicable, and shall describe in connection therewith the important features of the budget. The message shall set forth the reasons for salient changes from the previous fiscal period in expenditure and revenue items and shall explain any major changes in financial policy. Attached to the budget message shall be such supporting schedules, exhibits and other explanatory material in respect to both current operations and capital improvements as the governor shall deem to be useful to the legislature. The budget document or documents shall set forth a proposal for expenditures in the ensuing fiscal period, or six-year period where applicable, based upon the estimated revenues and caseloads as approved by the economic and revenue forecast council and caseload forecast council or upon the estimated revenues and caseloads of the office of financial management for those funds, accounts, sources, and programs for which the forecast councils do not prepare an official forecast, including those revenues anticipated to support the six-year programs and financial plans under RCW 44.40.070. In estimating revenues to support financial plans under RCW 44.40.070, the office of financial management shall rely on information and advice from the interagency revenue task force. Revenues shall be estimated for such fiscal period from the source and at the rates existing by law at the time of submission of the budget document, including the supplemental budgets submitted in the even-numbered years of a biennium. However, the estimated revenues and caseloads for use in the governor's budget document may be adjusted to reflect budgetary revenue transfers and revenue and caseload estimates dependent upon budgetary assumptions of enrollments, workloads, and caseloads. All adjustments to the approved estimated revenues and caseloads must be set forth in the budget document. The governor may additionally submit, as an appendix to each supplemental, biennial, or six-year agency budget or to the budget document or documents, a proposal for expenditures in the ensuing fiscal period from revenue sources derived from proposed changes in existing statutes.

Supplemental and biennial documents shall reflect a six-year expenditure plan consistent with estimated revenues from existing sources and at existing rates for those agencies required to submit six-year program and financial plans under RCW 44.40.070. Any additional revenue resulting from proposed changes to existing statutes shall be separately identified within the document as well as related expenditures for the six-year period.

The budget document or documents shall also contain:

(a) Revenues classified by fund and source for the immediately past fiscal period, those received or anticipated for the current fiscal period, those anticipated for the ensuing biennium, and those anticipated for the ensuing six-year period to support the six-year programs and financial plans required under RCW 44.40.070;

(b) The undesignated fund balance or deficit, by fund;

(c) Such additional information dealing with expenditures, revenues, workload, performance, and personnel as the legislature may direct by law or concurrent resolution;

(d) Such additional information dealing with revenues and expenditures as the governor shall deem pertinent and useful to the legislature;

(e) Tabulations showing expenditures classified by fund, function, activity, and ((object)) agency;

(f) A delineation of each agency's activities, including those activities funded from nonbudgeted, nonappropriated sources, including funds maintained outside the state treasury;

(g) Identification of all proposed direct expenditures to implement the Puget Sound water quality plan under chapter 90.71 RCW, shown by agency and in total; and

(h) Tabulations showing each postretirement adjustment by retirement system established after fiscal year 1991, to include, but not be limited to, estimated total payments made to the end of the previous biennial period, estimated payments for the present biennium, and estimated payments for the ensuing biennium.

(2) The budget document or documents shall include detailed estimates of all anticipated revenues applicable to proposed operating or capital expenditures and shall also include all proposed operating or capital expenditures. The total of beginning undesignated fund balance and estimated revenues less working capital and other reserves shall equal or exceed the total of proposed applicable expenditures. The budget document or documents shall further include:

(a) Interest, amortization and redemption charges on the state debt;

(b) Payments of all reliefs, judgments and claims;

(d) Expenditures incident to the operation for each agency;

(e) Revenues derived from agency operations;

(f) Expenditures and revenues shall be given in comparative form showing those incurred or received for the immediately past fiscal period and those anticipated for the current biennium and next ensuing biennium, as well as those required to support the six-year programs and financial plans required under RCW 44.40.070;

(g) A showing and explanation of amounts of general fund and other funds obligations for debt service and any transfers of moneys that otherwise would have been available for appropriation;

(h) Common school expenditures on a fiscal-year basis;

(i) A showing, by agency, of the value and purpose of financing contracts for the lease/purchase or acquisition of personal or real property for the current and ensuing fiscal periods; and

(j) A showing and explanation of anticipated amounts of general fund and other funds required to amortize the unfunded actuarial accrued liability of the retirement system specified under chapter 41.45 RCW, and the contributions to meet such amortization, stated in total dollars and as a level percentage of total compensation.

(3) A separate capital budget document or schedule shall be submitted that will contain the following:

(a) A statement setting forth a long-range facilities plan for the state that identifies and includes the highest priority needs within affordable spending levels;

(b) A capital program consisting of proposed capital projects for the next biennium and the two biennia succeeding the next biennium consistent with the long-range facilities plan. Insomuch as is practical, and recognizing emergent needs, the capital program shall reflect the priorities, projects, and spending levels proposed in previously submitted capital budget documents in order to provide a reliable long-range planning tool for the legislature and state agencies;

(d) A strategic plan for reducing backlogs of maintenance and repair projects. The plan shall include a prioritized list of specific facility deficiencies and capital projects to address the deficiencies for each agency, cost estimates for each project, a schedule for completing projects over a reasonable period of time, and identification of normal maintenance activities to reduce future backlogs;

(e) A statement of the reason or purpose for a project;

(f) Verification that a project is consistent with the provisions set forth in chapter 36.70A RCW;

(g) A statement about the proposed site, size, and estimated life of the project, if applicable;

(h) Estimated total project cost;

(i) For major projects valued over five million dollars, estimated costs for the following project components: Acquisition, consultant services, construction, equipment, project management, and other costs included as part of the project. Project component costs shall be displayed in a standard format defined by the office of financial management to allow comparisons between projects;

(j) Estimated total project cost for each phase of the project as defined by the office of financial management;

(k) Estimated ensuing biennium costs;

(l) Estimated costs beyond the ensuing biennium;

(m) Estimated construction start and completion dates;

(n) Source and type of funds proposed;

(o) Estimated ongoing operating budget costs or savings resulting from the project, including staffing and maintenance costs;

(p) For any capital appropriation requested for a state agency for the acquisition of land or the capital improvement of land in which the primary purpose of the acquisition or improvement is recreation or wildlife habitat conservation, the capital budget document, or an omnibus list of recreation and habitat acquisitions provided with the governor's budget document, shall identify the projected costs of operation and maintenance for at least the two biennia succeeding the next biennium. Omnibus lists of habitat and recreation land acquisitions shall include individual project cost estimates for operation and maintenance as well as a total for all state projects included in the list. The document shall identify the source of funds from which the operation and maintenance costs are proposed to be funded;

(q) Such other information bearing upon capital projects as the governor deems to be useful;

(r) Standard terms, including a standard and uniform definition of normal maintenance, for all capital projects;

(s) Such other information as the legislature may direct by law or concurrent resolution.

For purposes of this subsection (3), the term "capital project" shall be defined subsequent to the analysis, findings, and recommendations of a joint committee comprised of representatives from the house capital appropriations committee, senate ways and means committee, legislative transportation committee, legislative evaluation and accountability program committee, and office of financial management.

(4) No change affecting the comparability of agency or program information relating to expenditures, revenues, workload, performance and personnel shall be made in the format of any budget document or report presented to the legislature under this section or RCW 43.88.160(1) relative to the format of the budget document or report which was presented to the previous regular session of the legislature during an odd-numbered year without prior legislative concurrence. Prior legislative concurrence shall consist of (a) a favorable majority vote on the proposal by the standing committees on ways and means of both houses if the legislature is in session or (b) a favorable majority vote on the proposal by members of the legislative evaluation and accountability program committee if the legislature is not in session.

NEW SECTION. Sec. 911. Sections 27, 50, and 57, chapter . . . (Second Substitute Senate Bill No. 6214), Laws of 1998 are each repealed.

NEW SECTION. Sec. 912. This act shall not be construed as affecting any right or cause of action asserted in Washington State Legislature v. State of Washington (Thurston county superior court cause no. 98-2-00105-1).

NEW SECTION. Sec. 913. A new section is added to 1997 c 149 (uncodified) to read as follows:

Amounts provided in this act are sufficient to implement Engrossed Senate Bill No. 6325 (ferry vessels authorized). If the bill is not enacted by June 30, 1998, this section is null and void.

Sec. 914. 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.

Sec. 915. 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 1 of the title, after "matters;" strike the remainder of the title and insert "amending RCW 50.24.014, 28B.15.910, 70.105D.070, and 67.70.240; amending 1997 c 149 ss 101, 102, 104, 110, 111, 112, 113, 114, 116, 117, 120, 121, 122, 123, 124, 129, 130, 134, 136, 141, 142, 145, 146, 147, 152, 201, 204, 205, 206, 209, 210, 215, 217, 224, 304, 306, 309, 310, 401, 402, 502, 505, 506, 507, 508, 513, 516, 612, 614, 616, 618, 619, 701, 703, 705, 710, 712, 717, 718, 902, and 905 (uncodified); amending 1997 c 454 ss 101, 103, 104, 105, 202, 203, 204, 205, 206, 207, 208, 210, 211, 209, 212, 213, 214, 301, 302, 303, 304, 305, 501, 503, 504, 505, 506, 507, 508, 601, 602, 603, 604, 605, 606, 607, 608, 609, 610, 611, 704, 801, and 802 (uncodified); amending 1997 c 235 ss 676 and 108 (uncodified); reenacting and amending RCW 69.50.520 and 43.88.030; adding new sections to 1997 c 149 (uncodified); creating new sections; repealing 1998 c . . . (Second Substitute Senate Bill No. 6214) ss 27, 50, and 57; making appropriations; and declaring an emergency."

There being no objection, the House adopted the Report of the Conference Committee on Engrossed Substitute Senate Bill No. 6108 and advanced the bill to Final Passage.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 6108 as recommended by the Conference Committee.

Representatives Huff, Alexander, Smith, Dyer, Johnson, Buck, Carlson, Mastin, Backlund, Sheahan, Sterk, Clements, Pennington, Chandler, Backlund (again), and Carrell spoke in favor of passage of the bill.

Representatives H. Sommers, Gombosky, Cole, Cody, Keiser, Butler, Doumit, Dunshee, Murray, Conway, Grant, Kessler, Kastama, Dunshee (again), Kessler (again) and Veloria spoke against the passage of the bill.

Representative H. Sommers asked if Representative Huff would yield to a question.

COLLOQUY

Representative H. Sommers: I understand the appropriation in the Employment Security Department includes $20 million in Federal funding to implement the Federal Welfare to Work Program. The language of the budget requires the Governor to obtain a Federal waiver to allow the money to allocated to entities other than private industry councils to implement this program. Would this language preclude any of the money going to private industry councils?

Representative Huff: No, the purpose of the language is to allow the money to be distributed to both private industry councils as well as other organizations.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 6108 as recommended by the Conference Committee, and the bill passed the House by the following vote: Yeas - 57, Nays - 41, Absent - 0, Excused - 0.

Voting yea: Representatives Alexander, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Clements, Cooke, Crouse, DeBolt, Delvin, Dunn, Dyer, Hankins, 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., Sterk, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Zellinsky and Mr. Speaker - 57.

Voting nay: Representatives Anderson, Appelwick, Butler, Chopp, Cody, Cole, Constantine, Conway, Cooper, Costa, Dickerson, Doumit, Dunshee, Eickmeyer, Fisher, Gardner, Gombosky, Grant, Hatfield, Kastama, Keiser, Kenney, Kessler, Lantz, Linville, Mason, Morris, Murray, O'Brien, Ogden, Poulsen, Quall, Regala, Romero, Scott, Sommers, H., Sullivan, Tokuda, Veloria, Wolfe and Wood - 41.

Engrossed Substitute Senate Bill No. 6108, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

The Speaker called upon Representative Pennington to preside.

MESSAGE FROM THE SENATE

March 11, 1998

Mr. Speaker:

The Senate has adopted the report of the Conference Committee on Engrossed Substitute House Bill No. 2439 and has passed the bill as recommended by the Conference Committee,

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

MOTION

Representative Wood moved that the House adopt the report of the Conference Committee Report on Engrossed Substitute House Bill No. 2439, and pass the bill as recommended by the Conference Committee.

Representatives D. Sommers, L. Thomas, Zellinsky and Smith spoke against the adoption of the motion.

Representative Wood spoke in favor of adoption of the motion.

