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SIXTIETH DAY

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MORNING SESSION

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Senate Chamber, Olympia, Thursday, March 9, 2000

The Senate was called to order at 9:00 a.m. by President Owen. The Secretary called the roll and announced to the President that all Senators were present except Senators Costa, Fairley, Finkbeiner, Gardner, Hargrove, Haugen, Loveland, Patterson, Rasmussen and Sellar. On motion of Senator Franklin, Senators Costa, Hargrove, Haugen, Loveland and Rasmussen were excused. On motion of Senator Honeyford, Senators Finkbeiner and Sellar were excused.

The Sergeant at Arms Color Guard, consisting of Pages Stefan Wilson and Jennifer Swope, presented the Colors. Reverend Terry Kaiser, pastor of the Faith Assembly Church in Lacey, offered the prayer.

MOTION

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

MESSAGES FROM THE HOUSE

March 8, 2000

MR. PRESIDENT:

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

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2380,

SUBSTITUTE HOUSE BILL NO. 2441,

HOUSE BILL NO. 2510,

SECOND SUBSTITUTE HOUSE BILL NO. 2637.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

March 8, 2000

MR. PRESIDENT:

The Co-Speakers have signed:

SUBSTITUTE SENATE BILL NO. 5518,

SECOND ENGROSSED SUBSTITUTE SENATE BILL NO. 5610,

SENATE BILL NO. 6010,

SUBSTITUTE SENATE BILL NO. 6071,

SENATE BILL NO. 6154,

SENATE BILL NO. 6190,

SECOND SUBSTITUTE SENATE BILL NO. 6199,

SUBSTITUTE SENATE BILL NO. 6210,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6217,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6218,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6220,

ENGROSSED SENATE BILL NO. 6236,

SUBSTITUTE SENATE BILL NO. 6244,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6264,

SUBSTITUTE SENATE BILL NO. 6450,

SUBSTITUTE SENATE BILL NO. 6459,

SUBSTITUTE SENATE BILL NO. 6467,

SUBSTITUTE SENATE BILL NO. 6502,

SUBSTITUTE SENATE BILL NO. 6720, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

March 8, 2000

MR. PRESIDENT:

The Co-Speakers have signed:

ENGROSSED SUBSTITUTE SENATE BILL NO. 5001,

SENATE BILL NO. 5739,

SUBSTITUTE SENATE BILL NO. 5924,

SUBSTITUTE SENATE BILL NO. 6294,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6305,

SUBSTITUTE SENATE BILL NO. 6361,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6400,

SENATE BILL NO. 6431,

SUBSTITUTE SENATE BILL NO. 6454,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6455,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6487,

SUBSTITUTE SENATE BILL NO. 6557,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6559,

SENATE BILL NO. 6570,

SUBSTITUTE SENATE BILL NO. 6663,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6676,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6731,

SECOND SUBSTITUTE SENATE BILL NO. 6811,

SUBSTITUTE SENATE BILL NO. 6812, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

March 8, 2000

MR. PRESIDENT:

The Co-Speakers have signed:

HOUSE BILL NO. 1070,

SUBSTITUTE HOUSE BILL NO. 1218,

HOUSE BILL NO. 2330,

SUBSTITUTE HOUSE BILL NO. 2332,

SUBSTITUTE HOUSE BILL NO. 2338,

SUBSTITUTE HOUSE BILL NO. 2345,

SUBSTITUTE HOUSE BILL NO. 2348,

ENGROSSED HOUSE BILL NO. 2424,

HOUSE BILL NO. 2449,

HOUSE BILL NO. 2452,

SUBSTITUTE HOUSE BILL NO. 2454,

HOUSE BILL NO. 2495,

HOUSE BILL NO. 2505,

HOUSE BILL NO. 2520,

HOUSE BILL NO. 2522,

ENGROSSED HOUSE BILL NO. 2561,

HOUSE BILL NO. 2576,

HOUSE BILL NO. 2579,

SUBSTITUTE HOUSE BILL NO. 2599,

HOUSE BILL NO. 2600,

SUBSTITUTE HOUSE BILL NO. 2644,

SUBSTITUTE HOUSE BILL NO. 2649,

ENGROSSED HOUSE BILL NO. 2755,

HOUSE BILL NO. 2774,

HOUSE BILL NO. 2853,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2934,

SUBSTITUTE HOUSE BILL NO. 3032,

ENGROSSED HOUSE BILL NO. 3105, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

March 8, 2000

MR. PRESIDENT:

The Co-Speakers have signed:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2078,

SUBSTITUTE HOUSE BILL NO. 2343,

HOUSE BILL NO. 2344,

SUBSTITUTE HOUSE BILL NO. 2372,

SUBSTITUTE HOUSE BILL NO. 2377,

SUBSTITUTE HOUSE BILL NO. 2466,

SUBSTITUTE HOUSE BILL NO. 2604,

ENGROSSED HOUSE BILL NO. 2609,

SUBSTITUTE HOUSE BILL NO. 2628,

SUBSTITUTE HOUSE BILL NO. 2670,

HOUSE BILL NO. 2684,

HOUSE BILL NO. 2686,

SUBSTITUTE HOUSE BILL NO. 2766,

SUBSTITUTE HOUSE BILL NO. 2776,

SUBSTITUTE HOUSE BILL NO. 2799,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2867,

HOUSE BILL NO. 2993,

ENGROSSED HOUSE BILL NO. 2995,

SUBSTITUTE HOUSE BILL NO. 3076,

SUBSTITUTE HOUSE BILL NO. 3099,

HOUSE BILL NO. 3154, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

HOUSE BILL NO. 1070,

SUBSTITUTE HOUSE BILL NO. 1218,

HOUSE BILL NO. 2330,

SUBSTITUTE HOUSE BILL NO. 2332,

SUBSTITUTE HOUSE BILL NO. 2338,

SUBSTITUTE HOUSE BILL NO. 2345,

SUBSTITUTE HOUSE BILL NO. 2348,

ENGROSSED HOUSE BILL NO. 2424,

HOUSE BILL NO. 2449,

HOUSE BILL NO. 2452,

SUBSTITUTE HOUSE BILL NO. 2454,

HOUSE BILL NO. 2495,

HOUSE BILL NO. 2505,

HOUSE BILL NO. 2520,

HOUSE BILL NO. 2522,

ENGROSSED HOUSE BILL NO. 2561,

HOUSE BILL NO. 2576,

HOUSE BILL NO. 2579,

SUBSTITUTE HOUSE BILL NO. 2599,

HOUSE BILL NO. 2600,

SUBSTITUTE HOUSE BILL NO. 2644,

SUBSTITUTE HOUSE BILL NO. 2649,

ENGROSSED HOUSE BILL NO. 2755,

HOUSE BILL NO. 2774,

HOUSE BILL NO. 2853,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2934,

SUBSTITUTE HOUSE BILL NO. 3032,

ENGROSSED HOUSE BILL NO. 3105.

SIGNED BY THE PRESIDENT

The President signed:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2078,

SUBSTITUTE HOUSE BILL NO. 2343,

HOUSE BILL NO. 2344,

SUBSTITUTE HOUSE BILL NO. 2372,

SUBSTITUTE HOUSE BILL NO. 2377,

SUBSTITUTE HOUSE BILL NO. 2466,

SUBSTITUTE HOUSE BILL NO. 2604,

ENGROSSED HOUSE BILL NO. 2609,

SUBSTITUTE HOUSE BILL NO. 2628,

SUBSTITUTE HOUSE BILL NO. 2670,

HOUSE BILL NO. 2684,

HOUSE BILL NO. 2686,

SUBSTITUTE HOUSE BILL NO. 2766,

SUBSTITUTE HOUSE BILL NO. 2776,

SUBSTITUTE HOUSE BILL NO. 2799,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2867,

HOUSE BILL NO. 2993,

ENGROSSED HOUSE BILL NO. 2995,

SUBSTITUTE HOUSE BILL NO. 3076,

SUBSTITUTE HOUSE BILL NO. 3099,

HOUSE BILL NO. 3154.

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

On motion of Senator Jacobsen, Gubernatorial Appointment No. 9226, Russ Cahill, as a member of the Fish and Wildlife Commission, was confirmed.

APPOINTMENT OF RUSS CAHILL

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 39; Nays, 0; Absent, 3; Excused, 7.

Voting yea: Senators Bauer, Benton, Brown, Deccio, Eide, Franklin, Fraser, Goings, Hale, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Morton, Oke, Prentice, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 39.

Absent: Senators Fairley, Gardner and Patterson - 3.

Excused: Senators Costa, Finkbeiner, Hargrove, Haugen, Loveland, Rasmussen and Sellar - 7.

PARLIAMENTARY INQUIRY

Senator McCaslin: “A parliamentary inquiry, Mr. President. I said to the Secretary of the Senate that it seems to me that we confirmed him the other day. I may be wrong, but if we did confirm him the other day should we unconfirm him to confirm him for this? If we vote on a bill, we can move for reconsideration and if we did confirm him the other day, what happens technically and legally and the records of the Senate--you know? It is a serious inquiry. I would like to know.”

REPLY BY THE PRESIDENT

President Owen: “Senator McCaslin, it will take us a few minutes to confirm your inquiry to find out whether or not if we did confirm him and then reconfirm. We will confirm that in just a few minutes.

“Senator McCaslin, you are correct. Russ Cahill was reappointed as a member of the Fish and Wildlife Commission to a different position.

MOTION

On motion of Senator Bette Sheldon, Senators Fairley and Patterson were excused.

MOTION

On motion of Senator Jacobsen, Gubernatorial Appointment No. 9259, Egil Krogh, as a member of the Interagency Committee for Outdoor Recreation, was confirmed.

APPOINTMENT OF EGIL KROGH

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 38; Nays, 0; Absent, 2; Excused, 9.

Voting yea: Senators Bauer, Brown, Deccio, Eide, Franklin, Fraser, Gardner, Goings, Hale, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Morton, Oke, Prentice, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 38.

Absent: Senators Benton and Wojahn - 2.

Excused: Senators Costa, Fairley, Finkbeiner, Hargrove, Haugen, Loveland, Patterson, Rasmussen and Sellar - 9.

MOTION

On motion of Senator Kohl-Welles, the following resolution was adopted:

SENATE RESOLUTION 2000-8769

By Senators Kohl-Welles, Gardner, Spanel, Jacobsen, Oke, Swecker, Snyder, Thibaudeau, Hargrove, Kline, Heavey and Rasmussen

WHEREAS, The Washington State commercial fishing fleet begins leaving in March and the Blessing of the Fleet will occur at Fisherman's Terminal in Ballard, March 12, 2000; and

WHEREAS, This is the Seventy-second year that the Ballard First Lutheran Church has held the blessing; and

WHEREAS, The Washington State commercial fishing fleet begins leaving Blaine waters in May and the Blessing of the Fleet will occur at Saw Tooth Dock in Blaine Harbor, May 7, 2000; and

WHEREAS, The Washington State commercial fishing fleet is one of the world's largest distant water fleets; and

WHEREAS, The commercial fishing industry directly and indirectly employs thousands of people; and

WHEREAS, The harvest annually generates hundreds of millions of dollars in economic contributions to the Washington State economy; and

WHEREAS, The commercial fishing industry is one of the largest industries in Washington State; and

WHEREAS, The life of a fisher is one fraught with danger and hardship that most of us will never face; and

WHEREAS, Strength and courage are basic requirements for anyone who chooses to work on the high seas, battling the elements in order to harvest nature's bounty; and

WHEREAS, The men and women who work on boats, living between God and the sea, and never certain which will claim them first, deserve our admiration, our thanks, and, when tragedy strikes, our remembrance; and

WHEREAS, Too often fishers do lose their lives, and their deaths devastate not only the tightly knit fabric that is the community of fishing families in our region, but also our entire state;

NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate honor and remember Washington fishermen Gregory Williams, Ryan Williams, and Gary Khudso who lost their lives in Washington waters in 1999, and Eythor Westman, a pioneer in the fishing industry, whose family and business continue to play an integral role in Blaine, and whose loss will be felt throughout his community; and

BE IT FURTHER RESOLVED, That the Washington State Senate extend its condolences to the families and friends of all our fishermen and women who have lost their lives at sea, and wish the entire commercial fishing fleet a safe and prosperous season and that all fishing men and women will return home safely to their families, friends, and communities.

Senators Kohl-Welles, Gardner, McDonald and Snyder spoke to Senate Resolution 2000-8769.

MOTION

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

SENATE RESOLUTION 2000-8772

By Senators Roach and Rasmussen

WHEREAS, The Vietnam War was a turbulent time for Washington State and the rest of the country, particularly for those in service and for their families and loved ones from whom they were apart; and

WHEREAS, Communications between members of the United States military and others serving their country during the Vietnam War, and those they left back home were difficult and time consuming, if possible at all; and

WHEREAS, Through the use of amateur HAM radio, voice communications could be provided to help those service members communicate with their families and loved ones by providing what is commonly referred to as a "phone patch;" and

WHEREAS, One of the best known and well-respected of those heroic amateur radio operators, Gertrude "Gerry" Johnson, will celebrate her ninetieth birthday on May 14, 2000; and

WHEREAS, Mrs. Johnson has, through the years, additionally proved instrumental in a number of rescues and countless other benevolent activities both at home in Washington State and around the world;

NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate recognizes the time, energy, caring, and resources that Mrs. Gertrude "Gerry" Johnson spent to provide a means of communication during difficult times for families and loved ones separated by thousands of miles, under the most difficult conditions, and we thank her for that.

Senators Roach and Swecker spoke to Senate Resolution 2000-8772.

There being no objection, the President returned the Senate to the fourth order of business.

MOTION

On motion of Senator Sheahan, Senator Rossi was excused.

MESSAGE FROM THE HOUSE

March 8, 2000

MR. PRESIDENT:

Under suspension of the rules, SUBSTITUTE SENATE BILL NO. 6194 was returned to second reading and the House adopted the following amendment(s) and passed the bill as amended by the House:

On page 6, line 36, after “is a” insert “gross,” and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

MOTION

On motion of Senator Tim Sheldon, the Senate concurred in the House amendment to Substitute Senate Bill No. 6194.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6194, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 6194, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 46.

Excused: Senators Fairley, Rossi and Sellar - 3.

SUBSTITUTE SENATE BILL NO. 6194, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

March 8, 2000

MR. PRESIDENT:

Under suspension of the rules, SECOND SUBSTITUTE SENATE BILL NO. 6255 was returned to second reading and the House adopted the following amendment(s) and passed the bill as amended by the House:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. (1) A person who, with intent to deprive the owner or owner's agent, wrongfully obtains anhydrous ammonia, is guilty of theft of anhydrous ammonia.

(2) Theft of anhydrous ammonia is a class C felony.

NEW SECTION. Sec. 2. A person is guilty of the crime of unlawful storage of anhydrous ammonia if the person possesses anhydrous ammonia in a container that (1) is not approved by the United States department of transportation to hold anhydrous ammonia, or (2) was not constructed to meet state and federal industrial health and safety standards for holding anhydrous ammonia. Violation of this section is a class C felony.

This section does not apply to public employees or private contractors authorized to clean up and dispose of hazardous waste or toxic substances under chapter 70.105 or 70.105D RCW.

NEW SECTION. Sec. 3. Any damages arising out of the unlawful possession of, storage of, or tampering with anhydrous ammonia or anhydrous ammonia equipment shall be the sole responsibility of the unlawful possessor, storer, or tamperer. In no case shall liability for damages arising out of the unlawful possession of, storage of, or tampering with anhydrous ammonia or anhydrous ammonia equipment extend to the lawful owner, installer, maintainer, designer, manufacturer, possessor, or seller of the anhydrous ammonia or anhydrous ammonia equipment, unless such damages arise out of the owner, installer, maintainer, designer, manufacturer, possessor, or seller's acts or omissions that constitute negligent misconduct to abide by the laws regarding anhydrous ammonia possession and storage.

Sec. 4. RCW 69.50.440 and 1997 c 71 s 3 are each amended to read as follows:

It is unlawful for any person to possess ephedrine ((or)), pseudoephedrine, or anhydrous ammonia with intent to manufacture methamphetamine. Any person who violates this section is guilty of a crime and may be imprisoned for not more than ten years, fined not more than twenty-five thousand dollars, or both. Three thousand dollars of the fine may not be suspended. As collected, the first three thousand dollars of the fine must be deposited with the law enforcement agency having responsibility for cleanup of laboratories, sites, or substances used in the manufacture of the methamphetamine. The fine moneys deposited with that law enforcement agency must be used for such clean-up cost.

Sec. 5. RCW 9.94A.320 and 1999 c 352 s 3, 1999 c 322 s 5, and 1999 c 45 s 4 are each reenacted and amended to read as follows:

TABLE 2

CRIMES INCLUDED WITHIN EACH SERIOUSNESS LEVEL

XVI Aggravated Murder 1 (RCW 10.95.020)

XV Homicide by abuse (RCW 9A.32.055)

Malicious explosion 1 (RCW 70.74.280(1))

Murder 1 (RCW 9A.32.030)

XIV Murder 2 (RCW 9A.32.050)

XIII Malicious explosion 2 (RCW 70.74.280(2))

Malicious placement of an explosive 1 (RCW 70.74.270(1))

XII Assault 1 (RCW 9A.36.011)

Assault of a Child 1 (RCW 9A.36.120)

Malicious placement of an imitation device 1 (RCW 70.74.272(1)(a))

Rape 1 (RCW 9A.44.040)

Rape of a Child 1 (RCW 9A.44.073)

XI Manslaughter 1 (RCW 9A.32.060)

Rape 2 (RCW 9A.44.050)

Rape of a Child 2 (RCW 9A.44.076)

X Child Molestation 1 (RCW 9A.44.083)

Indecent Liberties (with forcible compulsion) (RCW 9A.44.100(1)(a))

Kidnapping 1 (RCW 9A.40.020)

Leading Organized Crime (RCW 9A.82.060(1)(a))

Malicious explosion 3 (RCW 70.74.280(3))

Manufacture of methamphetamine (RCW 69.50.401(a)(1)(ii))

Over 18 and deliver heroin, methamphetamine, a narcotic from Schedule I or II, or flunitrazepam from Schedule IV to someone under 18 (RCW 69.50.406)

IX Assault of a Child 2 (RCW 9A.36.130)

Controlled Substance Homicide (RCW 69.50.415)

Explosive devices prohibited (RCW 70.74.180)

Homicide by Watercraft, by being under the influence of intoxicating liquor or any drug (RCW ((88.12.029)) 79A.60.050)

Inciting Criminal Profiteering (RCW 9A.82.060(1)(b))

Malicious placement of an explosive 2 (RCW 70.74.270(2))

Over 18 and deliver narcotic from Schedule III, IV, or V or a nonnarcotic, except flunitrazepam or methamphetamine, from Schedule I-V to someone under 18 and 3 years junior (RCW 69.50.406)

Robbery 1 (RCW 9A.56.200)

Sexual Exploitation (RCW 9.68A.040)

Vehicular Homicide, by being under the influence of intoxicating liquor or any drug (RCW 46.61.520)

VIII Arson 1 (RCW 9A.48.020)

Deliver or possess with intent to deliver methamphetamine (RCW 69.50.401(a)(1)(ii))

Homicide by Watercraft, by the operation of any vessel in a reckless manner (RCW ((88.12.029)) 79A.60.050)

Manslaughter 2 (RCW 9A.32.070)

Manufacture, deliver, or possess with intent to deliver amphetamine (RCW 69.50.401(a)(1)(ii))

Manufacture, deliver, or possess with intent to deliver heroin or cocaine (RCW 69.50.401(a)(1)(i))

Possession of Ephedrine ((or)), Pseudoephedrine, or Anhydrous Ammonia with intent to manufacture methamphetamine (RCW 69.50.440)

Promoting Prostitution 1 (RCW 9A.88.070)

Selling for profit (controlled or counterfeit) any controlled substance (RCW 69.50.410)

Theft of Anhydrous Ammonia (section 1 of this act)

Vehicular Homicide, by the operation of any vehicle in a reckless manner (RCW 46.61.520)

VII Burglary 1 (RCW 9A.52.020)

Child Molestation 2 (RCW 9A.44.086)

Dealing in depictions of minor engaged in sexually explicit conduct (RCW 9.68A.050)

Drive-by Shooting (RCW 9A.36.045)

Homicide by Watercraft, by disregard for the safety of others (RCW ((88.12.029)) 79A.60.050)

Indecent Liberties (without forcible compulsion) (RCW 9A.44.100(1) (b) and (c))

Introducing Contraband 1 (RCW 9A.76.140)

Involving a minor in drug dealing (RCW 69.50.401(f))

Malicious placement of an explosive 3 (RCW 70.74.270(3))

Sending, bringing into state depictions of minor engaged in sexually explicit conduct (RCW 9.68A.060)

Unlawful Possession of a Firearm in the first degree (RCW 9.41.040(1)(a))

Use of a Machine Gun in Commission of a Felony (RCW 9.41.225)

Vehicular Homicide, by disregard for the safety of others (RCW 46.61.520)

VI Bail Jumping with Murder 1 (RCW 9A.76.170(2)(a))

Bribery (RCW 9A.68.010)

Incest 1 (RCW 9A.64.020(1))

Intimidating a Judge (RCW 9A.72.160)

Intimidating a Juror/Witness (RCW 9A.72.110, 9A.72.130)

Malicious placement of an imitation device 2 (RCW 70.74.272(1)(b))

Manufacture, deliver, or possess with intent to deliver narcotics from Schedule I or II (except heroin or cocaine) or flunitrazepam from Schedule IV (RCW 69.50.401(a)(1)(i))

Rape of a Child 3 (RCW 9A.44.079)

Theft of a Firearm (RCW 9A.56.300)

Unlawful Storage of Anhydrous Ammonia (section 2 of this act)

V Abandonment of dependent person 1 (RCW 9A.42.060)

Advancing money or property for extortionate extension of credit (RCW 9A.82.030)

Bail Jumping with class A Felony (RCW 9A.76.170(2)(b))

Child Molestation 3 (RCW 9A.44.089)

Criminal Mistreatment 1 (RCW 9A.42.020)

Custodial Sexual Misconduct 1 (RCW 9A.44.160)

Delivery of imitation controlled substance by person eighteen or over to person under eighteen (RCW 69.52.030(2))

Extortion 1 (RCW 9A.56.120)

Extortionate Extension of Credit (RCW 9A.82.020)

Extortionate Means to Collect Extensions of Credit (RCW 9A.82.040)

Incest 2 (RCW 9A.64.020(2))

Kidnapping 2 (RCW 9A.40.030)

On and after July 1, 2000: No-Contact Order Violation: Domestic Violence Pretrial Condition (RCW 10.99.040(4) (b) and (c))

On and after July 1, 2000: No-Contact Order Violation: Domestic Violence Sentence Condition (RCW 10.99.050(2))

On and after July 1, 2000: Protection Order Violation: Domestic Violence Civil Action (RCW 26.50.110 (4) and (5))

On and after July 1, 2000: Stalking (RCW 9A.46.110)

Perjury 1 (RCW 9A.72.020)

Persistent prison misbehavior (RCW 9.94.070)

Possession of a Stolen Firearm (RCW 9A.56.310)

Rape 3 (RCW 9A.44.060)

Rendering Criminal Assistance 1 (RCW 9A.76.070)

Sexual Misconduct with a Minor 1 (RCW 9A.44.093)

Sexually Violating Human Remains (RCW 9A.44.105)

IV Arson 2 (RCW 9A.48.030)

Assault 2 (RCW 9A.36.021)

Assault by Watercraft (RCW ((88.12.032)) 79A.60.050)

Bribing a Witness/Bribe Received by Witness (RCW 9A.72.090, 9A.72.100)

Commercial Bribery (RCW 9A.68.060)

Counterfeiting (RCW 9.16.035(4))

Escape 1 (RCW 9A.76.110)

Hit and Run--Injury Accident (RCW 46.52.020(4))

Hit and Run with Vessel--Injury Accident (RCW ((88.12.155(3))) 79A.60.200(3))

Indecent Exposure to Person Under Age Fourteen (subsequent sex offense) (RCW 9A.88.010)

Influencing Outcome of Sporting Event (RCW 9A.82.070)

Knowingly Trafficking in Stolen Property (RCW 9A.82.050(2))

Malicious Harassment (RCW 9A.36.080)

Manufacture, deliver, or possess with intent to deliver narcotics from Schedule III, IV, or V or nonnarcotics from Schedule I-V (except marijuana, amphetamine, methamphetamines, or flunitrazepam) (RCW 69.50.401(a)(1) (iii) through (v))

Residential Burglary (RCW 9A.52.025)

Robbery 2 (RCW 9A.56.210)

Theft of Livestock 1 (RCW 9A.56.080)

Threats to Bomb (RCW 9.61.160)

Use of Proceeds of Criminal Profiteering (RCW 9A.82.080 (1) and (2))

Vehicular Assault (RCW 46.61.522)

Willful Failure to Return from Furlough (RCW 72.66.060)

III Abandonment of dependent person 2 (RCW 9A.42.070)

Assault 3 (RCW 9A.36.031)

Assault of a Child 3 (RCW 9A.36.140)

Bail Jumping with class B or C Felony (RCW 9A.76.170(2)(c))

Burglary 2 (RCW 9A.52.030)

Communication with a Minor for Immoral Purposes (RCW 9.68A.090)

Criminal Gang Intimidation (RCW 9A.46.120)

Criminal Mistreatment 2 (RCW 9A.42.030)

Custodial Assault (RCW 9A.36.100)

Delivery of a material in lieu of a controlled substance (RCW 69.50.401(c))

Escape 2 (RCW 9A.76.120)

Extortion 2 (RCW 9A.56.130)

Harassment (RCW 9A.46.020)

Intimidating a Public Servant (RCW 9A.76.180)

Introducing Contraband 2 (RCW 9A.76.150)

Maintaining a Dwelling or Place for Controlled Substances (RCW 69.50.402(a)(6))

Malicious Injury to Railroad Property (RCW 81.60.070)

Manufacture, deliver, or possess with intent to deliver marijuana (RCW 69.50.401(a)(1)(iii))

Manufacture, distribute, or possess with intent to distribute an imitation controlled substance (RCW 69.52.030(1))

Patronizing a Juvenile Prostitute (RCW 9.68A.100)

Perjury 2 (RCW 9A.72.030)

Possession of Incendiary Device (RCW 9.40.120)

Possession of Machine Gun or Short-Barreled Shotgun or Rifle (RCW 9.41.190)

Promoting Prostitution 2 (RCW 9A.88.080)

Recklessly Trafficking in Stolen Property (RCW 9A.82.050(1))

Securities Act violation (RCW 21.20.400)

Tampering with a Witness (RCW 9A.72.120)

Telephone Harassment (subsequent conviction or threat of death) (RCW 9.61.230)

Theft of Livestock 2 (RCW 9A.56.080)

Unlawful Imprisonment (RCW 9A.40.040)

Unlawful possession of firearm in the second degree (RCW 9.41.040(1)(b))

Unlawful Use of Building for Drug Purposes (RCW 69.53.010)

Willful Failure to Return from Work Release (RCW 72.65.070)

II Computer Trespass 1 (RCW 9A.52.110)

Counterfeiting (RCW 9.16.035(3))

Create, deliver, or possess a counterfeit controlled substance (RCW 69.50.401(b))

Escape from Community Custody (RCW 72.09.310)

Health Care False Claims (RCW 48.80.030)

Malicious Mischief 1 (RCW 9A.48.070)

Possession of controlled substance that is either heroin or narcotics from Schedule I or II or flunitrazepam from Schedule IV (RCW 69.50.401(d))

Possession of phencyclidine (PCP) (RCW 69.50.401(d))

Possession of Stolen Property 1 (RCW 9A.56.150)

Theft 1 (RCW 9A.56.030)

Theft of Rental, Leased, or Lease-purchased Property (valued at one thousand five hundred dollars or more) (RCW 9A.56.096(4))

Trafficking in Insurance Claims (RCW 48.30A.015)

Unlawful Practice of Law (RCW 2.48.180)

Unlicensed Practice of a Profession or Business (RCW 18.130.190(7))

I Attempting to Elude a Pursuing Police Vehicle (RCW 46.61.024)

False Verification for Welfare (RCW 74.08.055)

Forged Prescription (RCW 69.41.020)

Forged Prescription for a Controlled Substance (RCW 69.50.403)

Forgery (RCW 9A.60.020)

Malicious Mischief 2 (RCW 9A.48.080)

Possess Controlled Substance that is a Narcotic from Schedule III, IV, or V or Non-narcotic from Schedule I-V (except phencyclidine or flunitrazepam) (RCW 69.50.401(d))

Possession of Stolen Property 2 (RCW 9A.56.160)

Reckless Burning 1 (RCW 9A.48.040)

Taking Motor Vehicle Without Permission (RCW 9A.56.070)

Theft 2 (RCW 9A.56.040)

Theft of Rental, Leased, or Lease-purchased Property (valued at two hundred fifty dollars or more but less than one thousand five hundred dollars) (RCW 9A.56.096(4))

Unlawful Issuance of Checks or Drafts (RCW 9A.56.060)

Unlawful Use of Food Stamps (RCW 9.91.140 (2) and (3))

Vehicle Prowl 1 (RCW 9A.52.095)

NEW SECTION. Sec. 6. Sections 1 through 3 of this act constitute a new chapter in Title 69 RCW.

NEW SECTION. Sec. 7. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2000, in the omnibus appropriations act, this act is null and void.

NEW SECTION. Sec. 8. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected."

Correct the title., and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

MOTION

Senator Heavey moved that the Senate concur in the House amendment to Second Substitute Senate Bill No. 6255.

Debate ensued.

The President declared the question before the Senate to be the motion by Senator Heavey that the Senate concur in the House amendment to Second Substitute Senate Bill No. 6255.

The motion by Senator Heavey carried and the Senate concurred in the House amendment to Second Substitute Senate Bill No. 6255.

The President declared the question before the Senate to be the roll call on the final passage of Second Substitute Senate Bill No. 6255, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 6255, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 47.

Excused: Senators Fairley and Sellar - 2.

SECOND SUBSTITUTE SENATE BILL NO. 6255, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

March 8, 2000

MR. PRESIDENT:

Under suspension of the rules, ENGROSSED SUBSTITUTE SENATE BILL NO. 6277 was returned to second reading and the House adopted the following amendment(s) and passed the bill as amended by the House:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. INTENT. It is the intent of the legislature to allow applicants for environmental permits for complex projects to compensate permitting agencies for providing environmental review through the voluntary negotiation of cost-reimbursement agreements with the permitting agency. It is the further intent of the legislature that cost-reimbursement agreements for complex projects free permitting agency resources to focus on the review of small projects permits.

NEW SECTION. Sec. 2. A new section is added to chapter 43.21A RCW to read as follows:

COST-REIMBURSEMENT AGREEMENT BY THE DEPARTMENT OF ECOLOGY. (1) The department may enter into a written cost-reimbursement agreement with a permit applicant for a complex project to recover from the applicant the reasonable costs incurred by the department in carrying out the requirements of this chapter, as well as the requirements of other relevant laws, as they relate to permit coordination, environmental review, application review, technical studies, and permit processing. The cost-reimbursement agreement shall identify the specific tasks, costs, and schedule for work to be conducted under the agreement. For purposes of this section, a complex project is a project for which an environmental impact statement is required under chapter 43.21C RCW.

(2) The written cost-reimbursement agreement shall be negotiated with the permit applicant. Under the provisions of a cost-reimbursement agreement, funds from the applicant shall be used by the department to contract with an independent consultant to carry out the work covered by the cost-reimbursement agreement. The department may also use funds provided under a cost-reimbursement agreement to assign current staff to review the work of the consultant, to provide necessary technical assistance when an independent consultant with comparable technical skills is unavailable, and to recover reasonable and necessary direct and indirect costs that arise from processing the permit. The department shall, in developing the agreement, ensure that final decisions that involve policy matters are made by the agency and not by the consultant. The department shall make an estimate of the number of permanent staff hours to process the permits, and shall contract with consultants to replace the time and functions committed by these permanent staff to the project. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. Use of cost-reimbursement agreements shall not reduce the current level of staff available to work on permits not covered by cost-reimbursement agreements. The department may not use any funds under a cost-reimbursement agreement to replace or supplant existing funding. The restrictions of chapter 42.52 RCW apply to any cost-reimbursement agreement, and to any person hired as a result of a cost-reimbursement agreement.

(3) The department may not enter into any new cost-reimbursement agreements on or after July 1, 2005. The department may continue to administer any cost-reimbursement agreement which was entered into before July 1, 2005, until the project is completed.

NEW SECTION. Sec. 3. A new section is added to chapter 43.30 RCW to read as follows:

COST-REIMBURSEMENT AGREEMENT BY THE DEPARTMENT OF NATURAL RESOURCES. (1) The department may enter into a written cost-reimbursement agreement with a permit or lease applicant for a complex project to recover from the applicant the reasonable costs incurred by the department in carrying out the requirements of this chapter, as well as the requirements of other relevant laws, as they relate to permit coordination, environmental review, application review, technical studies, and permit or lease processing. The cost-reimbursement agreement shall identify the specific tasks, costs, and schedule for work to be conducted under the agreement. For purposes of this section, a complex project is a project for which an environmental impact statement is required under chapter 43.21C RCW. An applicant for a lease issued under chapter 79.90 RCW may not enter into a cost-reimbursement agreement under this section for projects conducted under the lease.

(2) The written cost-reimbursement agreement shall be negotiated with the permit or lease applicant. Under the provisions of a cost-reimbursement agreement, funds from the applicant shall be used by the department to contract with an independent consultant to carry out the work covered by the cost-reimbursement agreement. The department may also use funds provided under a cost-reimbursement agreement to assign current staff to review the work of the consultant, to provide necessary technical assistance when an independent consultant with comparable technical skills is unavailable, and to recover reasonable and necessary direct and indirect costs that arise from processing the permit or lease. The department shall, in developing the agreement, ensure that final decisions that involve policy matters are made by the agency and not by the consultant. The department shall make an estimate of the number of permanent staff hours to process the permits or leases, and shall contract with consultants to replace the time and functions committed by these permanent staff to the project. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. Use of cost-reimbursement agreements shall not reduce the current level of staff available to work on permits or leases not covered by cost-reimbursement agreements. The department may not use any funds under a cost-reimbursement agreement to replace or supplant existing funding. The restrictions of chapter 42.52 RCW apply to any cost-reimbursement agreement, and to any person hired as a result of a cost-reimbursement agreement.

NEW SECTION. Sec. 4. A new section is added to chapter 43.70 RCW to read as follows:

COST-REIMBURSEMENT AGREEMENT BY THE DEPARTMENT OF HEALTH. (1) The department may enter into a written cost-reimbursement agreement with a permit applicant for a complex project to recover from the applicant the reasonable costs incurred by the department in carrying out the requirements of this chapter, as well as the requirements of other relevant laws, as they relate to permit coordination, environmental review, application review, technical studies, and permit processing.

The cost-reimbursement agreement shall identify the specific tasks, costs, and schedule for work to be conducted under the agreement. For purposes of this section, a complex project is a project for which an environmental impact statement is required under chapter 43.21C RCW.

replace or supplant existing funding. The restrictions of chapter 42.52 RCW apply to any cost-reimbursement agreement, and to any person hired as a result of a cost-reimbursement agreement.

NEW SECTION. Sec. 5. A new section is added to chapter 43.300 RCW to read as follows:

COST-REIMBURSEMENT AGREEMENT BY THE DEPARTMENT OF FISH AND WILDLIFE. (1) The department may enter into a written cost-reimbursement agreement with a permit applicant for a complex project to recover from the applicant the reasonable costs incurred by the department in carrying out the requirements of this chapter, as well as the requirements of other relevant laws, as they relate to permit coordination, environmental review, application review, technical studies, and permit processing. The cost-reimbursement agreement shall identify the specific tasks, costs, and schedule for work to be conducted under the agreement. For purposes of this section, a complex project is a project for which an environmental impact statement is required under chapter 43.21C RCW.

NEW SECTION. Sec. 6. A new section is added to chapter 70.94 RCW to read as follows:

COST-REIMBURSEMENT AGREEMENT BY AN AIR POLLUTION CONTROL AUTHORITY. (1) An authority may enter into a written cost-reimbursement agreement with a permit applicant for a complex project to recover from the applicant the reasonable costs incurred by the authority in carrying out the requirements of this chapter, as well as the requirements of other relevant laws, as they relate to permit coordination, environmental review, application review, technical studies, and permit processing. The cost-reimbursement agreement shall identify the specific tasks, costs, and schedule for work to be conducted under the agreement. For purposes of this section, a complex project is a project for which an environmental impact statement is required under chapter 43.21C RCW.

(2) The written cost-reimbursement agreement shall be negotiated with the permit applicant. Under the provisions of a cost-reimbursement agreement, funds from the applicant shall be used by the air pollution control authority to contract with an independent consultant to carry out the work covered by the cost-reimbursement agreement. The air pollution control authority may also use funds provided under a cost-reimbursement agreement to assign current staff to review the work of the consultant, to provide necessary technical assistance when an independent consultant with comparable technical skills is unavailable, and to recover reasonable and necessary direct and indirect costs that arise from processing the permit. The air pollution control authority shall, in developing the agreement, ensure that final decisions that involve policy matters are made by the agency and not by the consultant. The air pollution control authority shall make an estimate of the number of permanent staff hours to process the permits, and shall contract with consultants to replace the time and functions committed by these permanent staff to the project. The billing process shall provide for accurate time and cost accounting and may include a billing cycle that provides for progress payments. Use of cost-reimbursement agreements shall not reduce the current level of staff available to work on permits not covered by cost-reimbursement agreements. The air pollution control authority may not use any funds under a cost-reimbursement agreement to replace or supplant existing funding. The provisions of chapter 42.52 RCW apply to any cost-reimbursement agreement, and to any person hired as a result of a cost-reimbursement agreement. Members of the air pollution control authority's board of directors shall be considered as state officers, and employees of the air pollution control authority shall be considered as state employees, for the sole purpose of applying the restrictions of chapter 42.52 RCW to this section.

(3) An air pollution control authority may not enter into any new cost-reimbursement agreements on or after July 1, 2005. The department may continue to administer any cost-reimbursement agreement which was entered into before July 1, 2005, until the project is completed.

NEW SECTION. Sec. 7. A new section is added to chapter 90.03 RCW to read as follows:

Any applicant for a new withdrawal or a change, transfer, or amendment of a water right pending before the department, may initiate a cost-reimbursement agreement with the department to provide expedited review of the application. A cost-reimbursement agreement may only be initiated under this section if the applicant agrees to pay for, or as part of a cooperative effort agrees to pay for, the cost of processing his or her application and all other applications from the same source of supply which must be acted upon before the applicant's request because they were filed prior to the date of when the applicant filed. The department shall use the process established under section 2 of this act for entering into cost-reimbursement agreements, except that it is not necessary for an environmental impact statement to be filed as a prerequisite for entering into a cost-reimbursement agreement under this section.

NEW SECTION. Sec. 8. Captions used in this act are not any part of the law.

NEW SECTION. Sec. 9. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

Correct the title., and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

MOTION

On motion of Senator Betti Sheldon, the Senate concurred in the House amendment to Engrossed Substitute Senate Bill No. 6277.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 6277, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6277, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 31; Nays, 16; Absent, 0; Excused, 2.

Voting yea: Senators Bauer, Benton, Deccio, Eide, Finkbeiner, Goings, Hale, Hargrove, Haugen, Hochstatter, Honeyford, Horn, Johnson, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Stevens, Swecker, West and Zarelli - 31.

Voting nay: Senators Brown, Costa, Franklin, Fraser, Gardner, Heavey, Jacobsen, Kline, Kohl-Welles, Patterson, Prentice, Rasmussen, Spanel, Thibaudeau, Winsley and Wojahn - 16.

Excused: Senators Fairley and Sellar - 2.

ENGROSSED SUBSTITUTE SENATE BILL NO. 6277, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

On motion of Senator Sheahan, Senator Honeyford was excused.

MESSAGE FROM THE HOUSE

February 29, 2000

MR. PRESIDENT:

The House has passed SUBSTITUTE SENATE BILL NO. 6621 with the following amendment(s):On page 2, line 17, after "attorney" insert "jointly"

On page 2, line 18, after "association" insert "and the Washington association of criminal defense lawyers"

On page 2, line 23, strike subsection (3) and insert "(3) Staff support for the task force shall be provided by the office of financial management. Legislators on the task force may use legislative staff from senate committee services and the office of program research.", and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

MOTION

On motion of Senator Costa, the Senate concurred in the House amendments to Substitute Senate Bill No. 6621.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6621, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 6621, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

Excused: Senators Fairley, Honeyford and Sellar - 3.

SUBSTITUTE SENATE BILL NO. 6621, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

On motion of Senator Spanel, Senator McAuliffe was excused.

MESSAGE FROM THE HOUSE

March 8, 2000

MR. PRESIDENT:

Under suspension of the rules, SUBSTITUTE SENATE BILL NO. 6781 was returned to second reading and the House adopted the following amendment(s) and passed the bill as amended by the House:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 90.64 RCW to read as follows:

(1) A dairy nutrient management task force is created that shall be comprised of no more than fifteen members, who are appointed as follows:

(a) Two members of the house of representatives, one from each major caucus, appointed by the co-speakers of the house of representatives;

(b) Two members of the senate, one from each major caucus, appointed by the president of the senate;

(d) A representative of the state conservation commission, appointed by its executive secretary;

(e) A representative of local conservation districts, appointed by the president of a state-wide association of conservation districts;

(f) A representative of local health departments, appointed by the Washington state association of local public health officials;

(g) A representative of commercial shellfish growers, appointed by a state-wide organization representing oyster growers;

(h) Four representatives of the dairy industry, appointed by a state-wide organization representing the dairy industry in the state;

(i) A representative of an environmental interest organization with familiarity and expertise in water quality issues, appointed by a state-wide organization representing environmental interests;

(j) A representative of the United States environmental protection agency, appointed by the regional director of the agency if the agency chooses to be represented on the task force; and

(k) A representative of the United States natural resources conservation service, appointed by the state conservationist of that agency for this state, if the agency chooses to be represented on the task force.

(2) The task force shall convene as soon as possible upon appointment of its members. The task force shall elect a chair and adopt rules for conducting the business of the task force. Staff support for the task force shall be provided by the Washington state conservation commission.

(3) This section expires June 30, 2004.

NEW SECTION. Sec. 2. A new section is added to chapter 90.64 RCW to read as follows:

(1) By December 31, 2000, the task force shall recommend to the department and to the legislature:

(a) Clarification of key terms and phrases such as, but not limited to, "potential to pollute," that are used in the administration of this chapter and other statutes on water quality;

(b) How frequently dairy nutrient management plans should be updated, considering the evolution of technical standards developed by the natural resources conservation service;

(c) Considering the report under section 3 of this act, the disposition of penalties collected from dairy producers under chapter 90.48 RCW;

(d) Considering the report under section 4 of this act, recommended sources of funding to meet the needs identified in the report;

(e) The extent to which engineering expertise is required to implement the provisions of this chapter;

(f) How to address responsibility for contamination originating from neighboring farms; and

(g) Clarification of the duties of the department as they pertain to initial inspections of dairy farms.

(2) The task force shall make recommendations to the department and to the legislature on any other issues, and at such times, as the task force deems important to the successful implementation of this chapter.

(3) This section expires June 30, 2004.

NEW SECTION. Sec. 3. (1) By September 1, 2000, the department of ecology shall report to the dairy nutrient management task force on the penalties assessed on dairy producers for violations of chapters 90.48 and 90.64 RCW since January 1, 1998. The report shall indicate the amount of money from these penalties that was deposited into the coastal protection fund created under RCW 90.48.390 and the amount deposited into the dairy waste management account created under RCW 90.64.150. The report shall also indicate the purposes for which moneys reported under this section were expended.

(2) This section expires December 31, 2000.

NEW SECTION. Sec. 4. (1) By September 1, 2000, the office of financial management shall make recommendations to the dairy nutrient management task force on how to provide adequate funding for the dairy nutrient management program. The recommendations shall include an identification of need, if any, for additional funding for each of the following purposes:

(a) To perform functions required by conservation districts and the state conservation commission;

(b) To provide technical assistance for development of dairy nutrient management plans; and

(c) For cost-share moneys for implementation of the plans based on fifty percent of the eligible costs to be derived from public sources. The recommendations shall be for the amount of funding for these purposes that is required each fiscal year through June 30, 2004, in order to meet the deadlines established in chapter 90.64 RCW.

(2) The office of financial management shall submit its written recommendations to the co-chief clerks of the house of representatives and the secretary of the senate.

(3) This section expires December 31, 2000.

NEW SECTION. Sec. 5. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

Correct the title., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

MOTION

On motion of Senator Rasmussen, the Senate concurred in the House amendment to Substitute Senate Bill No. 6781.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6781, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 6781, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 0; Excused, 4.

Excused: Senators Fairley, Honeyford, McAuliffe and Sellar - 4.

SUBSTITUTE SENATE BILL NO. 6781, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

On motion of Senator Spanel, Senator Loveland was excused.

MESSAGE FROM THE HOUSE

March 8, 2000

MR. PRESIDENT:

Under suspension of the rules, ENGROSSED SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8425 was returned to second reading and the House adopted the following amendment(s) and passed the concurrent resolution as amended by the House:

Beginning on page 1, line 1, strike the remainder of the resolution and insert the following:

"WHEREAS, Chapter 370, Laws of 1985, created the Washington Higher Education Coordinating Board to plan, coordinate, and provide policy analysis for higher education and to represent the broad public interest above the interests of individual colleges and universities; and

WHEREAS, Section 4, chapter 370, Laws of 1985, requires the board to prepare and update a master plan for higher education and requires the Legislature, by concurrent resolution, to "approve or recommend changes" to the master plan and its subsequent updates; and

WHEREAS, The provisions of the master plan that are approved by the Legislature become state higher education policy unless legislation is subsequently enacted to revise those policies; and

WHEREAS, The Washington Higher Education Coordinating Board submitted the initial master plan to the Legislature in December 1987, and submitted updates to the plan in December 1992, January 1996, and January 2000; and

WHEREAS, During the process used to develop the 2000 master plan, the board consulted with students and families, educators, business, labor, and civic organizations representing a cross-section of Washington citizens; and

WHEREAS, The board learned that the need and expectation for higher education among Washington citizens will continue to grow through the next decade, because of population increases as well as the demands of the state's increasingly technology-based economy; and

WHEREAS, The board identified the challenge of meeting future demand for college education should a greater proportion of Washington citizens seek upper division and graduate level study by the year 2010; and

WHEREAS, The board spelled out its commitment to continuing to expand enrollment opportunities for Washington students, to keep public higher education affordable for students and families, and to provide financial assistance to those who cannot otherwise afford to go to college; and

WHEREAS, The board identified five specific goals for the state to address higher education needs in the next ten years:

(1) Making student learning the yardstick by which institutional accountability, effectiveness, and efficiency is measured;

(2) Linking students' participation in higher education to their achievement in the K-12 grades;

(3) Providing the information citizens need to make the best use of the learning pathways available to them;

(4) Enhancing higher education opportunity through greater use of e-learning technologies and by increasingly efficient use of public facilities; and

(5) Helping colleges and universities meet student needs and compete in an increasingly competitive and complex education marketplace; and

WHEREAS, The board challenged itself, students, and families, the public and private institutions, the private sector, and the state to each accept its individual responsibilities and to collaborate in the development of solutions; and

WHEREAS, The board described an implementation plan to guide the state's response to the needs of higher education and to estimate the costs of the strategies, including the necessity to develop an enrollment accommodation plan that identifies where capacity exists and what the highest priorities should be;

NOW, THEREFORE, BE IT RESOLVED, By the Senate of the State of Washington, the House of Representatives concurring, That the Washington Higher Education Coordinating Board be commended for its dedication and commitment to the State of Washington in producing the 2000 update of the master plan for higher education titled "The 21st Century Learner"; and

BE IT FURTHER RESOLVED, That the Legislature thank the board for describing many of the challenges facing the state in its attempts to provide the postsecondary education and training our citizens need to fulfill their personal goals and participate fully in the world of the twenty-first century; and

BE IT FURTHER RESOLVED, That the Legislature reaffirm its commitment to create postsecondary opportunities in response to documented demand from citizens for access to high-quality education and training programs; and

BE IT FURTHER RESOLVED, That the board reexamine its assumptions with regard to projected upper division and graduate enrollments, and that the plan reexamine the role of the community and technical colleges in meeting the postsecondary needs of a significant portion of Washington's population; and

BE IT FURTHER RESOLVED, That the board reexamine its assumptions with regard to the capital needs of the community and technical colleges and the four-year institutions of higher education, including their branch campuses; and

BE IT FURTHER RESOLVED, That the board, in consultation with the office of financial management, work collaboratively with the public and independent two-year and four-year universities, private vocational schools, and appropriate legislative committees, to prepare an enrollment accommodation plan, contemplate various growth scenarios, identify related operational and capital needs, and examine alternatives to address the identified budget needs; and

BE IT FURTHER RESOLVED, That the board communicate regularly with the appropriate legislative committees and the governor regarding the assigned tasks and report back with its results and findings before proceeding with the development of its biennial budget recommendations; and

BE IT FURTHER RESOLVED, That the Legislature approve the following recommendations of the 2000 update of the master plan:

(1) The goal that, by the year 2010, Washington's system of postsecondary education needs to provide opportunities for additional students to enroll in high-quality education and training programs;

(2) That solutions to the challenge may be found in strategies that (a) make student learning the yardstick by which institutional accountability, effectiveness, and efficiency is measured; and (b) link students' participation in higher education to their achievement in the K-12 grades;

(3) Provide the information citizens need to make the best use of the learning pathways available to them, and support outreach efforts designed to ensure that the higher education system reflects the diversity of the state's population;

(4) Expand the use of e-learning technologies and use public facilities to the fullest extent possible; and

(5) Help colleges and universities meet student needs and compete in an increasingly competitive and complex education marketplace; and

BE IT FURTHER RESOLVED, That the board proceed with implementation of the 2000 update of the master plan; and

BE IT FURTHER RESOLVED, That the board proceed with the implementation of the 2000 update of the master plan as described in "The 21st Century Learner" and modified by this resolution, and report to the 2001 Legislature on progress toward implementing its strategies.", and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

MOTION

Senator Kohl-Welles moved that the Senate concur in the House amendment to Engrossed Substitute Senate Concurrent Resolution No. 8425.

Debate ensued.

The President declared the question before the Senate to be the motion by Senator Kohl-Welles that the Senate concur in the House amendment to Engrossed Substitute Senate Concurrent Resolution No. 8425.

The motion by Senator Kohl-Welles carried and the Senate concurred in the House amendment to Engrossed Substitute Senate Concurrent Resolution No. 8425.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Concurrent Resolution No. 8425, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Concurrent Resolution No. 8425, as amended by the House, and the concurrent resolution passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 44. Excused: Senators Fairley, Honeyford, Loveland, Rossi and Sellar - 5. ENGROSSED SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8425, as amended by the House, having received the constitutional majority, was declared passed.

MESSAGE FROM THE HOUSE

March 8, 2000

MR. PRESIDENT:

The House refuses to concur in the Senate amendment(s) to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2675 and asks the Senate to recede therefrom, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

MOTIONS

On motion of Senator Costa, the Senate receded from its amendment(s) to Engrossed Substitute House Bill No. 2675.

On motion of Senator Costa, the rules were suspended and Engrossed Substitute House Bill No. 2675 was returned to second reading and read the second time.

MOTION

Senator Costa moved that the following striking amendment by Senators Costa and Swecker be adopted:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature recognizes that fewer than five percent of all drivers use child booster seats for children over the age of four years. The legislature also recognizes that seventy-one percent of deaths resulting from car accidents could be eliminated if every child under the age of sixteen used an appropriate child safety seat, booster seat, or seat belt. The legislature further recognizes the National Transportation Safety Board's recommendations that promote the use of booster seats to increase the safety of children under eight years of age. Therefore, it is the legislature's intent to decrease deaths and injuries to children by promoting safety education and injury prevention measures, as well as increasing public awareness on ways to maximize the protection of children in vehicles.

Sec. 2. RCW 46.61.687 and 1994 c 100 s 1 are each amended to read as follows:

(1) Whenever a child who is less than ((ten)) sixteen years of age is being transported in a motor vehicle that is in operation and that is required by RCW 46.37.510 to be equipped with a safety belt system in a passenger seating position, the driver of the vehicle shall keep the child properly restrained as follows:

(a) If the child is less than six years old and/or sixty pounds and the passenger seating position equipped with a safety belt system allows sufficient space for installation, then the child will be restrained in a child restraint system that complies with standards of the United States department of transportation and that is secured in the vehicle in accordance with instructions of the manufacturer of the child restraint system;

(b) If the child is less than one year of age or weighs less than twenty pounds, the child shall be properly restrained in a rear-facing infant seat;

(c) If the child is more than one but less than ((three)) four years of age or weighs less than forty pounds but at least twenty pounds, the child shall be properly restrained in a forward facing child safety seat restraint system ((that complies with standards of the United States department of transportation and that is secured in the vehicle in accordance with instructions of the manufacturer of the child restraint system));

(((b))) (d) If the child is less than ((ten)) six but at least ((three)) four years of age or weighs less than sixty pounds but at least forty pounds, the child shall be properly restrained ((either as specified in (a) of this subsection or with a safety belt properly adjusted and fastened around the child's body.)) in a child booster seat;

(e) If the child is six years of age or older or weighs more than sixty pounds, the child shall be properly restrained with the motor vehicle's safety belt properly adjusted and fastened around the child's body or an appropriately fitting booster seat; and

(f) Enforcement of (a) through (e) of this subsection is subject to a visual inspection by law enforcement to determine if the child restraint system in use is appropriate for the child's individual height, weight, and age. The visual inspection for usage of a forward facing child safety seat must ensure that the seat in use is equipped with a four-point shoulder harness system. The visual inspection for usage of a booster seat must ensure that the seat belt properly fits across the child's lap and the shoulder strap crosses the center of the child's chest. The visual inspection for the usage of a seat belt by a child must ensure that the lap belt properly fits across the child's lap and the shoulder strap crosses the center of the child's chest. In determining violations, consideration to the above criteria must be given in conjunction with the provisions of (a) through (e) of this subsection. The driver of a vehicle transporting a child who is under the age of six years old or weighs less than sixty pounds, when the vehicle is equipped with a passenger side air bag supplemental restraint system, and the air bag system is activated, shall transport the child in the back seat positions in the vehicle where it is practical to do so.

(2) A person violating subsection (1)(a) through (e) of this section may be issued a notice of traffic infraction under chapter 46.63 RCW. If the person to whom the notice was issued presents proof of acquisition of an approved child passenger restraint system or a child booster seat, as appropriate, within seven days to the jurisdiction issuing the notice and the person has not previously had a violation of this section dismissed, the jurisdiction shall dismiss the notice of traffic infraction. (3) Failure to comply with the requirements of this section shall not constitute negligence by a parent or legal guardian; nor shall failure to use a child restraint system be admissible as evidence of negligence in any civil action.

(4) This section does not apply to: (a) For hire vehicles, (b) vehicles designed to transport sixteen or less passengers, including the driver, operated by auto transportation companies, as defined in RCW 81.68.010, ((and)) (c) vehicles providing customer shuttle service between parking, convention, and hotel facilities, and airport terminals, and (d) school buses.

(5) As used in this section "child booster seat" means a child passenger restraint system that meets the Federal Motor Vehicle Safety Standards set forth in 49 C.F.R. 571.213 that is designed to elevate a child to properly sit in a federally approved lap/shoulder belt system.

(6) The requirements of subsection (1)(a) through (e) of this section do not apply in any seating position where there is only a lap belt available and the child weighs more than forty pounds.

Sec. 3. RCW 46.61.688 and 1990 c 250 s 58 are each amended to read as follows:

(1) For the purposes of this section, the term "motor vehicle" includes:

(a) "Buses," meaning motor vehicles with motive power, except trailers, designed to carry more than ten passengers;

(b) "Multipurpose passenger vehicles," meaning motor vehicles with motive power, except trailers, designed to carry ten persons or less that are constructed either on a truck chassis or with special features for occasional off-road operation;

(c) "Passenger cars," meaning motor vehicles with motive power, except multipurpose passenger vehicles, motorcycles, or trailers, designed for carrying ten passengers or less; and

(d) "Trucks," meaning motor vehicles with motive power, except trailers, designed primarily for the transportation of property.

(2) This section only applies to motor vehicles that meet the manual seat belt safety standards as set forth in federal motor vehicle safety standard 208. This section does not apply to a vehicle occupant for whom no safety belt is available when all designated seating positions as required by federal motor vehicle safety standard 208 are occupied.

(3) Every person sixteen years of age or older operating or riding in a motor vehicle shall wear the safety belt assembly in a properly adjusted and securely fastened manner.

(4) No person may operate a motor vehicle unless all child passengers under the age of sixteen years are either: (a) Wearing a safety belt assembly or (b) are securely fastened into an approved child restraint device.

(5) A person violating this section shall be issued a notice of traffic infraction under chapter 46.63 RCW. A finding that a person has committed a traffic infraction under this section shall be contained in the driver's abstract but shall not be available to insurance companies or employers.

(6) Failure to comply with the requirements of this section does not constitute negligence, nor may failure to wear a safety belt assembly be admissible as evidence of negligence in any civil action.

(7) Except for subsection (4)(b) of this section, which must be enforced as a primary action, enforcement of this section by law enforcement officers may be accomplished only as a secondary action when a driver of a motor vehicle has been detained for a suspected violation of Title 46 RCW or an equivalent local ordinance or some other offense.

(8) This section does not apply to an operator or passenger who possesses written verification from a licensed physician that the operator or passenger is unable to wear a safety belt for physical or medical reasons.

(9) The state patrol may adopt rules exempting operators or occupants of farm vehicles, construction equipment, and vehicles that are required to make frequent stops from the requirement of wearing safety belts.

NEW SECTION. Sec. 4. A new section is added to chapter 46.61 RCW to read as follows:

The traffic safety commission shall conduct an educational campaign using all available methods to raise public awareness of the importance of properly restraining child passengers and the value of seatbelts to adult motorists. The traffic safety commission shall report to the transportation committees of the legislature on the campaign and results observed on the highways. The first report is due December 1, 2000, and annually thereafter.

NEW SECTION. Sec. 5. This act may be known and cited as the Anton Skeen Act.

NEW SECTION. Sec. 6. This act takes effect July 1, 2002."

Debate ensued.

POINT OF INQUIRY

Senator Morton: “Senator Costa, I think I have about three questions. I notice on page 1, line 28, it says, ‘allows sufficient space for installation.’ Thinking in terms of perhaps two or three such units, who would determine the space for installation? That would be one question. Then the matter of age--I notice it refers to yearlings and then two year olds, I believe. Would it be required to have birth certificates in the vehicle? Then it refers to poundage of the infant, less than twenty pounds and another category of between, I think it is between forty and eighty. Will it be necessary to have scales in the vehicle to accommodate the enforcement of this? Thank you.”

Senator Costa: “Actually, there was a suggestion that you could pull into a Truck Weight Station to determine the weight. Seriously, again to address the first question regarding allowing sufficient space for installation. That was to address the concern of whether or not there is enough room in a vehicle. We have been able to take a look at determining whether or not they can fit three seats. If they can’t, the child could be in the middle in a lap belt and a shoulder safety belt, as well. They will not be as safe, but they will be within the law. It will be subject to a visual inspection by a law enforcement officer--underneath this bill on page two--which means whether or not the child would be safe based on training that they received from the Traffic Safety Commission and others. That would determine the height, the weight and the birth date. Nobody needs to carry a birth certificate or poundage certificate.

“Again, I want to remind the members, in terms of enforcement, it does not become effective until July 1, 2002.”

Further debate ensued..

The President declared the question before the Senate to be the adoption of the striking amendment by Senators Costa and Swecker to Engrossed Substitute House Bill No. 2675, under suspension of the rules.

The motion by Senator Costa carried and the striking amendment, under suspension of the rules, was adopted.

MOTIONS

On motion of Senator Costa, the following title amendment was adopted:

On page 1, line 1 of the title, after "systems;" strike the remainder of the title and insert "amending RCW 46.61.687 and 46.61.688; adding a new section to chapter 46.61 RCW; creating new sections; and providing an effective date."

On motion of Senator Costa, the rules were suspended, Engrossed Substitute House Bill 2675, as amended by the Senate under suspension of the rules, was advanced to third reading the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 2675, as amended by the Senate under suspension of the rules.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 2675, as amended by the Senate under suspension of the rules, and the bill passed the Senate by the following vote: Yeas, 39; Nays, 7; Absent, 0; Excused, 3.

Voting yea: Senators Bauer, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, McAuliffe, McDonald, Oke, Patterson, Prentice, Rasmussen, Roach, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Swecker, Thibaudeau, West, Winsley and Wojahn - 39.

Voting nay: Senators Benton, Finkbeiner, Hochstatter, McCaslin, Morton, Stevens and Zarelli - 7.

Excused: Senators Loveland, Rossi and Sellar - 3.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2675, as amended by the Senate under suspension of the rules, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

PERSONAL PRIVILEGE

Senator Patterson: “A point of personal privilege, Mr. President. I am missing Senator Sellar today and I understand that George is not doing well. I wondered if it would be all right if the Senate had a prayer this morning for George. I think the prayer would be more for us than for George and I was wondering if Senator Morton, who is kind of an expert in this area, might help us with that.”

Senator Morton offered a prayer for Senator George Sellar.

MOTION

At 10:38 a.m., on motion of Senator Betti Sheldon, the Senate was declared to be at ease.

The Senate was called to order at 1:20 p.m. by President Owen.

SIGNED BY THE PRESIDENT

The President signed:

SUBSTITUTE SENATE BILL NO. 6194,

SECOND SUBSTITUTE SENATE BILL NO. 6255,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6277,

SUBSTITUTE SENATE BILL NO. 6621,

SUBSTITUTE SENATE BILL NO. 6781,

ENGROSSED SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8425.

There being no objection, the President advanced the Senate to the sixth order of business.

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

On motion of Senator Kohl-Welles, Gubernatorial Appointment No. 9283, Carolyn J. Purnell, as a member of the State Board for Community and Technical Colleges, was confirmed.

APPOINTMENT OF CAROLYN J. PURNELL

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 42; Nays, 0; Absent, 6; Excused, 1.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Heavey, Hochstatter, Honeyford, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Wojahn - 42.

Absent: Senators Hargrove, Haugen, Horn, McCaslin, Snyder and Zarelli - 6.

Excused: Senator Sellar - 1.

INTRODUCTION OF SPECIAL GUESTS

The President welcomed and introduced members of the Dalso District Council of Taegu City, Korea, guests of Senator Shin, who were seated in the gallery.

MOTION

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

MOTION

On motion of Senator Prentice, Gubernatorial Appointment No. 9275, Jeffrey W. Nitta, as a member of the Housing Finance Commission, was confirmed.

APPOINTMENT OF JEFFREY W. NITTA

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 45; Nays, 0; Absent, 0; Excused, 4.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 45.

Excused: Senators Hargrove, Loveland, Sellar and Snyder - 4.

PERSONAL PRIVILEGE

Senator Long: “Mr. President, a point of personal privilege. I see that we have on our desks a new packet on the transportation budget that we passed a few days ago. The day after we passed it, as some of you know, there was another death on Highway 522. 522 starts in the First Legislative District and goes all the way across my district and ends in the Thirty-ninth District. It is known as the death highway. After this latest death, it was referred to as the dead man’s highway. If you don’t remember, in 1995, the Reader’s Digest did an article on the ten worst highways in America.

“Mr. President, with your permission, I would like to briefly read that. It isn’t very long. It says, ‘About 7:40 a.m., January 18, 1994, Nancy and Arnold Ligtenberg left for work with their nine year old son, Lance, whom they planned to drop off at school. As Nancy swung left onto Route 522, she turned the radio to the news--Highway 522 has been closed at 164th Street and traffic is being detoured--.

‘There must have been a fatality Nancy observed, looking uneasily at Arnold. The couple’s other two sons, Tyler, 16, and Andrew, 14, had just left for school in Tyler’s Volkswagen Beetle. Their usual route was Highway 522, an overcrowded, two-lane road in the rapidly growing area northeast of Seattle. The worried parents went home to call the school. Andrew had not arrived. Nancy drove to a road adjacent to 522, only to witness what was left of the Beetle being loaded onto a flatbed. She raced home and found a policeman and minister talking with her husband. It was every parent’s nightmare--doubled.

‘Tyler and Andrew had died in a head-on crash with a Chevy Blazer--the 20th and 21st persons to die on a 10.6 mile section of 522 between Monroe and Woodinville over a five year period. Most of the fatalities involved head-on collisions. Why? Northbound motorists coming off Interstate 405 suddenly find themselves on a two lane road that can look like four. The illusion is understandable. Highway 522 was designed as a four laner. Part of its four lanes, graded roadbed has been in place for more than twenty years. To save money, however, only two lanes were finished, with no median barriers

‘The Washington State Department of Transportation has fixed Highway 522 on paper. A five stage $180 million project would widen the highway to four lanes and build two new interchanges, but funding in 1993 was diverted in a budget balancing act. The deaths of the Ligtenberg boys were especially troubling to Bob Green, an engineer with the DOT. His two sons, Danny, 18, and Brian, 16, were classmates of Tyler’s and Andrews’s and drive the same road to school. Researching accident records, Green pinpointed every fatal accident along the 10.6 miles. Then he and his wife, Donna, bought two inch lath and fashioned thirty-eight white crosses to go with four already erected--one for every person who had died along the highway since 1977. They hammered one into the roadside at the site of each fatality. Each cross seemed to say ‘Someone died here. Don’t you.’ Local residents noticed immediately that motorists seemed to drive more slowly.

‘Meanwhile, two mothers of school age children, Judy Flanagan and Nancy Enselman, founded a group called CRASH (Citizens Rallying for a Safer Highway) and secured 12,000 signatures on petitions to fix the road. They called a meeting at Monroe High School, inviting highway officials to hear their plea. Ron Anderson, DOT regional administrator, told five hundred citizens who turned out--and I was there--

that without a major tax increase, Highway 522 couldn’t be widened until after the Year 2000. He could promise only minor improvements and stricter enforcement of speed limits. He also said, ‘Those crosses have to be taken down. They are a distraction to motorists and a violation of state law.

‘Standing in the back of the room thinking about his two sons, Arnold Ligtenberg was first stunned and then angry. What’s the real reason they don’t like the crosses, he asked himself. Is it because there are so many of them? Almost three weeks after Anderson’s announcement,

DOT maintenance workers carted the crosses away. The following day, Jim Malvern, a forty year old father of three who had signed the CRASH petition, was involved in a head on collision on Highway 522. He died hours later.’

“Now, after we passed the budget and because I have read and heard varying numbers about how many people have died on that 10.6 piece of road--miles--I had my staff research it. I knew there were a lot, but I was not prepared for the answer. When I was given the answer, I said, ‘That can’t be right, please double check.’ This is a printout of all the people that have died on that highway. Since 1970, a hundred and twenty-seven people--that’s more than eight people per mile that have died on that road.

“Now, I have spoke with Senator Haugen, who has assured me she will fight for this in the budget. I also had a memo on my desk as I came back from lunch, that you probably all have, reminding us that there are several proposals and that our budget is one of three. I hope we have the collective will to see that this highway is repaired before more people die on it. Thank you all very much for giving me this time.”

MOTION

On motion of Senator Rasmussen, Gubernatorial Appointment No. 9264, Major General Timothy J. Lowenberg, as Adjutant General of the Military Department, was confirmed.

Senators Rasmussen and Winsley spoke to the confirmation of Major General Timothy J. Lowenberg as Adjutant General of the Military Department.

APPOINTMENT OF MAJOR GENERAL TIMOTHY J. LOWENBERG

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 44; Nays, 0; Absent, 1; Excused, 4.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 44.

Absent: Senator Honeyford - 1.

Excused: Senators Hargrove, Loveland, Sellar and Snyder - 4.

MOTION

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

MOTION

On motion of Senator Betti Sheldon, the following resolution was adopted:

SENATE RESOLUTION 2000-8770

By Senators Sheldon, B., Hale, Spanel, and Rasmussen

WHEREAS, Our culture proffers too little respect on its elders and pays too much tribute to the fleeting qualities of youth; and

WHEREAS, The Washington State Senate is honored to have among its members eight septuagenarian Senators: Al Bauer, Alex Deccio, Rosa Franklin, Jeanine Long, Bob McCaslin, George Sellar, Sid Snyder and Lorraine Wojahn; and

WHEREAS, It was Oliver Wendell Holmes, Sr. who said on the seventieth birthday of the American writer and activist Julia Ward Howe, "To be seventy years young is sometimes far more cheerful and hopeful than to be forty years old."; and

WHEREAS, In the Legislature as in life, it is well established that a good measure of maturity and a modicum of treachery will always beat youth and skill; and

WHEREAS, Fine wine can only come from ripe grapes; and

WHEREAS, Despite their cumulative wisdom, maturity and depth of experience, former Governor Albert Rosellini still considers the above named Senators to be ‘just a bunch of kids’; and

WHEREAS, The combined life experiences of these honored and honorable people have contributed greatly to the State Senate, the state of Washington and their local communities; and

WHEREAS, The presence of these eight, ‘seventy-something’ Senators contributes immeasurably to the esteem of this chamber and provides ballast to steady its passage through the sometimes stormy legislative days and nights; and

WHEREAS, The above mentioned members not only lived through a significant portion of this state’s history, but through their commitment and service, helped shape it as well;

NOW, THEREFORE, BE IT RESOLVED, By the Senate of the state of Washington, that Senators Al Bauer, Alex Deccio, Rosa Franklin, Jeanine Long, Bob McCaslin, George Sellar, Sid Snyder and Lorraine Wojahn be honored for their great wisdom, surpassing patience, enduring good humor and longevity; and

BE IT FURTHER RESOLVED, That a copy of this resolution be immediately transmitted by the Secretary of the Senate to all the Senate’s Septuagenarians.

Senators Betti Sheldon, Hale, McCaslin, Deccio, Long, Franklin, Snyder, Wojahn, Jacobsen, Bauer and Shin spoke to Senate Resolution 2000-8770.

HAPPY BIRTHDAY TO SENATOR TIM SHELDON

The President extended Happy Fifty-third Birthday wishes to Senator Tim Sheldon.

PERSONAL PRIVILEGE

Senator Tim Sheldon: “A point of personal privilege, Mr President. Just briefly, I realized it was my birthday today when I had that first flat tire on my way to Olympia.”