Representative Hatfield demanded an electronic roll call vote and the demand was sustained.

The Speaker (Representative Pennington presiding) stated the question before the House to be adoption of the motion to adopt the report of the Conference Committee on Engrossed Substitute House Bill No. 2439.

ROLLCALL

The Clerk called the roll on the adoption of the motion to adopt the report of the Conference Committee on Engrossed Substitute House Bill No. 2439, and the motion was not adopted by the following vote: Yeas - 40, Nays - 58, Absent - 0, Excused - 0.

Voting yea: Representatives Anderson, Appelwick, Butler, Chopp, Cody, Cole, Constantine, Conway, Cooper, Costa, Dickerson, Doumit, Dunshee, Eickmeyer, Fisher, Gardner, Gombosky, Grant, Hatfield, Kastama, Keiser, Kenney, Kessler, Lantz, Linville, Mason, Morris, Murray, O'Brien, Ogden, Poulsen, Quall, Regala, Romero, Scott, Sommers, H., Sullivan, Tokuda, Veloria and Wood - 40.

Voting nay: Representatives Alexander, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Clements, Cooke, Crouse, DeBolt, Delvin, Dunn, Dyer, Hankins, 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., Sterk, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Wolfe, Zellinsky and Mr. Speaker - 58.

There being no objection, the House did not adopt the Conference Committee Report on Engrossed Substitute House Bill No. 2439 and returned to the Conference Committee.

REPORT OF CONFERENCE COMMITTEE

Bill No: SSB 5582 Date: March 10, 1998

Prepared by: Bill Perry Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your Conference Committee, to whom was referred SUBSTITUTE SENATE BILL NO. 5582, liquor sales to intoxicated persons, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and the striking amendment by the Conference Committee (attached) be adopted; and

that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 66.44.200 and 1933 ex.s. c 62 s 36 are each amended to read as follows:

(1) No person shall sell any liquor to any person apparently under the influence of liquor.

(2)(a) No person who is apparently under the influence of liquor may purchase or consume liquor on any premises licensed by the board.

(b) A violation of this subsection is an infraction punishable by a fine of not more than five hundred dollars.

(d) Until July 1, 2000, every establishment licensed under RCW 66.24.330 or 66.24.420 shall conspicuously post in the establishment notice of the prohibition against the purchase or consumption of liquor under this subsection.

(3) An administrative action for violation of subsection (1) of this section and an infraction issued for violation of subsection (2) of this section arising out of the same incident are separate actions and the outcome of one shall not determine the outcome of the other."

On page 1, line 2 of the title, after "liquor;" strike the remainder of the title and insert "amending RCW 66.44.200; and prescribing penalties."

There being no objection, the House adopted the Report of the Conference Committee on Substitute Senate Bill No. 5582 and advanced the bill to Final Passage.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Substitute Senate Bill No. 5582 as recommended by the Conference Committee.

Representative Robertson spoke in favor of passage of the bill.

Representative Constantine spoke against the passage of the bill.

Representative Robertson again spoke in favor of passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5582 as recommended by the Conference Committee, and the bill passed the House by the following vote: Yeas - 84, Nays - 14, Absent - 0, Excused - 0.

Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Conway, Cooke, Cooper, Costa, Crouse, DeBolt, Delvin, Dickerson, Dunn, Dunshee, Dyer, Gardner, Grant, Hankins, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, 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., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Wood, Zellinsky and Mr. Speaker - 84.

Voting nay: Representatives Butler, Cole, Constantine, Doumit, Eickmeyer, Fisher, Gombosky, Hatfield, Mason, Murray, Poulsen, Tokuda, Veloria and Wolfe - 14.

Substitute Senate Bill No. 5582, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

REPORT OF CONFERENCE COMMITTEE

Bill No: ESSB 6238 Date: March 11, 1998

Prepared by: Bill Perry Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your Conference Committee, to whom was referred ENGROSSED SUBSTITUTE SENATE BILL NO. 6238, changing provisions relating to dependent children, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and the striking amendment by the Conference Committee (attached) be adopted; and

that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 13.34.050 and 1979 c 155 s 38 are each amended to read as follows:

(1) The court may enter an order directing a law enforcement officer, probation counselor, or child protective services official to take a child into custody if: (a) A petition is filed with the juvenile court alleging that the child is dependent and that the child's health, safety, and welfare will be seriously endangered if not taken into custody; (b) an affidavit or declaration is filed by the department in support of the petition setting forth specific factual information evidencing reasonable grounds that the child's health, safety, and welfare will be seriously endangered if not taken into custody and at least one of the grounds set forth demonstrates a risk of imminent harm to the child. "Imminent harm" for purposes of this section shall include, but not be limited to, circumstances of sexual abuse, or sexual exploitation as defined in RCW 26.44.020; and (c) the court finds reasonable grounds to believe the child is dependent and that the child's health, safety, and welfare will be seriously endangered if not taken into custody.

(2) Any petition that does not have the necessary affidavit or declaration demonstrating a risk of imminent harm requires notice and an opportunity to be heard by the parents.

(3) The petition and supporting documentation must be served on the parent and the entity with whom the child is in custody at the time the child is removed. Failure to effect service does not invalidate the petition if service was attempted and the parent could not be found.

Sec. 2. RCW 13.34.060 and 1990 c 246 s 1 are each amended to read as follows:

(1) A child taken into custody pursuant to RCW 13.34.050 or 26.44.050 shall be immediately placed in shelter care. A child taken by a relative of the child in violation of RCW 9A.40.060 or 9A.40.070 shall be placed in shelter care only when permitted under RCW 13.34.055. "Shelter care" means temporary physical care in a facility licensed pursuant to RCW 74.15.030 or in a home not required to be licensed pursuant to that section. Whenever a child is taken into such custody pursuant to this section, the supervising agency may authorize evaluations of the child's physical or emotional condition, routine medical and dental examination and care, and all necessary emergency care. In no case may a child who is taken into custody pursuant to RCW 13.34.055, 13.34.050, or 26.44.050 be detained in a secure detention facility. No child may be held longer than seventy-two hours, excluding Saturdays, Sundays and holidays, after such child is taken into custody unless a court order has been entered for continued shelter care. The child and his or her parent, guardian, or custodian shall be informed that they have a right to a shelter care hearing. The court shall hold a shelter care hearing within seventy-two hours after the child is taken into custody, excluding Saturdays, Sundays, and holidays. If a parent, guardian, or legal custodian desires to waive the shelter care hearing, the court shall determine, on the record and with the parties present, that such waiver is knowing and voluntary.

(2) Whenever a child is taken into custody by child protective services pursuant to a court order issued under RCW 13.34.050 or when child protective services is notified that a child has been taken into custody pursuant to RCW 26.44.050 or 26.44.056, child protective services shall make reasonable efforts to inform the parents, guardian, or legal custodian of the fact that the child has been taken into custody, the reasons why the child was taken into custody, and their legal rights under this title as soon as possible and in no event longer than twenty-four hours after the child has been taken into custody or twenty-four hours after child protective services has been notified that the child has been taken into custody. The notice of custody and rights may be given by any means reasonably certain of notifying the parents including, but not limited to, written, telephone, or in person oral notification. If the initial notification is provided by a means other than writing, child protective services shall make reasonable efforts to also provide written notification.

The written notice of custody and rights shall be in substantially the following form:

"NOTICE

Your child has been placed in temporary custody under the supervision of Child Protective Services (or other person or agency). You have important legal rights and you must take steps to protect your interests.

1. A court hearing will be held before a judge within 72 hours of the time your child is taken into custody. You should call the court at (insert appropriate phone number here) for specific information about the date, time, and location of the court hearing.

2. You have the right to have a lawyer represent you at the hearing. You have the right to records the department intends to rely upon. A lawyer can look at the files in your case, talk to child protective services and other agencies, tell you about the law, help you understand your rights, and help you at hearings. If you cannot afford a lawyer, the court will appoint one to represent you. To get a court-appointed lawyer you must contact: (explain local procedure) .

3. At the hearing, you have the right to speak on your own behalf, to introduce evidence, to examine witnesses, and to receive a decision based solely on the evidence presented to the judge.

You should be present at this hearing. If you do not come, the judge will not hear what you have to say.

You may call the Child Protective Services' caseworker for more information about your child. The caseworker's name and telephone number are: (insert name and telephone number) ."

Upon receipt of the written notice, the parent, guardian, or legal custodian shall acknowledge such notice by signing a receipt prepared by child protective services. If the parent, guardian, or legal custodian does not sign the receipt, the reason for lack of a signature shall be written on the receipt. The receipt shall be made a part of the court's file in the dependency action.

If after making reasonable efforts to provide notification, child protective services is unable to determine the whereabouts of the parents, guardian, or legal custodian, the notice shall be delivered or sent to the last known address of the parent, guardian, or legal custodian.

(3) If child protective services is not required to give notice under subsection (2) of this section, the juvenile court counselor assigned to the matter shall make all reasonable efforts to advise the parents, guardian, or legal custodian of the time and place of any shelter care hearing, request that they be present, and inform them of their basic rights as provided in RCW 13.34.090.

(4) Reasonable efforts to advise and to give notice, as required in subsections (2) and (3) of this section, shall include, at a minimum, investigation of the whereabouts of the parent, guardian, or legal custodian. If such reasonable efforts are not successful, or the parent, guardian, or legal custodian does not appear at the shelter care hearing, the juvenile court counselor or caseworker shall testify at the hearing or state in a declaration:

(a) The efforts made to investigate the whereabouts of, and to advise, the parent, guardian, or legal custodian; and

(b) Whether actual advice of rights was made, to whom it was made, and how it was made, including the substance of any oral communication or copies of written materials used.

(5) At the commencement of the shelter care hearing the court shall advise the parties of their basic rights as provided in RCW 13.34.090 and shall appoint counsel pursuant to RCW 13.34.090 if counsel has not been retained by the parent or guardian and if the parent or guardian is indigent, unless the court finds that the right to counsel has been expressly and voluntarily waived in court.

(6) The court shall hear evidence regarding notice given to, and efforts to notify, the parent, guardian, or legal custodian and shall examine the need for shelter care. The court shall make an express finding as to whether the notice required under subsections (2) and (3) of this section was given to the parent, guardian, or legal custodian. All parties have the right to present testimony to the court regarding the need or lack of need for shelter care. Hearsay evidence before the court regarding the need or lack of need for shelter care must be supported by sworn testimony, affidavit, or declaration of the person offering such evidence.

(7) The juvenile court probation counselor shall submit a recommendation to the court as to the further need for shelter care, except that such recommendation shall be submitted by the department of social and health services in cases where the petition alleging dependency has been filed by the department of social and health services, unless otherwise ordered by the court.

(8) The court shall release a child alleged to be dependent to the care, custody, and control of the child's parent, guardian, or legal custodian unless the court finds there is reasonable cause to believe that:

(a) After consideration of the specific services that have been provided, reasonable efforts have been made to prevent or eliminate the need for removal of the child from the child's home and to make it possible for the child to return home; and

(b)(i) The child has no parent, guardian, or legal custodian to provide supervision and care for such child; or

(ii) The release of such child would present a serious threat of substantial harm to such child; or

(iii) The parent, guardian, or custodian to whom the child could be released is alleged to have violated RCW 9A.40.060 or 9A.40.070.

If the court does not release the child to his or her parent, guardian, or legal custodian, the court shall order continued shelter care or order placement with another suitable person, and the court shall set forth its reasons for the order. The court shall enter a finding as to whether subsections (2) and (3) of this section have been complied with. If actual notice was not given to the parent, guardian, or legal custodian and the whereabouts of such person is known or can be ascertained, the court shall order the supervising agency or the department of social and health services to make reasonable efforts to advise the parent, guardian, or legal custodian of the status of the case, including the date and time of any subsequent hearings, and their rights under RCW 13.34.090.

(9) An order releasing the child on any conditions specified in this section may at any time be amended, with notice and hearing thereon, so as to return the child to shelter care for failure of the parties to conform to the conditions originally imposed.

The court shall consider whether nonconformance with any conditions resulted from circumstances beyond the control of the parent and give weight to that fact before ordering return of the child to shelter care.

(10) A shelter care order issued pursuant to this section may be amended at any time with notice and hearing thereon. The shelter care decision of placement shall be modified only upon a showing of change in circumstances. No child may be detained for longer than thirty days without an order, signed by the judge, authorizing continued shelter care.

(11) Any parent, guardian, or legal custodian who for good cause is unable to attend the initial shelter care hearing may request that a subsequent shelter care hearing be scheduled. The request shall be made to the clerk of the court where the petition is filed prior to the initial shelter care hearing. The hearing shall be held within seventy-two hours of the request, excluding Saturdays, Sundays, and holidays. The clerk shall notify all other parties of the hearing by any reasonable means.

Sec. 3. RCW 13.34.090 and 1990 c 246 s 4 are each amended to read as follows:

(1) Any party has a right to be represented by an attorney in all proceedings under this chapter, to introduce evidence, to be heard in his or her own behalf, to examine witnesses, to receive a decision based solely on the evidence adduced at the hearing, and to an unbiased fact-finder.

(2) At all stages of a proceeding in which a child is alleged to be dependent ((pursuant to)) as defined in RCW 13.34.030(((2))) (4), the child's parent, guardian, or legal custodian has the right to be represented by counsel, and if indigent, to have counsel appointed for him or her by the court. Unless waived in court, counsel shall be provided to the child's parent, guardian, or legal custodian, if such person (a) has appeared in the proceeding or requested the court to appoint counsel and (b) is financially unable to obtain counsel because of indigency as defined in chapter 10.101 RCW.

(3) If a party to an action under this chapter is represented by counsel, no order shall be provided to that party for his or her signature without prior notice and provision of the order to counsel.

(4) Copies of department of social and health services or supervising agency records to which parents have legal access pursuant to chapter 13.50 RCW shall be given to the child's parent, guardian, legal custodian, or his or her legal counsel, prior to any shelter care hearing and within ((twenty)) fifteen days after the department or supervising agency receives a written request for such records from the parent, guardian, legal custodian, or his or her legal counsel. These records shall be provided to the child's parents, guardian, legal custodian, or legal counsel a reasonable period of time prior to the shelter care hearing in order to allow an opportunity to review the records prior to the hearing. These records shall be legible and shall be provided at no expense to the parents, guardian, legal custodian, or his or her counsel. When the records are served on legal counsel, legal counsel shall have the opportunity to review the records with the parents and shall review the records with the parents prior to the shelter care hearing.

Sec. 4. RCW 13.34.120 and 1996 c 249 s 14 are each amended to read as follows:

(1) To aid the court in its decision on disposition, a social study, consisting of a written evaluation of matters relevant to the disposition of the case, shall be made by the person or agency filing the petition. A parent may submit a counselor's or health care provider's evaluation of the parent, which shall either be included in the social study or considered in conjunction with the social study. The study shall include all social records and may also include facts relating to the child's cultural heritage, and shall be made available to the court. The court shall consider the social file, social study, guardian ad litem report, the court-appointed special advocate's report, if any, and any reports filed by a party at the disposition hearing in addition to evidence produced at the fact-finding hearing. At least ten working days before the disposition hearing, the department shall mail to the parent and his or her attorney a copy of the agency's social study and proposed service plan, which shall be in writing or in a form understandable to the parents or custodians. In addition, the department shall provide an opportunity for parents to review and comment on the plan at the community service office. If the parents disagree with the agency's plan or any part thereof, the parents shall submit to the court at least twenty-four hours before the hearing, in writing, or signed oral statement, an alternative plan to correct the problems which led to the finding of dependency. This section shall not interfere with the right of the parents or custodians to submit oral arguments regarding the disposition plan at the hearing.

(2) In addition to the requirements set forth in subsection (1) of this section, a predisposition study to the court in cases of dependency alleged pursuant to RCW 13.34.030(4) (b) or (c) shall contain the following information:

(a) A statement of the specific harm or harms to the child that intervention is designed to alleviate;

(b) A description of the specific programs, for both the parents and child, that are needed in order to prevent serious harm to the child; the reasons why such programs are likely to be useful; the availability of any proposed services; and the agency's overall plan for ensuring that the services will be delivered. The description shall identify services chosen and approved by the parent;

(c) If removal is recommended, a full description of the reasons why the child cannot be protected adequately in the home, including a description of any previous efforts to work with the parents and the child in the home; the in-home treatment programs which have been considered and rejected; the preventive services that have been offered or provided and have failed to prevent the need for out-of-home placement, unless the health, safety, and welfare of the child cannot be protected adequately in the home; and the parents' attitude toward placement of the child;

(d) A statement of the likely harms the child will suffer as a result of removal. This section should include an exploration of the nature of the parent-child attachment and the meaning of separation and loss to both the parents and the child;

(e) A description of the steps that will be taken to minimize harm to the child that may result if separation occurs; and

(f) Behavior that will be expected before determination that supervision of the family or placement is no longer necessary.

Sec. 5. RCW 26.44.030 and 1997 c 386 s 25 are each amended to read as follows:

(1)(a) When any practitioner, county coroner or medical examiner, law enforcement officer, professional school personnel, registered or licensed nurse, social service counselor, psychologist, pharmacist, licensed or certified child care providers or their employees, employee of the department, juvenile probation officer, or state family and children's ombudsman or any volunteer in the ombudsman's office has reasonable cause to believe that a child or adult dependent or developmentally disabled person, has suffered abuse or neglect, he or she shall report such incident, or cause a report to be made, to the proper law enforcement agency or to the department as provided in RCW 26.44.040.

(b) The reporting requirement shall also apply to department of corrections personnel who, in the course of their employment, observe offenders or the children with whom the offenders are in contact. If, as a result of observations or information received in the course of his or her employment, any department of corrections personnel has reasonable cause to believe that a child or adult dependent or developmentally disabled person has suffered abuse or neglect, he or she shall report the incident, or cause a report to be made, to the proper law enforcement agency or to the department as provided in RCW 26.44.040.

(c) The reporting requirement shall also apply to any adult who has reasonable cause to believe that a child or adult dependent or developmentally disabled person, who resides with them, has suffered severe abuse, and is able or capable of making a report. For the purposes of this subsection, "severe abuse" means any of the following: Any single act of abuse that causes physical trauma of sufficient severity that, if left untreated, could cause death; any single act of sexual abuse that causes significant bleeding, deep bruising, or significant external or internal swelling; or more than one act of physical abuse, each of which causes bleeding, deep bruising, significant external or internal swelling, bone fracture, or unconsciousness.

(d) The report shall be made at the first opportunity, but in no case longer than forty-eight hours after there is reasonable cause to believe that the child or adult has suffered abuse or neglect. The report shall include the identity of the accused if known.

(2) The reporting requirement of subsection (1) of this section does not apply to the discovery of abuse or neglect that occurred during childhood if it is discovered after the child has become an adult. However, if there is reasonable cause to believe other children, dependent adults, or developmentally disabled persons are or may be at risk of abuse or neglect by the accused, the reporting requirement of subsection (1) of this section shall apply.

(3) Any other person who has reasonable cause to believe that a child or adult dependent or developmentally disabled person has suffered abuse or neglect may report such incident to the proper law enforcement agency or to the department of social and health services as provided in RCW 26.44.040.

(4) The department, upon receiving a report of an incident of alleged abuse or neglect pursuant to this chapter, involving a child or adult dependent or developmentally disabled person who has died or has had physical injury or injuries inflicted upon him or her other than by accidental means or who has been subjected to alleged sexual abuse, shall report such incident to the proper law enforcement agency. In emergency cases, where the child, adult dependent, or developmentally disabled person's welfare is endangered, the department shall notify the proper law enforcement agency within twenty-four hours after a report is received by the department. In all other cases, the department shall notify the law enforcement agency within seventy-two hours after a report is received by the department. If the department makes an oral report, a written report shall also be made to the proper law enforcement agency within five days thereafter.

(5) Any law enforcement agency receiving a report of an incident of alleged abuse or neglect pursuant to this chapter, involving a child or adult dependent or developmentally disabled person who has died or has had physical injury or injuries inflicted upon him or her other than by accidental means, or who has been subjected to alleged sexual abuse, shall report such incident in writing as provided in RCW 26.44.040 to the proper county prosecutor or city attorney for appropriate action whenever the law enforcement agency's investigation reveals that a crime may have been committed. The law enforcement agency shall also notify the department of all reports received and the law enforcement agency's disposition of them. In emergency cases, where the child, adult dependent, or developmentally disabled person's welfare is endangered, the law enforcement agency shall notify the department within twenty-four hours. In all other cases, the law enforcement agency shall notify the department within seventy-two hours after a report is received by the law enforcement agency.

(6) Any county prosecutor or city attorney receiving a report under subsection (5) of this section shall notify the victim, any persons the victim requests, and the local office of the department, of the decision to charge or decline to charge a crime, within five days of making the decision.

(7) The department may conduct ongoing case planning and consultation with those persons or agencies required to report under this section, with consultants designated by the department, and with designated representatives of Washington Indian tribes if the client information exchanged is pertinent to cases currently receiving child protective services or department case services for the developmentally disabled. Upon request, the department shall conduct such planning and consultation with those persons required to report under this section if the department determines it is in the best interests of the child or developmentally disabled person. Information considered privileged by statute and not directly related to reports required by this section shall not be divulged without a valid written waiver of the privilege.

(8) Any case referred to the department by a physician licensed under chapter 18.57 or 18.71 RCW on the basis of an expert medical opinion that child abuse, neglect, or sexual assault has occurred and that the child's safety will be seriously endangered if returned home, the department shall file a dependency petition unless a second licensed physician of the parents' choice believes that such expert medical opinion is incorrect. If the parents fail to designate a second physician, the department may make the selection. If a physician finds that a child has suffered abuse or neglect but that such abuse or neglect does not constitute imminent danger to the child's health or safety, and the department agrees with the physician's assessment, the child may be left in the parents' home while the department proceeds with reasonable efforts to remedy parenting deficiencies.

(9) Persons or agencies exchanging information under subsection (7) of this section shall not further disseminate or release the information except as authorized by state or federal statute. Violation of this subsection is a misdemeanor.

(10) Upon receiving reports of alleged abuse or neglect, the department or law enforcement agency may interview children. The interviews may be conducted on school premises, at day-care facilities, at the child's home, or at other suitable locations outside of the presence of parents. Parental notification of the interview shall occur at the earliest possible point in the investigation that will not jeopardize the safety or protection of the child or the course of the investigation. Prior to commencing the interview the department or law enforcement agency shall determine whether the child wishes a third party to be present for the interview and, if so, shall make reasonable efforts to accommodate the child's wishes. Unless the child objects, the department or law enforcement agency shall make reasonable efforts to include a third party in any interview so long as the presence of the third party will not jeopardize the course of the investigation.

(11) Upon receiving a report of alleged child abuse and neglect, the department or investigating law enforcement agency shall have access to all relevant records of the child in the possession of mandated reporters and their employees.

(12) The department shall maintain investigation records and conduct timely and periodic reviews of all cases constituting abuse and neglect. The department shall maintain a log of screened-out nonabusive cases.

(13) The department shall use a risk assessment process when investigating alleged child abuse and neglect referrals. The department shall present the risk factors at all hearings in which the placement of a dependent child is an issue. Substance abuse must be a risk factor. The department shall, within funds appropriated for this purpose, offer enhanced community-based services to persons who are determined not to require further state intervention.

The department shall provide annual reports to the legislature on the effectiveness of the risk assessment process.

(14) Upon receipt of a report of alleged abuse or neglect the law enforcement agency may arrange to interview the person making the report and any collateral sources to determine if any malice is involved in the reporting.

(15) The department shall make reasonable efforts to learn the name, address, and telephone number of each person making a report of abuse or neglect under this section. The department shall provide assurances of appropriate confidentiality of the identification of persons reporting under this section. If the department is unable to learn the information required under this subsection, the department shall only investigate cases in which: (a) The department believes there is a serious threat of substantial harm to the child; (b) the report indicates conduct involving a criminal offense that has, or is about to occur, in which the child is the victim; or (c) the department has, after investigation, a report of abuse or neglect that has been founded with regard to a member of the household within three years of receipt of the referral.