MOTION

On motion of Senator Betti Sheldon, the Senate reverted to the fourth order of business.

MESSAGE FROM THE HOUSE

March 6, 2000

MR. PRESIDENT:

The House refuses to concur in the Senate amendment(s) to SUBSTITUTE HOUSE BILL NO. 2939 and asks the Senate to recede therefrom, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

MOTIONS

On motion of Senator Eide, the Senate receded from its amendment(s) to Substitute House Bill No. 2939.

On motion of Senator Costa, the rules were suspended and Substitute House Bill No. 2939 was returned to second reading and read the second time.

MOTION

On motion of Senator Eide, the following striking amendment by Senators Eide, Swecker, Fraser and Morton was adopted:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. (1) The department of general administration shall work with commercial and industrial construction industry organizations to develop guidelines for implementing on-site construction waste management planning. The topics addressed in the guidelines shall include, but shall not be limited to:

(a) Standards for identifying the type of wastes generated during construction;

(b) Methods for analyzing the availability and cost-effectiveness of recycling services for each type of waste;

(c) Methods for evaluating construction waste management alternatives given limited recycling services in rural areas of the state;

(d) Strategies to maximize reuse and recycling of wastes and minimize landfill disposal;

(e) Standardized formats for on-site construction waste management planning and reporting documents; and

(f) A training and technical assistance plan for public and private building owners and construction industry members, in order to facilitate incorporation of waste management planning and recycling into standard construction industry practice.

(2) By December 15, 2000, the department of general administration shall provide a report to the legislature on the development of the guidelines required by subsection (1) of this section. The report shall include recommendations for incorporating job-site waste management planning and recycling into standard construction industry practice.

Sec. 2. RCW 43.19A.020 and 1996 c 198 s 1 are each amended to read as follows:

(1) The ((USEPA)) federal product standards, ((as now or hereafter amended)) adopted under 42 U.S.C. Sec. 6962(e) as it exists on the effective date of this act, are adopted as the minimum standards for the state of Washington. These standards shall be implemented for at least the products listed in (((a) and (b) of)) this subsection ((by the dates indicated)), unless the director finds that a different standard would significantly increase recycled product availability or competition.

(a) ((By July 1, 1997:

(i))) Paper and paper products;

(((ii))) (b) Organic recovered materials; ((and

(iii))) (c) Latex paint products;

(((b) By July 1, 1997:

(i))) (d) Products for lower value uses containing recycled plastics;

(((ii))) (e) Retread and remanufactured tires;

(((iii))) (f) Lubricating oils;

(((iv))) (g) Automotive batteries;

(((v))) (h) Building ((insulation)) products and materials;

(((vi))) (i) Panelboard; and

(((vii))) (j) Compost products.

(2) By July 1, 2001, the director shall adopt product standards for strawboard manufactured using as an ingredient straw that is produced as a by-product in the production of cereal grain or turf or grass seed.

(3) The standards required by this section shall be applied to recycled product purchasing by the department and other state agencies. The standards may be adopted or applied by any other local government in product procurement. The standards shall provide for exceptions under appropriate circumstances to allow purchases of recycled products that do not meet the minimum content requirements of the standards.

Sec. 3. RCW 39.04.133 and 1996 c 198 s 5 are each amended to read as follows:

(1) The state's preferences for the purchase and use of recycled content products shall be included as a factor in the design and development of state capital improvement projects.

(2) ((Specifications for materials in state construction projects shall include the use of recycled content products and recyclable products whenever practicable)) If a construction project receives state public funding, the product standards, as provided in RCW 43.19A.020, shall apply to the materials used in the project, whenever the administering agency and project owner determine that such products would be cost-effective and are readily available.

(3) This section does not apply to contracts entered into by a municipality.

Sec. 4. RCW 70.95.010 and 1989 c 431 s 1 are each amended to read as follows:

The legislature finds:

(1) Continuing technological changes in methods of manufacture, packaging, and marketing of consumer products, together with the economic and population growth of this state, the rising affluence of its citizens, and its expanding industrial activity have created new and ever-mounting problems involving disposal of garbage, refuse, and solid waste materials resulting from domestic, agricultural, and industrial activities.

(2) Traditional methods of disposing of solid wastes in this state are no longer adequate to meet the ever-increasing problem. Improper methods and practices of handling and disposal of solid wastes pollute our land, air and water resources, blight our countryside, adversely affect land values, and damage the overall quality of our environment.

(3) Considerations of natural resource limitations, energy shortages, economics and the environment make necessary the development and implementation of solid waste recovery and/or recycling plans and programs.

(4) Waste reduction must become a fundamental strategy of solid waste management. It is therefore necessary to change manufacturing and purchasing practices and waste generation behaviors to reduce the amount of waste that becomes a governmental responsibility.

(5) Source separation of waste must become a fundamental strategy of solid waste management. Collection and handling strategies should have, as an ultimate goal, the source separation of all materials with resource value or environmental hazard.

(6)(a) It ((is the responsibility)) should be the goal of every person to minimize his or her production of wastes and to separate recyclable or hazardous materials from mixed waste.

(b) It is the responsibility of state, county, and city governments to provide for a waste management infrastructure to fully implement waste reduction and source separation strategies and to process and dispose of remaining wastes in a manner that is environmentally safe and economically sound. It is further the responsibility of state, county, and city governments to monitor the cost-effectiveness and environmental safety of combusting separated waste, processing mixed waste, and recycling programs.

(c) It is the responsibility of county and city governments to assume primary responsibility for solid waste management and to develop and implement aggressive and effective waste reduction and source separation strategies.

(d) It is the responsibility of state government to ensure that local governments are providing adequate source reduction and separation opportunities and incentives to all, including persons in both rural and urban areas, and nonresidential waste generators such as commercial, industrial, and institutional entities, recognizing the need to provide flexibility to accommodate differing population densities, distances to and availability of recycling markets, and collection and disposal costs in each community; and to provide county and city governments with adequate technical resources to accomplish this responsibility.

(7) Environmental and economic considerations in solving the state's solid waste management problems requires strong consideration by local governments of regional solutions and intergovernmental cooperation.

(8) The following priorities for the collection, handling, and management of solid waste are necessary and should be followed in descending order as applicable:

(a) Waste reduction;

(b) Recycling, with source separation of recyclable materials as the preferred method;

(d) Energy recovery, incineration, or landfilling of mixed wastes.

(9) It is the state's goal to achieve a fifty percent recycling rate by ((1995)) 2005.

(10) It is the state's goal that programs be established to eliminate residential or commercial yard debris in landfills by 2010.

(11) Steps should be taken to make recycling at least as affordable and convenient to the ratepayer as mixed waste disposal.

(((11))) (12) It is necessary to compile and maintain adequate data on the types and quantities of solid waste that are being generated and to monitor how the various types of solid waste are being managed.

(((12))) (13) Vehicle batteries should be recycled and the disposal of vehicle batteries into landfills or incinerators should be discontinued.

(((13))) (14) Excessive and nonrecyclable packaging of products should be avoided.

(((14))) (15) Comprehensive education should be conducted throughout the state so that people are informed of the need to reduce, source separate, and recycle solid waste.

(((15))) (16) All governmental entities in the state should set an example by implementing aggressive waste reduction and recycling programs at their workplaces and by purchasing products that are made from recycled materials and are recyclable.

(((16))) (17) To ensure the safe and efficient operations of solid waste disposal facilities, it is necessary for operators and regulators of landfills and incinerators to receive training and certification.

(((17))) (18) It is necessary to provide adequate funding to all levels of government so that successful waste reduction and recycling programs can be implemented.

(((18))) (19) The development of stable and expanding markets for recyclable materials is critical to the long-term success of the state's recycling goals. Market development must be encouraged on a state, regional, and national basis to maximize its effectiveness. The state shall assume primary responsibility for the development of a multifaceted market development program to carry out the purposes of this act.

(((19))) (20) There is an imperative need to anticipate, plan for, and accomplish effective storage, control, recovery, and recycling of discarded tires and other problem wastes with the subsequent conservation of resources and energy.

Sec. 5. RCW 70.95.030 and 1998 c 36 s 17 are each amended to read as follows:

As used in this chapter, unless the context indicates otherwise:

(1) "City" means every incorporated city and town.

(2) "Commission" means the utilities and transportation commission.

(3) "Committee" means the state solid waste advisory committee.

(4) "Composted material" means organic solid waste that has been subjected to controlled aerobic degradation at a solid waste facility in compliance with the requirements of this chapter. Natural decay of organic solid waste under uncontrolled conditions does not result in composted material.

(5) "Department" means the department of ecology.

(6) "Director" means the director of the department of ecology.

(7) "Disposal site" means the location where any final treatment, utilization, processing, or deposit of solid waste occurs.

(8) "Energy recovery" means a process operating under federal and state environmental laws and regulations for converting solid waste into usable energy and for reducing the volume of solid waste.

(9) "Functional standards" means criteria for solid waste handling expressed in terms of expected performance or solid waste handling functions.

(10) "Incineration" means a process of reducing the volume of solid waste operating under federal and state environmental laws and regulations by use of an enclosed device using controlled flame combustion.

(11) "Jurisdictional health department" means city, county, city-county, or district public health department.

(12) "Landfill" means a disposal facility or part of a facility at which solid waste is placed in or on land and which is not a land treatment facility.

(13) "Local government" means a city, town, or county.

(14) "Modify" means to substantially change the design or operational plans including, but not limited to, removal of a design element previously set forth in a permit application or the addition of a disposal or processing activity that is not approved in the permit.

(15) "Multiple family residence" means any structure housing two or more dwelling units.

(16) "Person" means individual, firm, association, copartnership, political subdivision, government agency, municipality, industry, public or private corporation, or any other entity whatsoever.

(17) "Recyclable materials" means those solid wastes that are separated for recycling or reuse, such as papers, metals, and glass, that are identified as recyclable material pursuant to a local comprehensive solid waste plan. Prior to the adoption of the local comprehensive solid waste plan, adopted pursuant to RCW 70.95.110(2), local governments may identify recyclable materials by ordinance from July 23, 1989.

(18) "Recycling" means transforming or remanufacturing waste materials into usable or marketable materials for use other than landfill disposal or incineration.

(19) "Residence" means the regular dwelling place of an individual or individuals.

(20) "Sewage sludge" means a semisolid substance consisting of settled sewage solids combined with varying amounts of water and dissolved materials, generated from a wastewater treatment system, that does not meet the requirements of chapter 70.95J RCW.

(21) "Soil amendment" means any substance that is intended to improve the physical characteristics of the soil, except composted material, commercial fertilizers, agricultural liming agents, unmanipulated animal manures, unmanipulated vegetable manures, food wastes, food processing wastes, and materials exempted by rule of the department, such as biosolids as defined in chapter 70.95J RCW and wastewater as regulated in chapter 90.48 RCW.

(22) "Solid waste" or "wastes" means all putrescible and nonputrescible solid and semisolid wastes including, but not limited to, garbage, rubbish, ashes, industrial wastes, swill, sewage sludge, demolition and construction wastes, abandoned vehicles or parts thereof, and recyclable materials.

(23) "Solid waste handling" means the management, storage, collection, transportation, treatment, utilization, processing, and final disposal of solid wastes, including the recovery and recycling of materials from solid wastes, the recovery of energy resources from solid wastes or the conversion of the energy in solid wastes to more useful forms or combinations thereof.

(24) "Source separation" means the separation of different kinds of solid waste at the place where the waste originates.

(25) "Vehicle" includes every device physically capable of being moved upon a public or private highway, road, street, or watercourse and in, upon, or by which any person or property is or may be transported or drawn upon a public or private highway, road, street, or watercourse, except devices moved by human or animal power or used exclusively upon stationary rails or tracks.

(26) "Waste-derived soil amendment" means any soil amendment as defined in this chapter that is derived from solid waste as defined in RCW 70.95.030, but does not include biosolids or biosolids products regulated under chapter 70.95J RCW or wastewaters regulated under chapter 90.48 RCW.

(27) "Waste reduction" means reducing the amount or toxicity of waste generated or reusing materials.

(28) "Yard debris" means plant material commonly created in the course of maintaining yards and gardens, and through horticulture, gardening, landscaping, or similar activities. Yard debris includes but is not limited to grass clippings, leaves, branches, brush, weeds, flowers, roots, windfall fruit, vegetable garden debris, holiday trees, and tree prunings four inches or less in diameter.

Sec. 6. RCW 70.95.090 and 1991 c 298 s 3 are each amended to read as follows:

Each county and city comprehensive solid waste management plan shall include the following:

(1) A detailed inventory and description of all existing solid waste handling facilities including an inventory of any deficiencies in meeting current solid waste handling needs.

(2) The estimated long-range needs for solid waste handling facilities projected twenty years into the future.

(3) A program for the orderly development of solid waste handling facilities in a manner consistent with the plans for the entire county which shall:

(a) Meet the minimum functional standards for solid waste handling adopted by the department and all laws and regulations relating to air and water pollution, fire prevention, flood control, and protection of public health;

(b) Take into account the comprehensive land use plan of each jurisdiction;

(d) Contain a plan for financing both capital costs and operational expenditures of the proposed solid waste management system.

(4) A program for surveillance and control.

(5) A current inventory and description of solid waste collection needs and operations within each respective jurisdiction which shall include:

(a) Any franchise for solid waste collection granted by the utilities and transportation commission in the respective jurisdictions including the name of the holder of the franchise and the address of his or her place of business and the area covered by the franchise;

(b) Any city solid waste operation within the county and the boundaries of such operation;

(c) The population density of each area serviced by a city operation or by a franchised operation within the respective jurisdictions;

(d) The projected solid waste collection needs for the respective jurisdictions for the next six years.

(6) A comprehensive waste reduction and recycling element that, in accordance with the priorities established in RCW 70.95.010, provides programs that (a) reduce the amount of waste generated, (b) provide incentives and mechanisms for source separation, and (c) establish recycling opportunities for the source separated waste.

(7) The waste reduction and recycling element shall include the following:

(a) Waste reduction strategies;

(b) Source separation strategies, including:

(i) Programs for the collection of source separated materials from residences in urban and rural areas. In urban areas, these programs shall include collection of source separated recyclable materials from single and multiple family residences, unless the department approves an alternative program, according to the criteria in the planning guidelines. Such criteria shall include: Anticipated recovery rates and levels of public participation, availability of environmentally sound disposal capacity, access to markets for recyclable materials, unreasonable cost impacts on the ratepayer over the six-year planning period, utilization of environmentally sound waste reduction and recycling technologies, and other factors as appropriate. In rural areas, these programs shall include but not be limited to drop-off boxes, buy-back centers, or a combination of both, at each solid waste transfer, processing, or disposal site, or at locations convenient to the residents of the county. The drop-off boxes and buy-back centers may be owned or operated by public, nonprofit, or private persons;

(ii) Programs to monitor the collection of source separated waste at nonresidential sites where there is sufficient density to sustain a program;

(iii) Programs to collect yard waste, if the county or city submitting the plan finds that there are adequate markets or capacity for composted yard waste within or near the service area to consume the majority of the material collected; and

(iv) Programs to educate and promote the concepts of waste reduction and recycling;

(c) Recycling strategies, including a description of markets for recyclables, a review of waste generation trends, a description of waste composition, a discussion and description of existing programs and any additional programs needed to assist public and private sector recycling, and an implementation schedule for the designation of specific materials to be collected for recycling, and for the provision of recycling collection services;

(d) Consideration of residential collection rate structures that provide economic incentives for customers to reduce their level of solid waste collection service and increase their participation in waste reduction, recycling, and yard waste collection programs. Any jurisdiction that is a signatory to a comprehensive solid waste plan that adopts residential incentive rates shall adopt ordinances to implement rate structures that are consistent with the guidelines in the comprehensive plans. The utilities and transportation commission is authorized to issue rules to implement this section for solid waste companies regulated under Title 81 RCW; and

(e) Other information the county or city submitting the plan determines is necessary.

(8) An assessment of the plan's impact on the costs of solid waste collection. The assessment shall be prepared in conformance with guidelines established by the utilities and transportation commission. The commission shall cooperate with the Washington state association of counties and the association of Washington cities in establishing such guidelines.

(9) A review of potential areas that meet the criteria as outlined in RCW 70.95.165.

Sec. 7. RCW 70.95.290 and 1988 c 184 s 3 are each amended to read as follows:

(1) The evaluation of the solid waste stream required in RCW 70.95.280 shall include the following elements:

(a) The department shall determine which management method for each category of solid waste will have the least environmental impact; and

(b) The department shall evaluate the costs of various management options for each category of solid waste, including a review of market availability, and shall take into consideration the economic impact on affected parties;

(c) Based on the results of (a) and (b) of this subsection, the department shall determine the best management for each category of solid waste. Different management methods for the same categories of waste may be developed for different parts of the state.

(2) The department shall give priority to evaluating categories of solid waste that, in relation to other categories of solid waste, comprise a large volume of the solid waste stream or present a high potential of harm to human health. At a minimum the following categories of waste shall be evaluated:

(a) By January 1, 1989, yard ((waste)) debris and other biodegradable materials, paper products, disposable diapers, and batteries; ((and))

(b) By January 1, 1990, metals, glass, plastics, styrofoam or rigid lightweight cellular polystyrene, and tires; and

(3) The department is prohibited from adopting rules that mandate best management practices for the categories of solid waste identified in subsection (2) of this section.

Sec. 8. RCW 43.19.1905 and 1995 c 269 s 1402 are each amended to read as follows:

The director of general administration shall establish overall state policy for compliance by all state agencies, including educational institutions, regarding the following purchasing and material control functions:

(1) Development of a state commodity coding system, including common stock numbers for items maintained in stores for reissue;

(2) Determination where consolidations, closures, or additions of stores operated by state agencies and educational institutions should be initiated;

(3) Institution of standard criteria for determination of when and where an item in the state supply system should be stocked;

(4) Establishment of stock levels to be maintained in state stores, and formulation of standards for replenishment of stock;

(5) Formulation of an overall distribution and redistribution system for stock items which establishes sources of supply support for all agencies, including interagency supply support;

(6) Determination of what function data processing equipment, including remote terminals, shall perform in state-wide purchasing and material control for improvement of service and promotion of economy;

(7) Standardization of records and forms used state-wide for supply system activities involving purchasing, receiving, inspecting, storing, requisitioning, and issuing functions, including a standard notification form for state agencies to report cost-effective direct purchases, which shall at least identify the price of the goods as available through the division of purchasing, the price of the goods as available from the alternative source, the total savings, and the signature of the notifying agency's director or the director's designee;

(8) Screening of supplies, material, and equipment excess to the requirements of one agency for overall state need before sale as surplus;

(9) Establishment of warehouse operation and storage standards to achieve uniform, effective, and economical stores operations;

(10) Establishment of time limit standards for the issuing of material in store and for processing requisitions requiring purchase;

(11) Formulation of criteria for determining when centralized rather than decentralized purchasing shall be used to obtain maximum benefit of volume buying of identical or similar items, including procurement from federal supply sources;

(12) Development of criteria for use of leased, rather than state owned, warehouse space based on relative cost and accessibility;

(13) Institution of standard criteria for purchase and placement of state furnished materials, carpeting, furniture, fixtures, and nonfixed equipment, in newly constructed or renovated state buildings;

(14) Determination of how transportation costs incurred by the state for materials, supplies, services, and equipment can be reduced by improved freight and traffic coordination and control;

(15) Establishment of a formal certification program for state employees who are authorized to perform purchasing functions as agents for the state under the provisions of chapter 43.19 RCW;

(16) Development of performance measures for the reduction of total overall expense for material, supplies, equipment, and services used each biennium by the state;

(17) Establishment of a standard system for all state organizations to record and report dollar savings and cost avoidance which are attributable to the establishment and implementation of improved purchasing and material control procedures;

(18) Development of procedures for mutual and voluntary cooperation between state agencies, including educational institutions, and political subdivisions for exchange of purchasing and material control services;

(19) Resolution of all other purchasing and material matters which require the establishment of overall state-wide policy for effective and economical supply management;

(20) Development of guidelines and criteria for the purchase of vehicles, alternate vehicle fuels and systems, equipment, and materials that reduce overall energy-related costs and energy use by the state, including the requirement that new passenger vehicles purchased by the state meet the minimum standards for passenger automobile fuel economy established by the United States secretary of transportation pursuant to the energy policy and conservation act (15 U.S.C. Sec. 2002);

(21) Development of goals for state use of recycled and environmentally preferable products through specifications for products and services, processes for requests for proposals and requests for qualifications, contractor selection, and contract negotiations."

MOTIONS

On motion of Senator Eide, the following title amendment was adopted:

On page 1, line 1 of the title, after "reduction;" strike the remainder of the title and insert "amending RCW 43.19A.020, 39.04.133, 70.95.010, 70.95.030, 70.95.090, 70.95.290, and 43.19.1905; and creating a new section."

On motion of Senator Eide, the rules were suspended, Substitute House Bill 2939, as amended by the Senate under suspension of the rules, was advanced to third reading the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2939, as amended by the Senate under suspension of the rules.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 2939, as amended by the Senate under suspension of the rules, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 47.

Excused: Senators Hargrove and Sellar - 2.

SUBSTITUTE HOUSE BILL NO. 2939, as amended by the Senate under suspension of the rules, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

March 3, 2000

MR. PRESIDENT:

The House has passed SUBSTITUTE SENATE BILL NO. 6531 with the following amendment(s):

On page 4, after line 37, insert the following:

"NEW SECTION. Sec. 4. The joint committee on pension policy shall study the feasibility of providing an option of plan 2 or plan 3 for school employees retirement systems and teachers' retirement systems new employees, and it shall provide recommendations to the appropriate legislative committees by January 1, 2001." Renumber remaining sections consecutively and correct title and internal references accordingly., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

MOTION

On motion of Senator Long, the Senate concurred in the House amendment to Substitute Senate Bill No. 6531.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6531, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 6531, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, Winsley, Wojahn and Zarelli - 46.

Absent: Senator West - 1.

Excused: Senators Hargrove and Sellar - 2.

SUBSTITUTE SENATE BILL NO. 6531, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

March 1, 2000

MR. PRESIDENT:

The House has passed SENATE BILL NO. 6534 with the following amendment(s):

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 28A.400.210 and 1997 c 13 s 9 are each amended to read as follows:

Every school district board of directors may, in accordance with chapters 41.56 and 41.59 RCW, establish an attendance incentive program for all certificated and classified employees in the following manner, including covering persons who were employed during the 1982-'83 school year:

(1) In January of the year following any year in which a minimum of sixty days of leave for illness or injury is accrued, and each January thereafter, any eligible employee may exercise an option to receive remuneration for unused leave for illness or injury accumulated in the previous year at a rate equal to one day's monetary compensation of the employee for each four full days of accrued leave for illness or injury in excess of sixty days. Leave for illness or injury for which compensation has been received shall be deducted from accrued leave for illness or injury at the rate of four days for every one day's monetary compensation. No employee may receive compensation under this section for any portion of leave for illness or injury accumulated at a rate in excess of one day per month.

(2) Except as provided in RCW 28A.400.212, at the time of separation from school district employment ((due to retirement or death)) an eligible employee or the employee's estate shall receive remuneration at a rate equal to one day's current monetary compensation of the employee for each four full days accrued leave for illness or injury. For purposes of this subsection, "eligible employee" means (a) employees who separate from employment due to retirement or death; (b) employees who separate from employment and who are at least age fifty-five and have at least ten years of service under the teachers' retirement system plan 3 as defined in RCW 41.32.010(40), or under the Washington school employees' retirement system plan 3 as defined in RCW 41.35.010(31); or (c) employees who separate from employment and who are at least age fifty-five and have at least fifteen years of service under the teachers' retirement system plan 2 as defined in RCW 41.32.010(39), under the Washington school employees' retirement system plan 2 as defined in RCW 41.35.010(30), or under the public employees' retirement system plan 2 as defined in RCW 41.40.010(34).

(3) In lieu of remuneration for unused leave for illness or injury as provided in subsections (1) and (2) of this section, a school district board of directors may, with equivalent funds, provide eligible employees a benefit plan that provides reimbursement for medical expenses. Any benefit plan adopted after July 28, 1991, shall require, as a condition of participation under the plan, that the employee sign an agreement with the district to hold the district harmless should the United States government find that the district or the employee is in debt to the United States as a result of the employee not paying income taxes due on the equivalent funds placed into the plan, or as a result of the district not withholding or deducting any tax, assessment, or other payment on such funds as required under federal law.

Moneys or benefits received under this section shall not be included for the purposes of computing a retirement allowance under any public retirement system in this state.

The superintendent of public instruction in its administration hereof, shall promulgate uniform rules and regulations to carry out the purposes of this section.

Should the legislature revoke any benefits granted under this section, no affected employee shall be entitled thereafter to receive such benefits as a matter of contractual right."

Correct the title., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

MOTION

On motion of Senator Bauer, the Senate concurred in the House amendment to Senate Bill No. 6534.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 6534, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 6534, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 47.

Excused: Senators Hargrove and Sellar - 2.

SENATE BILL NO. 6534, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the sixth order of business.

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

On motion of Senator Kohl-Welles, Gubernatorial Appointment No. 9286, Nadine L. Romero, as a member of the Board of Trustees for Central Washington University, was confirmed.

APPOINTMENT OF NADINE L. ROMERO

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 46.

Absent: Senator Snyder - 1.

Excused: Senators Hargrove and Sellar - 2.

MOTION

On motion of Senator Goings, Gubernatorial Appointment No. 9300, John Warring, as a member of the Board of Trustees for Grays Harbor Community College District No. 2, was confirmed.

APPOINTMENT OF JOHN WARRING

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 47.

Excused: Senators Hargrove and Sellar - 2.

MOTION

On motion of Senator Costa, Gubernatorial Appointment No. 9301, Jenny Wieland, as a member of the Sentencing Guidelines Commission, was confirmed.

APPOINTMENT OF JENNY WIELAND

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

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 48.

Excused: Senator Sellar - 1.

MOTION

On motion of Senator Thibaudeau, Gubernatorial Appointment No. 9305, Charlie Brydon, as Chair of the Tax Appeals Board, was confirmed.

APPOINTMENT OF CHARLIE BRYDON

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 34; Nays, 13; Absent, 1; Excused, 1.

Voting yea: Senators Bauer, Brown, Costa, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, Patterson, Prentice, Rasmussen, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Thibaudeau, Winsley and Wojahn - 34.

Voting nay: Senators Benton, Hochstatter, Honeyford, McDonald, Morton, Oke, Roach, Rossi, Sheahan, Stevens, Swecker, West and Zarelli - 13.

Absent: Senator Deccio - 1.

Excused: Senator Sellar - 1.

MOTION

On motion of Senator Rasmussen, Senator Spanel was excused.

MOTION

On motion of Senator McAuliffe, Gubernatorial Appointment No. 9217, Margaret Bates, as a member of the Academic Achievement and Accountability Commission, was confirmed.

Senators McAuliffe and Bauer spoke to Margaret Bates as a member of the Academic Achievement and Accountability Commission.

APPOINTMENT OF MARGARET BATES

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 44; Nays, 0; Absent, 3; Excused, 2.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 44.

Absent: Senators Hargrove, Kohl-Welles and Snyder - 3.

Excused: Senators Sellar and Spanel - 2.

MOTION

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

INTRODUCTION AND FIRST READING

SJM 8030 by Senators Fraser, Spanel, Swecker, Jacobsen, Eide, Morton and McAuliffe

Petitioning Congress to amend the Oil Pollution Act of 1990 to grant additional authority to states and to strengthen federal tanker, large cargo, and passenger vessel safety standards.

MOTION

On motion of Senator Betti Sheldon the rules were suspended, Senate Joint Memorial No. 8030 was advanced to second reading and placed on the second reading calendar.

INTRODUCTION OF SPECIAL GUESTS

The President welcomed and introduced Vice Governor Oh and other dignitaries from the Sichuan Province in China, our Sister State.

The Governor and his delegation are here to visit Weyerhaeuser officials about reforestation programs.

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the sixth order of business.

MOTION

On motion of Senator Eide, Senator Brown was excused.

MOTION

On motion of Senator Sheahan, Senator Honeyford was excused.

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

On motion of Senator McAuliffe, Gubernatorial Appointment No. 9289, Leonora Schmidt, as a member of the Academic Achievement and Accountability Commission, was confirmed.

Senators McAuliffe and Bauer spoke to Leonora Schmidt as a member of the Academic Achievement and Accountability Commission.

APPOINTMENT OF LEONORA SCHMIDT

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 43; Nays, 0; Absent, 3; Excused, 3. Voting yea: Senators Bauer, Benton, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Gardner, Hale, Hargrove, Haugen, Heavey, Hochstatter, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 43.

Absent: Senators Fraser, Goings and Horn - 3.

Excused: Senators Brown, Honeyford and Sellar - 3.

President Pro Tempore Wojahn assumed the Chair.

MOTION

On motion of Senator Patterson, Senator Kline was excused.

MOTION

On motion of Senator Johnson, Gubernatorial Appointment No. 9294, Jim Spady, as a member of the Academic Achievement and Accountability Commission, was confirmed.

APPOINTMENT OF JIM SPADY

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 41; Nays, 0; Absent, 4; Excused, 4.

Voting yea: Senators Bauer, Benton, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Long, Loveland, McAuliffe, McCaslin, McDonald, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 41.

Absent: Senators Fraser, Kohl-Welles, Morton and Shin - 4.

Excused: Senators Brown, Honeyford, Kline and Sellar - 4.

MOTION

On motion of Senator Bauer, Gubernatorial Appointment No. 9265, James O. Luce, as a member of the Columbia River Gorge Bi-State Commission, was confirmed.

Senators Bauer and Finkbeiner spoke to the confirmation of James O. Luce as a member of the Columbia River Gorge Bi-State Commission.

APPOINTMENT OF JAMES O. LUCE

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 44; Nays, 0; Absent, 1; Excused, 4.

Voting yea: Senators Bauer, Benton, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 44. Absent: Senator Shin - 1. Excused: Senators Brown, Honeyford, Kline and Sellar - 4.

MOTION

On motion of Senator Eide, Senator Thibaudeau was excused.

MOTION

On motion of Senator McDonald, Senator Long was excused.

MOTION

On motion of Senator Fairley, Gubernatorial Appointment No. 9220, Rick S. Bender, as a member of the Work Force Training and Education Coordinating Board, was confirmed.

Senators Fairley and Bauer spoke to the confirmation of Rick S. Bender as a member of the Work Force Training and Education Coordinating Board.

APPOINTMENT OF RICK S. BENDER

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 34; Nays, 10; Absent, 1; Excused, 4.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Horn, Jacobsen, Kohl-Welles, Loveland, McAuliffe, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheldon, B., Sheldon, T., Snyder, Spanel, Swecker, Winsley, Wojahn and Zarelli - 34.

Voting nay: Senators Finkbeiner, Hochstatter, Honeyford, Johnson, McCaslin, McDonald, Morton, Sheahan, Stevens and West - 10.

Absent: Senator Shin - 1.

Excused: Senators Kline, Long, Sellar and Thibaudeau - 4.

MOTION

On motion of Senator Hochstatter, Senator Rossi was excused.

MOTION

On motion of Senator Franklin, Senator Loveland was excused.

MOTION

On motion of Senator Fairley, Gubernatorial Appointment No. 9222, Donald C. Brunell, as a member of the Work Force Training and Education Coordinating Board, was confirmed.

APPOINTMENT OF DONALD C. BRUNELL

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 46.

Excused: Senators Loveland, Rossi and Sellar - 3.

Vice President Pro Tempore Bauer assumed the Chair.

MOTION

On motion of Senator Betti Sheldon, the Senate reverted to the fourth order of business.

MESSAGE FROM HOUSE

March 9, 2000

MR. PRESIDENT:

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

SUBSTITUTE HOUSE BILL NO. 2392,

SUBSTITUTE HOUSE BILL NO. 2491,

SUBSTITUTE HOUSE BILL NO. 2850.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

MESSAGE FROM HOUSE

March 8, 2000

MR. PRESIDENT:

The House receded from its amendment on page 8, line 13, to SENATE BILL NO. 6775 and passed the bill without that amendment, but with the House amendments on page 2, line 27, page 4, line 33, and page 6, line 13, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

MOTION

Having concurred in the House amendments on page 2, line 17, page 4, line 33, and page 6, line 13, on March 7, 2000, the Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 6775, as amended by the House without the amendment on page 8, line 13.

POINT OF INQUIRY

Senator Zarelli: “Senator Patterson, under this bill, would we then not be allowed to file anyway but electronically?”

Senator Patterson: “In the Year 2002, the state of Washington filing requirements will be identical to thirty-seven other states in the union. Those requirements will be that our campaign treasurers will be required to file electronically.”

Senator Zarelli: “Does that mean that candidates would have to file electronically?”

Senator Patterson: “Candidates for political office where they expect to raise twenty-five thousand dollars or more will be required to. All other candidates will not have that requirement.”

Senator Zarelli: “Thank you.”

Further debate ensued.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 6775, as amended by the House without the amendment on page 8, line 13, and the bill passed the Senate by the following vote: Yeas, 37; Nays, 7; Absent, 1; Excused, 4.

Voting yea: Senators Bauer, Brown, Costa, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, McAuliffe, McDonald, Oke, Patterson, Prentice, Rasmussen, Sheahan, Sheldon, B., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Wojahn - 37. Voting nay: Senators Benton, Deccio, Heavey, McCaslin, Roach, Sheldon, T. and Zarelli - 7. Absent: Senator Morton - 1. Excused: Senators Honeyford, Loveland, Rossi and Sellar - 4. SENATE BILL NO. 6775, as amended by the House without the amendment on page 8, line 13, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

President Owen assumed the Chair.

SIGNED BY THE PRESIDENT

The President signed:

SENATE BILL NO. 6775.

MOTION

On motion of Senator Goings, the Senate advanced to the sixth order of business.

SECOND READING

SENATE BILL NO. 6858, by Senators Kohl-Welles, Heavey, Horn, Goings, Rasmussen, Eide and Winsley

Providing financing mechanisms to fund local government services

The bill was read the second time.

MOTION

Senator Kohl-Welles moved that the following striking amendment by Senators Kohl-Welles and Horn be adopted:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. (1) If the legislative authority of a city with a population over one hundred fifty thousand that is not in a metropolitan park district contracts with one or more nonprofit corporations or other public organizations for the overall management and operation of a zoo, an aquarium, or both, that contract shall be subject to this section. No such contract for the overall management and operation of zoo or aquarium facilities by a nonprofit corporation or other public organization shall have an initial term or any renewal term longer than twenty years, but may be renewed by the legislative authority of the city upon the expiration of an initial term or any renewal term.

(2) Before approving each initial and any renewal contract with a nonprofit corporation or other public organization for the overall management and operation of any facilities, the city legislative authority shall hold a public hearing on the proposed management and operation by the nonprofit corporation or other public organization. At least thirty days prior to the hearing, a public notice setting forth the date, time, and place of the hearing must be published at least once in a local newspaper of general circulation. Notice of the hearing shall also be mailed or otherwise delivered to all who would be entitled to notice of a special meeting of the city legislative authority under RCW 42.30.080. The notice shall identify the facilities involved and the nonprofit corporation or other public organization proposed for management and operation under the contract with the city. The terms and conditions under which the city proposes to contract with the nonprofit corporation or other public organization for management and operation shall be available upon request from and after the date of publication of the hearing notice and at the hearing, but after the public hearing the city legislative authority may amend the proposed terms and conditions at open public meetings.