Sec. 6. RCW 43.20A.870 and 1997 c 386 s 47 are each amended to read as follows:

(1) The department shall prepare an annual quality assurance report that shall include but is not limited to: (((1))) (a) Performance outcomes regarding health and safety of children in the children's services system; (((2))) (b) children's length of stay in out-of-home placement from each date of referral; (((3))) (c) adherence to permanency planning timelines; and (((4))) (d) the response time on child protective services investigations differentiated by risk level determined at intake. The report shall be provided to the governor and legislature not later than July 1.

(2) In cases where a dependency action has been initiated and in cases where a family has been referred to the alternative response system, the department shall report:

(a) The number of cases where substance abuse is an identified risk factor in the risk factor assessment;

(b) The number of cases where substance abuse is the factor or a primary factor in the risk assessment;

(d) The period parent's referred to substance abuse treatment wait before entering substance abuse treatment;

(e) The number of cases where substance abuse is a factor and substance abuse treatment is provided;

(f) The number of cases where substance abuse is a factor and substance abuse treatment is not provided, including the reason why treatment was not provided; and

(g) The number of cases where no dependency is filed because a parent receives substance abuse treatment."

On page 1, line 1 of the title, after "children;" strike the remainder of the title and insert "and amending RCW 13.34.050, 13.34.060, 13.34.090, 13.34.120, 26.44.030, and 43.20A.870."

There being no objection, the House adopted the Report of the Conference Committee on Engrossed Substitute Senate Bill No. 6238 and advanced the bill to Final Passage.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 6238 as recommended by the Conference Committee.

Representatives Cooke and Dickerson spoke in favor of passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 6238 as recommended by the Conference Committee, 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.

Engrossed Substitute Senate Bill No. 6238, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

REPORT OF CONFERENCE COMMITTEE

Bill No: SSB 6455 Date: March 11, 1998

Prepared by: Susan Howson Includes "new item": NO

Mr. Speaker:

Mr. President:

We of your Conference Committee, to whom was referred SUBSTITUTE SENATE BILL NO. 6455, adopting a supplemental capital budget, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and the striking amendment by the Conference Committee (attached) be adopted; and

that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

Infrastructure needs assessment

The appropriation in this section is subject to the following conditions and limitations:

(1) The public works board ("board"), in consultation with the department of community, trade, and economic development ("department"), shall contract for a local government infrastructure needs assessment. The board shall issue a progress report to the governor, house of representatives capital budget committee, the senate ways and means committee, the joint legislative transportation committee, the house of representatives government administration committee, and the senate government operations committee by January 31, 1999. The final report shall be delivered by June 30, 1999.

(2) The infrastructure needs assessment shall utilize local capital improvement plans, to the extent available, to identify local government infrastructure needs for the planning, acquisition, construction, repair, replacement, rehabilitation, or improvements necessary for the next six years. The definitions and principles to be utilized in determining infrastructure needs shall be those set forth in chapter 36.70A RCW, including economic development. The infrastructure assessment shall also include a listing, description and evaluation of utilization of all private and public financing options, and policy alternatives that would assist in meeting local government infrastructure needs. For the purposes of this infrastructure needs assessment:

(a) Local government shall include each city, county, town, and each water, sewer, storm water, and public utility district providing water or sewer services in the state of Washington.

(b) Infrastructure shall be limited to bridges, roadways, domestic water, sanitary sewer, and storm water systems.

(3) The board shall contract for the collection and review of local capital expenditure data, the evaluation of local government infrastructure needs, the projection of future infrastructure needs, including needs to meet requirements under chapter 36.70A RCW. The board shall also contract for the development of criteria for a data base which can be maintained and updated, and such other matters as the board may deem necessary to provide an adequate representation of local capital needs and the ability of local governments to finance such needs.

(4) The legislative evaluation and accountability program shall cooperate with the department in the completion of the infrastructure needs assessment and may enter into interagency agreements. The legislative evaluation and accountability program shall develop the structure of the local government infrastructure data base and provide recommendations on the maintenance of the data base. The data base shall: Use the data compiled by and be compatible with that developed by the board's contractor; and have a structure to maintain its future use and updates.

The department shall provide a compilation of all capital improvement plans prepared by local governments. The department shall identify: Federal, state, and local infrastructure financing sources currently in use; all revenue sources available, but not fully utilized by each local government, and obstacles to full utilization; and the compilation of local government expenditures for infrastructure investments by source of funds and by jurisdiction for the period beginning January 1, 1993, and ending December 31, 1997, for local governments with a population greater than 50,000; and January 1, 1995, and ending December 31, 1997, for local governments with fewer than 50,000 population.

(6) The board shall convene an advisory committee of stakeholders to include representatives from the department of community, trade, and economic development, the office of financial management, the legislative evaluation and accountability program, the Washington state association of counties, the association of Washington cities, the Washington association of realtors, the national association of industrial office properties, the building industry association of Washington, the associated general contractors, the association of Washington business, Washington state building and construction trades council, and 1000 friends of Washington. The board may, as it deems necessary, utilize technical advisory groups or state agencies in addition to the advisory committee to assist itself in implementing this proviso.

The advisory committee shall serve as the advisory committee to the board to assist in guiding the infrastructure assessment and developing interpretations of this proviso as necessary. The committee shall establish criteria and categorize infrastructure projects as necessary to meet the requirements set forth in chapter 36.70A RCW, or as reflective of other community priorities, and review elements and standards of infrastructure needs identified in the study.

Appropriation:

Public Works Assistance Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 750,000

Prior Biennia (Expenditures) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 750,000

NEW SECTION. Sec. 2. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

Emergency flood and erosion repairs

The appropriation in this section is provided solely for shoreline repairs at Ocean Shores to prevent further erosion and flood control.

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 150,000

Prior Biennia (Expenditures) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 150,000

NEW SECTION. Sec. 3. A new section is added to 1997 c 235 to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT

Year 2000 building, facility, and equipment date conversion (99-1-001)

The office of financial management shall allocate appropriations to be used by state agencies and universities in performing Year 2000 assessments of facility management systems, control systems, and other computer systems related to capital facilities and equipment. Funds available in this appropriation may also be allocated for corrective measures on a priority basis to address critical system repairs. As used in this section, "CTC Cap Proj Acct" means Community and Technical Colleges Capital Projects Account.

Appropriation:

CEP & RI Acct--State.. . . . . . .$ 500,000

Thurston County Cap Fac Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000

TESC Cap Proj Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 50,000

UW Bldg Acct--State. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 100,000

CWU Cap Proj Acct--State. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 50,000

WSU Bldg Acct--State. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 100,000

EWU Cap Proj Acct--State. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 50,000

WWU Cap Proj Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 180,000

CTC Cap Proj Acct--State. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 100,000

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,866,000

-------------

Subtotal Appropriation. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,056,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,056,000

Sec. 4. 1997 c 235 s 152 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

The control and management of the Wellington Hills property which was purchased by the state of Washington as a potential site for the University of Washington Bothell branch campus is transferred to the department of general administration. The site shall be disposed of at fair market value and the proceeds from the sale shall be deposited in the state building construction account. The department may retain from the proceeds of the sale an amount sufficient to provide reimbursement for expenses as approved by the office of financial management.

Prior to sale the department of general administration shall conduct a highest and best use study regarding the alternatives for future use of this site. Alternatives shall include, at a minimum, immediate sale, trade, transfer, lease, and retention for future state use. The study shall identify and consider the development characteristics and opportunities of the site, land use limitations and potential, and the desires and expectations of the surrounding communities. The study shall identify the benefits and risks of each alternative identified. The study shall be completed by June 30, 1998, and shall be transmitted for evaluation and determination of the best use of the property. Copies of the study shall be provided to the legislative fiscal committees, the office of financial management, and the higher education coordinating board.

The University of Washington shall continue to pay all necessary fees and assessments appurtenant to the property until the property is sold.

NEW SECTION. Sec. 5. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

Fire safety sprinkler systems (99-1-001)

The appropriation in this section is subject to the following conditions and limitations:

Funds are provided solely for fire sprinklers in the Douglas building at the Northern State Multi-Service Center.

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .$ 600,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .$ 600,000

NEW SECTION. Sec. 6. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

Alaska Street Building: Cooling tower and chiller (99-1-002)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .$ 155,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .$ 155,000

Sec. 7. 1997 c 235 s 219 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES

Green Hill redevelopment((: 416-bed institution)) (96-2-230)

The appropriation in this section is subject to the following conditions and limitations:

(1) The appropriation in this section is subject to the review and allotment procedures under section 712 of this act.

(2) ((If Engrossed Third Substitute House Bill No. 3900 is not enacted by June 30, 1997, $3,800,000 of the new appropriation in this section shall lapse.)) The general fund--federal appropriation shall be transferred to the department of social and health services as a subaward of the violent offender incarceration and truth-in-sentencing grant awarded to the department of corrections.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 37,234,448

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 6,600,000

General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,466,558

-------------

Subtotal Appropriation. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 10,066,558

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,669,321

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,200,000

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((59,703,769))

63,170,327

NEW SECTION. Sec. 8. A new section is added to 1997 c 235 (uncodified) to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES

Security improvements at Western State Hospital

The appropriation in this section is provided solely for facility improvements that are required as a result of the passage of Senate Bill No. 6214. If Senate Bill No. 6214 is not enacted by June 30, 1998, the appropriation in this section shall be used for the same purpose as section 3 of this act.

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 654,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 654,000

Sec. 9. 1997 c 235 s 241 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF VETERANS AFFAIRS

Orting: Main kitchen upgrade (95-1-001)

Reappropriation:

CEP & RI Acct--State.. . . . . . .$ ((1,147,147))

1,097,147

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 94,853

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,242,000))

1,192,000

Sec. 10. 1997 c 235 s 245 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF VETERANS AFFAIRS

Retsil: Minor works projects (97-1-006)

Reappropriation:

CEP & RI Acct--State.. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .. . . . . . .. . . . . .$ 410,549

Appropriation:

CEP & RI Acct--State.. . . . . . .$ ((755,000))

652,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 249,451

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,050,000

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((8,465,000))

8,362,000

Sec. 11. 1997 c 235 s 247 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF VETERANS AFFAIRS

Emergency fund (97-1-012)

Appropriation:

CEP & RI Acct--State.. . . . . . .$ ((700,000))

750,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,800,000

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((3,500,000))

3,550,000

Sec. 12. 1997 c 235 s 249 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF VETERANS AFFAIRS

Retsil: Building feasibility study (97-2-015)

This appropriation is provided to conduct a study of the ((potential for consolidation of program functions and replacement of poor condition housing units into a new multi-use facility. The study will be submitted to the office of financial management and will be the basis of future capital investments at Retsil, based on clear programmatic need or economic benefits and improved efficiency)) physical condition of the Retsil and Orting campuses, determine the opportunities and constraints for use of the facilities on those campuses to serve current and future veterans program needs, and identify other options for the provision of services to veterans in the future. The studies will be submitted to the office of financial management and will be the basis upon which future capital plans for the department are developed.

Appropriation:

CEP & RI Acct--State.. . . . . . .$ ((112,000))

215,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((112,000))

215,000

NEW SECTION. Sec. 13. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

Local government criminal justice facilities (99-2-003)

The appropriation in this section is subject to the following conditions and limitations:

(1) The appropriation in this section is provided solely for the purpose of constructing, developing, expanding, modifying, or improving local jails and other correctional facilities in accordance with the violent offender incarceration and truth-in-sentencing grant requirements.

(2) The department of corrections, in consultation with the Washington association of sheriffs and police chiefs, shall develop criteria for allocating moneys appropriated in this section to local governments.

Appropriation:

General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 639,196

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 639,196

NEW SECTION. Sec. 14. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

Washington Corrections Center: Replace razor ribbon wire (99-1-001)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,200,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,200,000

NEW SECTION. Sec. 15. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

McNeil Island Corrections Center: Still Harbor dock (99-2-001)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,700,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,700,000

NEW SECTION. Sec. 16. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

Washington State Reformatory Farm: Dairy animal waste lagoon improvements (99-2-002)

The appropriation in this section is subject to the following conditions and limitations:

The department shall contract with the joint legislative audit and review committee to conduct a cost/benefit review of the operations of the Washington state reformatory farm. The review shall make recommendations regarding the disposition of the farm and provide a report to the office of financial management and the appropriate legislative committees September 30, 1998.

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,242,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,242,000

NEW SECTION. Sec. 17. A new section is added to 1997 c 235 (uncodified) to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

Grant administration and minor improvements

The appropriation in this section is provided solely for costs associated with administration of the violent offender incarceration and truth-in-sentencing grant program to local governments and other agencies receiving a subaward from the grant and minor improvements for correctional facilities.

Appropriation:

General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 155,550

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 155,550

Sec. 18. 1997 c 235 s 301 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

Referendum 26 waste disposal facilities (74-2-004)

The appropriations in this section are subject to the following conditions and limitations:

(1) The reappropriation in this section is provided solely for projects under contract on or before June 30, 1997. Reappropriated funds not associated with contracted projects shall lapse on June 30, 1997. The office of financial management may grant waivers from this lapse requirement for specific projects upon findings of exceptional circumstances after notification of the chairs of the house of representatives capital budget committee and senate ways and means committee. The department shall submit a report to the office of financial management and the house of representatives capital budget committee and senate ways and means committee by December 1, 1997, listing all projects funded from the reappropriation in this section.

(2) $378,500 of the appropriation is provided for the waste water treatment plant at the city of Connell.

Reappropriation:

LIRA--State. . . . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,028,749

Appropriation:

LIRA--State. . . . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((210,969))

1,039,969

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,840,771

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 800,000

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((9,880,489))

10,709,489

Sec. 19. 1997 c 235 s 302 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

Referendum 38 water supply facilities (74-2-006)

The appropriations in this section are subject to the following conditions and limitations:

(1) $2,500,000 of the state and local improvements revolving account reappropriation is provided solely for funding the state's cost share in the water conservation demonstration project--Yakima river reregulation reservoir.

(2) The reappropriation in this section is provided solely for projects under contract on or before June 30, 1997. Reappropriated funds not associated with contracted projects shall lapse on June 30, 1997. The office of financial management may grant waivers from this lapse requirement for specific projects upon findings of exceptional circumstances after notification of the chairs of the house of representatives capital budget committee and senate ways and means committee. The department shall submit a report to the office of financial management and the house of representatives capital budget committee and senate ways and means committee by December 1, 1997, listing all projects funded from the reappropriation in this section.

(3) $1,500,000 of the state and local improvements revolving account appropriation is provided solely for funding the state's cost share of the Methow Valley irrigation district agreement.

Reappropriation:

LIRA, Water Sup Fac--State. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 6,763,571

Appropriation:

LIRA, Water Sup Fac--State. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((485,495))

1,985,495

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 10,141,668

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,600,000

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((18,990,734))

20,490,734

Sec. 20. 1997 c 235 s 305 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

Centennial clean water fund (86-2-007)

The appropriations in this section are subject to the following conditions and limitations:

(1) $25,000,000 of the appropriation is provided solely for the extended grant payment to Metro/King county.

(2) $10,000,000 of the appropriation is provided solely for an extended grant payment to Spokane for the Spokane-Rathdrum Prairie aquifer.

(3) $1,850,000 of the appropriation is provided solely for allocation for on-site sewage system projects or programs identified in local watershed plans. Of this amount, $25,000 is provided solely for the Puyallup Washington state university research and extension center for on-site septic systems, and $25,000 is provided solely for the department of health to support the work group making recommendations on the development of an on-site septic system certification program pursuant to chapter 447, Laws of 1997.

(4) $10,000,000 of the appropriation is provided for the department to establish and administer a reclaimed water demonstration program to provide grants to five demonstration projects consistent with this section, and, if enacted, chapter 355, Laws of 1997. Of this amount:

(a) $100,000 is provided solely for an interagency agreement with the department of health for monitoring the activities and progress of the demonstration projects and to refine reclaimed water standards from the results of the projects;

(b) $75,000 is provided for the department of ecology's administrative costs in funding and monitoring the activities and progress of the demonstration projects;

(d) $985,000 is provided solely for a grant to the city of Royal City for a reclaimed water demonstration project;

(e) $3,398,500 is provided solely for a grant to the city of Sequim for a reclaimed water demonstration project;

(f) $3,398,500 is provided solely for a grant to the city of Yelm for a reclaimed water demonstration project; and

(g) $98,500 is provided solely for a grant to Lincoln county for a study of a reclaimed water demonstration project.

(5) A minimum of 80 percent of the remaining appropriation after allocation of subsections (1), (2), (3), and (4) of this section shall be allocated by the department for water quality implementation activities.

(6) A maximum of 20 percent of the remaining appropriation after allocation of subsections (1), (2), (3), and (4) of this section shall be allocated by the department for water quality planning activities.

(7) In awarding state-wide water quality implementation and planning grants and loans, the department shall give priority consideration to:

(a) Proposals submitted by communities with populations less than 2,500 or proposals that will be submitted by communities with populations less than 2,500 who have demonstrated an economic hardship which will prevent the completion or implementation of water quality projects; and

(b) ((Projects located in basins with critical or depressed salmonid stocks)) Allocate no less than twenty-five percent of the amount which has not been obligated as of July 1, 1998, for projects otherwise eligible under the water quality account and which have a component benefiting the recovery of priority salmonid stocks.

(8) The reappropriation in this section is provided solely for projects under contract on or before June 30, 1997. Reappropriated funds not associated with contracted projects shall lapse on June 30, 1997. The office of financial management may grant waivers from this subsection (8) for specific projects upon findings of exceptional circumstances after notification of the chairs of the house of representatives capital budget committee and senate ways and means committee. The department shall submit a report to the office of financial management and the house of representatives capital budget committee and senate ways and means committee by December 1, 1997, listing all projects funded from the reappropriation in this section.

Reappropriation:

Water Quality Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38,653,000

Appropriation:

Water Quality Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 70,000,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 291,063,221

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 311,000,000

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 710,716,221

NEW SECTION. Sec. 21. A new section is added to 1997 c 235 to read as follows:

FOR THE STATE PARKS AND RECREATION COMMISSION

Storm disaster recovery (99-1-001)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 530,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 530,000

NEW SECTION. Sec. 22. A new section is added to 1997 c 235 to read as follows:

FOR THE STATE PARKS AND RECREATION COMMISSION

Cama Beach State Park development (99-2-001)

Appropriation:

Parks Renewal and Stewardship Account--State. . . . . . . . . . . . . . . . . . . . .$ 1,000,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,000,000

Sec. 23. 1997 c 235 s 329 (uncodified) is amended to read as follows:

FOR THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION

Washington Wildlife and Recreation Program (98-2-003)

The appropriations in this section for the Washington wildlife and recreation program under chapter 43.98A RCW are subject to the following conditions and limitations:

(1) $22,500,000 of the state building construction account appropriation shall be deposited in the habitat conservation account and is hereby appropriated from the habitat conservation account to the interagency committee for outdoor recreation for the fiscal biennium ending June 30, 1999, for the Washington wildlife and recreation program under chapter 43.98A RCW.

(2) $20,000,000 of the state building account appropriation and $2,500,000 from the aquatic lands enhancement account appropriation shall be deposited in the outdoor recreation account, and $22,500,000 is hereby appropriated from the outdoor recreation account to the interagency committee for outdoor recreation for the fiscal biennium ending June 30, 1999, for the Washington wildlife and recreation program under chapter 43.98A RCW. Funds from the aquatic lands enhancement account appropriation shall be distributed to eligible water access projects under RCW 43.98A.050.

(3) The new appropriations in this section are provided for the approved list of projects included in LEAP CAPITAL DOCUMENT NO. 98-6 as developed on April 15, 1997, at 10:00 a.m., LEAP CAPITAL DOCUMENT NO. 99-1 as adopted on February 23, 1998, at 10:00 a.m., the pilot watershed plan implementation program under subsection (6) of this section, and for other projects approved by the legislature under RCW 43.98A.080 referencing this section.

(4) No moneys from the appropriations in this section may be spent on the Rocky Reach trailway project until an agreement with affected property owners has been reached.

(5) The legislature finds that, since the inception of the Washington wildlife and recreation program, over eighty-five percent of the moneys provided for the state parks category has been used for acquisition of property, and that demands for recreational facilities in state parks require that increased funding be devoted to development projects. The committee and the state parks and recreation commission shall ensure that at least forty percent of new funding provided for the state parks category during the 1997-99 biennium be allocated to development projects.

(6) $4,000,000 of the habitat conservation account appropriation from the unallocated portion of the fund distribution under RCW 43.98A.040(1)(d) is provided solely for matching grants for riparian zone habitat protection projects that implement watershed plans pursuant to this subsection. The interagency committee for outdoor recreation shall develop a pilot watershed plan implementation program within the Washington wildlife and recreation program. The program shall provide matching grants to eligible agencies for implementation of riparian zone habitat protection projects within watershed restoration plans under RCW 89.08.460(1), watershed action plans developed pursuant to rules adopted by the Puget Sound water quality action team, or plans developed pursuant to chapter 442, Laws of 1997. Projects shall have a useful life of at least thirty years. Eligible agencies include conservation districts, counties, cities, and private nonprofit land trust or nature conservancy organizations. Projects eligible for funding under this section include acquisition of land using less-than-fee-simple instruments such as conservation easements and purchase of development rights; and habitat restoration and enhancement projects on such lands including fencing and revegetation of native trees and shrubs that enhance the long-term habitat values of protected lands. The committee shall develop an application process and project eligibility and evaluation criteria in consultation with the state conservation commission. The committee shall report to the appropriate committees of the legislature on the implementation of the pilot matching grant program. A preliminary status report shall be submitted by January 1, 1998, and a final report by January 1, 1999.

(7) Up to $400,000 of the reappropriations in this section is provided to develop an inventory of all lands in the state owned by federal agencies, state agencies, local governments, and Indian tribes. The committee shall develop the inventory in a computer database format that will facilitate the sharing and reporting of inventory data and provide options for future updates. The inventory shall include, at a minimum, the following information: Owner, location, acreage, and principal use. The inventory shall also include resource-based information for state and federally-owned recreation and habitat lands. The committee shall submit a status report on the inventory to the appropriate committees of the legislature by January 1, 1999, and a final report by January 1, 2000.

(8) All land acquired by a state agency with moneys from these appropriations shall comply with class A, B, and C weed control provisions of chapter 17.10 RCW.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 14,264,419

Aquatic Lands Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 33,335

ORA--State. . .. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 21,985,067

Wildlife Account--State. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,398,996

Habitat Conservation Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,700,633

-------------

Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 56,382,450

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 42,500,000

Aquatic Lands Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,500,000

-------------

Subtotal Appropriation. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 45,000,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 101,449,844

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,000,000

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 402,832,294

NEW SECTION. Sec. 24. A new section is added to 1997 c 235 to read as follows:

FOR THE STATE CONSERVATION COMMISSION

Conservation Reserve Enhancement Program

The appropriation in this section shall be expended solely for the conservation reserve enhancement program to provide grants to conservation districts to assist land owners to protect and restore riparian zones in areas with salmon stocks and a minimum of $420,000 shall be allocated to an evolutionarily significant unit east of the Cascade mountain range and a minimum of $420,000 to the tri-county water resource agency for projects and activities recommended by the Yakima river watershed council.

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,500,000

Salmon Recovery Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 500,000

-------------

Subtotal Appropriation. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,000,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,000,000

Sec. 25. 1997 c 235 s 344 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE

Water access and development (96-2-027)

Reappropriation:

ORA--State. . .. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 997,000

Appropriation:

ORA--State. . .. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 135,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,057,600

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,054,600))

2,189,600

Sec. 26. 1997 c 235 s 352 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE

Coast and Puget Sound wild salmonid habitat restoration (98-1-009)

No less than twenty-five percent of that portion of the appropriation under this section that has not been obligated as of March 1, 1998, shall be expended on projects for the recovery of priority salmonid stocks.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,428,770

Appropriation:

General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 800,000

General Fund--Private/Local. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 800,000

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,500,000

-------------

Subtotal Appropriation. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,100,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 8,986,230

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 22,400,000

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 37,915,000

NEW SECTION. Sec. 27. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE

Salmon restoration

The appropriation in this section shall be expended as follows:

(1) $842,000 for the lower Columbia river evolutionarily significant unit.

(2) Not more than $1,039,000 for fish passage barrier projects on land owned or managed by the department of fish and wildlife.

(3) At least $2,079,000 for the department to establish a program of competitive grants to local governments and regional fisheries enhancement groups for fish passage barrier projects.

(4) At least $1,039,000 for fish passage barrier projects that the department has determined to be priority projects. The distribution of money for priority projects may be in the form of grants to local governments, regional fisheries enhancement groups, and other state agencies.