(3) As part of the management and operation contract, the legislative authority of the city may authorize the managing and operating entity to grant to any nonprofit corporation or public or private organization franchises or concessions that further the public use and enjoyment of the zoo or aquarium, as the case may be, and may authorize the managing and operating entity to contract with any public or private organization for any specific services as are routinely so procured by the city.

(4) Notwithstanding any provision in the charter of the city so contracting for the overall management and operation of a zoo or an aquarium, or any other provision of law, the nonprofit corporation or other public organization with responsibility for overall management or operation of any such facilities pursuant to a contract under this section may, in carrying out that responsibility under such contract, manage, supervise, and control those employees of the city employed in connection with the zoo or aquarium and may hire, fire, and otherwise discipline those employees. Notwithstanding any provision in the charter of the city so contracting for the overall management and operation of a zoo or an aquarium, or any other provision of law, the civil service system of any such city shall provide for the nonprofit corporation or other public organization to manage, supervise, control, hire, fire, and otherwise discipline those employees of the city employed in connection with the zoo or aquarium.

(5) As part of the management and operation contract, the legislative authority of the city shall provide for oversight of the managing and operating entity to ensure public accountability of the entity and its performance in a manner consistent with the contract.

NEW SECTION. Sec. 2. Nothing in this chapter shall be construed to affect any terms, conditions, or practices contained in a collective bargaining agreement in effect on the effective date of this act.

NEW SECTION. Sec. 3. Sections 1 and 2 of this act constitute a new chapter in Title 35 RCW."

POINT OF INQUIRY

Senator West: “Senator Kohl-Welles, will you assure us that if we vote for this that we will never have to deal with this again?”

Senator Kohl-Welles: “I will swear that I will never deal with it again.”

Senator West: “Thank you.”

POINT OF INQUIRY

Senator Deccio: “Senator Kohl-Welles, if I vote for this one, will you promise we will never see it again? I voted against the last one, but I will vote for this one if it goes away and disappears forever. ”

Senator Kohl-Welles: “That is something that I certainly will promise. Thank you.”

Further debate ensued.

The President declared the question before the Senate to be the adoption of the striking amendment by Senators Kohl-Welles and Horn to Senate Bill No. 6858.

The motion by Senator Kohl-Welles carried and the striking amendment was adopted.

MOTIONS

On motion of Senator Kohl-Welles, the following title amendment was adopted:

On page 1, line 1 of the title, after "Relating to" strike the remainder of the title and insert "zoos and aquariums in cities with populations over one hundred fifty thousand that are not within a metropolitan park district; and adding a new chapter to Title 35 RCW."

On motion of Senator Kohl-Welles, the rules were suspended, Engrossed Senate Bill No. 6858 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 6858.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Senate Bill No. 6858 and the bill passed the Senate by the following vote: Yeas, 43; Nays, 1; Absent, 1; Excused, 4.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Oke, Patterson, Prentice, Rasmussen, Roach, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 43.

Voting nay: Senator Heavey - 1.

Absent: Senator Morton - 1.

Excused: Senators Honeyford, Loveland, Rossi and Sellar - 4.

ENGROSSED SENATE BILL NO. 6858, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

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

MESSAGE FROM HOUSE

March 9, 2000

MR. PRESIDENT:

The House refuses to concur in the Senate amendment(s) to ENGROSSED HOUSE BILL NO. 2985 and again asks the Senate to recede therefrom, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

MESSAGE FROM THE HOUSE

March 9, 2000

MR. PRESIDENT:

The House refuses to concur in the Senate amendment(s) to SUBSTITUTE HOUSE BILL NO. 2460 and asks the Senate to recede therefrom., and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

MOTIONS

On motion of Senator Brown, the Senate receded from its amendment(s) to Substitute House Bill No. 2460.

On motion of Senator Brown, the rules were suspended, Substitute House Bill No. 2460 was returned to second reading and read the second time.

MOTION

On motion of Senator Brown, the following striking amendment by Senators Brown and Loveland was adopted:

On page 1, strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. (1) The legislature finds that:

(a) There are geographic areas within communities that are characterized by a lack of employment opportunities, an average income level that is below the median income level for the surrounding community, a lack of affordable housing, deteriorating infrastructure, and a lack of facilities for community services, job training, and education;

(b) Strategies to encourage reinvestment in these areas by assisting local businesses to become stronger and area residents to gain economic power involve a variety of activities and partnerships;

(c) Reinvestment in these areas cannot be accomplished with only governmental resources and require a comprehensive approach that integrates various incentives, programs, and initiatives to meet the economic, physical, and social needs of the area;

(d) Successful reinvestment depends on a local government's ability to coordinate public resources in a cohesive, comprehensive strategy that is designed to leverage long-term private investment in an area;

(e) Reinvestment can strengthen the overall tax base through increased tax revenue from expanded and new business activities and physical property improvement;

(f) Local governments, in cooperation with area residents, can provide leadership as well as planning and coordination of resources and necessary supportive services to address reinvestment in the area; and

(g) It is in the public interest to adopt a targeted approach to revitalization and enlist the resources of all levels of government, the private sector, community-based organizations, and community residents to revitalize an area.

(2) The legislature declares that the purposes of the community empowerment zone act are to:

(a) Encourage reinvestment through strong partnerships and cooperation between all levels of government, community-based organizations, area residents, and the private sector;

(b) Involve the private sector and stimulate private reinvestment through the judicious use of public resources;

(d) Include all levels of government, community individuals, organizations, and the private sector in the policy-making process.

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

(1) "Area" means a geographic area within a local government that is described by a close perimeter boundary.

(2) "Community empowerment zone" means an area meeting the requirements of RCW 43.63A.700 (as recodified by this act) and officially designated by the director.

(3) "Department" means the department of community, trade, and economic development.

(4) "Director" means the director of the department of community, trade, and economic development.

(5) "Local government" means a city, code city, town, or county.

Sec. 3. RCW 43.63A.700 and 1994 sp.s. c 7 s 702 are each amended to read as follows:

(1) The department, in cooperation with the department of revenue, the employment security department, and the office of financial management, ((shall)) may approve applications submitted by local governments for an area's designation as a community empowerment zone under this ((section)) chapter. The application for designation shall be in the form and manner and contain such information as the department may prescribe, provided that the application ((for designation)) shall:

(a) Contain information sufficient for the director to determine if the criteria established in RCW 43.63A.710 (as recodified by this act) have been met((.));

(b) Be submitted on behalf of the local government by its chief elected official, or, if none, by the governing body of the local government((.));

(c) Contain a five-year community empowerment plan that ((describes the proposed designated community empowerment zone's community development needs and present a strategy for meeting those needs. The plan shall address the following categories: Housing needs; public infrastructure needs, such as transportation, water, sanitation, energy, and drainage/flood control; other public facilities needs, such as neighborhood facilities or facilities for provision of health, education, recreation, public safety, or other services; community economic development needs, such as commercial/industrial revitalization, job creation and retention considering the unemployment and underemployment of area residents, accessibility to financial resources by area residents and businesses, investment within the area, or other related components of community economic development; and social service needs.

The local government is required to provide a description of its strategy for meeting the needs identified in this subsection (1)(c). As part of the strategy, the local government is required to identify the needs for which specific plans are currently in place and the source of funds expected to be used. For the balance of the area's needs, the local government must identify the source of funds expected to become available during the next two-year period and actions the local government will take to acquire those funds.)) meets the requirements of section 5 of this act; and

(d) Certify that ((neighborhood)) area residents were given the opportunity to participate in the development of the five-year community empowerment strategy required under (((c) of this subsection)) section 5 of this act.

(2) No local government shall submit more than two ((neighborhoods)) areas to the department for possible designation as a ((designated)) community empowerment zone under this ((section)) chapter.

(3)(a) ((Within ninety days after January 1, 1994,)) The director may designate up to six ((designated)) community empowerment zones, state-wide, from among the applications ((eligible)) submitted for designation as a ((designated)) community empowerment zone.

(b) The director shall make determinations of designated community empowerment zones on the basis of the following factors:

(i) The strength and quality of the local government commitments to meet the needs identified in the five-year community empowerment plan required under ((this)) section 5 of this act.

(ii) The level of private ((commitments by private entities)) sector commitment of additional resources and contribution to the ((designated)) community empowerment zone.

(iii) The potential for revitalization of the area as a result of designation as a ((designated)) community empowerment zone.

(iv) Other factors the director deems necessary.

(4) Except as provided in section 6 of this act, an area that was designated a community empowerment zone before January 1, 1996, under this section, automatically and without additional action by the local government continues its designation under this chapter.

(5) The department may not designate additional community empowerment zones after January 1, 2004, but may amend or rescind designation of community empowerment zones in accordance with section 6 of this act.

Sec. 4. RCW 43.63A.710 and 1994 sp.s. c 7 s 703 are each amended to read as follows:

(1) The director may not designate an area as a ((designated)) community empowerment zone unless that area meets the following requirements:

(a) The area must be designated by the legislative authority of the local government as an area to receive federal, state, and local assistance designed to increase economic, physical, or social activity in the area;

(b) The area must have at least fifty-one percent of the households in the area with incomes at or below eighty percent of the county's median income, adjusted for household size;

(c) The average unemployment rate for the area, for the most recent twelve-month period for which data is available must be at least one hundred twenty percent of the average unemployment rate of the county; and

(d) A five-year community empowerment plan for the area that meets the requirements of ((RCW 43.63A.700(1)(c) and as further defined by the director)) section 5 of this act must be adopted.

(2) The director may establish, by rule, such other requirements as the director may reasonably determine necessary and appropriate to assure that the purposes of this ((section)) chapter are satisfied.

(3) In determining if an area meets the requirements of this section, the director may consider data provided by the United States bureau of the census from the most recent census or any other reliable data that the director determines to be acceptable for the purposes for which the data is used.

NEW SECTION. Sec. 5. (1) The five-year community empowerment plan required under RCW 43.63A.700 (as recodified by this act) shall contain information that describes the community development needs of the proposed community empowerment zone and present a strategy for meeting those needs. The plan shall address the following categories:

(a) Housing needs for all economic segments of the proposed community empowerment zone;

(b) Public infrastructure needs, such as transportation, water, sanitation, energy, and drainage and flood control;

(c) Other public facilities needs, such as neighborhood facilities or facilities for the provision of health, education, recreation, public safety, and other services;

(d) Community economic development needs, such as commercial and industrial revitalization, job creation and retention considering the unemployment and underemployment of area residents, accessibility to financial resources by area residents and businesses, investment within the area, and other related components of community economic development; and

(e) Social service needs of residents in the proposed community empowerment zone.

(2) The local government must provide a description of its strategy for meeting the needs identified in subsection (1) of this section. As part of the community empowerment zone strategy, the local government must identify the needs for which specific plans are currently in place and the source of funds expected to be used. For the balance of the area's needs, the local government must identify the source of funds expected to become available during the next two-year period and actions the local government will take to acquire those funds.

(3) The local government must submit an annual progress report to the department that details the extent to which the local government is working to meet the needs identified in the five-year community empowerment plan. If applicable, the progress report must also contain a discussion on the impediments to meeting the needs outlined in the five-year community empowerment plan. The department must determine the date the annual progress reports are due from each local government.

NEW SECTION. Sec. 6. (1) The terms or conditions of a community empowerment zone approved under this chapter may be amended to:

(a) Alter the boundaries of the community empowerment zone; or

(b) Terminate the designation of a community empowerment zone.

(2)(a) A request for an amendment under subsection (1)(a) of this section may not be in effect until the department issues an amended designation for the community empowerment zone that approves the requested amendment. The local government must promptly file with the department a request for approval that contains information the department deems necessary to evaluate the proposed changes and its impact on the area's designation as a community empowerment zone under RCW 43.63A.710 (as recodified by this act). The local government must hold at least two public hearings on the proposed changes and include the information in its request for an amendment to its community empowerment zone.

(b) The department shall approve or disapprove a proposed amendment to a community empowerment zone within sixty days of its receipt of a request under subsection (1)(a) of this section. The department may not approve changes to a community empowerment zone that are not in conformity with this chapter.

(3)(a) The termination of an area's designation as a community empowerment zone under subsection (1)(b) of this section is not effective until the department issues a finding stating the reasons for the termination, which may include lack of commitment of resources to activities in the community empowerment zone by the public, private, and community-based sectors. The local government may file an appeal to the department's findings within sixty days of the notice to terminate the area's designation. The department must notify the local government of the results within thirty days of the filing of the appeal.

(b) A termination of an area's designation as a community empowerment zone has no effect on benefits previously extended to individual businesses. The local government may not commit benefits to a business after the effective date of the termination of an area's designation as a community empowerment zone.

(4) The department may request applications from local governments for designation as community empowerment zones under this chapter as a result of a termination of an area's designation as a community empowerment zone under this section.

NEW SECTION. Sec. 7. The department must administer this chapter and has the following powers and duties:

(1) To monitor the implementation of chapter . . ., Laws of 2000 (this act) and submit reports evaluating the effectiveness of the program and any suggestions for legislative changes to the governor and legislature by December 1, 2000;

(2) To develop evaluation and performance measures for local governments to measure the effectiveness of the program at the local level on meeting the objectives of this chapter;

(3) To provide information and appropriate assistance to persons desiring to locate and operate a business in a community empowerment zone;

(4) To work with appropriate state agencies to coordinate the delivery of programs, including but not limited to housing, community and economic development, small business assistance, social service, and employment and training programs which are carried on in a community empowerment zone; and

(5) To develop rules necessary for the administration of this chapter.

NEW SECTION. Sec. 8. The administration of a community empowerment zone is under the jurisdiction of the local government. Each local government must, by ordinance, designate a community empowerment zone administrator for the area designated as a community empowerment zone that is within its jurisdiction. A community empowerment zone administrator must be an officer or employee of the local government. The community empowerment zone administrator is the liaison between the local government, the department, the business community, and labor and community-based organizations within the community empowerment zone.

NEW SECTION. Sec. 9. This chapter may be known and cited as the Washington community empowerment zone act.

NEW SECTION. Sec. 10. Sections 1, 2, and 5 through 9 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 11. RCW 43.63A.700 and 43.63A.710, as amended by this act, are each recodified as sections in chapter 43.-- RCW (sections 1, 2, and 5 through 9 of this act).

NEW SECTION. Sec. 12. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

Sec. 13. RCW 82.60.049 and 1999 c 164 s 304 are each amended to read as follows:

(1) For the purposes of this section:

(a) "Eligible area" also means a designated community empowerment zone approved before January 1, 2000, under RCW 43.63A.700 or a county containing a community empowerment zone approved before January 1, 2000.

(b) "Eligible investment project" also means an investment project in an eligible area as defined in this section.

(2) In addition to the provisions of RCW 82.60.040, the department shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, on each eligible investment project that is located in an eligible area, if the applicant establishes that at the time the project is operationally complete:

(a) The applicant will hire at least one qualified employment position for each seven hundred fifty thousand dollars of investment on which a deferral is requested; and

(b) The positions will be filled by persons who at the time of hire are residents of the community empowerment zone in which the project is located. As used in this subsection, "resident" means the person makes his or her home in the community empowerment zone. A mailing address alone is insufficient to establish that a person is a resident for the purposes of this section. The persons must be hired after the date the application is filed with the department.

(3) All other provisions and eligibility requirements of this chapter apply to applicants eligible under this section.

(4) If a person does not meet the requirements of this section by the end of the calendar year following the year in which the project is certified as operationally complete, all deferred taxes are immediately due.

NEW SECTION. Sec. 14. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected."

Renumber the sections consecutively and correct any internal references accordingly.

MOTIONS

On motion of Senator Brown, the following title amendment was adopted:

On page 1, on line 1 of the title, after "zones;" strike the remainder of the title and insert "amending RCW 43.63A.700, 43.63A.710, and 82.60.049; adding a new chapter to Title 43 RCW; creating new sections; and recodifying RCW 43.63A.700 and 43.63A.710."

On motion of Senator Brown, the rules were suspended, Substitute House Bill No. 2460, as amended by the Senate under suspension of the rules, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2460, as amended by the Senate under suspension of the rules.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 2460, as amended by the Senate under suspension of the rules, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 46. Excused: Senators Honeyford, Morton and Sellar - 3. SUBSTITUTE HOUSE BILL NO. 2460, as amended by the Senate under suspension of the rules, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

On motion of Senator Goings, Substitute House Bill No. 2460, as amended by the Senate under suspension of the rules, was ordered to be immediately transmitted to the House of Representatives.

MOTION

On motion of Senator Hale, Senator West was excused.

MOTION

On motion of Senator Goings, the Senate advanced to the sixth order of business.

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

On motion of Senator Bauer, Gubernatorial Appointment No. 9315, Dean Sutherland, as a member of the Public Disclosure Commission, was confirmed.

Senators Bauer, Oke and Finkbeiner spoke to the confirmation of Dean Sutherland as a member of the Public Disclosure Commission.

APPOINTMENT OF DEAN SUTHERLAND

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Excused: Senators Sellar and West - 2.

MOTION

On motion of Senator Eide, Senator Snyder was excused.

MOTION

On motion of Senator Patterson, Gubernatorial Appointment No. 9319, Gerald A. Marsh, as a member of the Public Disclosure Commission, was confirmed.

APPOINTMENT OF GERALD A. MARSH

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 45; Nays, 0; Absent, 1; Excused, 3.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley, Wojahn and Zarelli - 45.

Absent: Senator Horn - 1.

Excused: Senators Sellar, Snyder and West - 3.

MOTION

On motion of Senator Honeyford, Senator Johnson was excused.

MOTION

On motion of Senator Franklin, Senator Loveland was excused.

MOTION

On motion of Senator Hochstatter, Gubernatorial Appointment No. 9248, Erika Hennings, as a member of the Board of Trustees for Big Bend Community College District No. 18, was confirmed.

APPOINTMENT OF ERIKA HENNINGS

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 43; Nays, 0; Absent, 1; Excused, 5.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley, Wojahn and Zarelli - 43.

Absent: Senator Finkbeiner - 1.

Excused: Senators Johnson, Loveland, Sellar, Snyder and West - 5.

MOTION

On motion of Senator Hochstatter, Gubernatorial Appointment No. 9268, Kenneth J. Martin, as a member of the Board of Trustees for Central Washington University, was confirmed.

APPOINTMENT OF KENNETH J. MARTIN

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 41; Nays, 1; Absent, 1; Excused, 6.

Voting yea: Senators Bauer, Benton, Brown, Costa, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Hochstatter, Honeyford, Horn, Jacobsen, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley, Wojahn and Zarelli - 41.

Voting nay: Senator Heavey - 1.

Absent: Senator Deccio - 1.

Excused: Senators Finkbeiner, Johnson, Loveland, Sellar, Snyder and West - 6.

MOTION

On motion of Senator Jacobsen, Gubernatorial Appointment No. 9307, Dawn M. Reynolds, as a member of the Fish and Wildlife Commission, was confirmed.

APPOINTMENT OF DAWN M. REYNOLDS

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 39; Nays, 3; Absent, 1; Excused, 6.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley and Wojahn - 39.

Voting nay: Senators Honeyford, Morton and Sheahan - 3.

Absent: Senator Zarelli - 1.

Excused: Senators Finkbeiner, Johnson, Loveland, Sellar, Snyder and West - 6.

MOTION

On motion of Senator Eide, Senator Prentice was excused.

MOTION

On motion of Senator Kohl-Welles, Gubernatorial Appointment No. 9320, Lyle Lovingfoss, as a member of the Board of Trustees for Lower Columbia Community College District No. 13, was confirmed.

APPOINTMENT OF LYLE LOVINGFOSS

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley, Wojahn and Zarelli - 42.

Excused: Senators Finkbeiner, Johnson, Loveland, Prentice, Sellar, Snyder and West - 7.

MOTION

On motion of Senator Kohl-Welles, Gubernatorial Appointment No. 9295, Mary Grant Tompkins, as a member of the Board of Trustees for Walla Walla Community College District No. 20, was confirmed.

APPOINTMENT OF MARY GRANT TOMPKINS

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley, Wojahn and Zarelli - 43.

Excused: Senators Finkbeiner, Johnson, Prentice, Sellar, Snyder and West - 6.

MOTION

On motion of Senator Eide, Senator Kline was excused.

MOTION

On motion of Senator Kohl-Welles, Gubernatorial Appointment No. 9249, Jerry R. Hendrickson, as a member of the Board of Trustees for Walla Walla Community College District No. 20, was confirmed.

APPOINTMENT OF JERRY R. HENDRICKSON

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 41; Nays, 0; Absent, 1; Excused, 7.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley, Wojahn and Zarelli - 41.

Absent: Senator Jacobsen - 1.

Excused: Senators Finkbeiner, Johnson, Kline, Prentice, Sellar, Snyder and West - 7.

MOTION

On motion of Senator Costa, Gubernatorial Appointment No. 9261, Alicia P. Lalas, as a member of the Board of Trustees for Everett Community College District No. 5, was confirmed.

APPOINTMENT OF ALICIA P. LALAS

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 42; Nays, 0; Absent, 1; Excused, 6.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley, Wojahn and Zarelli - 42.

Absent: Senator Franklin - 1.

Excused: Senators Finkbeiner, Kline, Prentice, Sellar, Snyder and West - 6.

MOTION

On motion of Senator Bauer, Gubernatorial Appointment No. 9240, Charles W. Fromhold, as a member of the Board of Trustees for Clark Community College District No. 14, was confirmed.

Senators Bauer and Benton spoke to the confirmation of Charles W. Fromhold as a member of the Board of Trustees for Clark Community College District No. 14.

APPOINTMENT OF CHARLES W. FROMHOLD

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 42; Nays, 0; Absent, 1; Excused, 6.

Voting yea: Senators Bauer, Benton, Brown, Costa, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley, Wojahn and Zarelli - 42.

Absent: Senator Deccio - 1.

Excused: Senators Finkbeiner, Kline, Prentice, Sellar, Snyder and West - 6.

MOTION

On motion of Senator McCaslin, Senator Deccio was excused.

MOTION

On motion of Senator Heavey, Gubernatorial Appointment No. 9184, Robert W. Winsor, as a member of the Clemency and Pardons Board, was confirmed.

APPOINTMENT OF ROBERT W. WINSOR

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

Voting yea: Senators Bauer, Benton, Brown, Costa, Eide, Fairley, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, Winsley, Wojahn and Zarelli - 43. Excused: Senators Deccio, Finkbeiner, Franklin, Sellar, Snyder and West - 6.

MOTION

At 5:10 p.m., on motion of Senator Betti Sheldon, the Senate was declared to be at ease.

The Senate was called to order at 6:42 p.m. by President Owen.

MOTION

On motion of Senator Goings, the Senate reverted to the fourth order of business.

MESSAGES FROM THE HOUSE

March 9, 2000

MR. PRESIDENT:

The House has passed ENGROSSED HOUSE BILL NO. 2760, and the same is herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

March 9, 2000

MR. PRESIDENT:

The House has passed SUBSTITUTE SENATE BILL NO. 6062, and the same is herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

March 9, 2000

MR. PRESIDENT:

The House concurred in the Senate amendment(s) to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2675 and passed the bill as amended by the Senate.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

March 9, 2000

MR. PRESIDENT:

The Co-Speakers have signed:

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1987,

HOUSE BILL NO. 2353,

SUBSTITUTE HOUSE BILL NO. 2378,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2380,

HOUSE BILL NO. 2400,

SUBSTITUTE HOUSE BILL NO. 2418,

SUBSTITUTE HOUSE BILL NO. 2441,

HOUSE BILL NO. 2510,

HOUSE BILL NO. 2531,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2588,

HOUSE BILL NO. 2595,

SECOND SUBSTITUTE HOUSE BILL NO. 2637,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2647,

ENGROSSED HOUSE BILL NO. 2648,

SECOND SUBSTITUTE HOUSE BILL NO. 2663,

HOUSE BILL NO. 2807,

SUBSTITUTE HOUSE BILL NO. 2903,

SUBSTITUTE HOUSE BILL NO. 2912,

HOUSE JOINT MEMORIAL NO. 4026,

SUBSTITUTE HOUSE CONCURRENT RESOLUTION NO. 4428, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

March 9, 2000

MR. PRESIDENT:

The Co-Speakers have signed:

SUBSTITUTE SENATE BILL NO. 6336,

ENGROSSED SENATE BILL NO. 6555,

SUBSTITUTE SENATE BILL NO. 6675, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

SUBSTITUTE SENATE BILL NO. 6062.

SIGNED BY THE PRESIDENT

The President signed:

SUBSTITUTE SENATE BILL NO. 6531,

SENATE BILL NO. 6534.

SIGNED BY THE PRESIDENT

The President signed:

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1987,

HOUSE BILL NO. 2353,

SUBSTITUTE HOUSE BILL NO. 2378,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2380,

HOUSE BILL NO. 2400,

SUBSTITUTE HOUSE BILL NO. 2418,

SUBSTITUTE HOUSE BILL NO. 2441,

HOUSE BILL NO. 2510,

HOUSE BILL NO. 2531,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2588,

HOUSE BILL NO. 2595,

SECOND SUBSTITUTE HOUSE BILL NO. 2637,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2647,

ENGROSSED HOUSE BILL NO. 2648,

SECOND SUBSTITUTE HOUSE BILL NO. 2663,

HOUSE BILL NO. 2807,

SUBSTITUTE HOUSE BILL NO. 2903,

SUBSTITUTE HOUSE BILL NO. 2912,

HOUSE JOINT MEMORIAL NO. 4026,

SUBSTITUTE HOUSE CONCURRENT RESOLUTION NO. 4428.

MOTION

On motion of Senator Goings, the Senate advanced to the sixth order of business.

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

On motion of Senator Heavey, Gubernatorial Appointment No. 9215, John Austin, as a member of the Indeterminate Sentence Review Board, was confirmed.

APPOINTMENT OF JOHN AUSTIN

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 47.

Excused: Senators Finkbeiner and Sellar - 2.

MOTION

On motion of Senator Betti Sheldon, the Senate reverted to the fourth order of business.

There being no objection, the Senate resumed consideration of the House Message requesting the Senate to recede from it amendment(s) to Engrossed House Bill No. 2985, read in earlier today.

MOTION

On motion of Senator Patterson, the Senate insists on its position regarding the Senate amendments to Engrossed House Bill No. 2985 and asks the House to concur therein.

MESSAGE FROM HOUSE

March 9, 2000

MR. PRESIDENT:

The House has passed ENGROSSED SENATE BILL NO. 6561 with the following amendment(s):

On page 2, line 1, after "agency." insert "The Washington state national guard shall not otherwise request, instigate, or exercise the powers, rights, duties, or authority of a law enforcement agency and may not exercise any police powers except as ordered by the governor under article X, Washington state constitution, as provided for under R.W. 38.08.500, or as requested in writing by another law enforcement agency. Such writing shall specify the purpose of the request and the police powers to be exercised and shall be considered a public record."

On page 2, beginning on line 4, strike "Whether the national guard retained or disposed of the property; the" and insert "The"

On page 2, line 7, strike "disposition" and insert "the sale"

On page 2, beginning on line 7, strike "a description and record of the national guard's use of the money or property" and insert "if the money or the proceeds of sale of any property were promptly deposited into the public safety and education account established in RCW 43.08.250"

On page 2, after line 16, insert "All money received by the Washington national guard under this section shall be promptly deposited into the public safety and education account established in RCW 43.08.250. All property received by the Washington national guard under this section shall be promptly sold and the proceeds of sale promptly deposited into the public safety and education account established in RCW 43.08.250.", and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

MOTION

On motion of Senator Patterson, the Senate concurred in the House amendments on page 2, beginning on line 4; page 2, line 7; page 2, beginning on line 7; and page 2, after line 16; to Engrossed Senate Bill No. 6561, but refuses to concur in the House amendment on page 2, line 1, and asks the House to recede therefrom.

There being no objection, the President advanced the Senate to the sixth order of business.

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENT

MOTION

On motion of Senator Heavey, Gubernatorial Appointment No. 9243, Julia L. Garratt, as a member of the Indeterminate Sentence Review Board, was confirmed.

APPOINTMENT OF JULIA L. GARRATT

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 47.

Excused: Senators Finkbeiner and Sellar - 2.

MOTION

On motion of Senator Goings, the Senate reverted to the fourth order of business.

MESSAGE FROM THE HOUSE

March 9, 2000

MR. PRESIDENT:

The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6530 with the following amendments.

Strike everything after the enacting clause and insert the following:

""PROVISIONS APPLICABLE TO PUBLIC EMPLOYEES'

RETIREMENT SYSTEM PLANS 2 AND 3"

Sec. 101. RCW 41.40.005 and 1992 c 72 s 8 are each amended to read as follows:

RCW 41.40.010 through 41.40.112 shall apply to members of plan 1 ((and)), plan 2, and plan 3.

Sec. 102. RCW 41.40.010 and 1998 c 341 s 601 are each amended to read as follows:

As used in this chapter, unless a different meaning is plainly required by the context:

(1) "Retirement system" means the public employees' retirement system provided for in this chapter.

(2) "Department" means the department of retirement systems created in chapter 41.50 RCW.

(3) "State treasurer" means the treasurer of the state of Washington.

(4)(a) "Employer" for plan 1 members, means every branch, department, agency, commission, board, and office of the state, any political subdivision or association of political subdivisions of the state admitted into the retirement system, and legal entities authorized by RCW 35.63.070 and 36.70.060 or chapter 39.34 RCW; and the term shall also include any labor guild, association, or organization the membership of a local lodge or division of which is comprised of at least forty percent employees of an employer (other than such labor guild, association, or organization) within this chapter. The term may also include any city of the first class that has its own retirement system.

(b) "Employer" for plan 2 and plan 3 members, means every branch, department, agency, commission, board, and office of the state, and any political subdivision and municipal corporation of the state admitted into the retirement system, including public agencies created pursuant to RCW 35.63.070, 36.70.060, and 39.34.030; except that after August 31, 2000, school districts and educational service districts will no longer be employers for the public employees' retirement system plan 2.

(5) "Member" means any employee included in the membership of the retirement system, as provided for in RCW 41.40.023. RCW 41.26.045 does not prohibit a person otherwise eligible for membership in the retirement system from establishing such membership effective when he or she first entered an eligible position.

(6) "Original member" of this retirement system means:

(a) Any person who became a member of the system prior to April 1, 1949;

(b) Any person who becomes a member through the admission of an employer into the retirement system on and after April 1, 1949, and prior to April 1, 1951;

(c) Any person who first becomes a member by securing employment with an employer prior to April 1, 1951, provided the member has rendered at least one or more years of service to any employer prior to October 1, 1947;

(d) Any person who first becomes a member through the admission of an employer into the retirement system on or after April 1, 1951, provided, such person has been in the regular employ of the employer for at least six months of the twelve-month period preceding the said admission date;

(e) Any member who has restored all contributions that may have been withdrawn as provided by RCW 41.40.150 and who on the effective date of the individual's retirement becomes entitled to be credited with ten years or more of membership service except that the provisions relating to the minimum amount of retirement allowance for the member upon retirement at age seventy as found in RCW 41.40.190(4) shall not apply to the member;

(f) Any member who has been a contributor under the system for two or more years and who has restored all contributions that may have been withdrawn as provided by RCW 41.40.150 and who on the effective date of the individual's retirement has rendered five or more years of service for the state or any political subdivision prior to the time of the admission of the employer into the system; except that the provisions relating to the minimum amount of retirement allowance for the member upon retirement at age seventy as found in RCW 41.40.190(4) shall not apply to the member.

(7) "New member" means a person who becomes a member on or after April 1, 1949, except as otherwise provided in this section.

(8)(a) "Compensation earnable" for plan 1 members, means salaries or wages earned during a payroll period for personal services and where the compensation is not all paid in money, maintenance compensation shall be included upon the basis of the schedules established by the member's employer.

(i) "Compensation earnable" for plan 1 members also includes the following actual or imputed payments, which are not paid for personal services:

(A) Retroactive payments to an individual by an employer on reinstatement of the employee in a position, or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wage which the individual would have earned during a payroll period shall be considered compensation earnable and the individual shall receive the equivalent service credit;

(B) If a leave of absence is taken by an individual for the purpose of serving in the state legislature, the salary which would have been received for the position from which the leave of absence was taken, shall be considered as compensation earnable if the employee's contribution is paid by the employee and the employer's contribution is paid by the employer or employee;

(D) Compensation that a member would have received but for a disability occurring in the line of duty only as authorized by RCW 41.40.038;

(E) Compensation that a member receives due to participation in the leave sharing program only as authorized by RCW 41.04.650 through 41.04.670; and

(F) Compensation that a member receives for being in standby status. For the purposes of this section, a member is in standby status when not being paid for time actually worked and the employer requires the member to be prepared to report immediately for work, if the need arises, although the need may not arise.

(ii) "Compensation earnable" does not include:

(A) Remuneration for unused sick leave authorized under RCW 41.04.340, 28A.400.210, or 28A.310.490;

(B) Remuneration for unused annual leave in excess of thirty days as authorized by RCW 43.01.044 and 43.01.041.

(b) "Compensation earnable" for plan 2 and plan 3 members, means salaries or wages earned by a member during a payroll period for personal services, including overtime payments, and shall include wages and salaries deferred under provisions established pursuant to sections 403(b), 414(h), and 457 of the United States Internal Revenue Code, but shall exclude nonmoney maintenance compensation and lump sum or other payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, or any form of severance pay.

"Compensation earnable" for plan 2 and plan 3 members also includes the following actual or imputed payments, which are not paid for personal services:

(i) Retroactive payments to an individual by an employer on reinstatement of the employee in a position, or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wage which the individual would have earned during a payroll period shall be considered compensation earnable to the extent provided above, and the individual shall receive the equivalent service credit;

(ii) In any year in which a member serves in the legislature, the member shall have the option of having such member's compensation earnable be the greater of:

(A) The compensation earnable the member would have received had such member not served in the legislature; or

(B) Such member's actual compensation earnable received for nonlegislative public employment and legislative service combined. Any additional contributions to the retirement system required because compensation earnable under (b)(ii)(A) of this subsection is greater than compensation earnable under (b)(ii)(B) of this subsection shall be paid by the member for both member and employer contributions;

(iii) Assault pay only as authorized by RCW 27.04.100, 72.01.045, and 72.09.240;

(iv) Compensation that a member would have received but for a disability occurring in the line of duty only as authorized by RCW 41.40.038;

(v) Compensation that a member receives due to participation in the leave sharing program only as authorized by RCW 41.04.650 through 41.04.670; and

(vi) Compensation that a member receives for being in standby status. For the purposes of this section, a member is in standby status when not being paid for time actually worked and the employer requires the member to be prepared to report immediately for work, if the need arises, although the need may not arise.

(9)(a) "Service" for plan 1 members, except as provided in RCW 41.40.088, means periods of employment in an eligible position or positions for one or more employers rendered to any employer for which compensation is paid, and includes time spent in office as an elected or appointed official of an employer. Compensation earnable earned in full time work for seventy hours or more in any given calendar month shall constitute one service credit month except as provided in RCW 41.40.088. Compensation earnable earned for less than seventy hours in any calendar month shall constitute one-quarter service credit month of service except as provided in RCW 41.40.088. Only service credit months and one-quarter service credit months shall be counted in the computation of any retirement allowance or other benefit provided for in this chapter. Any fraction of a year of service shall be taken into account in the computation of such retirement allowance or benefits. Time spent in standby status, whether compensated or not, is not service.