(5) The projects selected for funding in subsections (2) through (4) of this section shall be based on a priority index developed by the department that yields the highest return of ecological benefit.

Appropriation:

Salmon Recovery Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,000,000

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 750,000

-------------

Subtotal Appropriation. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,750,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,750,000

NEW SECTION. Sec. 28. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

Natural Resources real property replacement (99-2-001)

Appropriation:

Nat Res Prop Repl Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 9,400,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 9,400,000

NEW SECTION. Sec. 29. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

Land bank program to enhance trust land holdings (99-2-002)

Appropriation:

Resource Management Cost Account--State. . . . . . . . . . . . . . . . . . . . . . . . $ 1,800,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,800,000

NEW SECTION. Sec. 30. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

Arlington Survey Boundary Dispute. To purchase land as part of the settlement agreement to resolve claims and litigation over a survey boundary dispute near the town of Arlington in Snohomish county.

Appropriation:

For Dev Acct--State. . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,600,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,600,000

Sec. 31. 1997 c 235 s 393 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCE

Jobs for the Environment (98-2-009)

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriations shall be used solely for the jobs for the environment program to achieve the following goals:

(a) Restore and protect watersheds to benefit anadromous fish stocks, consistent with the limitations of subsection (8) of this section, including critical or depressed stocks as determined by the department of fish and wildlife;

(b) Conduct watershed restoration and protection projects primarily on state lands in coordination with federal, local, tribal, and private sector efforts; and

(c) Create market wage jobs with benefits in environmental restoration for displaced workers in rural natural resource impact areas, as defined under RCW 43.31.601(2).

(2) Except as provided in subsection (5) of this section and consistent with the limitations of this section, the appropriations are solely for projects selected by the department of natural resources, in consultation with an interagency task force consisting of the department of fish and wildlife, other appropriate state agencies, tribal governments, local governments, the federal government, labor and other interested stakeholders. In recommending projects for funding the task force shall use the following criteria:

(a) The extent to which the project, using best available science, addresses habitat factors limiting fish and wildlife populations;

(b) The number, duration and quality of jobs to be created or retained by the project for displaced workers in natural resource impact areas;

(c) The extent to which the project will help avoid the listing of threatened or endangered species or provides for the recovery of species already listed;

(d) The extent to which the project will augment existing federal, state, tribal or local watershed planning efforts or completed watershed restoration and conservation plans;

(e) The cost effectiveness of the project;

(f) The availability of matching funds; and

(g) The demonstrated ability of the project sponsors to administer the project.

(3) Funds expended shall be used for specific projects and not for ongoing operational costs. Eligible projects include, but are not limited to, closure or improvement of forest roads, repair of culverts, cleanup of stream beds, removal of fish barriers, installation of fish screens, fencing of streams, and construction and planting of fish cover. Funds may also be expended for planning, design, engineering, and monitoring of eligible projects.

(4) The department of natural resources and the department of fish and wildlife, in consultation with the office of financial management and other appropriate agencies, shall report to the appropriate committees of the legislature by January 1, 1998, and January 1, 1999, on the results of expenditures from the appropriations.

(5) $800,000 of the appropriations in this section is provided solely for watershed restoration programs to be completed by the department of ecology's Washington conservation corps crews.

(6) All projects funded under this section shall be consistent with any development regulations or comprehensive plans adopted under the growth management act for the project areas. No funds may be expended to acquire land through condemnation.

(7) Projects under contract as of June 1, 1997, shall be given first priority for funding under the appropriations in this section.

(8) No less than twenty-five percent of the remainder of the appropriations under this section that have not been obligated as of July 1, 1998, shall be expended on projects for the recovery of priority salmonid stocks.

Appropriation:

For Dev Acct--State. . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 500,000

Resource Management Cost Account--State. . . . . . . . . . . . . . . . . . . . . . . . $ 1,500,000

Water Quality Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,133,000

-------------

Subtotal Appropriation. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 9,133,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 23,067,000

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,000,000

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 72,200,000

NEW SECTION. Sec. 32. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

Distribution of excess funds from the forest development account: For distribution of state forest land revenues to taxing authorities receiving such revenue during the calendar year 1993 through calendar year 1997

(1) Within fifteen days of the effective date of this act the department shall transmit funds in the amounts specified in subsection (3) of this section to the county treasurers of the counties receiving the funds.

(2) The county treasurer of the counties listed in this section shall distribute funds received from this appropriation to taxing authorities in proportion to the state forest transfer land funds distributed to the taxing authorities based on information available for the calendar years 1993 through 1997. Funds to be credited to the state of Washington and funds credited to school district general levies shall be remitted to the state of Washington within thirty days after the effective date of this act for deposit into the salmon recovery account.

(3) Funds shall be distributed in the following amounts:

Clallam. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,847,473

Clark. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 508,782

Cowlitz. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 433,013

Grays Harbor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 454,016

Jefferson. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 222,289

King. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 352,016

Kitsap. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 174,374

Klickitat. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 62,613

Lewis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,558,708

Mason . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 258,289

Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 385,900

Pierce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 135,405

Skagit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,606,164

Skamania. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 258,247

Snohomish. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,590,489

Stevens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,992

Thurston. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 893,263

Wahkiakum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 411,273

Whatcom. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 842,685

-------------

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 12,000,000

Appropriation:

For Dev Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 12,000,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 12,000,000

Sec. 33. 1997 c 235 s 506 (uncodified) is amended to read as follows:

FOR THE STATE SCHOOL FOR THE DEAF

New cottages: Design and construction (98-2-001)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((4,606,600))

4,786,600

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((4,606,600))

4,786,600

Sec. 34. 1997 c 235 s 510 (uncodified) is amended to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

Old Physics Hall (Mary Gates Hall): Design and construction (92-2-008)

The reappropriation in this section is subject to the review and allotment procedures under section 712 of this act.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((30,028,248))

31,328,248

UW Bldg Acct--State. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 305,891

-------------

Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((30,334,139))

31,634,139

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,772,861

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((35,107,000))

36,407,000

Sec. 35. 1997 c 235 s 523 (uncodified) is amended to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

Health Sciences Center BB Tower Elevators--Design and construction: To design and construct the addition of one elevator and upgrading of the existing elevators in the health sciences center BB-wing and tower (96-1-007)

The reappropriation in this section is subject to the review and allotment procedures under section 712 of this act.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .. . . . . . .. . . . . . .. . . . . .$ ((4,961,992))

561,992

UW Bldg Acct--State. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 208,546

-------------

Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((5,170,538))

770,538

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 22,061

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((5,192,599))

792,599

Sec. 36. 1997 c 235 s 525 (uncodified) is amended to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

Hogness/Health Sciences Center lobby: Americans with Disabilities Act improvements (96-1-022)

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,253,070))

1,353,070

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 46,930

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,300,000))

1,400,000

Sec. 37. 1997 c 235 s 526 (uncodified) is amended to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

Fisheries Science-Oceanography Science Building: Construction (96-2-006)

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriation in this section is subject to the review and allotment procedures under section 712 of this act.

(2) The department of general administration is directed, in keeping with section 152 of this act, to sell the Wellington Hills property as a means of partially offsetting the cost of this project with the proceeds of such sale being deposited into the state building and construction account.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,449,850

UW Bldg Acct--State. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,548,150

-------------

Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,998,000

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((33,590,000))

36,090,000

H Ed Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 32,507,000

UW Bldg Acct--State. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,834,154

-------------

Subtotal Appropriation. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((68,931,154))

71,431,154

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,865,597

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((77,794,751))

80,294,751

Sec. 38. 1997 c 235 s 527 (uncodified) is amended to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

Social Work third floor addition--Design and construction: To design and construct a 12,000 gross square foot partial third floor addition to the Social Work and Speech and Hearing Sciences Building (96-2-010)

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,708,800))

3,208,800

UW Bldg Acct--State. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 126,400

-------------

Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,835,200))

3,335,200

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 80,400

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,915,600))

3,415,600

NEW SECTION. Sec. 39. A new section is added to 1997 c 235 to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

Kincaid Fire Damage (99-1-001)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,424,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,424,000

NEW SECTION. Sec. 40. A new section is added to 1997 c 235 to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

Nuclear reactor: Decommissioning (99-2-009)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,200,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,200,000

Sec. 41. 1997 c 235 s 542 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE UNIVERSITY

Veterinary Teaching Hospital--Construction: To construct, equip, and furnish a new teaching hospital for the department of veterinary medicine and surgery (92-2-013)

The reappropriation in this section is subject to the review and allotment procedures under section 712 of this act.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 77,884

H ED Constr Acct--State. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 239,098

-------------

Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 316,982

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,000,000

WSU Bldg Acct--State. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 500,000

-------------

Subtotal Appropriation. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,500,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 33,628,518

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((33,945,500))

37,445,500

Sec. 42. 1997 c 235 s 566 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE UNIVERSITY

Intercollegiate Center for Nursing Education: Telecommunications (96-2-915)

Reappropriation:

((St Bldg Constr Acct--State))

WSU Bldg Acct--State. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 524,386

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 975,614

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,500,000

Sec. 43. 1997 c 235 s 567 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE UNIVERSITY

Minor works: Preservation (98-1-004)

The appropriation in this section is subject to the following conditions and limitations:

The appropriation shall support the detailed list of projects maintained by the office of financial management.

Appropriation:

WSU Bldg Acct--State. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((5,553,000))

5,053,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,000,000

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((29,553,000))

29,053,000

Sec. 44. 1997 c 235 s 579 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE UNIVERSITY

Washington State University Vancouver: Phase II (98-2-911)

The appropriation in this section is subject to the following conditions and limitations:

(1) No money from this appropriation may be expended that would be inconsistent with the recommendations of the higher education coordinating board.

(2) The appropriation in this section is subject to the review and allotment procedures under section 712 of this act.

(3) The engineering and multimedia buildings to be designed under this appropriation shall serve at least 950 additional student full-time equivalents. Funding is also provided to construct campus infrastructure and physical plant shops.

(4) $1,000,000 of the appropriation in this section is provided solely to reserve or acquire transportation capacity and traffic impact fee credits associated with the development of the Vancouver branch campus.

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 13,500,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 123,000,000

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 136,500,000

Sec. 45. 1997 c 235 s 594 (uncodified) is amended to read as follows:

FOR EASTERN WASHINGTON UNIVERSITY

Minor works: Program (98-2-001)

The appropriation in this section is subject to the following conditions and limitations:

(1) The appropriation shall support the detailed list of projects maintained by the office of financial management.

(2) Up to $30,000 may be used for design of a residence for the president of the university.

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((500,000))

530,000

EWU Cap Proj Acct--State. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,200,000

-------------

Subtotal Appropriation. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,700,000))

1,730,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,018,000

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((11,718,000))

11,748,000

Sec. 46. 1997 c 235 s 606 (uncodified) is amended to read as follows:

FOR CENTRAL WASHINGTON UNIVERSITY

((Boiler Plant: Expansion)) Heating system improvements (98-1-030)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,450,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,450,000

Sec. 47. 1997 c 235 s 611 (uncodified) is amended to read as follows:

FOR CENTRAL WASHINGTON UNIVERSITY

SeaTac Center Building: ((Renovation)) Facility improvements (98-2-010)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 662,500

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 662,500

Sec. 48. 1997 c 235 s 612 (uncodified) is amended to read as follows:

FOR CENTRAL WASHINGTON UNIVERSITY

Lynnwood Extended Degree Center: Facility design (98-2-080)

Appropriation:

((St Bldg Constr Acct--State))

CWU Cap Proj Acct--State. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,000,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,000,000

Sec. 49. 1997 c 235 s 659 (uncodified) is amended to read as follows:

FOR THE STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES

Asbestos abatement (96-1-002)

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 484,317

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 700,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,142,040

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,626,357))

2,326,357

NEW SECTION. Sec. 50. A new section is added to 1997 c 235 to read as follows:

FOR THE STATE BOARD OF COMMUNITY AND TECHNICAL COLLEGES

Lower Columbia College: Library heating system (99-1-003)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 512,000

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 512,000

Sec. 51. 1997 c 235 s 661 (uncodified) is amended to read as follows:

FOR THE STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES

For roof repairs at various colleges in the system and for stabilization of Corbet Hall at Centralia Community College and development of alternatives for the replacement of Corbet Hall (96-1-010)

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,824,529

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,581,471

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,406,000

Sec. 52. 1997 c 235 s 681 (uncodified) is amended to read as follows:

FOR THE STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES

For roof repairs at various colleges in the system and for stabilization of Corbet Hall at Centralia Community College and development of alternatives for the replacement of Corbet Hall (98-1-010)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 11,580,400

Prior Biennia (Expenditures). . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 41,000,000

-------------

TOTAL. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 52,580,400

Sec. 53. 1997 c 235 s 702 (uncodified) is amended to read as follows:

ACQUISITION OF PROPERTIES AND FACILITIES THROUGH FINANCIAL CONTRACTS. The following agencies may enter into financial contracts, paid for from operating revenues, for the purposes indicated and in not more than the principal amounts indicated, plus financing expenses and required reserves pursuant to chapter 39.94 RCW. When securing properties under this section, agencies shall use the most economical financial contract option available, including long-term leases, lease-purchase agreements, lease-development with option to purchase agreements or financial contracts using certificates of participation. The director of general administration shall ensure that the clustering of state facilities and the collocation and consolidation of state agencies take place where such configurations are economical and consistent with agency space needs. Agencies shall assist the department of general administration with facility collocation and consolidation efforts.