(i) Service by a state employee officially assigned by the state on a temporary basis to assist another public agency, shall be considered as service as a state employee: PROVIDED, That service to any other public agency shall not be considered service as a state employee if such service has been used to establish benefits in any other public retirement system.

(ii) An individual shall receive no more than a total of twelve service credit months of service during any calendar year. If an individual is employed in an eligible position by one or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service for seventy or more hours is rendered.

(iii) A school district employee may count up to forty-five days of sick leave as creditable service solely for the purpose of determining eligibility to retire under RCW 41.40.180 as authorized by RCW 28A.400.300. For purposes of plan 1 "forty-five days" as used in RCW 28A.400.300 is equal to two service credit months. Use of less than forty-five days of sick leave is creditable as allowed under this subsection as follows:

(A) Less than twenty-two days equals one-quarter service credit month;

(B) Twenty-two days equals one service credit month;

(b) "Service" for plan 2 and plan 3 members, means periods of employment by a member in an eligible position or positions for one or more employers for which compensation earnable is paid. Compensation earnable earned for ninety or more hours in any calendar month shall constitute one service credit month except as provided in RCW 41.40.088. Compensation earnable earned for at least seventy hours but less than ninety hours in any calendar month shall constitute one-half service credit month of service. Compensation earnable earned for less than seventy hours in any calendar month shall constitute one-quarter service credit month of service. Time spent in standby status, whether compensated or not, is not service.

Any fraction of a year of service shall be taken into account in the computation of such retirement allowance or benefits.

(i) Service in any state elective position shall be deemed to be full time service, except that persons serving in state elective positions who are members of the Washington school employees' retirement system, teachers' retirement system, or law enforcement officers' and fire fighters' retirement system at the time of election or appointment to such position may elect to continue membership in the Washington school employees' retirement system, teachers' retirement system, or law enforcement officers' and fire fighters' retirement system.

(ii) A member shall receive a total of not more than twelve service credit months of service for such calendar year. If an individual is employed in an eligible position by one or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service for ninety or more hours is rendered.

(iii) Up to forty-five days of sick leave may be creditable as service solely for the purpose of determining eligibility to retire under RCW 41.40.180 as authorized by RCW 28A.400.300. For purposes of plan 2 and plan 3 "forty-five days" as used in RCW 28A.400.300 is equal to two service credit months. Use of less than forty-five days of sick leave is creditable as allowed under this subsection as follows:

(A) Less than eleven days equals one-quarter service credit month;

(B) Eleven or more days but less than twenty-two days equals one-half service credit month;

(D) More than twenty-two days but less than thirty-three days equals one and one-quarter service credit month;

(E) Thirty-three or more days but less than forty-five days equals one and one-half service credit month.

(10) "Service credit year" means an accumulation of months of service credit which is equal to one when divided by twelve.

(11) "Service credit month" means a month or an accumulation of months of service credit which is equal to one.

(12) "Prior service" means all service of an original member rendered to any employer prior to October 1, 1947.

(13) "Membership service" means:

(a) All service rendered, as a member, after October 1, 1947;

(b) All service after October 1, 1947, to any employer prior to the time of its admission into the retirement system for which member and employer contributions, plus interest as required by RCW 41.50.125, have been paid under RCW 41.40.056 or 41.40.057;

(c) Service not to exceed six consecutive months of probationary service rendered after April 1, 1949, and prior to becoming a member, in the case of any member, upon payment in full by such member of the total amount of the employer's contribution to the retirement fund which would have been required under the law in effect when such probationary service was rendered if the member had been a member during such period, except that the amount of the employer's contribution shall be calculated by the director based on the first month's compensation earnable as a member;

(d) Service not to exceed six consecutive months of probationary service, rendered after October 1, 1947, and before April 1, 1949, and prior to becoming a member, in the case of any member, upon payment in full by such member of five percent of such member's salary during said period of probationary service, except that the amount of the employer's contribution shall be calculated by the director based on the first month's compensation earnable as a member.

(14)(a) "Beneficiary" for plan 1 members, means any person in receipt of a retirement allowance, pension or other benefit provided by this chapter.

(b) "Beneficiary" for plan 2 and plan 3 members, means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by another person.

(15) "Regular interest" means such rate as the director may determine.

(16) "Accumulated contributions" means the sum of all contributions standing to the credit of a member in the member's individual account, including any amount paid under RCW 41.50.165(2), together with the regular interest thereon.

(17)(a) "Average final compensation" for plan 1 members, means the annual average of the greatest compensation earnable by a member during any consecutive two year period of service credit months for which service credit is allowed; or if the member has less than two years of service credit months then the annual average compensation earnable during the total years of service for which service credit is allowed.

(b) "Average final compensation" for plan 2 and plan 3 members, means the member's average compensation earnable of the highest consecutive sixty months of service credit months prior to such member's retirement, termination, or death. Periods constituting authorized leaves of absence may not be used in the calculation of average final compensation except under RCW 41.40.710(2).

(18) "Final compensation" means the annual rate of compensation earnable by a member at the time of termination of employment.

(19) "Annuity" means payments for life derived from accumulated contributions of a member. All annuities shall be paid in monthly installments.

(20) "Pension" means payments for life derived from contributions made by the employer. All pensions shall be paid in monthly installments.

(21) "Retirement allowance" means the sum of the annuity and the pension.

(22) "Employee" or "employed" means a person who is providing services for compensation to an employer, unless the person is free from the employer's direction and control over the performance of work. The department shall adopt rules and interpret this subsection consistent with common law.

(23) "Actuarial equivalent" means a benefit of equal value when computed upon the basis of such mortality and other tables as may be adopted by the director.

(24) "Retirement" means withdrawal from active service with a retirement allowance as provided by this chapter.

(25) "Eligible position" means:

(a) Any position that, as defined by the employer, normally requires five or more months of service a year for which regular compensation for at least seventy hours is earned by the occupant thereof. For purposes of this chapter an employer shall not define "position" in such a manner that an employee's monthly work for that employer is divided into more than one position;

(b) Any position occupied by an elected official or person appointed directly by the governor, or appointed by the chief justice of the supreme court under RCW 2.04.240(2) or 2.06.150(2), for which compensation is paid.

(26) "Ineligible position" means any position which does not conform with the requirements set forth in subsection (25) of this section.

(27) "Leave of absence" means the period of time a member is authorized by the employer to be absent from service without being separated from membership.

(28) "Totally incapacitated for duty" means total inability to perform the duties of a member's employment or office or any other work for which the member is qualified by training or experience.

(29) "Retiree" means any person who has begun accruing a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer while a member.

(30) "Director" means the director of the department.

(31) "State elective position" means any position held by any person elected or appointed to state-wide office or elected or appointed as a member of the legislature.

(32) "State actuary" or "actuary" means the person appointed pursuant to RCW 44.44.010(2).

(33) "Plan 1" means the public employees' retirement system, plan 1 providing the benefits and funding provisions covering persons who first became members of the system prior to October 1, 1977.

(34) "Plan 2" means the public employees' retirement system, plan 2 providing the benefits and funding provisions covering persons who first became members of the system on and after October 1, 1977, and are not included in plan 3.

(35) "Plan 3" means the public employees' retirement system, plan 3 providing the benefits and funding provisions covering persons who:

(a) First become a member on or after:

(i) March 1, 2002, and are employed by a state agency or institute of higher education and who did not choose to enter plan 2; or

(ii) September 1, 2002, and are employed by other than a state agency or institute of higher education and who did not choose to enter plan 2; or

(b) Transferred to plan 3 under section 304 of this act.

(36) "Index" means, for any calendar year, that year's annual average consumer price index, Seattle, Washington area, for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor.

(((36))) (37) "Index A" means the index for the year prior to the determination of a postretirement adjustment.

(((37))) (38) "Index B" means the index for the year prior to index A.

(((38))) (39) "Index year" means the earliest calendar year in which the index is more than sixty percent of index A.

(((39))) (40) "Adjustment ratio" means the value of index A divided by index B.

(((40))) (41) "Annual increase" means, initially, fifty-nine cents per month per year of service which amount shall be increased each July 1st by three percent, rounded to the nearest cent.

(((41))) (42) "Separation from service" occurs when a person has terminated all employment with an employer.

(43) "Member account" or "member's account" for purposes of plan 3 means the sum of the contributions and earnings on behalf of the member in the defined contribution portion of plan 3.

Sec. 103. RCW 41.40.042 and 1991 c 35 s 89 are each amended to read as follows:

The deductions from the compensation of members, provided for in RCW 41.40.330 ((or 41.40.650)), 41.45.060, 41.45.061, or section 507 of this act, shall be made notwithstanding that the minimum compensation provided for by law for any member shall be reduced thereby. Every member shall be deemed to consent and agree to the deductions made and provided for in this chapter and receipt in full for his or her salary or compensation, and payment less the deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by the person during the period covered by the payment, except as to benefits provided for under this chapter.

Sec. 104. RCW 41.40.054 and 1997 c 103 s 3 are each amended to read as follows:

A member shall not receive a disability retirement benefit under RCW 41.40.200, 41.40.220, 41.40.230, 41.40.235, 41.40.250, ((or)) 41.40.670, or section 310 of this act if the disability is the result of criminal conduct by the member committed after April 21, 1997.

Sec. 105. RCW 41.40.057 and 1995 c 286 s 3 are each amended to read as follows:

(1) This section applies to the establishment of membership service with employers admitted to the retirement system after July 23, 1995.

(2) For current employees, membership service may be established for periods of employment with an employer prior to the employer's admission into the retirement system by making the payments required by this section.

The employer must select one of the options in this subsection and apply it uniformly, except as provided in subsection (3) of this section. The required payment shall include the total member and employer contributions that would have been required from the date of each current member's hire.

(a) Option A: The employer makes all the required payments within fifteen years from the date of the employer's admission.

(b) Option B: The employer makes a portion of the required payments and the member pays the balance. The employer shall not be required to make its payments until the member has made his or her payments. Each member shall have the option to purchase the membership service.

(c) Option C: The member makes all of the required payments. Each member shall have the option to purchase the membership service.

All payments under options B and C of this subsection must be completed within five years from the date of the employer's admission, or prior to the retirement of the member, whichever occurs sooner. A member may not receive membership service credit under option B or C of this subsection until all required payments have been made.

(3) An employer shall not be required to purchase membership service under option A or B for periods of employment for which the employer made contributions to a qualified retirement plan as defined by 26 U.S.C. Sec. 401(a), if the contributions plus interest accrued cannot be transferred to the retirement system. If the employer does not purchase the membership credit under this subsection, the member may purchase the membership service under subsection (2)(c) of this section.

(4) A former employee who is an active member of the system and is not covered by subsection (2) of this section may establish membership service by making the required payments under subsection (2)(c) of this section prior to the retirement of the member.

(5) All payments made by the member under this section shall be placed in the member's individual account in the members' savings fund or the member's account for those members entering plan 3.

Sec. 106. RCW 41.40.062 and 1998 c 341 s 602 are each amended to read as follows:

(1) The members and appointive and elective officials of any political subdivision or association of political subdivisions of the state may become members of the retirement system by the approval of the local legislative authority.

(2) On and after September 1, 1965, every school district of the state of Washington shall be an employer under this chapter. Every member of each school district who is eligible for membership under RCW 41.40.023 shall be a member of the retirement system and participate on the same basis as a person who first becomes a member through the admission of any employer into the retirement system on and after April 1, 1949, except that after August 31, 2000, school districts will no longer be employers for the public employees' retirement system plan 2 or plan 3.

Sec. 107. RCW 41.40.088 and 1998 c 341 s 603 are each amended to read as follows:

(1) A plan 1 member who is employed by a school district or districts, an educational service district, the state school for the deaf, the state school for the blind, institutions of higher education, or community colleges:

(a) Shall receive a service credit month for each month of the period from September through August of the following year if he or she is employed in an eligible position, earns compensation earnable for six hundred thirty hours or more during that period, and is employed during nine months of that period, except that a member may not receive credit for any period prior to the member's employment in an eligible position;

(b) If a member in an eligible position does not meet the requirements of (a) of this subsection, the member is entitled to a service credit month for each month of the period he or she earns earnable compensation for seventy or more hours; and the member is entitled to a one-quarter service credit month for those calendar months during which he or she earned compensation for less than seventy hours.

(2) Except for any period prior to the member's employment in an eligible position, a plan 2 or plan 3 member who is employed by a school district or districts, an educational service district, the state school for the blind, the state school for the deaf, institutions of higher education, or community colleges:

(a) Shall receive a service credit month for each month of the period from September through August of the following year if he or she is employed in an eligible position, earns compensation earnable for eight hundred ten hours or more during that period, and is employed during nine months of that period;

(b) If a member in an eligible position for each month of the period from September through August of the following year does not meet the hours requirements of (a) of this subsection, the member is entitled to one-half service credit month for each month of the period if he or she earns earnable compensation for at least six hundred thirty hours but less than eight hundred ten hours during that period, and is employed nine months of that period.

(i) One service credit month for each month in which compensation is earned for ninety or more hours;

(ii) One-half service credit month for each month in which compensation is earned for at least seventy hours but less than ninety hours; and

(iii) One-quarter service credit month for each month in which compensation is earned for less than seventy hours.

(d) After August 31, 2000, school districts and educational service districts will no longer be employers for the public employees' retirement system plan 2 or plan 3.

(3) The department shall adopt rules implementing this section.

Sec. 108. RCW 41.40.092 and 1983 c 81 s 3 are each amended to read as follows:

(1) Active members of the Washington state patrol retirement system who have previously established service credit in the public employees' retirement system, plan 1 or plan 2 while employed by the state patrol as a cadet as defined in RCW 43.43.120(6)(b) may have such service credit transferred to the state patrol retirement system subject to the terms and conditions specified in chapter 43.43 RCW, including reestablishment of such service for the sole purpose of transfer. Service reestablishment shall be subject to the interest requirements of RCW 41.40.150(2).

(2) Service credit established for employment other than that specified in subsection (1) of this section is not eligible for transfer.

NEW SECTION. Sec. 109. RCW 41.40.094 is decodified.

"PUBLIC EMPLOYEES' RETIREMENT SYSTEM PLAN 2"

Sec. 201. RCW 41.40.610 and 1991 c 35 s 97 are each amended to read as follows:

RCW 41.40.620 through ((41.40.740)) 41.40.750 shall apply only to plan 2 members.

NEW SECTION. Sec. 202. RCW 41.40.650 (Employer and member contributions) and 1989 c 273 s 24, 1986 c 268 s 6, 1984 c 184 s 12, & 1977 ex.s. c 295 s 6 are each repealed.

"PUBLIC EMPLOYEES' RETIREMENT SYSTEM PLAN 3"

NEW SECTION. Sec. 301. (1) Sections 301 through 316 of this act apply only to plan 3 members.

(2) Plan 3 consists of two separate elements: (a) A defined benefit portion covered under this subchapter; and (b) a defined contribution portion covered under chapter 41.34 RCW.

(3) Unless otherwise specified, all references to "plan 3" in this subchapter refer to the defined benefit portion of plan 3.

NEW SECTION. Sec. 302. (1) All employees who first become employed by an employer in an eligible position on or after March 1, 2002, for state agencies or institutes of higher education, or September 1, 2002, for other employers, shall have a period of ninety days to make an irrevocable choice to become a member of plan 2 or plan 3. At the end of ninety days, if the member has not made a choice to become a member of plan 2, he or she becomes a member of plan 3.

(2) For administrative efficiency, until a member elects to become a member of plan 3, or becomes a member of plan 3 by default pursuant to subsection (1) of this section, the member shall be reported to the department in plan 2, with member and employer contributions. Upon becoming a member of plan 3 by election or by default, all service credit shall be transferred to the member's plan 3 defined benefit, and all employee accumulated contributions shall be transferred to the member's plan 3 defined contribution account.

NEW SECTION. Sec. 303. (1) A member of the retirement system shall receive a retirement allowance equal to one percent of such member's average final compensation for each service credit year.

(2) The retirement allowance payable under section 309 of this act to a member who separates after having completed at least twenty service credit years shall be increased by twenty-five one-hundredths of one percent, compounded for each month from the date of separation to the date that the retirement allowance commences.

NEW SECTION. Sec. 304. (1) As used in this section, unless the context clearly requires otherwise:

(a) "Transfer period" means the time during which a member of one of the groups of plan 2 members identified in subsection (2) of this section may choose to irrevocably transfer from plan 2 to plan 3.

(b) "Transfer basis" means the accumulated contributions present in a member's savings fund on March 1, 2002, less fifty percent of any contributions made pursuant to RCW 41.50.165(2), which is the basis for calculation of the plan 2 to plan 3 additional transfer payment.

(c) "Additional transfer payment date" means June 1, 2003, the date of the additional transfer payment made according to subsection (6) of this section.

(2) Every plan 2 member employed by an employer in an eligible position has the option during their transfer period to make an irrevocable transfer to plan 3 according to the following schedule:

(a) For those members employed by state agencies and institutes of higher education the transfer period means the period between March 1, 2002, and September 1, 2002.

(b) For those members employed by other organizations the transfer period means the period between September 1, 2002, and June 1, 2003.

(c) For those members employed by more than one employer within the retirement system, and whose transfer period is different between one employer and another, the member's transfer period is the last period that is available from any of that member's employers within the retirement system.

(3) All service credit in plan 2 shall be transferred to the defined benefit portion of plan 3.

(4)(a) Anyone who first became a state or higher education member of plan 2 before March 1, 2002, or a local government member of plan 2 before September 1, 2002, who wishes to transfer to plan 3 after their transfer period may transfer during the month of January in any following year, provided that the member earns service credit for that month.

(b) Anyone who chose to become a state or higher education member of plan 2 on or after March 1, 2002, or a local government member of plan 2 on or after September 1, 2002, is prohibited from transferring to plan 3 under (a) of this subsection.

(5) The accumulated contributions in plan 2, less fifty percent of any contributions made pursuant to RCW 41.50.165(2) shall be transferred to the member's account in the defined contribution portion established in chapter 41.34 RCW, pursuant to procedures developed by the department and subject to RCW 41.34.090. Contributions made pursuant to RCW 41.50.165(2) that are not transferred to the member's account shall be transferred to the fund created in RCW 41.50.075(3), except that interest earned on all such contributions shall be transferred to the member's account.

(6) Anyone who requests to transfer under this section during their transfer period, and establishes service credit for February 2003, shall have their member account:

(a) If a member's transfer period is that described in subsection (2)(a) of this section, increased by one hundred ten percent of the transfer basis;

(b) If a member's transfer period is that described in subsection (2)(b) of this section, increased by one hundred eleven percent of the transfer basis; and

(7) If a member who requests to transfer dies before June 1, 2003, the additional payment provided by this section shall be paid to the member's estate, or the person or persons, trust, or organization the member nominated by written designation duly executed and filed with the department.

(8) Anyone previously retired from plan 2 is prohibited from transferring to plan 3.

(9) The legislature reserves the right to discontinue the right to transfer under this section and to modify and to discontinue the right to an additional payment under this section for any plan 2 members who have not previously transferred to plan 3.

NEW SECTION. Sec. 305. Any member or beneficiary eligible to receive a retirement allowance under the provisions of section 309, 310, or 312 of this act is eligible to commence receiving a retirement allowance after having filed written application with the department.

(1) Retirement allowances paid to members shall accrue from the first day of the calendar month immediately following such member's separation from employment.

(2) Retirement allowances payable to eligible members no longer in service, but qualifying for such an allowance pursuant to RCW 41.40.068 shall accrue from the first day of the calendar month immediately following such qualification.

(3) Disability allowances paid to disabled members shall accrue from the first day of the calendar month immediately following such member's separation from employment for disability.

(4) Retirement allowances paid as death benefits shall accrue from the first day of the calendar month immediately following the member's death.

NEW SECTION. Sec. 306. (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit.

(2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization, and whose employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence, may also be considered to be on a paid leave of absence. This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave. The earnable compensation reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

(3) Except as specified in subsection (4) of this section, a member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer. Such credit may be obtained only if:

(a) The member makes the contribution on behalf of the employer, plus interest, as determined by the department; and

(b) The member makes the employee contribution, plus interest, as determined by the department, to the defined contribution portion.

The contributions required shall be based on the average of the member's earnable compensation at both the time the authorized leave of absence was granted and the time the member resumed employment.

(4) A member who leaves the employ of an employer to enter the armed forces of the United States shall be entitled to retirement system service credit for up to five years of military service if within ninety days of the member's honorable discharge from the United States armed forces, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces. This subsection shall be administered in a manner consistent with the requirements of the federal uniformed services employment and reemployment rights act.

The department shall establish the member's service credit and shall bill the employer for its contribution required under RCW 41.45.060 and section 507 of this act for the period of military service, plus interest as determined by the department. Service credit under this subsection may be obtained only if the member makes the employee contribution to the defined contribution portion as determined by the department.

The contributions required shall be based on the compensation the member would have earned if not on leave, or if that cannot be estimated with reasonable certainty, the compensation reported for the member in the year prior to when the member went on military leave.

NEW SECTION. Sec. 307. (1) Contributions on behalf of the employer paid by the employee to purchase plan 3 service credit shall be allocated to the defined benefit portion of plan 3 and shall not be refundable when paid to the fund described in RCW 41.50.075(3). Contributions on behalf of the employee shall be allocated to the member account. If the member fails to meet the statutory time limitations to purchase plan 3 service credit, it may be purchased under the provisions of RCW 41.50.165(2). One-half of the purchase payments under RCW 41.50.165(2), plus interest, shall be allocated to the member's account.

(2) No purchased plan 3 membership service may be credited until all payments required of the member are made, with interest. Upon receipt of all payments owed by the member, the department shall bill the employer for any contributions, plus interest, required to purchase membership service.

NEW SECTION. Sec. 308. (1) The director may pay a member eligible to receive a retirement allowance or the member's beneficiary a lump sum payment in lieu of a monthly benefit if the initial monthly benefit would be less than one hundred dollars. The one hundred dollar limit shall be increased annually as determined by the director. The lump sum payment shall be the actuarial equivalent of the monthly benefit.

(2) Persons covered under the provisions of subsection (1) of this section may upon returning to member status reinstate all previous service by depositing the lump sum payment received, with interest as computed by the director, within two years of returning to service or prior to retiring again, whichever comes first. In computing the amount due, the director shall exclude the accumulated value of the normal payments the member would have received while in beneficiary status if the lump sum payment had not occurred.

(3) Any member who receives a settlement under this section is deemed to be retired from this system.

NEW SECTION. Sec. 309. (1) NORMAL RETIREMENT. Any member who is at least age sixty-five and who has:

(a) Completed ten service credit years; or

(b) Completed five service credit years, including twelve service credit months after attaining age fifty-four; or

(c) Completed five service credit years by the transfer payment date specified in section 304 of this act, under the public employees' retirement system plan 2 and who transferred to plan 3 under section 304 of this act;

shall be eligible to retire and to receive a retirement allowance computed according to the provisions of section 303 of this act.

(2) EARLY RETIREMENT. Any member who has attained at least age fifty-five and has completed at least ten years of service shall be eligible to retire and to receive a retirement allowance computed according to the provisions of section 303 of this act, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least thirty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of section 303 of this act, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

NEW SECTION. Sec. 310. (1) A member of the retirement system who becomes totally incapacitated for continued employment by an employer as determined by the department shall be eligible to receive an allowance under the provisions of plan 3. The member shall receive a monthly disability allowance computed as provided for in section 303 of this act and shall have this allowance actuarially reduced to reflect the difference in the number of years between age at disability and the attainment of age sixty-five.

Any member who receives an allowance under the provisions of this section shall be subject to comprehensive medical examinations as required by the department. If these medical examinations reveal that a member has recovered from the incapacitating disability and the member is offered reemployment by an employer at a comparable compensation, the member shall cease to be eligible for the allowance.

(2) If the recipient of a monthly retirement allowance under this section dies, any further benefit payments shall be conditioned by the payment option selected by the retiree as provided in section 314 of this act.

NEW SECTION. Sec. 311. (1) Any member who elects to transfer to plan 3 and has eligible unrestored withdrawn contributions in plan 2, may restore such contributions under the provisions of RCW 41.40.740 with interest as determined by the department. The restored plan 2 service credit will be automatically transferred to plan 3. Restoration payments will be transferred to the member account in plan 3. If the member fails to meet the time limitations of RCW 41.40.740, they may restore such contributions under the provisions of RCW 41.50.165(2). The restored plan 2 service credit will be automatically transferred to plan 3. One-half of the restoration payments under RCW 41.50.165(2) plus interest shall be allocated to the member's account.

(2) Any member who elects to transfer to plan 3 may purchase plan 2 service credit under RCW 41.40.740. Purchased plan 2 service credit will be automatically transferred to plan 3. Contributions on behalf of the employer paid by the employee shall be allocated to the defined benefit portion of plan 3 and shall not be refundable when paid to the fund described in RCW 41.50.075(3). Contributions on behalf of the employee shall be allocated to the member account. If the member fails to meet the time limitations of RCW 41.40.740, they may subsequently restore such contributions under the provisions of RCW 41.50.165(2). Purchased plan 2 service credit will be automatically transferred to plan 3. One-half of the payments under RCW 41.50.165(2), plus interest, shall be allocated to the member's account.

NEW SECTION. Sec. 312. If a member dies prior to retirement, the surviving spouse or eligible child or children shall receive a retirement allowance computed as provided in section 303 of this act actuarially reduced to reflect a joint and one hundred percent survivor option and if the member was not eligible for normal retirement at the date of death a further reduction as described in section 309 of this act.

If the surviving spouse who is receiving the retirement allowance dies leaving a child or children under the age of majority, then such child or children shall continue to receive an allowance in an amount equal to that which was being received by the surviving spouse, share and share alike, until such child or children reach the age of majority.

If there is no surviving spouse eligible to receive an allowance at the time of the member's death, such member's child or children under the age of majority shall receive an allowance, share and share alike. The allowance shall be calculated with the assumption that the age of the spouse and member were equal at the time of the member's death.

NEW SECTION. Sec. 313. Beginning July 1, 1979, and every year thereafter, the department shall determine the following information for each retired member or beneficiary whose retirement allowance has been in effect for at least one year:

(1) The original dollar amount of the retirement allowance;

(2) The index for the calendar year prior to the effective date of the retirement allowance, to be known as "index A";

(3) The index for the calendar year prior to the date of determination, to be known as "index B"; and

(4) The ratio obtained when index B is divided by index A.

The value of the ratio obtained shall be the annual adjustment to the original retirement allowance and shall be applied beginning with the July payment. In no event, however, shall the annual adjustment:

(a) Produce a retirement allowance which is lower than the original retirement allowance;

(b) Exceed three percent in the initial annual adjustment; or

For the purposes of this section, "index" means, for any calendar year, that year's average consumer price index--Seattle, Washington area for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor.

NEW SECTION. Sec. 314. (1) Upon retirement for service as prescribed in section 309 of this act or retirement for disability under section 310 of this act, a member shall elect to have the retirement allowance paid pursuant to one of the following options, calculated so as to be actuarially equivalent to each other.

(a) Standard allowance. A member electing this option shall receive a retirement allowance payable throughout such member's life. However, if the retiree dies before the total of the retirement allowance paid to such retiree equals the amount of such retiree's accumulated contributions at the time of retirement, then the balance shall be paid to the member's estate, or such person or persons, trust, or organization as the retiree shall have nominated by written designation duly executed and filed with the department; or if there be no such designated person or persons still living at the time of the retiree's death, then to the surviving spouse; or if there be neither such designated person or persons still living at the time of death nor a surviving spouse, then to the retiree's legal representative.

(b) The department shall adopt rules that allow a member to select a retirement option that pays the member a reduced retirement allowance and upon death, such portion of the member's reduced retirement allowance as the department by rule designates shall be continued throughout the life of and paid to a person nominated by the member by written designation duly executed and filed with the department at the time of retirement. The options adopted by the department shall include, but are not limited to, a joint and one hundred percent survivor option and a joint and fifty percent survivor option.

(2)(a) A member, if married, must provide the written consent of his or her spouse to the option selected under this section, except as provided in (b) of this subsection. If a member is married and both the member and the member's spouse do not give written consent to an option under this section, the department shall pay a joint and fifty percent survivor benefit calculated to be actuarially equivalent to the benefit options available under subsection (1) of this section unless spousal consent is not required as provided in (b) of this subsection.

(b) If a copy of a dissolution order designating a survivor beneficiary under RCW 41.50.790 has been filed with the department at least thirty days prior to a member's retirement:

(i) The department shall honor the designation as if made by the member under subsection (1) of this section; and

(ii) The spousal consent provisions of (a) of this subsection do not apply.

NEW SECTION. Sec. 315. (1) Except as provided in RCW 41.40.037, no retiree under the provisions of plan 3 shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.40.010, 41.32.010, or 41.35.010, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030, except that a retiree who ends his or her membership in the retirement system pursuant to RCW 41.40.023(3)(b) is not subject to this section if the retiree's only employment is as an elective official of a city or town.

(2) If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused his or her benefits to be suspended. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

(3) The department shall adopt rules implementing this section.

NEW SECTION. Sec. 316. The benefits provided pursuant to chapter . . ., Laws of 2000 (this act) are not provided to employees as a matter of contractual right prior to March 1, 2002. The legislature retains the right to alter or abolish these benefits at any time prior to March 1, 2002.

NEW SECTION. Sec. 317. Sections 301 through 316 of this act are each added to chapter 41.40 RCW and codified with the subchapter heading "PLAN 3."

"DEFINED CONTRIBUTION"

Sec. 401. RCW 41.34.020 and 1998 c 341 s 301 are each amended to read as follows:

As used in this chapter, the following terms have the meanings indicated:

(1) "Actuary" means the state actuary or the office of the state actuary.

(2) "Board" means the employee retirement benefits board authorized in chapter 41.50 RCW.

(3) "Department" means the department of retirement systems.

(4)(a) "Compensation" for teachers for purposes of this chapter is the same as "earnable compensation" for plan 3 in chapter 41.32 RCW except that the compensation may be reported when paid, rather than when earned.

(b) "Compensation" for classified employees for purposes of this chapter is the same as "compensation earnable" for plan 3 in RCW 41.35.010, except that the compensation may be reported when paid, rather than when earned.

(c) "Compensation" for public employees for purposes of this chapter is the same as "compensation earnable" for plan 3 in RCW 41.40.010, except that the compensation may be reported when paid, rather than when earned.

(5)(a) "Employer" for teachers for purposes of this chapter means the same as "employer" for plan 3 in chapter 41.32 RCW.

(b) "Employer" for classified employees for purposes of this chapter means the same as "employer" for plan 3 in RCW 41.35.010.

(c) "Employer" for public employees for purposes of this chapter means the same as "employer" for plan 3 in RCW 41.40.010.

(6) "Member" means any employee included in the membership of a retirement system as provided for in chapter 41.32 RCW of plan 3 ((or)), chapter 41.35 RCW of plan 3, or chapter 41.40 RCW of plan 3.

(7) "Member account" or "member's account" means the sum of the contributions and earnings on behalf of the member.

(8) "Retiree" means any member in receipt of an allowance or other benefit provided by this chapter resulting from service rendered to an employer by such member.

(9) "Teacher" means a member of the teachers' retirement system plan 3 as defined in RCW 41.32.010(29).

(10) "Classified employee" means a member of the school employees' retirement system plan 3 as defined in RCW 41.35.010.

(11) "Public employee" means a member of the public employees' retirement system plan 3 as defined in RCW 41.40.010.

Sec. 402. RCW 41.34.030 and 1998 c 341 s 302 are each amended to read as follows:

(1) This chapter applies only to members of plan 3 retirement systems created under chapters 41.32 ((and)), 41.35, and 41.40 RCW.

(2) Plan 3 consists of two separate elements:

(a) A defined benefit portion covered under:

(i) Sections 101 through 117, chapter 239, Laws of 1995; or

(ii) Sections 1 through 25 and 201 through 213, chapter 341, Laws of 1998; or

(iii) Sections 101 through 316, chapter . . ., Laws of 2000 (sections 101 through 316 of this act); and

(b) A defined contribution portion covered under this chapter. Unless specified otherwise, all references to "plan 3" in this chapter refer to the defined contribution portion of plan 3.

Sec. 403. RCW 41.34.040 and 1996 c 39 s 14 are each amended to read as follows:

(1) A member shall contribute from his or her compensation according to one of the following rate structures:

Option A Contribution Rate

All Ages 5.0% fixed

Option B

Up to Age 35 5.0%

Age 35 to 44 6.0%

Age 45 and above 7.5%

Option C

Up to Age 35 6.0%

Age 35 to 44 7.5%

Age 45 and above 8.5%

(2) The board shall have the right to offer contribution rate options in addition to those listed in subsection (1) of this section, provided that no significant additional administrative costs are created. All options offered by the board shall conform to the requirements stated in subsections (3) and (4) of this section.

(3)(a) For members of the teachers' retirement system entering plan 3 under RCW 41.32.835 or members of the school employees' retirement system entering plan 3 under RCW 41.35.610, within ninety days of becoming a member he or she has an irrevocable option to choose one of the above contribution rate structures. If the member does not select an option within the ninety-day period, he or she shall be assigned option A. Such assignment shall be irrevocable.

(b) For members of the public employees' retirement system entering plan 3 under section 302 of this act, within the ninety days described in section 302 an employee who irrevocably chooses plan 3 shall select one of the above contribution rate structures. If the member does not select an option within the ninety-day period, he or she shall be assigned option A. Such assignment shall be irrevocable.

(c) For members of the teachers' retirement system transferring to plan 3 under RCW 41.32.817, members of the school employees' retirement system transferring to plan 3 under RCW 41.35.510, or members of the public employees' retirement system transferring to plan 3 under section 304 of this act, upon election to plan 3 he or she must irrevocably choose one of the above contribution rate structures.

(d) Within ninety days of the date that an employee ((becomes a member of plan III or)) changes employers, he or she has an irrevocable option to choose one of the above contribution rate structures. If the member does not select an option within this ninety-day period, he or she shall be assigned option A. Such assignment shall be irrevocable.

(4) Contributions shall begin the first day of the pay cycle in which the rate option is made, or the first day of the pay cycle in which the end of the ninety-day period occurs.

Sec. 404. RCW 41.34.060 and 1999 c 265 s 1 are each amended to read as follows:

(1) Except as provided in subsection (3) of this section, the member's account shall be invested by the state investment board. In order to reduce transaction costs and address liquidity issues, based upon recommendations of the state investment board, the department may require members to provide up to ninety days' notice prior to moving funds from the state investment board portfolio to self-directed investment options provided under subsection (3) of this section.

(a) For members of the retirement system as provided for in chapter 41.32 RCW of plan 3, investment shall be in the same portfolio as that of the teachers' retirement system combined plan 2 and 3 fund under RCW 41.50.075(2).

(b) For members of the retirement system as provided for in chapter 41.35 RCW of plan 3, investment shall be in the same portfolio as that of the school employees' retirement system combined plan 2 and 3 fund under RCW 41.50.075(4).

(c) For members of the retirement system as provided for in chapter 41.40 RCW of plan 3, investment shall be in the same portfolio as that of the public employees' retirement system combined plan 2 and 3 fund under RCW 41.50.075(3).

(2) The state investment board shall declare monthly unit values for the portfolios or funds, or portions thereof, utilized under subsection (1)(a) and (b) of this section. The declared values shall be an approximation of portfolio or fund values, based on internal procedures of the state investment board. Such declared unit values and internal procedures shall be in the sole discretion of the state investment board. The state investment board may delegate any of the powers and duties under this subsection, including discretion, pursuant to RCW 43.33A.030. Member accounts shall be credited by the department with a rate of return based on changes to such unit values.

(3) Members may elect to self-direct their investments as set forth in RCW 41.34.130 and 43.33A.190.

Sec. 405. RCW 41.34.080 and 1998 c 341 s 304 are each amended to read as follows:

(1) Subject to subsections (2) and (3) of this section, the right of a person to a pension, an annuity, a retirement allowance, any optional benefit, any other right accrued or accruing to any person under the provisions of this chapter, and the various funds created by chapter 239, Laws of 1995((, and)); chapter 341, Laws of 1998; and chapter . . ., Laws of 2000 (this act) and all moneys and investments and income thereof, is hereby exempt from any state, county, municipal, or other local tax, and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or other process of law whatsoever, and shall be unassignable.

(2) This section shall not be deemed to prohibit a beneficiary of a retirement allowance from authorizing deductions therefrom for payment of premiums due on any group insurance policy or plan issued for the benefit of a group comprised of public employees of the state of Washington or its political subdivisions and that has been approved for deduction in accordance with rules that may be adopted by the state health care authority and/or the department. This section shall not be deemed to prohibit a beneficiary of a retirement allowance from authorizing deductions therefrom for payment of dues and other membership fees to any retirement association or organization the membership of which is composed of retired public employees, if a total of three hundred or more of such retired employees have authorized such deduction for payment to the same retirement association or organization.

(3) Subsection (1) of this section shall not prohibit the department from complying with (a) a wage assignment order for child support issued pursuant to chapter 26.18 RCW, (b) an order to withhold and deliver issued pursuant to chapter 74.20A RCW, (c) a notice of payroll deduction issued pursuant to RCW 26.23.060, (d) a mandatory benefits assignment order issued by the department, (e) a court order directing the department to pay benefits directly to an obligee under a dissolution order as defined in RCW 41.50.500(3) which fully complies with RCW 41.50.670 and 41.50.700, or (f) any administrative or court order expressly authorized by federal law.

Sec. 406. RCW 41.34.100 and 1998 c 341 s 305 are each amended to read as follows:

(1) The benefits provided pursuant to chapter 239, Laws of 1995 are not provided to employees as a matter of contractual right prior to July 1, 1996. The legislature retains the right to alter or abolish these benefits at any time prior to July 1, 1996.

(2) The benefits provided pursuant to chapter 341, Laws of 1998 are not provided to employees as a matter of contractual right prior to September 1, 2000. The legislature retains the right to alter or abolish these benefits at any time prior to September 1, 2000.

(3) The benefits provided pursuant to chapter . . ., Laws of 2000 (this act) are not provided to employees as a matter of contractual right prior to March 1, 2002. The legislature retains the right to alter or abolish these benefits at any time prior to March 1, 2002.

"GAIN SHARING"

Sec. 407. RCW 41.31A.010 and 1998 c 341 s 311 are each amended to read as follows:

The definitions in this section apply throughout this chapter unless the context requires otherwise.

(1) "Actuary" means the state actuary or the office of the state actuary.

(2) "Department" means the department of retirement systems.

(3) "Teacher" means any employee included in the membership of the teachers' retirement system as provided for in chapter 41.32 RCW.

(4) "Member account" or "member's account" means the sum of any contributions as provided for in chapter 41.34 RCW and the earnings on behalf of the member.

(5) "Classified employee" means the same as in RCW 41.35.010.

(6) "Public employee" means the same as "member" as defined in RCW 41.40.010(5).

Sec. 408. RCW 41.31A.020 and 1998 c 341 s 312 are each amended to read as follows:

(1) On January 1, ((2002)) 2004, and on January 1st of even-numbered years thereafter, the member account of a person meeting the requirements of this section shall be credited by the extraordinary investment gain amount.

(2) The following persons shall be eligible for the benefit provided in subsection (1) of this section:

(a) Any member of the teachers' retirement system plan 3 ((or)), the Washington school employees' retirement system plan 3, or the public employees' retirement system plan 3 who earned service credit during the twelve-month period from September 1st to August 31st immediately preceding the distribution and had a balance of at least one thousand dollars in their member account on August 31st of the year immediately preceding the distribution; or

(b) Any person in receipt of a benefit pursuant to RCW 41.32.875 ((or)), 41.35.680, or section 309 of this act; or

(i) Completed ten service credit years; or

(ii) Completed five service credit years, including twelve service months after attaining age fifty-four; or

(d) Any teacher who is a retiree pursuant to RCW 41.34.020(8) and who has completed five service credit years by July 1, 1996, under plan 2 and who transferred to plan 3 under RCW 41.32.817; or

(e) Any classified employee who is a retiree pursuant to RCW 41.34.020(8) and who has completed five service credit years by September 1, 2000, and who transferred to plan 3 under RCW 41.35.510; or

(f) Any public employee who is a retiree pursuant to RCW 41.40.010(29) and who has completed five service credit years by March 1, 2002, and who transferred to plan 3 under section 304 of this act; or

(g) Any person who had a balance of at least one thousand dollars in their member account on August 31st of the year immediately preceding the distribution and who:

(i) Completed ten service credit years; or

(ii) Completed five service credit years, including twelve service months after attaining age fifty-four; or

(((g))) (h) Any teacher who had a balance of at least one thousand dollars in their member account on August 31st of the year immediately preceding the distribution and who has completed five service credit years by July 1, 1996, under plan 2 and who transferred to plan 3 under RCW 41.32.817; or

(((h))) (i) Any classified employee who had a balance of at least one thousand dollars in their member account on August 31st of the year immediately preceding the distribution and who has completed five service credit years by September 1, 2000, and who transferred to plan 3 under RCW 41.35.510; or

(j) Any public employee who had a balance of at least one thousand dollars in their member account on August 31st of the year immediately preceding the distribution and who has completed five service credit years by March 1, 2002, and who transferred to plan 3 under section 304 of this act.

(3) The extraordinary investment gain amount shall be calculated as follows:

(a) One-half of the sum of the value of the net assets held in trust for pension benefits in the teachers' retirement system combined plan 2 and 3 fund ((and)), the Washington school employees' retirement system combined plan 2 and 3 fund, and the public employees' retirement system combined plan 2 and 3 fund at the close of the previous state fiscal year not including the amount attributable to member accounts;

(b) Multiplied by the amount which the compound average of investment returns on those assets over the previous four state fiscal years exceeds ten percent;

(i) The sum of the service credit on August 31st of the previous year of all persons eligible for the benefit provided in subsection (1) of this section; to

(ii) The sum of the service credit on August 31st of the previous year of:

(A) All persons eligible for the benefit provided in subsection (1) of this section;

(B) Any person who earned service credit in the teachers' retirement system plan 2 ((or)), the Washington school employees' retirement system plan 2, or the public employees' retirement system plan 2 during the twelve-month period from September 1st to August 31st immediately preceding the distribution;

(D) Any person with five or more years of service in the teachers' retirement system plan 2 ((or)), the Washington school employees' retirement system plan 2, or the public employees' retirement system plan 2;

(d) Divided proportionally among persons eligible for the benefit provided in subsection (1) of this section on the basis of their service credit total on August 31st of the previous year.

(4) The legislature reserves the right to amend or repeal this section in the future and no member or beneficiary has a contractual right to receive this distribution not granted prior to that time.

NEW SECTION. Sec. 409. A new section is added to chapter 41.31A RCW to read as follows:

(1) On June 1, 2003, the member account of a person meeting the requirements of this section shall be credited by the 2000 retroactive extraordinary investment gain amount and the 2002 retroactive extraordinary investment gain amount.

(2) The following persons shall be eligible for the benefits provided in subsection (1) of this section:

(a) Any public employee who earned service credit during the twelve-month period from September 1st to August 31st immediately preceding the distribution and who transferred to plan 3 under section 304 of this act; or

(b) Any public employee in receipt of a benefit pursuant to section 309 of this act and who has completed five service credit years by September 1, 2002, and who transferred to plan 3 under section 304 of this act; or

(c) Any public employee who is a retiree pursuant to RCW 41.34.020(8) and who has completed five service credit years by September 1, 2002, and who transferred to plan 3 under section 304 of this act; or

(d) Any public employee who has a balance of at least one thousand dollars in either his or her member account or in plan 2 accumulated contributions and who has completed five service credit years by September 1, 2002, and who transferred to plan 3 under section 304 of this act.

(3) The 2000 retroactive extraordinary investment gain amount shall be calculated as follows:

(a) An amount equal to the average benefit per year of service paid in 2000 to members of the teachers' retirement system plan 3 under section 309, chapter 341, Laws of 1998;

(b) Distributed to persons eligible for the benefit in subsection (1) of this section on the basis of their service credit total on July 1, 1999.

(4) The 2002 retroactive extraordinary investment gain amount shall be calculated as follows:

(a) An amount equal to the average benefit per year of service paid in 2002 to members of the teachers' retirement system plan 3 and the school employees' retirement system plan 3 under RCW 41.31A.020;

(b) Distributed to persons eligible for the benefit provided in subsection (1) of this section on the basis of their service credit total on July 1, 2001.

(5) The legislature reserves the right to amend or repeal this section in the future and no member or beneficiary has a contractual right to receive this distribution not granted prior to that time.

"ACTUARIAL FUNDING"

Sec. 501. RCW 41.45.010 and 1998 c 341 s 401 are each amended to read as follows:

It is the intent of the legislature to provide a dependable and systematic process for funding the benefits provided to members and retirees of the public employees' retirement system, chapter 41.40 RCW; the teachers' retirement system, chapter 41.32 RCW; the law enforcement officers' and fire fighters' retirement system, chapter 41.26 RCW; the school employees' retirement system, chapter 41.35 RCW; and the Washington state patrol retirement system, chapter 43.43 RCW.

The funding process established by this chapter is intended to achieve the following goals:

(1) To continue to fully fund the public employees' retirement system plans 2 and 3, the teachers' retirement system plans 2 and 3, the school employees' retirement system plans 2 and 3, and the law enforcement officers' and fire fighters' retirement system plan 2 as provided by law;

(2) To fully amortize the total costs of the public employees' retirement system plan 1, the teachers' retirement system plan 1, and the law enforcement officers' and fire fighters' retirement system plan 1 not later than June 30, 2024;

(3) To establish predictable long-term employer contribution rates which will remain a relatively constant proportion of the future state budgets; and

(4) To fund, to the extent feasible, benefit increases for plan 1 members and all benefits for plan 2 and 3 members over the working lives of those members so that the cost of those benefits are paid by the taxpayers who receive the benefit of those members' service.

Sec. 502. RCW 41.45.020 and 1998 c 341 s 402 and 1998 c 283 s 1 are each reenacted and amended to read as follows:

As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.

(1) "Council" means the pension funding council created in RCW 41.45.100.

(2) "Department" means the department of retirement systems.

(3) "Law enforcement officers' and fire fighters' retirement system plan 1" and "law enforcement officers' and fire fighters' retirement system plan 2" mean the benefits and funding provisions under chapter 41.26 RCW.

(4) "Public employees' retirement system plan 1," ((and)) "public employees' retirement system plan 2," and "public employees' retirement system plan 3" mean the benefits and funding provisions under chapter 41.40 RCW.

(5) "Teachers' retirement system plan 1," "teachers' retirement system plan 2," and "teachers' retirement system plan 3" mean the benefits and funding provisions under chapter 41.32 RCW.

(6) "School employees' retirement system plan 2" and "school employees' retirement system plan 3" mean the benefits and funding provisions under chapter 41.35 RCW.

(7) "Washington state patrol retirement system" means the retirement benefits provided under chapter 43.43 RCW.

(8) "Unfunded liability" means the unfunded actuarial accrued liability of a retirement system.

(9) "Actuary" or "state actuary" means the state actuary employed under chapter 44.44 RCW.

(10) "State retirement systems" means the retirement systems listed in RCW 41.50.030.

(11) "Work group" means the pension funding work group created in RCW 41.45.120.

(12) "Classified employee" means a member of the Washington school employees' retirement system plan 2 or plan 3 as defined in RCW 41.35.010.

(13) "Teacher" means a member of the teachers' retirement system as defined in RCW 41.32.010(15).

Sec. 503. RCW 41.45.050 and 1998 c 341 s 403 are each amended to read as follows:

(1) Employers of members of the public employees' retirement system, the teachers' retirement system, the school employees' retirement system, and the Washington state patrol retirement system shall make contributions to those systems based on the rates established in RCW 41.45.060 and 41.45.070.

(2) The state shall make contributions to the law enforcement officers' and fire fighters' retirement system based on the rates established in RCW 41.45.060 and 41.45.070. The state treasurer shall transfer the required contributions each month on the basis of salary data provided by the department.

(3) The department shall bill employers, and the state shall make contributions to the law enforcement officers' and fire fighters' retirement system, using the combined rates established in RCW 41.45.060 and 41.45.070 regardless of the level of pension funding provided in the biennial budget. Any member of an affected retirement system may, by mandamus or other appropriate proceeding, require the transfer and payment of funds as directed in this section.

(4) The contributions received for the public employees' retirement system shall be allocated between the public employees' retirement system plan 1 fund and the public employees' retirement system combined plan 2 and plan 3 fund as follows: The contributions necessary to fully fund the public employees' retirement system combined plan 2 and plan 3 employer contribution ((required by RCW 41.40.650)) shall first be deposited in the public employees' retirement system combined plan 2 and plan 3 fund. All remaining public employees' retirement system employer contributions shall be deposited in the public employees' retirement system plan 1 fund.

(5) The contributions received for the teachers' retirement system shall be allocated between the plan 1 fund and the combined plan 2 and plan 3 fund as follows: The contributions necessary to fully fund the combined plan 2 and plan 3 employer contribution shall first be deposited in the combined plan 2 and plan 3 fund. All remaining teachers' retirement system employer contributions shall be deposited in the plan 1 fund.

(6) The contributions received for the school employees' retirement system shall be allocated between the public employees' retirement system plan 1 fund and the school employees' retirement system combined plan 2 and plan 3 fund as follows: The contributions necessary to fully fund the combined plan 2 and plan 3 employer contribution shall first be deposited in the combined plan 2 and plan 3 fund. All remaining school employees' retirement system employer contributions shall be deposited in the public employees' retirement system plan 1 fund.

(7) The contributions received under RCW ((41.26.450)) 41.45.060, 41.45.061, and section 507 of this act for the law enforcement officers' and fire fighters' retirement system shall be allocated between the law enforcement officers' and fire fighters' retirement system plan 1 and the law enforcement officers' and fire fighters' retirement system plan 2 fund as follows: The contributions necessary to fully fund the law enforcement officers' and fire fighters' retirement system plan 2 employer contributions shall be first deposited in the law enforcement officers' and fire fighters' retirement system plan 2 fund. All remaining law enforcement officers' and fire fighters' retirement system employer contributions shall be deposited in the law enforcement officers' and fire fighters' retirement system plan 1 fund.

Sec. 504. RCW 41.45.060 and 1998 c 341 s 404, 1998 c 340 s 11, and 1998 c 283 s 6 are each reenacted and amended to read as follows:

(1) The state actuary shall provide actuarial valuation results based on the assumptions adopted under RCW 41.45.030.

(2) Not later than September 30, 1998, and every two years thereafter, consistent with the assumptions adopted under RCW 41.45.030, the council shall adopt and may make changes to:

(a) A basic state contribution rate for the law enforcement officers' and fire fighters' retirement system;

(b) Basic employer contribution rates for the public employees' retirement system ((plan 1)), the teachers' retirement system ((plan 1)), and the Washington state patrol retirement system to be used in the ensuing biennial period; and

(c) A basic employer contribution rate for the school employees' retirement system for funding the public employees' retirement system plan 1.

(3) The employer and state contribution rates adopted by the council shall be the level percentages of pay that are needed:

(a) To fully amortize the total costs of the public employees' retirement system plan 1, the teachers' retirement system plan 1, the law enforcement officers' and fire fighters' retirement system plan 1, and the unfunded liability of the Washington state patrol retirement system not later than June 30, 2024, except as provided in subsection (5) of this section; ((and))

(b) To also continue to fully fund the public employees' retirement system plans 2 and 3, the teachers' retirement system plans 2 and 3, the school employees' retirement system plans 2 and 3, and the law enforcement officers' and fire fighters' retirement system plan 2 in accordance with RCW ((41.40.650, 41.26.450,)) 41.45.061, section 507 of this act, and this section; and

(c) For the law enforcement officers' and fire fighters' system plan 2 the rate charged to employers, except as provided in RCW 41.26.450, shall be thirty percent of the cost of the retirement system and the rate charged to the state shall be twenty percent of the cost of the retirement system.

(4) The aggregate actuarial cost method shall be used to calculate a combined plan 2 and 3 employer contribution rate.

(5) An amount equal to the amount of extraordinary investment gains as defined in RCW 41.31.020 shall be used to shorten the amortization period for the public employees' retirement system plan 1 and the teachers' retirement system plan 1.

(6) The council shall immediately notify the directors of the office of financial management and department of retirement systems of the state and employer contribution rates adopted.

(7) The director of the department of retirement systems shall collect those rates adopted by the council.

Sec. 505. RCW 41.45.070 and 1998 c 341 s 406 and 1998 c 340 s 10 are each reenacted and amended to read as follows:

(1) In addition to the basic employer contribution rate established in RCW 41.45.060, the department shall also charge employers of public employees' retirement system, teachers' retirement system, school employees' retirement system, or Washington state patrol retirement system members an additional supplemental rate to pay for the cost of additional benefits, if any, granted to members of those systems. Except as provided in subsections (6) and (7) of this section, the supplemental contribution rates required by this section shall be calculated by the state actuary and shall be charged regardless of language to the contrary contained in the statute which authorizes additional benefits.

(2) In addition to the basic state contribution rate established in RCW 41.45.060 for the law enforcement officers' and fire fighters' retirement system the department shall also establish a supplemental rate to pay for the cost of additional benefits, if any, granted to members of the law enforcement officers' and fire fighters' retirement system. Except as provided in subsection (6) of this section, this supplemental rate shall be calculated by the state actuary and the state treasurer shall transfer the additional required contributions regardless of language to the contrary contained in the statute which authorizes the additional benefits.

(3) The supplemental rate charged under this section to fund benefit increases provided to active members of the public employees' retirement system plan 1, the teachers' retirement system plan 1, the law enforcement officers' and fire fighters' retirement system plan 1, and Washington state patrol retirement system, shall be calculated as the level percentage of all members' pay needed to fund the cost of the benefit not later than June 30, 2024.

(4) The supplemental rate charged under this section to fund benefit increases provided to active and retired members of the public employees' retirement system plan 2 and plan 3, the teachers' retirement system plan 2 and plan 3, the school employees' retirement system plan 2 and plan 3, or the law enforcement officers' and fire fighters' retirement system plan 2, shall be calculated as the level percentage of all members' pay needed to fund the cost of the benefit, as calculated under RCW ((41.40.650 or 41.26.450, respectively)) 41.45.060, 41.45.061, or section 507 of this act.

(5) The supplemental rate charged under this section to fund postretirement adjustments which are provided on a nonautomatic basis to current retirees shall be calculated as the percentage of pay needed to fund the adjustments as they are paid to the retirees. The supplemental rate charged under this section to fund automatic postretirement adjustments for active or retired members of the public employees' retirement system plan 1 and the teachers' retirement system plan 1 shall be calculated as the level percentage of pay needed to fund the cost of the automatic adjustments not later than June 30, 2024.

(6) A supplemental rate shall not be charged to pay for the cost of additional benefits granted to members pursuant to chapter 340, Laws of 1998.

(7) A supplemental rate shall not be charged to pay for the cost of additional benefits granted to members pursuant to chapter 41.31A RCW; section 309, chapter 341, Laws of 1998; or section 701, chapter 341, Laws of 1998.

Sec. 506. RCW 41.45.061 and 1998 c 341 s 405 are each amended to read as follows:

(1) The required contribution rate for members of the plan 2 teachers' retirement system shall be fixed at the rates in effect on July 1, 1996, subject to the following:

(a) Beginning September 1, 1997, except as provided in (b) of this subsection, the employee contribution rate shall not exceed the employer plan 2 and 3 rates adopted under RCW 41.45.060 and 41.45.070 for the teachers' retirement system;

(b) In addition, the employee contribution rate for plan 2 shall be increased by fifty percent of the contribution rate increase caused by any plan 2 benefit increase passed after July 1, 1996;

(c) In addition, the employee contribution rate for plan 2 shall not be increased as a result of any distributions pursuant to section 309, chapter 341, Laws of 1998 and RCW 41.31A.020.

(2) The required contribution rate for members of the school employees' retirement system plan 2 shall be fixed at the rates in effect on September 1, 2000, for members of the public employees' retirement system plan 2, subject to the following:

(a) Except as provided in (b) of this subsection, the member contribution rate shall not exceed the school employees' retirement system employer plan 2 and 3 contribution rate adopted under RCW 41.45.060 and 41.45.070;

(b) The member contribution rate for the school employees' retirement system plan 2 shall be increased by fifty percent of the contribution rate increase caused by any plan 2 benefit increase passed after September 1, 2000.

(3) The required contribution rate for members of the public employees' retirement system plan 2 shall be set at the same rate as the employer combined plan 2 and plan 3 rate.

(4) The required contribution rate for members of the law enforcement officers' and fire fighters' retirement system plan 2 shall be set at fifty percent of the cost of the retirement system.

(5) The employee contribution rates for plan 2 under subsections (3) and (4) of this section shall not ((be increased)) include any increase as a result of any distributions pursuant to RCW 41.31A.020 and 41.31A.030.

(((4))) (6) The required plan 2 and 3 contribution rates for employers shall be adopted in the manner described in RCW 41.45.060.

NEW SECTION. Sec. 507. A new section is added to chapter 41.45 RCW to read as follows:

(1) Any increase in the contribution rate required as the result of a failure of the state or of an employer to make any contribution required by this section shall be borne in full by the state or by that employer not making the contribution.

(2) The director shall notify all employers of any pending adjustment in the required contribution rate and such pending adjustment in the required contribution rate and any increase shall be announced at least thirty days prior to the effective date of the change.

(3) Members' contributions required by RCW 41.45.060 and 41.45.061 shall be deducted from the members' compensation each payroll period. The members' contribution and the employers' contribution shall be remitted directly to the department within fifteen days following the end of the calendar month during which the payroll period ends.

(4) The state's contribution required for the law enforcement officers' and fire fighters' retirement system plan 2 shall be transferred to the appropriate fund from the total contributions transferred by the state treasurer under RCW 41.45.060 and 41.45.070.

"NECESSARY FOR IMPLEMENTATION"

Sec. 601. RCW 41.50.075 and 1998 c 341 s 503 are each amended to read as follows:

(1) Two funds are hereby created and established in the state treasury to be known as the Washington law enforcement officers' and fire fighters' system plan 1 retirement fund, and the Washington law enforcement officers' and fire fighters' system plan 2 retirement fund which shall consist of all moneys paid into them in accordance with the provisions of this chapter and chapter 41.26 RCW, whether such moneys take the form of cash, securities, or other assets. The plan 1 fund shall consist of all moneys paid to finance the benefits provided to members of the law enforcement officers' and fire fighters' retirement system plan 1, and the plan 2 fund shall consist of all moneys paid to finance the benefits provided to members of the law enforcement officers' and fire fighters' retirement system plan 2.

(2) All of the assets of the Washington state teachers' retirement system shall be credited according to the purposes for which they are held, to two funds to be maintained in the state treasury, namely, the teachers' retirement system plan 1 fund and the teachers' retirement system combined plan 2 and 3 fund. The plan 1 fund shall consist of all moneys paid to finance the benefits provided to members of the Washington state teachers' retirement system plan 1, and the combined plan 2 and 3 fund shall consist of all moneys paid to finance the benefits provided to members of the Washington state teachers' retirement system plan 2 and 3.

(3) There is hereby established in the state treasury two separate funds, namely the public employees' retirement system plan 1 fund and the public employees' retirement system combined plan 2 and plan 3 fund. The plan 1 fund shall consist of all moneys paid to finance the benefits provided to members of the public employees' retirement system plan 1, and the combined plan 2 and plan 3 fund shall consist of all moneys paid to finance the benefits provided to members of the public employees' retirement system plans 2 and 3.

(4) There is hereby established in the state treasury the school employees' retirement system combined plan 2 and 3 fund. The combined plan 2 and 3 fund shall consist of all moneys paid to finance the benefits provided to members of the school employees' retirement system plan 2 and plan 3.

Sec. 602. RCW 41.50.088 and 1998 c 341 s 507 and 1998 c 116 s 10 are each reenacted and amended to read as follows:

(1) The board shall adopt rules as necessary and exercise ((all)) the following powers and ((perform all)) duties ((prescribed by law with respect to)):

(a) The board shall recommend to the state investment board types of options for member self-directed investment in the teachers' retirement system plan 3 ((and)), the school employees' retirement system plan 3, and the public employees' retirement system plan 3 as deemed by the board to be reflective of the members' preferences;

(b) ((The selection of optional benefit payment schedules available to members and survivors of members upon the death, disability, retirement, or termination of the member. The optional benefit payments may include but not be limited to: Fixed and participating annuities, joint and survivor annuities, and payments that bridge to social security or defined benefit plan payments;

(c) Approval of actuarially equivalent annuities)) By July 1, 2005, the board shall make optional actuarially equivalent life annuity benefit payment schedules available to members and survivors that may be purchased from the combined plan 2 and plan 3 funds under RCW 41.50.075 (((2) or (3))); and

(((d))) (c) Determination of the basis for administrative charges to the self-directed investment fund to offset self-directed account expenses;

(2) The board shall recommend to the state investment board types of options for participant self-directed investment in the state deferred compensation plan, as deemed by the board to be reflective of the participants' preferences.

Sec. 603. RCW 41.50.500 and 1998 c 341 s 512 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 41.50.500 through 41.50.650, 41.50.670 through 41.50.720, and 26.09.138.

(1) "Benefits" means periodic retirement payments or a withdrawal of accumulated contributions.

(2) "Disposable benefits" means that part of the benefits of an individual remaining after the deduction from those benefits of any amount required by law to be withheld. The term "required by law to be withheld" does not include any deduction elective to the member.

(3) "Dissolution order" means any judgment, decree, or order of spousal maintenance, property division, or court-approved property settlement incident to a decree of divorce, dissolution, invalidity, or legal separation issued by the superior court of the state of Washington or a judgment, decree, or other order of spousal support issued by a court of competent jurisdiction in another state or country, that has been registered or otherwise made enforceable in this state.

(4) "Mandatory benefits assignment order" means an order issued to the department of retirement systems pursuant to RCW 41.50.570 to withhold and deliver benefits payable to an obligor under chapter 2.10, 2.12, 41.26, 41.32, 41.40, 41.35, or 43.43 RCW.

(5) "Obligee" means an ex spouse or spouse to whom a duty of spousal maintenance or property division obligation is owed.

(6) "Obligor" means the spouse or ex spouse owing a duty of spousal maintenance or a property division obligation.

(7) "Periodic retirement payments" means periodic payments of retirement allowances, including but not limited to service retirement allowances, disability retirement allowances, and survivors' allowances. The term does not include a withdrawal of accumulated contributions.

(8) "Property division obligation" means any outstanding court-ordered property division or court-approved property settlement obligation incident to a decree of divorce, dissolution, or legal separation.

(9) "Standard allowance" means a benefit payment option selected under RCW 2.10.146(1)(a), 41.26.460(1)(a), 41.32.785(1)(a), 41.40.188(1)(a), 41.40.660(1), section 314(1)(a) of this act, or 41.35.220 that ceases upon the death of the retiree. Standard allowance also means the benefit allowance provided under RCW 2.10.110, 2.10.130, 43.43.260, 41.26.100, 41.26.130(1)(a), or chapter 2.12 RCW. Standard allowance also means the maximum retirement allowance available under RCW 41.32.530(1) following member withdrawal of accumulated contributions, if any.

(10) "Withdrawal of accumulated contributions" means a lump sum payment to a retirement system member of all or a part of the member's accumulated contributions, including accrued interest, at the request of the member including any lump sum amount paid upon the death of the member.

Sec. 604. RCW 41.05.011 and 1998 c 341 s 706 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section shall apply throughout this chapter.

(1) "Administrator" means the administrator of the authority.

(2) "State purchased health care" or "health care" means medical and health care, pharmaceuticals, and medical equipment purchased with state and federal funds by the department of social and health services, the department of health, the basic health plan, the state health care authority, the department of labor and industries, the department of corrections, the department of veterans affairs, and local school districts.

(3) "Authority" means the Washington state health care authority.

(4) "Insuring entity" means an insurer as defined in chapter 48.01 RCW, a health care service contractor as defined in chapter 48.44 RCW, or a health maintenance organization as defined in chapter 48.46 RCW.

(5) "Flexible benefit plan" means a benefit plan that allows employees to choose the level of health care coverage provided and the amount of employee contributions from among a range of choices offered by the authority.

(6) "Employee" includes all full-time and career seasonal employees of the state, whether or not covered by civil service; elected and appointed officials of the executive branch of government, including full-time members of boards, commissions, or committees; and includes any or all part-time and temporary employees under the terms and conditions established under this chapter by the authority; justices of the supreme court and judges of the court of appeals and the superior courts; and members of the state legislature or of the legislative authority of any county, city, or town who are elected to office after February 20, 1970. "Employee" also includes: (a) Employees of a county, municipality, or other political subdivision of the state if the legislative authority of the county, municipality, or other political subdivision of the state seeks and receives the approval of the authority to provide any of its insurance programs by contract with the authority, as provided in RCW 41.04.205; (b) employees of employee organizations representing state civil service employees, at the option of each such employee organization, and, effective October 1, 1995, employees of employee organizations currently pooled with employees of school districts for the purpose of purchasing insurance benefits, at the option of each such employee organization; and (c) employees of a school district if the authority agrees to provide any of the school districts' insurance programs by contract with the authority as provided in RCW 28A.400.350.

(7) "Board" means the public employees' benefits board established under RCW 41.05.055.

(8) "Retired or disabled school employee" means:

(a) Persons who separated from employment with a school district or educational service district and are receiving a retirement allowance under chapter 41.32 or 41.40 RCW as of September 30, 1993;

(b) Persons who separate from employment with a school district or educational service district on or after October 1, 1993, and immediately upon separation receive a retirement allowance under chapter 41.32, 41.35, or 41.40 RCW;

(c) Persons who separate from employment with a school district or educational service district due to a total and permanent disability, and are eligible to receive a deferred retirement allowance under chapter 41.32, 41.35, or 41.40 RCW.

(9) "Benefits contribution plan" means a premium only contribution plan, a medical flexible spending arrangement, or a cafeteria plan whereby state and public employees may agree to a contribution to benefit costs which will allow the employee to participate in benefits offered pursuant to 26 U.S.C. Sec. 125 or other sections of the internal revenue code.

(10) "Salary" means a state employee's monthly salary or wages.

(11) "Participant" means an individual who fulfills the eligibility and enrollment requirements under the benefits contribution plan.

(12) "Plan year" means the time period established by the authority.

(13) "Separated employees" means persons who separate from employment with an employer as defined in:

(a) RCW 41.32.010(11) on or after July 1, 1996; or

(b) RCW 41.35.010 on or after September 1, 2000; or

and who are at least age fifty-five and have at least ten years of service under the teachers' retirement system plan 3 as defined in RCW 41.32.010(40) ((or)), the Washington school employees' retirement system plan 3 as defined in RCW 41.35.010, or the public employees' retirement system plan 3 as defined in RCW 41.40.010.

"FUND INVESTMENTS AND INTEREST EARNINGS"

Sec. 701. RCW 43.33A.190 and 1998 c 341 s 707 are each amended to read as follows:

Pursuant to RCW 41.34.130, the state investment board shall invest all self-directed investment moneys under teachers' retirement system plan 3 ((and)), the school employees' retirement system plan 3, and the public employees' retirement system plan 3 with full power to establish investment policy, develop investment options, and manage self-directed investment funds.

Sec. 702. RCW 43.84.092 and 1999 c 380 s 9, 1999 c 309 s 929, 1999 c 268 s 5, and 1999 c 94 s 4 are each reenacted and amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.

(3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal ((account)) fund, the volunteer fire fighters' ((relief and pension)) and reserve officers' administrative ((account)) fund, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

"LAW ENFORCEMENT OFFICERS' AND FIRE FIGHTERS'

RETIREMENT SYSTEM PLAN 2"

Sec. 801. RCW 41.26.450 and 1996 c 38 s 3 are each amended to read as follows:

(((1) The required contribution rates to the plan II system for members, employers, and the state of Washington shall be established by the director from time to time as may be necessary upon the advice of the state actuary. The state actuary shall use the aggregate actuarial cost method to calculate contribution rates.

(2) Except as provided in subsection (3) of this section, the member, the employer and the state shall each contribute the following shares of the cost of the retirement system:

Member 50%

Employer 30%

State 20%

(3))) Port districts established under Title 53 RCW and institutions of higher education as defined in RCW 28B.10.016 shall contribute both the employer and state shares of the cost of the retirement system for any of their employees who are law enforcement officers. Institutions of higher education shall contribute both the employer and the state shares of the cost of the retirement system for any of their employees who are fire fighters.

(((4) Effective January 1, 1987, however, no member or employer contributions are required for any calendar month in which the member is not granted service credit.

(5) Any adjustments in contribution rates required from time to time for future costs shall likewise be shared proportionally by the members, employers, and the state.

(6) Any increase in the contribution rate required as the result of a failure of the state or of an employer to make any contribution required by this section shall be borne in full by the state or by that employer not making the contribution.

(7) The director shall notify all employers of any pending adjustment in the required contribution rate and such increase shall be announced at least thirty days prior to the effective date of the change.

(8) Members' contributions required by this section shall be deducted from the members basic salary each payroll period. The members contribution and the employers contribution shall be remitted directly to the department within fifteen days following the end of the calendar month during which the payroll period ends. The state's contribution required by this section shall be transferred to the plan II fund from the total contributions transferred by the state treasurer under RCW 41.45.060 and 41.45.070.))

"EARLY RETIREMENT REDUCTION FACTORS"

Sec. 901. RCW 41.40.630 and 1991 c 343 s 11 are each amended to read as follows:

(1) NORMAL RETIREMENT. Any member with at least five service credit years who has attained at least age sixty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.40.620.

(2) EARLY RETIREMENT. Any member who has completed at least twenty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.40.620, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least thirty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.40.620, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

Sec. 902. RCW 41.32.765 and 1991 c 343 s 5 are each amended to read as follows:

(1) NORMAL RETIREMENT. Any member with at least five service credit years of service who has attained at least age sixty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.32.760.

(2) EARLY RETIREMENT. Any member who has completed at least twenty service credit years of service who has attained at least age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.32.760, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least thirty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.32.760, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

Sec. 903. RCW 41.32.875 and 1996 c 39 s 6 are each amended to read as follows:

(1) NORMAL RETIREMENT. Any member who is at least age sixty-five and who has:

(a) Completed ten service credit years; or

(b) Completed five service credit years, including twelve service credit months after attaining age fifty-four; or

shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.32.840.