State agencies may enter into agreements with the department of general administration and the state treasurer's office to develop requests to the legislature for acquisition of properties and facilities through financial contracts. The agreements may include charges for services rendered.

(1) Department of general administration:

(a) Enter into a financing contract in the amount of $8,804,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW, to purchase an existing office building and associated land in Yakima for use by the department of social and health services.

(b) ((Enter into a financing contract on behalf of the joint center for higher education for $8,500,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW, to purchase and make modifications to the Riverpoint One Building adjacent to the Riverpoint Campus. A financial plan identifying all costs related to this project, and the sources and amounts of all payments to cover these costs and a copy of the appraisal and engineering assessment shall be submitted for approval to both the office of financial management and the higher education coordinating board for approval before execution of any contract.

Copies of the financial plan shall also be submitted to the senate ways and means committee and the house of representatives capital budget committee.)) Enter into a financing contract in the amount of $2,874,100 plus financing expenses and required reserves pursuant to chapter 39.94 RCW, to purchase and renovate the old federal building and associated land in Olympia for use by the secretary of state.

(c) Enter into a financing contract in the amount of $6,990,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW, to buy out the lease and make improvements to the old Thurston county courthouse for use by the office of attorney general. The department of general administration shall advise and assist the office of attorney general on space and functional planning to improve the efficient use of the facility.

(2) Liquor control board:

Enter into a long-term lease for a headquarters office in Thurston County for approximately 46,000 square feet.

(3) Department of corrections:

(a) Enter into a long-term ground lease for 17 acres in the Tacoma tide flats property from the Puyallup Nation for development of the 400-bed Tacoma prerelease facility for approximately $360,000 per annum. Prior to entering into the lease, the department shall obtain written confirmation from the city of Tacoma and Pierce county that the prerelease facility planned for the site meets all land use, environmental protection, and community notification requirements that would apply to the facility if the land was not owned by the Puyallup nation.

(b) Enter into a financing contract on behalf of the department of corrections in the amount of $14,736,900 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to construct a 400-bed Tacoma prerelease facility. The department of corrections shall comply with all land use, environmental protection, and community notification statutes, regulations, and ordinances in the construction and operation of this facility.

(c) Lease-develop with the option to purchase or lease-purchase approximately 100 work release beds in facilities throughout the state for $5,000,000.

(d) Enter into a financing contract on behalf of the department of corrections in the amount of $396,369 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to construct a dairy barn at the Monroe farm.

(e) Enter into a financing contract on behalf of the department of corrections in the amount of $2,100,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to purchase or construct a correctional industries transportation services warehouse.

(4) Community and technical colleges:

(a) Enter into a financing contract on behalf of Whatcom Community College in the amount of $800,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to develop a childcare center costing $2,410,000. The balance of project cost will be a combination of local capital funds and nonstate funds provided through private gifts or contributions.

(b) Enter into a financing contract on behalf of Pierce College in the amount of $750,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to develop a new classroom building on the Lakewood campus costing $1,816,665. The balance of project cost will be provided through a combination of local capital funds and existing minor works appropriation to replace relocatable classrooms that are at the end of their useful lives.

(c) Enter into a financing contract in behalf of Bellingham Technical College in the amount of $350,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW for construction of a new classroom addition to the diesel/heavy equipment instructional shop costing $411,309.

(d) Enter into a financing contract on behalf of Green River Community College in the amount of $1,526,150 plus financing expenses and reserves pursuant to chapter 39.94 RCW for remodel of the Lindbloom student center building.

(e) Enter into a financing contract on behalf of Edmonds Community College in the amount of $2,787,950 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to ((purchase and make improvements to several buildings and property contiguous to the college campus)) develop a 10,000 square foot music building on the college campus.

(f) Enter into a financing contract on behalf of Highline Community College in the amount of $2,070,613 plus financing and required reserves pursuant to chapter 39.94 RCW for the purchase of the Federal Way Center, currently being leased by the college.

(g) Enter into a financial contract on behalf of Green River Community College in the amount of $100,000 plus financing and required reserves pursuant to chapter 39.94 RCW to purchase approximately 1.5 acres of land adjacent to the westside parking lot.

(h) Enter into a financial contract on behalf of South Puget Sound Community College in the amount of $619,210 plus financing and required reserves pursuant to chapter 39.94 RCW to expand and redevelop the main campus parking lot A.

(i) Enter into a financial contract on behalf of South Puget Sound Community College in the amount of $5,500,000 plus financing and required reserves pursuant to chapter 39.94 RCW to develop a $6,500,000 student union facility.

(j) Enter into a financial contract on behalf of Wenatchee Valley College in the amount of $500,000 plus financing and required reserves pursuant to chapter 39.94 RCW to purchase two buildings and property contiguous to the college campus.

(5) State parks and recreation:

Enter into a financing contract on behalf of state parks and recreation in the amount of $2,012,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW, to construct cabin and lodge facilities at Cama Beach, develop new campsite electrical hookups, develop new recreational facilities, and expand campsites at Ocean Beach/Grayland. It is the intent of the legislature that debt service on all projects financed under this authority be paid from operating revenues.

(6) ((Central Washington University:

Enter into a financing contract for $3,000,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to purchase and improve the Sno-King Building for the Lynnwood Extended Degree Center. A financial plan identifying all costs related to this project, and the sources and amounts of all payments to cover these costs and a copy of the building appraisal and engineering assessment shall be submitted for approval to the office of financial management before execution of any contract. Copies of the financial plan shall also be submitted to the senate ways and means committee and the house of representatives capital budget committee.

(7))) Washington state patrol:

Enter into a financing contract for $600,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to purchase the Washington state patrol Port Angeles detachment office.

NEW SECTION. Sec. 54. A new section is added to 1997 c 235 to read as follows:

The office of financial management will convene a working group of state agencies, higher education institutions, the office of the attorney general, and representatives of the design profession and construction industry to develop a strategy to manage the risks and reduce the potential for claims and litigation associated with state construction projects. This strategy shall include the enumeration of best practices for the management of project risk and conflicts, in order to minimize future expenses related to construction claims. A report on the findings and recommendations of this working group will be presented to the house of representatives capital budget committee and senate ways and means committee by October 31, 1998.

Sec. 55. RCW 76.12.110 and 1988 c 128 s 31 are each amended to read as follows:

There is created a forest development account in the state treasury. The state treasurer shall keep an account of all sums deposited therein and expended or withdrawn therefrom. Any sums placed in the account shall be pledged for the purpose of paying interest and principal on the bonds issued by the department, and for the purchase of land for growing timber. Any bonds issued shall constitute a first and prior claim and lien against the account for the payment of principal and interest. No sums for the above purposes shall be withdrawn or paid out of the account except upon approval of the department.

Appropriations may be made by the legislature from the forest development account to the department for the purpose of carrying on the activities of the department on state forest lands, lands managed on a sustained yield basis as provided for in RCW 79.68.040, and for reimbursement of expenditures that have been made or may be made from the resource management cost account in the management of state forest lands. For the 1997-99 fiscal biennium, moneys from the account shall be distributed as directed in the omnibus appropriations act to the beneficiaries of the revenues derived from state forest lands. Funds that accrue to the state from such a distribution shall be deposited into the salmon recovery account, hereby created in the state treasury. Funds appropriated from the salmon recovery account shall be used for efforts to restore endangered anadromous fish stocks.

NEW SECTION. Sec. 56. 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 1 of the title, after "budget;" strike the remainder of the title and insert "amending RCW 76.12.110; amending 1997 c 235 ss 152, 219, 241, 245, 247, 249, 301, 302, 305, 329, 344, 352, 393, 506, 510, 523, 525, 526, 527, 542, 566, 567, 579, 594, 606, 611, 612, 659, 661, 681, and 702 (uncodified); adding new sections to 1997 c 235; making appropriations and authorizing expenditures for capital improvements; and declaring an emergency."

There being no objection, the House adopted the Report of the Conference Committee on Substitute Senate Bill No. 6455 and advanced the bill to Final Passage.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Substitute Senate Bill No. 6455 as recommended by the Conference Committee.

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

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 6455 as recommended by the Conference Committee, 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 Senate Bill No. 6455, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

REPORT OF CONFERENCE COMMITTEE

Bill No: SSB 6751 Date: March 10, 1998

Prepared by: Bill Perry Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your Conference Committee, to whom was referred SUBSTITUTE SENATE BILL NO. 6751, ensuring a choice of service and residential options for citizens with developmental disabilities, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and the striking amendment by the Conference Committee (attached) be adopted; and

that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 71A.10 RCW to read as follows:

It is the intent of the legislature to affirm its long-time commitment to secure for eligible persons with developmental disabilities in partnership with their families or legal guardians the opportunity to choose where they live. Consistent with this commitment, the legislature supports the existence of a complete spectrum of options, including community support services and residential habilitation centers.

The choice of service options must be supported by state policy, whether the choice is residential habilitation centers or community support services. The intent of the legislature is to ensure choice of service options to persons with developmental disabilities allowing, to the maximum extent possible, that they not have to leave their home or community.

The legislature supports the respective roles that both residential habilitation centers and community support services play in providing options and resources for people with developmental disabilities and their families who need services. The legislature recognizes that services must ensure credibility, responsiveness, and reasonable quality, whether they are state, county, or community funded.

Sec. 2. RCW 71A.10.020 and 1988 c 176 s 102 are each amended to read as follows:

As used in this title, the following terms have the meanings indicated unless the context clearly requires otherwise.

(1) "Community residential support services," or "community support services," and "in-home services" means one or more of the services listed in RCW 71A.12.040.

(2) "Department" means the department of social and health services.

(((2))) (3) "Developmental disability" means a disability attributable to mental retardation, cerebral palsy, epilepsy, autism, or another neurological or other condition of an individual found by the secretary to be closely related to mental retardation or to require treatment similar to that required for individuals with mental retardation, which disability originates before the individual attains age eighteen, which has continued or can be expected to continue indefinitely, and which constitutes a substantial handicap to the individual. By January 1, 1989, the department shall promulgate rules which define neurological or other conditions in a way that is not limited to intelligence quotient scores as the sole ((determinate [determinant])) determinant of these conditions, and notify the legislature of this action.

(((3))) (4) "Eligible person" means a person who has been found by the secretary under RCW 71A.16.040 to be eligible for services.

(((4))) (5) "Habilitative services" means those services provided by program personnel to assist persons in acquiring and maintaining life skills and to raise their levels of physical, mental, social, and vocational functioning. Habilitative services include education, training for employment, and therapy.

(((5))) (6) "Legal representative" means a parent of a person who is under eighteen years of age, a person's legal guardian, a person's limited guardian when the subject matter is within the scope of the limited guardianship, a person's attorney at law, a person's attorney in fact, or any other person who is authorized by law to act for another person.

(((6))) (7) "Notice" or "notification" of an action of the secretary means notice in compliance with RCW 71A.10.060.

(((7))) (8) "Residential habilitation center" means a state-operated facility for persons with developmental disabilities governed by chapter 71A.20 RCW.