(2) EARLY RETIREMENT. Any member who has attained at least age fifty-five and has completed at least ten years of service shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.32.840, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least thirty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.32.840, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

Sec. 904. RCW 41.26.430 and 1993 c 517 s 3 are each amended to read as follows:

(1) NORMAL RETIREMENT. Any member with at least five service credit years of service who has attained at least age ((fifty-five)) fifty-three shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.26.420.

(2) EARLY RETIREMENT. Any member who has completed at least twenty service credit years of service and has attained age fifty shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.26.420, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age ((fifty-five)) fifty-three.

(3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least twenty service credit years and has attained age fifty shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.26.420, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age fifty-three.

Sec. 905. RCW 41.35.420 and 1998 c 341 s 103 are each amended to read as follows:

(2) EARLY RETIREMENT. Any member who has completed at least twenty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.35.400, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least thirty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.35.400, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

Sec. 906. RCW 41.35.680 and 1998 c 341 s 209 are each amended to read as follows:

(1) NORMAL RETIREMENT. Any member who is at least age sixty-five and who has:

(a) Completed ten service credit years; or

(b) Completed five service credit years, including twelve service credit months after attaining age fifty-four; or

(c) Completed five service credit years by September 1, 2000, under the public employees' retirement system plan 2 and who transferred to plan 3 under RCW 41.35.510;

shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.35.620.

(2) EARLY RETIREMENT. Any member who has attained at least age fifty-five and has completed at least ten years of service shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.35.620, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

(3) ALTERNATE EARLY RETIREMENT. Any member who has completed at least thirty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of RCW 41.35.620, except that a member retiring pursuant to this subsection shall have the retirement allowance reduced by three percent per year to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

"DEATH BENEFITS"

Sec. 1001. RCW 41.26.510 and 1995 c 245 s 1 and 1995 c 144 s 19 are each reenacted and amended to read as follows:

(1) Except as provided in RCW 11.07.010, if a member or a vested member who has not completed at least ten years of service dies, the amount of the accumulated contributions standing to such member's credit in the retirement system at the time of such member's death, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670, shall be paid to the member's estate, or such person or persons, trust, or organization as the member shall have nominated by written designation duly executed and filed with the department. If there be no such designated person or persons still living at the time of the member's death, such member's accumulated contributions standing to such member's credit in the retirement system, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670, shall be paid to the member's surviving spouse as if in fact such spouse had been nominated by written designation, or if there be no such surviving spouse, then to such member's legal representatives.

(2) If a member who is eligible for retirement or a member who has completed at least ten years of service dies, the surviving spouse or eligible child or children shall elect to receive either:

(a) A retirement allowance computed as provided for in RCW 41.26.430(((1))), actuarially reduced by the amount of any lump sum benefit identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670 and actuarially adjusted to reflect a joint and one hundred percent survivor option under RCW 41.26.460 and if the member was not eligible for normal retirement at the date of death a further reduction as described in RCW 41.26.430(((2))); if a surviving spouse who is receiving a retirement allowance dies leaving a child or children of the member under the age of majority, then such child or children shall continue to receive an allowance in an amount equal to that which was being received by the surviving spouse, share and share alike, until such child or children reach the age of majority; if there is no surviving spouse eligible to receive an allowance at the time of the member's death, such member's child or children under the age of majority shall receive an allowance share and share alike calculated as herein provided making the assumption that the ages of the spouse and member were equal at the time of the member's death; or

(b)(i) The member's accumulated contributions, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670; or

(ii) If the member dies on or after July 25, 1993, one hundred fifty percent of the member's accumulated contributions, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670. Any accumulated contributions attributable to restorations made under RCW 41.50.165(2) shall be refunded at one hundred percent.

(3) If a member who is eligible for retirement or a member who has completed at least ten years of service dies after October 1, 1977, and is not survived by a spouse or an eligible child, then the accumulated contributions standing to the member's credit, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670, shall be paid:

(a) To an estate, a person or persons, trust, or organization as the member shall have nominated by written designation duly executed and filed with the department; or

(b) If there is no such designated person or persons still living at the time of the member's death, then to the member's legal representatives.

Sec. 1002. RCW 41.32.805 and 1995 c 144 s 16 are each amended to read as follows:

(1) Except as provided in RCW 11.07.010, if a member or a vested member who has not completed at least ten years of service dies, the amount of the accumulated contributions standing to such member's credit in the retirement system, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670, at the time of such member's death shall be paid to the member's estate, or such person or persons, trust, or organization as the member shall have nominated by written designation duly executed and filed with the department. If there be no such designated person or persons still living at the time of the member's death, such member's accumulated contributions standing to such member's credit in the retirement system, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670, shall be paid to the member's surviving spouse as if in fact such spouse had been nominated by written designation, or if there be no such surviving spouse, then to such member's legal representatives.

(2) If a member who is eligible for retirement or a member who has completed at least ten years of service dies, the surviving spouse or eligible children shall elect to receive either:

(a) A retirement allowance computed as provided for in RCW 41.32.765(((1))), actuarially reduced by the amount of any lump sum benefit identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670 and actuarially adjusted to reflect a joint and one hundred percent survivor option under RCW 41.32.785 and if the member was not eligible for normal retirement at the date of death a further reduction as described in RCW 41.32.765(((2))); if a surviving spouse who is receiving a retirement allowance dies leaving a child or children of the member under the age of majority, then such child or children shall continue to receive an allowance in an amount equal to that which was being received by the surviving spouse, share and share alike, until such child or children reach the age of majority; if there is no surviving spouse eligible to receive an allowance at the time of the member's death, such member's child or children under the age of majority shall receive an allowance share and share alike calculated as herein provided making the assumption that the ages of the spouse and member were equal at the time of the member's death; or

(b) The member's accumulated contributions, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670.

(a) To an estate, a person or persons, trust, or organization as the member shall have nominated by written designation duly executed and filed with the department; or

(b) If there is no such designated person or persons still living at the time of the member's death, then to the member's legal representatives.

Sec. 1003. RCW 41.32.895 and 1996 c 39 s 7 are each amended to read as follows:

If a member dies prior to retirement, the surviving spouse or eligible child or children shall receive a retirement allowance computed as provided in RCW 41.32.851 actuarially reduced to reflect a joint and one hundred percent survivor option and if the member was not eligible for normal retirement at the date of death a further reduction as described in RCW 41.32.875(((2))).

Sec. 1004. RCW 41.40.700 and 1995 c 144 s 8 are each amended to read as follows:

(2) If a member who is eligible for retirement or a member who has completed at least ten years of service dies, the surviving spouse or eligible child or children shall elect to receive either:

(a) A retirement allowance computed as provided for in RCW 41.40.630(((1))), actuarially reduced by the amount of any lump sum benefit identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670 and actuarially adjusted to reflect a joint and one hundred percent survivor option under RCW 41.40.660 and if the member was not eligible for normal retirement at the date of death a further reduction as described in RCW 41.40.630(((2))); if a surviving spouse who is receiving a retirement allowance dies leaving a child or children of the member under the age of majority, then such child or children shall continue to receive an allowance in an amount equal to that which was being received by the surviving spouse, share and share alike, until such child or children reach the age of majority; if there is no surviving spouse eligible to receive an allowance at the time of the member's death, such member's child or children under the age of majority shall receive an allowance share and share alike calculated as herein provided making the assumption that the ages of the spouse and member were equal at the time of the member's death; or

(b) The member's accumulated contributions, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670.

(a) To a person or persons, estate, trust, or organization as the member shall have nominated by written designation duly executed and filed with the department; or

(b) If there is no such designated person or persons still living at the time of the member's death, then to the member's legal representatives.

"CONFORMING AMENDMENTS"

Sec. 1101. RCW 41.04.440 and 1995 c 239 s 322 are each amended to read as follows:

(1) The sole purpose of RCW 41.04.445 and 41.04.450 is to allow the members of the retirement systems created in chapters 2.10, 2.12, 41.26, 41.32, 41.40, 41.34, and 43.43 RCW to enjoy the tax deferral benefits allowed under 26 U.S.C. 414(h). Chapter 227, Laws of 1984 does not alter in any manner the provisions of RCW ((41.26.450 and 41.40.650)) 41.45.060, 41.45.061, and section 507 of this act which require that the member contribution rates shall be set so as to provide fifty percent of the cost of the respective retirement plans.

(2) Should the legislature revoke any benefit allowed under 26 U.S.C. 414(h), no affected employee shall be entitled thereafter to receive such benefit as a matter of contractual right.

Sec. 1102. RCW 41.04.445 and 1995 c 239 s 323 are each amended to read as follows:

(1) This section applies to all members who are:

(a) Judges under the retirement system established under chapter 2.10, 2.12, or 2.14 RCW;

(b) Employees of the state under the retirement system established by chapter 41.32, 41.40, or 43.43 RCW;

(c) Employees of school districts under the retirement system established by chapter 41.32 or 41.40 RCW, except for substitute teachers as defined by RCW 41.32.010;

(d) Employees of educational service districts under the retirement system established by chapter 41.32 or 41.40 RCW; or

(e) Employees of community college districts under the retirement system established by chapter 41.32 or 41.40 RCW.

(2) Only for compensation earned after the effective date of the implementation of this section and as provided by section 414(h) of the federal internal revenue code, the employer of all the members specified in subsection (1) of this section shall pick up only those member contributions as required under:

(a) RCW 2.10.090(1);

(b) RCW 2.12.060;

(d) RCW 41.32.263;

(e) RCW 41.32.350;

(f) RCW 41.40.330 (1) and (3);

(g) RCW ((41.40.650)) 41.45.061 and section 507 of this act;

(h) RCW 41.34.070;

(i) RCW 43.43.300; and

(j) RCW 41.34.040.

(3) Only for the purposes of federal income taxation, the gross income of the member shall be reduced by the amount of the contribution to the respective retirement system picked up by the employer.

(4) All member contributions to the respective retirement system picked up by the employer as provided by this section, plus the accrued interest earned thereon, shall be paid to the member upon the withdrawal of funds or lump-sum payment of accumulated contributions as provided under the provisions of the retirement systems.

(5) At least forty-five days prior to implementing this section, the employer shall provide:

(a) A complete explanation of the effects of this section to all members; and

(b) Notification of such implementation to the director of the department of retirement systems.

Sec. 1103. RCW 41.04.450 and 1995 c 239 s 324 are each amended to read as follows:

(1) Employers of those members under chapters 41.26, 41.40, and 41.34 RCW who are not specified in RCW 41.04.445 may choose to implement the employer pick up of all member contributions without exception under RCW 41.26.080(1), 41.26.450, 41.40.330(1), ((41.40.650,)) 41.45.060, 41.45.061, and section 507 of this act and chapter 41.34 RCW. If the employer does so choose, the employer and members shall be subject to the conditions and limitations of RCW 41.04.445 (3), (4), and (5) and RCW 41.04.455.

(2) An employer exercising the option under this section may later choose to withdraw from and/or reestablish the employer pick up of member contributions only once in a calendar year following forty-five days prior notice to the director of the department of retirement systems.

Sec. 1104. RCW 41.26.470 and 1999 c 135 s 1 are each amended to read as follows:

(1) A member of the retirement system who becomes totally incapacitated for continued employment by an employer as determined by the director shall be eligible to receive an allowance under the provisions of RCW 41.26.410 through 41.26.550. Such member shall receive a monthly disability allowance computed as provided for in RCW 41.26.420 and shall have such allowance actuarially reduced to reflect the difference in the number of years between age at disability and the attainment of age fifty-five.

(2) Any member who receives an allowance under the provisions of this section shall be subject to such comprehensive medical examinations as required by the department. If such medical examinations reveal that such a member has recovered from the incapacitating disability and the member is no longer entitled to benefits under Title 51 RCW, the retirement allowance shall be canceled and the member shall be restored to duty in the same civil service rank, if any, held by the member at the time of retirement or, if unable to perform the duties of the rank, then, at the member's request, in such other like or lesser rank as may be or become open and available, the duties of which the member is then able to perform. In no event shall a member previously drawing a disability allowance be returned or be restored to duty at a salary or rate of pay less than the current salary attached to the rank or position held by the member at the date of the retirement for disability. If the department determines that the member is able to return to service, the member is entitled to notice and a hearing. Both the notice and the hearing shall comply with the requirements of chapter 34.05 RCW, the Administrative Procedure Act.

(3) Those members subject to this chapter who became disabled in the line of duty on or after July 23, 1989, and who receive benefits under RCW 41.04.500 through 41.04.530 or similar benefits under RCW 41.04.535 shall receive or continue to receive service credit subject to the following:

(a) No member may receive more than one month's service credit in a calendar month.

(b) No service credit under this section may be allowed after a member separates or is separated without leave of absence.

(d) Employee contributions shall be collected by the employer and paid to the department at the rate in effect for the period of service credited.

(e) State contributions shall be as provided in RCW ((41.26.450)) 41.45.060 and section 507 of this act.

(f) Contributions shall be based on the regular compensation which the member would have received had the disability not occurred.

(g) The service and compensation credit under this section shall be granted for a period not to exceed six consecutive months.

(h) Should the legislature revoke the service credit authorized under this section or repeal this section, no affected employee is entitled to receive the credit as a matter of contractual right.

(4)(a) If the recipient of a monthly retirement allowance under this section dies before the total of the retirement allowance paid to the recipient equals the amount of the accumulated contributions at the date of retirement, then the balance shall be paid to the member's estate, or such person or persons, trust, or organization as the recipient has nominated by written designation duly executed and filed with the director, or, if there is no such designated person or persons still living at the time of the recipient's death, then to the surviving spouse, or, if there is neither such designated person or persons still living at the time of his or her death nor a surviving spouse, then to his or her legal representative.

(b) If a recipient of a monthly retirement allowance under this section died before April 27, 1989, and before the total of the retirement allowance paid to the recipient equaled the amount of his or her accumulated contributions at the date of retirement, then the department shall pay the balance of the accumulated contributions to the member's surviving spouse or, if there is no surviving spouse, then in equal shares to the member's children. If there is no surviving spouse or children, the department shall retain the contributions.

(5) Should the disability retirement allowance of any disability beneficiary be canceled for any cause other than reentrance into service or retirement for service, he or she shall be paid the excess, if any, of the accumulated contributions at the time of retirement over all payments made on his or her behalf under this chapter.

Sec. 1105. RCW 41.26.520 and 1996 c 61 s 1 are each amended to read as follows:

(1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided for under the provisions of RCW 41.26.410 through 41.26.550.

(2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization, and whose employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence, may also be considered to be on a paid leave of absence. This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave. The basic salary reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

(3) Except as specified in subsection (6) of this section, a member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer. Such credit may be obtained only if the member makes the employer, member, and state contributions plus interest as determined by the department for the period of the authorized leave of absence within five years of resumption of service or prior to retirement whichever comes sooner.

(4) If a member fails to meet the time limitations of subsection (3) of this section, the member may receive a maximum of two years of service credit during a member's working career for those periods when a member is on unpaid leave of absence authorized by an employer. This may be done by paying the amount required under RCW 41.50.165(2) prior to retirement.

(5) For the purpose of subsection (3) of this section the contribution shall not include the contribution for the unfunded supplemental present value as required by RCW ((41.26.450)) 41.45.060, 41.45.061, and section 507 of this act. The contributions required shall be based on the average of the member's basic salary at both the time the authorized leave of absence was granted and the time the member resumed employment.

(6) A member who leaves the employ of an employer to enter the armed forces of the United States shall be entitled to retirement system service credit for up to five years of military service. This subsection shall be administered in a manner consistent with the requirements of the federal uniformed services employment and reemployment rights act.

(a) The member qualifies for service credit under this subsection if:

(i) Within ninety days of the member's honorable discharge from the United States armed forces, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces; and

(ii) The member makes the employee contributions required under RCW ((41.26.450)) 41.45.060, 41.45.061, and section 507 of this act within five years of resumption of service or prior to retirement, whichever comes sooner; or

(iii) Prior to retirement and not within ninety days of the member's honorable discharge or five years of resumption of service the member pays the amount required under RCW 41.50.165(2).

(b) Upon receipt of member contributions under (a)(ii) of this subsection, the department shall establish the member's service credit and shall bill the employer and the state for their respective contributions required under RCW 41.26.450 for the period of military service, plus interest as determined by the department.

(c) The contributions required under (a)(ii) of this subsection shall be based on the compensation the member would have earned if not on leave, or if that cannot be estimated with reasonable certainty, the compensation reported for the member in the year prior to when the member went on military leave.

(7) A member receiving benefits under Title 51 RCW who is not receiving benefits under this chapter shall be deemed to be on unpaid, authorized leave of absence.

Sec. 1106. RCW 41.40.710 and 1996 c 61 s 4 are each amended to read as follows:

(1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided for under the provisions of RCW 41.40.610 through 41.40.740.

(2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization, and whose employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence, may also be considered to be on a paid leave of absence. This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave. The compensation earnable reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

(a) The member makes both the plan 2 employer and member contributions plus interest as determined by the department for the period of the authorized leave of absence within five years of resumption of service or prior to retirement whichever comes sooner; or

(b) If not within five years of resumption of service but prior to retirement, pay the amount required under RCW 41.50.165(2).

The contributions required under (a) of this subsection shall be based on the average of the member's compensation earnable at both the time the authorized leave of absence was granted and the time the member resumed employment.

(4) A member who leaves the employ of an employer to enter the armed forces of the United States shall be entitled to retirement system service credit for up to five years of military service. This subsection shall be administered in a manner consistent with the requirements of the federal uniformed services employment and reemployment rights act.

(a) The member qualifies for service credit under this subsection if:

(ii) The member makes the employee contributions required under RCW ((41.40.650)) 41.45.061 and section 507 of this act within five years of resumption of service or prior to retirement, whichever comes sooner; or

(iii) Prior to retirement and not within ninety days of the member's honorable discharge or five years of resumption of service the member pays the amount required under RCW 41.50.165(2).

(b) Upon receipt of member contributions under (a)(ii) of this subsection, the department shall establish the member's service credit and shall bill the employer for its contribution required under RCW ((41.40.650)) 41.45.060, 41.45.061, and section 507 of this act for the period of military service, plus interest as determined by the department.

NEW SECTION. Sec. 1107. A new section is added to chapter 41.50 RCW to read as follows:

Employers, as defined in RCW 41.26.030, 41.32.010, 41.34.020, 41.35.010, and 41.40.010, must report all member data to the department in a format designed and communicated by the department. Employers failing to comply with this reporting requirement shall be assessed an additional fee as defined under RCW 41.50.110(5).

"MISCELLANEOUS"

NEW SECTION. Sec. 1201. (1) Except for sections 408 and 901 through 906 of this act, this act takes effect March 1, 2002.

(2) Section 408 of this act takes effect January 1, 2004.

(3) Sections 901 through 906 of this act take effect September 1, 2000.

NEW SECTION. Sec. 1202. Subchapter headings in this act are not any part of the law."

On page 1, line 1 of the title, after "systems;" strike the remainder of the title and insert "amending RCW 41.40.005, 41.40.010, 41.40.042, 41.40.054, 41.40.057, 41.40.062, 41.40.088, 41.40.092, 41.40.610, 41.34.020, 41.34.030, 41.34.040, 41.34.060, 41.34.080, 41.34.100, 41.31A.010, 41.31A.020, 41.45.010, 41.45.050, 41.45.061, 41.50.075, 41.50.500, 41.05.011, 43.33A.190, 41.26.450, 41.40.630, 41.32.765, 41.32.875, 41.26.430, 41.35.420, 41.35.680, 41.32.805, 41.32.895, 41.40.700, 41.04.440, 41.04.445, 41.04.450, 41.26.470, 41.26.520, and 41.40.710; reenacting and amending RCW 41.45.020, 41.45.060, 41.45.070, 41.50.088, 43.84.092, and 41.26.510; adding new sections to chapter 41.40 RCW; adding a new section to chapter 41.31A RCW; adding a new section to chapter 41.45 RCW; adding a new section to chapter 41.50 RCW; creating new sections; decodifying RCW 41.40.094; repealing RCW 41.40.650; and providing effective dates.", and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

MOTION

Senator Fraser moved that the Senate concur in the House amendments to Engrossed Substitute Senate Bill No. 6530.

Debate ensued.

The President declared the question before the Senate to be the motion by Senator Fraser to concur in the House amendments to Engrossed Substitute Senate Bill No. 6530.

The motion by Senator Fraser carried and the Senate concurred in the House amendments to Engrossed Substitute Senate Bill No. 6530.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 6530, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6530, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 47.

Excused: Senators Finkbeiner and Sellar - 2.

ENGROSSED SUBSTITUTE SENATE BILL NO. 6530, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

March 9, 2000

MR. PRESIDENT:

The House has passed ENGROSSED HOUSE BILL NO. 3068, and the same is herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the fifth order of business.

INTRODUCTION AND FIRST READING OF HOUSE BILL

EHB 3068 by Representatives Kessler, Hankins, Delvin, Mastin, Grant, Linville and G. Chandler.

Exempting privatization contracts for the treatment of radioactive waste and hazardous substances from property taxes.

MOTION

On motion of Senator Betti Sheldon the rules were suspended, Engrossed House Bill No. 3068 was advanced to second reading and placed on the second reading calendar.

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the sixth order of business.

MOTION

On motion of Senator Eide, Senator Snyder was excused.

SECOND READING

ENGROSSED HOUSE BILL NO. 3068, by Representatives Kessler, Hankins, Delvin, Mastin, Grant, Linville and G. Chandler.

Exempting privatization contracts for the treatment of radioactive waste and hazardous substances from property taxes.

The bill was read the second time.

MOTION

On motion of Senator Hale, the rules were suspended, Engrossed House Bill No. 3068 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 3068.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed House Bill No. 3068 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 2; Absent, 0; Excused, 3.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, West, Winsley, Wojahn and Zarelli - 44.

Voting nay: Senators Jacobsen and Thibaudeau - 2.

Excused: Senators Finkbeiner, Sellar and Snyder - 3.

ENGROSSED HOUSE BILL NO. 3068, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

There being no objection, the President returned the Senate to the fourth order of business.

MESSAGES FROM THE HOUSE

March 9, 2000

MR. PRESIDENT:

The House concurred in the Senate amendment(s) to ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2420 and passed the bill as amended by the Senate.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

March 9, 2000

MR. PRESIDENT:

The House concurred in the Senate amendment(s) to SUBSTITUTE HOUSE BILL NO. 2460 and passed the bill as amended by the Senate.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

March 9, 2000

MR. PRESIDENT:

The Co-Speakers have signed:

SUBSTITUTE HOUSE BILL NO. 2392,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2420,

SUBSTITUTE HOUSE BILL NO. 2491,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2675,

SUBSTITUTE HOUSE BILL NO. 2850, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

March 9, 2000

MR. PRESIDENT:

The House has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 3128, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

March 9, 2000

MR. PRESIDENT:

The House has passed ENGROSSED SENATE BILL NO. 6858, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

SUBSTITUTE HOUSE BILL NO. 2392,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2420,

SUBSTITUTE HOUSE BILL NO. 2491,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2675,

SUBSTITUTE HOUSE BILL NO. 2850.

SIGNED BY THE PRESIDENT

The President signed:

ENGROSSED SENATE BILL NO. 6858.

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the fifth order of business.

INTRODUCTION AND FIRST READING OF HOUSE BILL

ESHB 3128 by House Committee on Finance (originally sponsored by Representatives Thomas, Dunshee and Santos) (by request of Department of Revenue)

Authorizing the governor to enter into cooperative agreements concerning the sales of cigarettes.

MOTIONS

On motion of Senator Betti Sheldon the rules were suspended, Engrossed Substitute House Bill No. 3128 was advanced to second reading and placed on the second reading calendar.

On motion of Senator Betti Sheldon, the Senate advanced to the sixth order of business.

SECOND READING

ENGROSSED SUBSTITUTE HOUSE BILL NO. 3128, by House Committee on Finance (originally sponsored by Representatives Thomas, Dunshee and Santos) (by request of Department of Revenue)

Authorizing the governor to enter into cooperative agreements concerning the sales of cigarettes.

The bill was read the second time.

MOTION

On motion of Senator Tim Sheldon, the rules were suspended, Engrossed Substitute House Bill No. 3128 was advanced to third reading the second reading considered the third and the bill was placed on final passage.

POINT OF ORDER

Senator Wojahn: “A point of order, Mr. President. I do not believe that this bill is properly before us. It did not pass out of the House until after the cutoff. It is not needed to make up the budget. Therefore, I believe that it is improperly before the body.”

RULING BY THE PRESIDENT

President Owen: “In ruling upon the point of order by Senator Wojahn, the President finds that the last paragraph of Senate Concurrent Resolution No. 8421 provides that no bills may be considered after the fifty-fourth day except with certain exceptions. Engrossed Substitute House Bill No. 3128 does not fall within those exceptions.

“Therefore, the President finds that Engrossed Substitute House Bill No. 3128 does not fall within those exceptions and the point of order is well taken.”

The President ruled that Engrossed Substitute House Bill No. 3128 was not properly before the Senate.

MOTION

On motion of Senator Goings, further consideration of Engrossed Substitute House Bill No. 3128 was deferred and the bill held its place on the third reading calendar.

MOTION

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

INTRODUCTION AND FIRST READING OF HOUSE BILL

EHB 2760 by Representatives Quall, Carlson, Lovick, Constantine, Regala, Haigh, Tokuda, Linville, Keiser, Stensen, Conway, Wood, Morris, Kenney and Ogden (by request of Governor Locke)

Promoting standards for educator quality.

MOTION

On motion of Senator Betti Sheldon the rules were suspended, Engrossed House Bill No. 2760 was advanced to second reading and placed on the second reading calendar.

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the sixth order of business.

SECOND READING

ENGROSSED HOUSE BILL NO. 2760, by Representatives Quall, Carlson, Lovick, Constantine, Regala, Haigh, Tokuda, Linville, Keiser, Stensen, Conway, Wood, Morris, Kenney and Ogden (by request of Governor Locke)

Promoting standards for educator quality.

The bill was read the second time.

MOTION

On motion of Senator McAuliffe, the rules were suspended and Engrossed House Bill No. 2760 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

POINT OF ORDER

Senator Heavey: “A point of order, Mr. President. I believe that Reed’s Rules provide that no member may engage in conversation while another member is speaking and I am guilty of that very often, but I think we have a number of members that are guilty of that tonight.”

REPLY BY THE PRESIDENT

President Owen: “The fact is you are right. As we read, Reed’s Rules prohibits reading of papers, the talking while another member is talking, the moving around, the standing in front of, the walking in front of. Some of those rules have been violated a little bit this evening. The President would appreciate it if we would be a little bit careful of those matters and stay a little bit closer to the rules, so that the people speaking can be heard and respected.”

Further debate ensued.

POINT OF ORDER

Senator McAuliffe: “A point of order. I would ask that the Senator please speak to the bill.”

REPLY BY THE PRESIDENT

President Owen: “Senator Swecker--”

Further debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 2760.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed House Bill No. 2760 and the bill passed the Senate by the following vote: Yeas, 36; Nays, 11; Absent, 0; Excused, 2.

Voting yea: Senators Bauer, Brown, Costa, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Honeyford, Horn, Jacobsen, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, Oke, Patterson, Prentice, Rasmussen, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Thibaudeau, West, Winsley, Wojahn and Zarelli - 36.

Voting nay: Senators Benton, Deccio, Hochstatter, Johnson, McDonald, Morton, Roach, Rossi, Sheahan, Stevens and Swecker - 11.

Excused: Senators Finkbeiner and Sellar - 2.

ENGROSSED HOUSE BILL NO. 2760, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act earlier today.

There being no objection, the Senate resumed consideration of Senate Joint Memorial No. 8030, deferred after the rules were suspended and the memorial placed on the second reading calendar.

SECOND READING

SENATE JOINT MEMORIAL NO. 8030, by Senators Fraser, Spanel, Swecker, Jacobsen, Eide, Morton and McAuliffe

Petitioning Congress to amend the Oil Pollution Act of 1990 to grant additional authority to states and to strengthen federal tanker, large cargo, and passenger vessel safety standards.

The joint memorial was read the second time.

MOTION

On motion of Senator Fraser, the rules were suspended, Senate Joint Memorial No. 8030 was advanced to third reading, the second reading considered the third and the joint memorial was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Senate Joint Memorial No. 8030.

ROLL CALL

The Secretary called the roll on the final passage of Senate Joint Memorial No. 8030 and the joint memorial passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 47.

Excused: Senators Finkbeiner and Sellar - 2.

SENATE JOINT MEMORIAL NO. 8030, having received the constitutional majority, was declared passed.

There being no objection, the President returned the Senate to the fourth order of business.

MESSAGE FROM HOUSE

March 9, 2000

MR. PRESIDENT:

The House has passed SUBSTITUTE SENATE BILL NO. 6525 with the following amendment(s):

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. In order to help reduce the current backlog of applications for changes, transfers, or amendments of existing water rights, the legislature intends to allow the processing of applications for such changes, transfers, or amendments without regard to possible impairment of pending applications for new water rights. While the legislature intends to assist the processing of such changes, transfers, and amendments, it does not intend to divert the department of ecology's efforts or in any other way deter the processing of applications for new water rights.

NEW SECTION. Sec. 2. A new section is added to chapter 90.03 RCW to read as follows:

(1) The department may process and render decisions on an application for change independently from processing and making decisions on pending applications for new water rights from the same water source without regard to the dates on which the applications for the new rights were filed.

(2) Except as provided in this section, the department and a water conservancy board shall process applications for change from the same water source in the order in which they were filed with the department or the board. The exceptions are:

(a) The proposed change would alleviate a public health and safety emergency or otherwise preserve public health and safety or would authorize an emergency withdrawal under RCW 43.83B.410;

(b) There is insufficient information to render a decision on a senior application or applications for change, and the information cannot be obtained in a timely manner;

(c) The proposed change was filed by a claimant in a water rights adjudication, and a decision is needed expeditiously to ensure that orders or decrees of the superior court will be representative of the current water situation;

(d) The proposed change will move a point of diversion or withdrawal, or replace a diversion with a withdrawal, or replace a withdrawal with a diversion, or change the season of use, when it assists in the recovery of fish listed under the federal endangered species act as threatened or endangered;

(e) The proposed change or group of changes will result in providing public water supplies for at least one city and one town or at least two cities and will meet the general needs of the public for a regional area; or

(f) The proposed change is for the purposes of RCW 90.03.390.

(3) The department, any other state agency, or a water conservancy board shall not require an applicant to give any part of an applicant's valid right or claim to a state agency, to the trust water rights program, or to other parties.

(4) The department may adopt rules to implement this section, but such rules must strictly adhere to the provisions of this section.

(5) Pending applications for new water rights are not entitled to protection from impairment or given priority for any available water if the department or a water conservancy board processes an application for change from the same water source. New water rights issued after an application for change is approved from the same water source are not entitled to protection from impairment or priority for any available water in relation to the changed, transferred, or amended water right regardless of the dates on which the applications were filed with the department or the board.

(6) Notice of an application for a change of a water right must be published for the same period and in the same manner as prescribed for an application for a permit by RCW 90.03.280 in the county or counties in which water for the right is withdrawn or diverted and used, although the department may also post notice of the application on the internet at an electronic site containing other departmental information. The department or water conservancy board shall consider all comments received in writing by mail or personal delivery that are received within thirty days of the date of the last newspaper publication of the notice required under RCW 90.03.280.

(7) As used in this section:

(a) "Change of a water right" or "change" means a change or transfer of a water right referred to in RCW 90.03.380 or 90.03.390 or an amendment referred to in RCW 90.44.100 or 90.44.105; and

(b) "Water conservancy board" or "board" means a water conservancy board created under chapter 90.80 RCW."

Correct the title., and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

POINT OF ORDER

Senator Kline: “I rise to a point of order, Mr. President. The point of order concerns the House striking amendment to Substitute Senate Bill No. 6525 and particularly whether it is within the scope and object of the underlying bill. The underlying bill addresses the process and prioritizes the applications for transfers of water rights. The House amendment expands beyond that and they give the Water Conservancy Board the authority, which is new authority, to make changes as well as transfers. Those are two terms of art. They also--the current statutory authority is to process voluntary transfers between water users. The new authority has nothing to do with prioritizing the processing, but is rather a new statutory authority altogether. I urge the President to find this beyond the scope and object of the underlying bill.”

PARLIAMENTARY INQUIRY

Senator Snyder: “I don’t necessarily rise only on this bill, but I think it is on the process. I think the presiding officer in the other House ruled that this is within the scope and object of the underlying bill and I just wonder if we would be setting a precedent here or if we have had rulings in the past that would let this house determine what the other house has already decided.”

REPLY BY THE PRESIDENT

President Owen: “Senator Snyder, in researching the previous rulings, we have found that both houses are autonomous and neither house is bound by the other house rulings.”

Further debate ensued.

MOTION

On motion of Senator Betti Sheldon, further consideration of Substitute Senate Bill No. 6525 was deferred and the bill held its place on the calendar.

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the fifth order of business

INTRODUCTION AND FIRST READING

SCR 8432 by Senator Tim Sheldon

Making exceptions to cutoff dates.

MOTION

On motion of Senator Betti Sheldon the rules were suspended, Senate Concurrent Resolution No. 8432 was advanced to second reading and placed on the second reading calendar.

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the sixth order of business.

SECOND READING

SENATE CONCURRENT RESOLUTION NO. 8432, by Senator Tim Sheldon

Making exceptions to cutoff dates.

The concurrent resolution was read the second time.

WHEREAS, Senate Concurrent Resolution No. 8421 established cutoff dates for consideration of legislation during the 2000 Regular Session of the Fifty-Sixth Legislature;

NOW, THEREFORE, BE IT RESOLVED, By the Senate of the State of Washington, the House of Representatives concurring, That the cutoff dates established in Senate Concurrent Resolution No. 8421 do not apply to Engrossed Substitute House Bill No. 3128.

MOTION

Senator Tim Sheldon moved that the rules be suspended and Senate Concurrent Resolution No. 8432 be advanced to third reading the second reading considered the third and the concurrent resolution be placed on final passage.

PARLIAMENTARY INQUIRY

Senator Hargrove: “Mr. President, I would like the opportunity to offer an amendment to this concurrent resolution.”

REPLY BY THE PRESIDENT

President Owen: “Senator Hargrove, for your information as to where we are--to make it clear--Senator Tim Sheldon has made the motion to suspend the rules and advance the bill. The only way that you could make an amendment at this time would be to defeat the motion or Senator Sheldon would have to withdraw the motion.”

Senator Hargrove: “This concurrent resolution just hit our desks a few seconds ago. Many of us were unaware that this was coming. How would we have had time to prepare amendments for second reading?”

PERSONAL PRIVILEGE

Senator Franklin: “A point of personal privilege, Mr. President. I--”

REPLY BY THE PRESIDENT

President Owen: “Senator Franklin, if you are going to talk about the measure before us, that is really not a point of personal privilege.”

Senator Franklin: “All right. Thank you, Mr. President.”

Debate ensued.

FURTHER REMARKS BY THE PRESIDENT

President Owen: “Senator Hargrove, the procedures that were used were within the rules. The opportunity was there to object to the suspension of the rules to advance the bill--not at this point--but to advance it on to second reading in the first place or to hold it at second reading and amend it. You still have the opportunity to either defeat the motion or to have the motion withdrawn.”

Senator Hargrove demanded a roll call.

PARLIAMENTARY INQUIRY

Senator Fraser: “A point of parliamentary inquiry, Mr. President. What is the motion that is before us?”

REPLY BY THE PRESIDENT

President Owen: “At this point, Senator Hargrove has demanded a roll call on whether or not to suspend the rules and advance the concurrent resolution to third reading and final passage. I am waiting to find out if one-sixth of the members sustain the demand for a roll call. The demand was not sustained.”

The President declared the question before the Senate is the motion by Senator Tim Sheldon to suspend the rules and advance Senate Concurrent Resolution No. 8432 to third reading and final passage.

Further debate ensued.

PARLIAMENTARY INQUIRY

Senator Hargrove: “Mr. President, may I ask how many votes it takes for this suspension of the rules?”

RULING BY THE PRESIDENT

President Owen: “Senator Hargrove, within ten days of SINE DIE, it takes a simple majority.”

The President declared the question before the Senate to be the motion by Senator Tim Sheldon to suspend the rules and advance Senate Concurrent Resolution No. 8432 to third reading and final passage.

The motion by Senator Tim Sheldon carried and the rules were suspended and Senate Concurrent Resolution No. 8432 was placed on third reading, the second reading considered the third and the concurrent resolution was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Senate Concurrent Resolution No. 8432.

ROLL CALL

The Secretary called roll on the final passage of Senate Concurrent Resolution No. 8432 and the concurrent resolution passed the Senate by the following vote: Yeas, 43; Nays, 4; Absent, 0; Excused, 2.

Voting yea: Senators Bauer, Benton, Brown, Costa, Deccio, Fairley, Fraser, Gardner, Goings, Hale, Haugen, Heavey, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kline, Kohl-Welles, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Oke, Patterson, Prentice, Rasmussen, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 43.

Voting nay: Senators Eide, Franklin, Hargrove and Wojahn - 4.

Excused: Senators Finkbeiner and Sellar - 2.

SENATE CONCURRENT RESOLUTION NO. 8432, having received the constitutional majority, was declared passed.

MOTION

On motion of Senator Goings, Senate Concurrent Resolution No. 8432 was immediately transmitted to the House of Representatives.

PARLIAMENTARY INQUIRY

Senator Snyder: “A parliamentary inquiry, Mr. President. Will it be necessary for the resolution that we just passed to pass the House and have a message returned from the House of Representatives that they have passed the resolution before we can consider the underlying bill?”

REPLY BY THE PRESIDENT

President Owen: “The President finds that it has been the tradition to pass a cutoff exemption resolution together with a Senate Bill. Whether the same is true of a House Bill is a case of first impression. The President finds that both bodies must first pass a cutoff exemption resolution before the Senate can pass a House measure that is not exempt. Otherwise, the Senate could pass the bill, it would go to the Governor and the cutoff resolution would be meaningless. The answer is ‘yes.’”

MOTION

On motion of Senator Betti Sheldon, the Senate reverted to the fourth order of business.

MESSAGE FROM HOUSE

March 9, 2000

MR. PRESIDENT:

The House has passed SECOND SUBSTITUTE SENATE BILL NO. 5802, and the same is herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

SECOND SUBSTITUTE SENATE BILL NO. 5802.

SIGNED BY THE PRESIDENT

The President signed:

ENGROSSED SUBSTITUTE SENATE BILL NO. 6530.

MOTION

At 8:20 p.m., on motion of Senator Betti Sheldon, the Senate was declared to be at ease.

The Senate was called to order at 8:57 p.m. by President Owen.

There being no objection, the Senate resumed consideration of Substitute Senate Bill No. 6525, deferred on second reading earlier today.

RULING BY THE PRESIDENT

President Owen: “In ruling upon the point of order by Senator Kline to the scope and object of the House striking amendment to Substitute Senate Bill No. 6525, the President finds that Substitute Senate Bill No. 6525 is a measure which establishes a new method of processing applications for changes and transfers of water rights to help reduce the current backlog of such applications.

“The House amendment would also establish a new method of processing applications for changes and transfers of water rights; albeit in a more detailed fashion.

“The President, therefore, finds that the House striking amendment does not change the scope and object of the bill, and the point of order is not well taken.”

The President ruled that Substitute Senate Bill No. 6525 to be in order.

MOTION

Senator Honeyford moved that the Senate concur in the House amendment to Substitute Senate Bill No. 6525.

POINT OF ORDER

Senator Thibaudeau: “A point of order, Mr. President. I would like to request a ruling on whether this bill is properly before us. First, the bill did not pass the House prior to the cutoff for passage of Senate Bills. Second, the bill is not necessary to implement the budget and this is one of the criteria that the President has delineated earlier. Therefore, Mr. President, I urge you to determine that this bill is not properly before the Senate at this time.”

Debate ensued.

RULING BY THE PRESIDENT

President Owen: “Senator Thibaudeau, the President finds that the cutoff resolution clearly states that after the fifty-fourth day the Senate may take up messages between the Houses and matters of differences between the Houses. In considering the House amendment to Substitute Senate Bill No. 6525, we are considering a matter of difference between the Houses. The measure is, therefore, properly before us.”

The President ruled that Substitute Senate Bill No. 6525 to be properly before the Senate.

The President declared the question before the Senate to be the motion by Senator Honeyford that the Senate concur in the House amendments to Substitute Senate Bill No. 6525.

REMARKS BY SENATOR FRASER

Senator Fraser: “Thank you, Mr. President, and members of the Senate. With reluctance, because of the hour and the day of the session, I need to urge you to vote ‘no.’ We all want a good little water bill. We all want a bill that will make changes and transfers easier for everybody. That is what the Senate sent over twice. What we have received back is quite different and I think that generated some of the prior points that were raised. This bill does give additional authority to Water Conservancy Boards. You have to decide for yourself if that is a good idea or a bad idea. I think there are a number of provisions in this amendment that is before us that create a great deal of confusion in processing water rights.

“We all know our water code is very complicated. Virtually every word either has been or will be litigated. I don’t think the people of the state want us to create further confusion, but I think that will be a sad outcome of this. I could go on, but I won’t. That is probably enough on the substance.

“I would also like to comment on the process. This amendment with all it complexities that affect thousands of people around the state was made available for review by its authors at noon today. So, here we are with a very complicated, potentially very high stakes water bill - translate water as gold--that people all over the state have not had a chance to review. I would echo the comments of the good Senator from the Twenty-ninth District that were made earlier, ‘This is not the right way to do the people’s business.’ We should have more transparency and opportunity for democratic participation when we do a significant water bill.

“I think we will have other opportunities this year to work on water bills. I think we should collaborate and come up with a good water bill we can all agree on. In the meantime, because of the great controversy that this is generating now and will generate, if it is passed, I urge a ‘no’ vote.”

POINT OF INQUIRY

Senator Tim Sheldon: “Senator Honeyford, on page 1, line 23, do the words ‘department and a water conservancy board shall process applications for change’ mean that they both must process the same application or does it mean that the applicant may go to either the department or a water conservancy board, where one exits?”

Senator Honeyford: “This bill is designed to be consistent with the underlying statute related to water conservancy boards. In the underlying statute, Chapter 90.80 RCW, an applicant for a water right change or transfer may choose to apply with the department or a conservancy board. This measure is an extension of that current authority. Under no circumstances would the application have to be processed by both the department and a water conservancy board.”

POINT OF ORDER

Senator Fraser: “Mr. President, this is a point of order that I have never raised before and I am not sure I have heard it raised before, but if I understand the colloquy that was just given, it appears to me--I don’t have a written copy of it--but it sounded like they were trying to make a point to interpret the bill differently than what it reads. So, I would like to make that point that the colloquy that was stated--perhaps I should look at a written copy--but it appears to attempt to rewrite the underlying bill and I object to that.”

PARLIAMENTARY INQUIRY

Senator Heavey: “A point of parliamentary inquiry, Mr. President. I understand that because the bill has been amended by the House that it is now in dispute and is here for concurrence. When this day started, it had not been addressed by the House and assuming it wasn’t necessary to implement the budget--just because no motion was made challenging it--we now allow it to violate the cutoff resolution. Is that the ruling?”

RULING BY THE PRESIDENT

President Owen: “No, Senator, it is not. It is the opinion of the President that it does not violate the cutoff resolution as written.”

REMARKS BY SENATOR FRASER

Senator Fraser: “Mr. President, I would like to ask that my remarks be added to the record of the day.”

REPLY BY THE PRESIDENT

President Owen: “They will be--the point of order that you made.”

REMARKS BY SENATOR SWECKER

Senator Swecker: “Thank you, Mr. President. I rise to speak in favor of concurrence if that is appropriate at this time. Ladies and gentlemen, I think it is time that we do something in this state that we put off for a very long time. In order for us to have a future in this state, a future for economic development, a future for growth, a future for economizing on the way we use our water. What we have to have is a mechanism to move water to the most appropriate use. That is, we have to take existing water rights and convert them to new things--things like agriculture and things like home development, things like instream flows, all kinds of kinds of new strategies. With the problems we have with the Endangered Species Act, there is not much hope on the horizon anymore for new water rights for people, because there just isn’t enough water at this time to pass around.

“If we really want to move ahead, we have to find strategies to use the water that we have in more efficient, more effective and more appropriate manners. We can’t freeze water use in this state at any point in time and right now, because we haven’t any decent mechanism to move water from one water right holder to a new water right holder, we are basically frozen in time and we are losing time rapidly. In my district, where we have mostly rural uses, rural activities, things have changed radically. We don’t have the timber industry anymore. We are producing different kinds of agriculture products. The dairy industry is going away; we are looking for new products to fill new niches--new strategies for producing things. Our population is growing, hopefully, under the control of things like the Growth Management Act. We just have to have a method to move water to its most appropriate use.

“I think this is the first step in that process. Maybe, it is not perfect, but it is the first step. I think we need to move ahead with this and then continue to prefect the process over the years as time goes on. I’m pleading with you, on behalf of my constituents to please give us the chance to take opportunities and make something of our lives. I urge your support.”

REMARKS BY SENATOR KLINE

Senator Kline: “Thank you, Mr. President. The purposes of the use of water, which the good Senator has just mentioned, are certainly a good idea. We certainly cannot freeze the use of water as he eloquently put it. The underlying bill would not have done that. We now have a striker which does something considerably more than that. I think in pointing to that, I would like to have some consistency among those

of this body who have constantly sought to stop the bureaucratization of our legislative power--who have not wanted to see our legislative power vested in the bureaucracy. One Senator, in particular, is very adamant about this. I would like to test his, and there are others, consistency. This bill does exactly that. It gives power to the Water Conservancy Board to administer, not simply transfers of water rights, which are relatively simple--for which people ought to be able to go to the head of a different line--but also to administer changes in water rights--that is changes of the point of diversion--changes of the amount--changes of the place or the nature of use. These are a much bigger animal and a much more environmentally sensitive animal. To allow this to go to the bureaucracy, rather than to maintain it as a legislative power, I believe is wrong.

“Many others in this body, typically on the other side of this aisle, have in other contexts, argued the same thing. Is there consistency here? Are we going to continuously give to the bureaucracy the power to administer a legislative right? Now, I will be the first to agree that consistency is the hobgoblin of little minds, but there is an element here that I think is not addressed by those who seek to make changes in water rights freer and easier to grant. This is a very important and very typically legislative matter. We have it in our power now. It is in the current water law. It is the Department of Ecology’s own right to do that. It is not dispersed to Water Conservancy Boards across the state that have no particular expertise in that, nor have they demonstrated any great adeptness at that. Yet, we are about to do it. I ask the members who have consistently sought not to bureaucratize that right to address that issue. Thank you and I certainly urge a ‘no’ vote on the underlying bill. Thank you.”

REMARKS BY SENATOR MORTON

Senator Morton: “Thank you, Mr. President, and ladies and gentlemen of the Senate. Mr. President, I would like to read a sentence, with your permission, from a letter that several of us received a few hours ago from the Governor, concerning this specific bill. Then I would like to comment on an answer to that. Ladies and gentlemen of the Senate, one sentence from the Governor’s letter, which troubled me says, ‘This bill would create two lines for water right applications and allow water right changes to be processed ahead of applications for new water.’ “I talked then, Mr. President, with the Director of Ecology as has been referenced by the Senator from the Thirty-seventh District, and he agreed to resolve this with a short--very short--letter. The contents of which I would like to share with the body and I think it might answer some of the questions as deliberate upon the matter in which they are going to vote.

“This is signed by Tom Fitzsimmons, the Director of Ecology. It reads, ‘Dear Senator Morton, I appreciate your concern about whether or not the Department of Ecology will continue to process new water right applications, subsequent to the passage of Substitute Senate Bill No. 6525. I assure you it is our intent to continue to process all applications for water, whether they be changes, transfers, or for new appropriations.’ With this, I felt somewhat satisfied, because I was deeply concerned that as we established, what has been called two lines--I personally think it more like three lines--but as these lines may be established that only the one line would be administered and followed and the other one for new water right applications would be left untouched. I feel now some assurance with this letter from the Governor’s administrative office through the Department of Ecology, that both lines will be addressed. I think that is important for us to have as an item out here on the floor in your consideration. I am going, therefore, to vote for this bill. Thank you.”

STATE OF WASHINGTON

DEPARTMENT OF ECOLOGY

P. O. Box 47600, Olympia, Washington 98504-7600

March 9, 2000

The Honorable Bob Morton

Washington State Senator

P.O. Box 40482

Olympia,WA 98504-9482

Dear Senator Morton:

I appreciate your concern about whether or not the Department of Ecology will continue to process new water right applications, subsequent to the passage of Substitute Senate Bill No. 6525. I assure you it is our intent to continue to process all applications for water, whether they be changes, transfers, or for new appropriations.

Thank you for bringing your concern to my attention.

Sincerely,

TOM FITZIMMONS, Director

MOTION BY SENATOR JOHNSON

Senator Johnson: “I move that the remarks by the Senator from the Seventh District, including the reference--the letter from the Department of Ecology, be placed in the Journal.”

REMARKS BY THE PRESIDENT

President Owen: “Senator Johnson has moved that the remarks by Senator Morton be spread upon the Journal. If there are no objections--Senator Johnson has moved that the remarks by Senator Morton be spread upon the Journal and the letter from the Department of Ecology be included, as well. All those in favor, will signify by saying ‘aye.’ Those opposed ‘no.’ The ‘ayes’ appear to have it--the ‘ayes’ have it, the motion carries.”

MOTION BY SENATOR SNYDER

Senator Snyder: “Thank you, Mr. President. I feel to have the proper understanding of the debate that went on here today, I believe we should include all the debate and remarks made on this bill, so I would so move that all remarks on Substitute Senate Bill No. 6525 be spread upon the Journal.”

REMARKS BY THE PRESIDENT

President Owen: “Senator Snyder has moved that all remarks on Substitute Senate Bill No. 6525 be spread upon the Journal. If there are not objections, so ordered.”

POINT OF INQUIRY

Senator Rasmussen: “Senator Honeyford, now knowing that this is going to be spread upon the Journal, I would like to be articulate and I probably can’t. However, my concern is and in the last colloquy, you have said that it could be one or the other. It could either be the Conservancy Board or the Department of Ecology. Is that not true?”

Senator Honeyford: “That is correct, but as I understand the underlying law is that all actions of the Conservancy Board have to be approved by the Department of Ecology.”

Senator Rasmussen: “Okay, maybe that makes me feel a little bit better, but may I perhaps ask if--what I am concerned about is our underlying private property rights, which include water rights. While I know that some industries, whatever, would like to jump forward in the process, because they may be transferring that water to a use that the Conservancy Board, which is appointed by the counties, may want. “Let’s just use for a little example--I have a company called ‘Lonestar’ that is in Pierce County. They have a substantial amount of water rights that they need in the processing of gravel. If the Conservancy Board says ‘Aha, we’ll transfer that water right that you use in your company and use it for municipal,’ it is almost like a conflict of interest. I am not sure that my private property rights, as part of being on either the same aquifer or whatever would be secure under those types of scenarios.

“Now, that is not saying that if the Conservancy Boards would happen to do this without another overall factor such as the Department of Ecology having the final say. If that is the case, as the Senator from the Fifteenth District said, then I may have a little better feeling towards this bill. I do believe in the two line system, but I don’t want to give up my water rights for the benefit of a municipality or another entity and I think that is one of my biggest concerns.”

DEMAND FOR THE PREVIOUS QUESTION

Senators Snyder, Franklin and Betti Sheldon demanded the previous question and the demand was sustained.

The President declared the question before the Senate to be shall the main question be now put.

The demand for the previous question carried

The President declared the question before the Senate to be the motion by Senator Honeyford that the Senate do concur in the House amendments to Substitute Senate Bill No. 6525.

The motion by Senator Honeyford to concur in the House amendments to Substitute Senate Bill No. 6525 carried on a rising vote.

POINT OF ORDER

Senator Heavey: “A point of order, Mr. President. Let me see if I can articulate this. The cutoff resolution says that after the fifty-fourth day the bills with certain exceptions are not supposed to be considered, except those that are amended and those that are in dispute. I would submit that that applies to bills that were put into dispute or amended prior to the fifty-fourth day. So, therefore, even though it was amended today, this bill is out of order and I believe that is the ruling of prior Presidents and I would encourage your ruling in that direction.”

RULING BY THE PRESIDENT

President Owen: “Senator Heavey, if the rule said, ‘Messages pertaining to amendments, matters and differences between the two houses that are placed in dispute by the fiftieth day,’ you would have a point well taken. The rule does not say that. Therefore, the President must interpret the rule as the rule is written. Your point is not well taken.”

MOTION BY SENATOR PATTERSON

Senator Patterson: “I move that there be a democratic caucus immediately.”

REPLY BY THE PRESIDENT

President Owen: “Senator Patterson has moved that there be a democratic--Senator Patterson, the President is not familiar with such a motion. Are you asking for a recess?”

Senator Patterson: “I withdraw that motion and I move that the Senate be at ease subject to the call of the President.”

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

The President declared the question before the Senate to be the roll call on the motion by Senator Patterson that the Senate be at ease subject to the call of the President.”

ROLL CALL

The Secretary called the roll and the motion to go at ease carried by the following vote: Yeas, 25; Nays, 22; Absent, 0; Excused, 2.

Voting yea: Senators Bauer, Brown, Costa, Eide, Fairley, Franklin, Fraser, Gardner, Goings, Hargrove, Haugen, Heavey, Jacobsen, Kline, Kohl-Welles, Loveland, McAuliffe, Patterson, Prentice, Rasmussen, Sheldon, B., Snyder, Spanel, Thibaudeau and Wojahn - 25. Voting nay: Senators Benton, Deccio, Hale, Hochstatter, Honeyford, Horn, Johnson, Long, McCaslin, McDonald, Morton, Oke, Roach, Rossi, Sheahan, Sheldon, T., Shin, Stevens, Swecker, West, Winsley and Zarelli - 22. Excused: Senators Finkbeiner and Sellar - 2.

MOTION

At 9:38 p.m., on motion of Senator Patterson, the Senate was declared to be at ease.

The Senate was called to order at 10:06 p.m. by President Owen.

MOTION

On motion of Senator Snyder, Substitute Senate Bill No. 6525 will hold its place on the concurrence calendar.

MESSAGES FROM HOUSE

March 9, 2000

MR. PRESIDENT:

The House has adopted SENATE CONCURRENT RESOLUTION NO. 8432, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

March 9, 2000

MR. PRESIDENT:

The Co-Speakers have signed:

SUBSTITUTE HOUSE BILL NO. 2460,

ENGROSSED HOUSE BILL NO. 2760,

ENGROSSED HOUSE BILL NO. 3068, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

March 9, 2000

MR. PRESIDENT:

The Co-Speakers have signed:

SECOND SUBSTITUTE SENATE BILL NO. 5802,

SUBSTITUTE SENATE BILL NO. 6062,

SUBSTITUTE SENATE BILL NO. 6194,

SUBSTITUTE SENATE BILL NO. 6255,

SUBSTITUTE SENATE BILL NO. 6277,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6530,

SUBSTITUTE SENATE BILL NO. 6531,

SENATE BILL NO. 6534,

SUBSTITUTE SENATE BILL NO. 6621,

SENATE BILL NO. 6775,

SUBSTITUTE SENATE BILL NO. 6781,

ENGROSSED SENATE BILL NO. 6858,

ENGROSSED SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8425, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

SUBSTITUTE HOUSE BILL NO. 2460,

ENGROSSED HOUSE BILL NO. 2760,

ENGROSSED HOUSE BILL NO. 3068.

SIGNED BY THE PRESIDENT

The President signed:

SENATE CONCURRENT RESOLUTION NO. 8432.

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the fifth order of business.

INTRODUCTION AND FIRST READING

SCR 8430 by Senators Snyder and West

Transmitting measure to the house of origin.

SCR 8431 by Senators Snyder and West

Adjourning SINE DIE.

MOTION

On motion of Senator Betti Sheldon, the rules were suspended, Senate Concurrent Resolution No. 8430 and Senate Concurrent Resolution No. 8431 were advanced to second reading and placed on the second reading calendar.

MOTION

On motion of Senator Betti Sheldon, the Senate advanced to the sixth order of business.

SECOND READING

SENATE CONCURRENT RESOLUTION NO. 8430, by Senators Snyder and West

Transmitting measures to the house of origin.

The concurrent resolution was read the second time.

MOTION

On motion of Senator Betti Sheldon, the rules were suspended, Senate Concurrent Resolution No. 8430 was advanced to third reading, the second reading considered the third and the concurrent resolution was placed on final passage and adopted.

SENATE CONCURRENT RESOLUTION NO. 8430 was adopted by voice vote.

SECOND READING

SENATE CONCURRENT RESOLUTION NO. 8431, by Senators Snyder and West

Adjourning SINE DIE.

The concurrent resolution was read the second time.

MOTION

On motion of Senator Betti Sheldon, the rules were suspended, Senate Concurrent Resolution No. 8431 was advanced to third reading, the second reading considered the third and the concurrent resolution was placed on final passage and adopted.

SENATE CONCURRENT RESOLUTION NO. 8431 was adopted by voice vote.

MOTION

Under the provisions of Senate Concurrent Resolution No. 8430, on motion of Senator Betti Sheldon, the following House Bills were returned to the House of Representatives:

ENGROSSED HOUSE BILL NO. 1085,

SECOND ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1059,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1210,

HOUSE BILL NO. 1383,

HOUSE BILL NO. 1579,

SUBSTITUTE HOUSE BILL NO. 1945,

ENGROSSED HOUSE BILL NO. 1968,

SUBSTITUTE HOUSE BILL NO. 1990,

SUBSTITUTE HOUSE BILL NO. 2060,

ENGROSSED HOUSE BILL NO. 2120,

SUBSTITUTE HOUSE BILL NO. 2326,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2331,

HOUSE BILL NO. 2341,

HOUSE BILL NO. 2342,

SECOND SUBSTITUTE HOUSE BILL NO. 2359,

SECOND SUBSTITUTE HOUSE BILL NO. 2364,

HOUSE BILL NO. 2365,

ENGROSSED HOUSE BILL NO. 2396,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2409,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2439,

HOUSE BILL NO. 2440,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2451,

SUBSTITUTE HOUSE BILL NO. 2453,

HOUSE BILL NO. 2456,

SUBSTITUTE HOUSE BILL NO. 2457,

SUBSTITUTE HOUSE BILL NO. 2461,

SUBSTITUTE HOUSE BILL NO. 2462,

HOUSE BILL NO. 2464,

SUBSTITUTE HOUSE BILL NO. 2476,

SUBSTITUTE HOUSE BILL NO. 2477,

SUBSTITUTE HOUSE BILL NO. 2481,

HOUSE BILL NO. 2498,

SUBSTITUTE HOUSE BILL NO. 2513,

SUBSTITUTE HOUSE BILL NO. 2542,

HOUSE BILL NO. 2580,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2582,

SUBSTITUTE HOUSE BILL NO. 2608,

SUBSTITUTE HOUSE BILL NO. 2614,

HOUSE BILL NO. 2662,

SUBSTITUTE HOUSE BILL NO. 2667,

SUBSTITUTE HOUSE BILL NO. 2671,

SUBSTITUTE HOUSE BILL NO. 2673,

SUBSTITUTE HOUSE BILL NO. 2678,

HOUSE BILL NO. 2683,

SUBSTITUTE HOUSE BILL NO. 2685,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2712,

SUBSTITUTE HOUSE BILL NO. 2719,

SUBSTITUTE HOUSE BILL NO. 2729,

HOUSE BILL NO. 2733,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2735,

SECOND SUBSTITUTE HOUSE BILL NO. 2738,

SUBSTITUTE HOUSE BILL NO. 2767,

HOUSE BILL NO. 2771,

SUBSTITUTE HOUSE BILL NO. 2772,

SUBSTITUTE HOUSE BILL NO. 2803,

SUBSTITUTE HOUSE BILL NO. 2819,

HOUSE BILL NO. 2832,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2847,

SUBSTITUTE HOUSE BILL NO. 2858,

HOUSE BILL NO. 2861,

SUBSTITUTE HOUSE BILL NO. 2863,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2872,

SUBSTITUTE HOUSE BILL NO. 2874,

HOUSE BILL NO. 2920,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2929,

HOUSE BILL NO. 2931,

ENGROSSED HOUSE BILL NO. 2946,

SECOND SUBSTITUTE HOUSE BILL NO. 3016,

HOUSE BILL NO. 3028,

SUBSTITUTE HOUSE BILL NO. 3124,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 3128,

SUBSTITUTE HOUSE JOINT MEMORIAL NO. 4018,

SUBSTITUTE HOUSE JOINT MEMORIAL NO. 4020,

HOUSE JOINT MEMORIAL NO. 4023,

HOUSE CONCURRENT RESOLUTION NO. 4407.

MOTION

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

MESSAGES FROM THE HOUSE

March 9, 2000

MR. PRESIDENT:

The Co-Speakers have signed SENATE CONCURRENT RESOLUTION NO. 8432, and the same is herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

March 9, 2000

MR. PRESIDENT:

The House has adopted:

SENATE CONCURRENT RESOLUTION NO. 8430,

SENATE CONCURRENT RESOLUTION NO. 8431, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

SENATE CONCURRENT RESOLUTION NO. 8430,

SENATE CONCURRENT RESOLUTION NO. 8431.

MESSAGE FROM THE HOUSE

March 9, 2000

MR. PRESIDENT:

Under the provisions of Senate Concurrent Resolution No. 8431, the House herewith returns the following Senate Bills to the Senate:

ENGROSSED SUBSTITUTE SENATE BILL NO. 5019,

SUBSTITUTE SENATE BILL NO. 5027,

SENATE BILL NO. 5033,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5049,

SENATE BILL NO. 5053,

SUBSTITUTE SENATE BILL NO. 5065,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5074,

SENATE BILL NO. 5084,

SENATE BILL NO. 5100,

SUBSTITUTE SENATE BILL NO. 5103,

SUBSTITUTE SENATE BILL NO. 5112,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5121,

SENATE BILL NO. 5123,

SUBSTITUTE SENATE BILL NO. 5132,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5212,

SENATE BILL NO. 5291,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5295,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5331,

SUBSTITUTE SENATE BILL NO. 5340,

SENATE BILL NO. 5341,

SUBSTITUTE SENATE BILL NO. 5349,

SUBSTITUTE SENATE BILL NO. 5378,

SENATE BILL NO. 5445,

SUBSTITUTE SENATE BILL NO. 5453,

SENATE BILL NO. 5464,

ENGROSSED SENATE BILL NO. 5490,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5540,

SENATE BILL NO. 5542,

SENATE BILL NO. 5570,

SENATE BILL NO. 5575,

ENGROSSED SENATE BILL NO. 5580,

ENGROSSED THIRD SUBSTITUTE SENATE BILL NO. 5598,

SUBSTITUTE SENATE BILL NO. 5604,

SUBSTITUTE SENATE BILL NO. 5607,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5611,

SUBSTITUTE SENATE BILL NO. 5641,

SECOND SUBSTITUTE SENATE BILL NO. 5659,

SENATE BILL NO. 5664,

ENGROSSED SENATE BILL NO. 5665,

SUBSTITUTE SENATE BILL NO. 5704,

SUBSTITUTE SENATE BILL NO. 5718,

SUBSTITUTE SENATE BILL NO. 5733,

ENGROSSED SENATE BILL NO. 5816,

THIRD SUBSTITUTE SENATE BILL NO. 5848,

SENATE BILL NO. 5862,

SUBSTITUTE SENATE BILL NO. 5874,

SUBSTITUTE SENATE BILL NO. 5881,

SENATE BILL NO. 5920,

SUBSTITUTE SENATE BILL NO. 5921,

SENATE BILL NO. 5944,

SECOND SUBSTITUTE SENATE BILL NO. 5953,

SECOND SUBSTITUTE SENATE BILL NO. 6004,

SUBSTITUTE SENATE BILL NO. 6008,

SUBSTITUTE SENATE BILL NO. 6034,

SENATE BILL NO. 6037,

SUBSTITUTE SENATE BILL NO. 6117,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6152,

SENATE BILL NO. 6157,

SENATE BILL NO. 6158,

SECOND SUBSTITUTE SENATE BILL NO. 6167,

SENATE BILL NO. 6168,

SENATE BILL NO. 6174,

SENATE BILL NO. 6201,

SUBSTITUTE SENATE BILL NO. 6202,

SUBSTITUTE SENATE BILL NO. 6207,

SENATE BILL NO. 6211,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6212,

SUBSTITUTE SENATE BILL NO. 6214,

SENATE BILL NO. 6216,

SUBSTITUTE SENATE BILL NO. 6219,

SENATE BILL NO. 6225,

SUBSTITUTE SENATE BILL NO. 6229,

ENGROSSED SENATE BILL NO. 6232,

ENGROSSED SENATE BILL NO. 6234,

SENATE BILL NO. 6238,

SECOND SUBSTITUTE SENATE BILL NO. 6241,

ENGROSSED SENATE BILL NO. 6250,

ENGROSSED SENATE BILL NO. 6252,

SENATE BILL NO. 6256,

SENATE BILL NO. 6257,

SUBSTITUTE SENATE BILL NO. 6259,

SUBSTITUTE SENATE BILL NO. 6263,

SENATE BILL NO. 6272,

SUBSTITUTE SENATE BILL NO. 6273,

SENATE BILL NO. 6274,

SENATE BILL NO. 6280,

SUBSTITUTE SENATE BILL NO. 6284,

SUBSTITUTE SENATE BILL NO. 6292,

SUBSTITUTE SENATE BILL NO. 6293,

SUBSTITUTE SENATE BILL NO. 6296,

SENATE BILL NO. 6298,

SUBSTITUTE SENATE BILL NO. 6304,

SUBSTITUTE SENATE BILL NO. 6310,

SUBSTITUTE SENATE BILL NO. 6328,

SENATE BILL NO. 6330,

SENATE BILL NO. 6331,

SUBSTITUTE SENATE BILL NO. 6333,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6354,

SENATE BILL NO. 6362,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6363,

ENGROSSED SENATE BILL NO. 6364,

SUBSTITUTE SENATE BILL NO. 6365,

SUBSTITUTE SENATE BILL NO. 6367,

SENATE BILL NO. 6368,

SECOND SUBSTITUTE SENATE BILL NO. 6369,

SUBSTITUTE SENATE BILL NO. 6383,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6391,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6395,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6396,

SUBSTITUTE SENATE BILL NO. 6399,

SUBSTITUTE SENATE BILL NO. 6401,

ENGROSSED SENATE BILL NO. 6402,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6404,

SUBSTITUTE SENATE BILL NO. 6411,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6416,

SENATE BILL NO. 6417,

ENGROSSED SENATE BILL NO. 6418,

SUBSTITUTE SENATE BILL NO. 6419,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6432,

SUBSTITUTE SENATE BILL NO. 6439,

ENGROSSED SENATE BILL NO. 6441,

SUBSTITUTE SENATE BILL NO. 6442,

ENGROSSED SENATE BILL NO. 6446,

ENGROSSED SENATE BILL NO. 6448,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6462,

SENATE BILL NO. 6463,

SUBSTITUTE SENATE BILL NO. 6464,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6478,

SUBSTITUTE SENATE BILL NO. 6479,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6499,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6513,

SENATE BILL NO. 6515,

SENATE BILL NO. 6518,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6524,

SENATE BILL NO. 6532,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6533,

ENGROSSED SENATE BILL NO. 6537,

SUBSTITUTE SENATE BILL NO. 6540,

SENATE BILL NO. 6547,

SUBSTITUTE SENATE BILL NO. 6548,

SENATE BILL NO. 6549,

SUBSTITUTE SENATE BILL NO. 6552,

SUBSTITUTE SENATE BILL NO. 6554,

SUBSTITUTE SENATE BILL NO. 6558,

SUBSTITUTE SENATE BILL NO. 6568,

SENATE BILL NO. 6579,

SUBSTITUTE SENATE BILL NO. 6586,

SENATE BILL NO. 6600,

ENGROSSED SENATE BILL NO. 6606,

ENGROSSED SENATE BILL NO. 6613,

ENGROSSED SENATE BILL NO. 6617,

SUBSTITUTE SENATE BILL NO. 6618,

SUBSTITUTE SENATE BILL NO. 6626,

SUBSTITUTE SENATE BILL NO. 6645,

SUBSTITUTE SENATE BILL NO. 6664,

SENATE BILL NO. 6666,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6668,

ENGROSSED SENATE BILL NO. 6677,

SUBSTITUTE SENATE BILL NO. 6680,

SUBSTITUTE SENATE BILL NO. 6682,

SUBSTITUTE SENATE BILL NO. 6686,

SENATE BILL NO. 6688,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6690,

ENGROSSED SENATE BILL NO. 6696,

SENATE BILL NO. 6700,

SENATE BILL NO. 6703,

SENATE BILL NO. 6713,

SENATE BILL NO. 6714,

SUBSTITUTE SENATE BILL NO. 6715,

SUBSTITUTE SENATE BILL NO. 6722,

SUBSTITUTE SENATE BILL NO. 6724,

SENATE BILL NO. 6743,

SUBSTITUTE SENATE BILL NO. 6749,

SENATE BILL NO. 6760,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6773,

SUBSTITUTE SENATE BILL NO. 6792,

ENGROSSED SENATE BILL NO. 6805,

ENGROSSED SENATE BILL NO. 6825,

SENATE BILL NO. 6829,

SENATE BILL NO. 6845,

SUBSTITUTE SENATE BILL NO. 6856,

SENATE JOINT MEMORIAL NO. 8020,

SENATE JOINT MEMORIAL NO. 8025,

SENATE JOINT MEMORIAL NO. 8030,

SECOND SUBSTITUTE SENATE JOINT RESOLUTION NO. 8205,

SENATE JOINT RESOLUTION NO. 8212,

ENGROSSED SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8418,

ENGROSSED SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8422,

SENATE CONCURRENT RESOLUTION NO. 8426, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Co-Chief Clerk

TIMOTHY A. MARTIN, Co-Chief Clerk

March 9,2000

MR. PRESIDENT:

The Co-Speakers have signed:

SENATE CONCURRENT RESOLUTION NO. 8430,

SENATE CONCURRENT RESOLUTION NO. 8431, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk

MOTION

On motion of Senator Betti Sheldon, the Senate Journal for the sixtieth day of the 2000 Regular Session of the Fifty-sixth Legislature was approved.

Vice President Pro Tempore Bauer assumed the Chair.

MOTION

At 10:21 p.m., on motion of Senator Betti Sheldon, the 2000 Regular Session of the Fifty-sixth Legislature adjourned SINE DIE.

BRAD OWEN, President of the Senate

TONY M. COOK, Secretary of the Senate