(((8))) (9) "Secretary" means the secretary of social and health services or the secretary's designee.

(((9))) (10) "Service" or "services" means services provided by state or local government to carry out this title.

(11) "Vacancy" means an opening at a residential habilitation center, which when filled, would not require the center to exceed its biannually budgeted capacity.

Sec. 3. RCW 71A.16.010 and 1988 c 176 s 401 are each amended to read as follows:

(1) It is the intention of the legislature in this chapter to establish a single point of referral for persons with developmental disabilities and their families so that they may have a place of entry and continuing contact for services authorized under this title to persons with developmental disabilities. Eligible persons with developmental disabilities, whether they live in the community or residential habilitation centers, should have the opportunity to choose where they live.

(2) Until June 30, 2003, and subject to subsection (3) of this section, if there is a vacancy in a residential habilitation center, the department shall offer admittance to the center to any eligible adult, or eligible adolescent on an exceptional case-by-case basis, with developmental disabilities if his or her assessed needs require the funded level of resources that are provided by the center.

(3) The department shall not offer a person admittance to a residential habilitation center under subsection (2) of this section unless the department also offers the person appropriate community support services listed in RCW 71A.12.040.

(4) Community support services offered under subsection (3) of this section may only be offered using funds specifically designated for this purpose in the state operating budget. When these funds are exhausted, the department may not offer admittance to a residential habilitation center, or community support services under this section.

(5) Nothing in this section shall be construed to create an entitlement to state services for persons with developmental disabilities.

(6) Subsections (2) through (6) of this section expire June 30, 2003.

Sec. 4. RCW 71A.16.030 and 1988 c 176 s 403 are each amended to read as follows:

(1) The department will develop an outreach program to ensure that any eligible person with developmental disabilities services in homes, the community, and residential habilitation centers will be made aware of these services. This subsection (1) expires June 30, 2003.

(2) The secretary shall establish a single procedure for persons to apply for a determination of eligibility for services provided to persons with developmental disabilities.

(((2))) (3) Until June 30, 2003, the procedure set out under subsection (1) of this section must require that all applicants and all persons with developmental disabilities currently receiving services from the division of developmental disabilities within the department be given notice of the existence and availability of residential habilitation center and community support services. For genuine choice to exist, people must know what the options are. Available options must be clearly explained, with services customized to fit the unique needs and circumstances of developmentally disabled clients and their families. Choice of providers and design of services and supports will be determined by the individual in conjunction with the department. When the person cannot make these choices, the person's legal guardian may make them, consistent with chapter 11.88 or 11.92 RCW. This subsection expires June 30, 2003.

(4) An application may be submitted by a person with a developmental disability, by the legal representative of a person with a developmental disability, or by any other person who is authorized by rule of the secretary to submit an application.

NEW SECTION. Sec. 5. A new section is added to chapter 71A.12 RCW to read as follows:

(1) The legislature recognizes that residential habilitation center and community support services should be available to each eligible person with developmental disabilities in our state within appropriated funds.

(2) The legislature recognizes that there have been substantially increasing demands for all of these services. Therefore, the legislature believes that any reductions in the capacity of these services could jeopardize a needed balance in the developmental disabilities system. The legislature intends to stabilize the capacity of community support services and residential habilitation center services. The capacity of the residential habilitation centers shall not be reduced below the capacity provided for in chapter 149, Laws of 1997, subject to budget direction from the governor or reductions needed to adhere to an agreement with the federal department of justice regarding Fircrest School. The capacity of community support services shall not be reduced below the capacity provided for by the appropriation specified in chapter 149, Laws of 1997, subject to budget direction from the governor. If the direction from the governor requires reductions in the division of developmental disabilities, the budgets of both the residential habilitation centers and community support services shall be considered.

(3) If such capacity is not needed for current clients of the department, any vacancies that may occur in community support services or residential habilitation center services shall be used to expand services to eligible persons with developmental disabilities not now receiving services. If a vacancy is created it will be made available to any eligible individual who is seeking and desires the services of a residential habilitation center under RCW 71A.16.010. If residential habilitation center capacity is not being used for permanent residents, the department shall make any residential habilitation center vacancies available for respite care and any other services needed to care for this population in residential habilitation centers, other than permanent residents.

NEW SECTION. Sec. 6. A new section is added to chapter 71A.20 RCW to read as follows:

As a means of implementing a choice-oriented system for people with developmental disabilities, staff of residential habilitation centers will continue to increase vocational and community access for current residents. Likewise, specialized residential habilitation services will be more easily accessed by community residents within available funds.

NEW SECTION. Sec. 7. A new section is added to chapter 71A.12 RCW to read as follows:

The department shall conduct an analysis whereby it identifies all persons with developmental disabilities who are eligible for services under Title 71A RCW, and whether they are served, unserved, or underserved. The department will gather data on the services and supports required by this population, their families or their guardians, and the cost of providing these services. This analysis will include assessing services such as those at residential habilitation centers, those community support services listed in RCW 71A.12.040, and including, but not limited to, supported employment, family support, post high school transition programs, crisis intervention services, supports for persons who have a developmental disability and also a mental illness, alternative uses for residential habilitation centers, community vocational services, respite care, specialized medical treatment, and appropriate placements for persons with developmental disabilities who are also offenders. The assessment shall be done with the participation of the developmental disabilities stakeholders work group. The assessment will commence no later than July 1, 1998.

The assessment data will not be used to determine or allocate services for individual people. It will be used by the department, with the participation of the developmental disabilities stakeholder work group, to develop a long-term strategic plan. The plan will include three phases, the first one beginning December 1, 1998; the second beginning December 1, 2000; and the third beginning December 1, 2002. For each phase the department will provide incremental data and assessment of programs, services, and funding for persons with developmental disabilities and their families. For each phase the plan must also include budget and statutory recommendations intended to secure for all persons with developmental disabilities the opportunity to choose where they live, and shall support the existence of a complete spectrum of options including community support services, and residential habilitation centers that are consistent with those needs.

NEW SECTION. Sec. 8. A new section is added to chapter 71A.12 RCW to read as follows:

For the purposes of section 7 of this act, the developmental disabilities stakeholder work group is the division of developmental disabilities strategies for the future stakeholder work group established by the secretary in 1997 to develop recommendations on future directions and strategies for service delivery improvement, resulting in an agreement on the directions the department should follow in considering the respective roles of the residential habilitation centers and community support services, including a focus on the resources for people in need of services.

NEW SECTION. Sec. 9. Sections 1 and 5 through 8 of this act expire June 30, 2003.

NEW SECTION. Sec. 10. 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 "centers;" strike the remainder of the title and insert "amending RCW 71A.10.020, 71A.16.010, and 71A.16.030; adding a new section to chapter 71A.10 RCW; adding new sections to chapter 71A.12 RCW; adding a new section to chapter 71A.20 RCW; providing an expiration date; and declaring an emergency."

There being no objection, the House adopted the Report of the Conference Committee on Substitute Senate Bill No. 6751 and advanced the bill to Final Passage.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Substitute Senate Bill No. 6751 as recommended by the Conference Committee.

Representatives Cooke and Tokuda spoke in favor of passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 6751 as recommended by the Conference Committee, 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 Senate Bill No. 6751, as recommended by the Conference Committee, 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 SUBSTITUTE SENATE BILL NO. 6240 and asks the House for a conference thereon. The President has appointed the following members as conferees: Senators Stevens, Thibaudeau and Zarelli,

and the same is herein transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House granted the Senate Request for a conference on Substitute Senate Bill No. 6240.

APPOINTMENT OF CONFEREES

The Speaker (Representative Pennington presiding) appointed Representatives Sheahan, Sterk and Costa as conferees on Substitute Senate Bill No. 6240.

MESSAGE FROM THE SENATE

March 11, 1998

Mr. Speaker:

The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2417 with the following amendment(s):

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 82.80.020 and 1996 c 139 s 4 are each amended to read as follows:

(1) The legislative authority of a county, or subject to subsection (7) of this section, a qualifying city or town located in a county that has not imposed a fifteen-dollar fee under this section, may fix and impose an additional fee, not to exceed fifteen dollars per vehicle, for each vehicle that is subject to license fees under RCW 46.16.060 and for each vehicle that is subject to RCW 46.16.070 with an unladen weight of six thousand pounds or less, and that is determined by the department of licensing to be registered within the boundaries of the county.

(2) The department of licensing shall administer and collect the fee. The department shall deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes collected, for administration and collection expenses incurred by it. The remaining proceeds shall be remitted to the custody of the state treasurer for monthly distribution under RCW 82.80.080.

(3) The proceeds of this fee shall be used strictly for transportation purposes in accordance with RCW 82.80.070.

(4) A county or qualifying city or town imposing this fee or initiating an exemption process shall delay the effective date at least six months from the date the ordinance is enacted to allow the department of licensing to implement administration and collection of or exemption from the fee.

(5) The legislative authority of a county or qualifying city or town may develop and initiate an exemption process of the fifteen dollar fee for the registered owners of vehicles residing within the boundaries of the county or qualifying city or town: (a) Who are sixty-one years old or older at the time payment of the fee is due and whose household income for the previous calendar year is less than an amount prescribed by the county or qualifying city or town legislative authority((,)); or (b) who ((has)) have a physical disability.

(6) The legislative authority of a county or qualifying city or town shall develop and initiate an exemption process of the fifteen-dollar fee for vehicles registered within the boundaries of the county that are licensed under RCW 46.16.374.

(7) For purposes of this section, a "qualifying city or town" means a city or town residing within a county having a population of greater than seventy-five thousand in which is located all or part of a national monument. A qualifying city or town may impose the fee authorized in subsection (1) of this section subject to the following conditions and limitations:

(a) The city or town may impose the fee only if authorized to do so by a majority of voters voting at a general or special election on a proposition for that purpose. At a minimum, the ballot measure shall contain: (i) A description of the transportation project proposed for funding, properly identified by mileposts or other designations that specify the project parameters; (ii) the proposed number of months or years necessary to fund the city or town's share of the project cost; and (iii) the amount of fee to be imposed for the project.

(b) The city or town may not impose a fee that, if combined with the county fee, exceeds fifteen dollars. If a county imposes or increases a fee under this section that, if combined with the fee imposed by a city or town, exceeds fifteen dollars, the city or town fee shall be reduced or eliminated as needed so that in no city or town does the combined fee exceed fifteen dollars. All revenues from county-imposed fees shall be distributed as called for in RCW 82.80.020.

(c) Any fee imposed by a city or town under this section shall expire at the end of the term of months or years provided in the ballot measure, or when the city or town's bonded indebtedness on the project is retired, whichever is sooner.

(8) The fee imposed under subsection (7) of this section shall apply only to renewals and shall not apply to ownership transfer transactions.

Sec. 2. RCW 82.80.080 and 1990 c 42 s 213 are each amended to read as follows:

(1) The state treasurer shall distribute revenues, less authorized deductions, generated by the local option taxes authorized in RCW 82.80.010 and 82.80.020, levied by counties to the levying counties, and cities contained in those counties, based on the relative per capita population. County population for purposes of this section is equal to one and one-half of the unincorporated population of the county. In calculating the distributions, the state treasurer shall use the population estimates prepared by the state office of financial management and shall further calculate the distribution based on information supplied by the departments of licensing and revenue, as appropriate.

(2) The state treasurer shall distribute revenues, less authorized deductions, generated by the local option taxes authorized in RCW 82.80.010 and 82.80.020 levied by qualifying cities and towns to the levying cities and towns."

On page 1, line 2 of the title, after "projects;" strike the remainder of the title and insert "and amending RCW 82.80.020 and 82.80.080."

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. 2417 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. 2417 as amended by the Senate.

Representatives K. Schmidt and Hatfield spoke in favor of passage of the bill as amended by the Senate.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2417, as amended by the Senate and the bill passed the House by the following vote: Yeas - 93, Nays - 5, Absent - 0, Excused - 0.

Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, 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., Scott, Sehlin, Sheahan, Sherstad, Skinner, Sommers, D., Sommers, H., Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 93.

Voting nay: Representatives Benson, Crouse, Schoesler, Smith and Sterk - 5.

Engrossed Substitute House Bill No. 2417, as amended by the Senate, 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., Thursday, March 12, 1998.

TIMOTHY A. MARTIN, Chief Clerk CLYDE BALLARD, Speaker