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FIFTY EIGHTH LEGISLATURE - REGULAR SESSION

___________________________________________________________________________________________

SIXTY SIXTH DAY

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House Chamber, Olympia, Wednesday, March 19, 2003

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

The flags were escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Jordan Bridges and Amanda Biddle. Prayer was offered by Reverend Jen Grewell, St. Benedict's Episcopal Church, Lacey.

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

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

SECOND READING

HOUSE BILL NO. 1640, By Representatives Linville, Hinkle, Grant, Chandler, Eickmeyer and Hankins

Authorizing water banking within the trust water program.

The bill was read the second time. There being no objection, Substitute House Bill No. 1640 was substituted for House Bill No. 1640 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 1640 was read the second time.

Representative Hinkle moved the adoption of amendment (291):

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 90.42.005 and 1991 c 347 s 1 are each amended to read as follows:

(1) It is the policy of the state of Washington to recognize and preserve water rights in accordance with RCW 90.03.010.

(2) The legislature finds that:

(a) The state of Washington is faced with a shortage of water with which to meet existing and future needs, particularly during the summer and fall months and in dry years when the demand is greatest;

(b) Consistent with RCW 90.54.180, issuance of new water rights, voluntary water transfers, and conservation and water use efficiency programs, including storage, ((should be the preferred)) all are acceptable methods of addressing water uses because they can relieve current critical water situations, provide for presently unmet needs, and assist in meeting future water needs. Presently unmet needs or current needs includes the water required to increase the frequency of occurrence of base or minimum flow levels in streams of the state, the water necessary to satisfy existing water rights, or the water necessary to provide full supplies to existing water systems with current supply deficiencies; ((and))

(c) The interests of the state and its citizens will be served by developing programs and regional water resource plans, in cooperation with local governments, federally recognized tribal governments, appropriate federal agencies, private citizens, and the various water users and water interests in the state, that increase the overall ability to manage the state's waters in order to resolve conflicts and to better satisfy both present and future needs for water; and

(d) Water banking as a function of the trust water program and as authorized by this chapter can provide an effective means to facilitate the voluntary transfer of water rights established through conservation, purchase, lease, or donation, to preserve water rights and provide water for presently unmet and future needs; and to achieve a variety of water resource management objectives throughout the state, including drought response, improving streamflows on a voluntary basis, providing water mitigation, or reserving water supply for future uses.

NEW SECTION. Sec. 2. A new section is added to chapter 90.42 RCW to read as follows:

(1) The department is hereby authorized to use the trust water rights program in the Yakima river basin for water banking purposes.

(2) Water banking may be used for one or more of the following purposes:

(a) To authorize the use of trust water rights to mitigate for water resource impacts, future water supply needs, or any beneficial use under chapter 90.03, 90.44, or 90.54 RCW, consistent with any terms and conditions established by the transferor, except that return flows from water rights authorized in whole or in part for any purpose shall remain available as part of the Yakima basin's total water supply available and to satisfy existing rights for other downstream uses and users;

(b) To document transfers of water rights to and from the trust water rights program; and

(c) To provide a source of water rights the department can make available to third parties on a temporary or permanent basis for any beneficial use under chapter 90.03, 90.44, or 90.54 RCW.

(3) The department shall not use water banking to:

(a) Cause detriment or injury to existing rights;

(b) Issue temporary water rights or portions thereof for new potable uses requiring an adequate and reliable water supply under RCW 19.27.097;

(d) Allow carryover of stored water from one water year to another water year.

NEW SECTION. Sec. 3. A new section is added to chapter 90.42 RCW to read as follows:

(1) The department, with the consent of the water right holder, may identify trust water rights for administration for water banking purposes, including trust water rights established before the effective date of this section.

(2) An application to transfer a water right to the trust water program shall be reviewed under RCW 90.03.380 at the time the water right is transferred to the trust water program for administration for water banking purposes, and notice of the application shall be published by the applicant as provided under RCW 90.03.280. The application must identify reasonably forseeable future temporary or permanent beneficial uses for which the water right or portion thereof may be used by a third party upon transfer from the trust water right program. In the event the future place of use, period of use, or other elements of the water right are not specifically identified at the time of the transfer into the trust water program, another review under RCW 90.03.380 will be necessary at the time of a proposed transfer from the trust water program.

NEW SECTION. Sec. 4. A new section is added to chapter 90.42 RCW to read as follows:

(1) The department shall transfer a water right or portion thereof being administered for water banking purposes from the trust water program to a third party upon occurrence of all of the following:

(a) The department receives a request for transfer of a water right or portion thereof currently administered by the department for water banking purposes;

(b) The request is consistent with any previous review under RCW 90.03.380 of the water right and future temporary or permanent beneficial uses;

(c) The request is consistent with any condition, limitation, or agreement affecting the water right, including but not limited to any trust water right transfer agreement executed at the time the water right was transferred to the trust water rights program; and

(d) The request is accompanied by and is consistent with an assignment of interest or portion thereof from a person or entity retaining an interest in the trust water right or portion thereof to the party requesting transfer of the water right or portion thereof.

(2) The priority date of the water right or portion thereof transferred by the department from the trust water program for water banking purposes shall be the priority date of the underlying water right.

(3) The department shall issue documentation for that water right or portion thereof to the new water right holder based on the requirements applicable to the transfer of other water rights from the trust water rights program.

(4) The department's decision on the transfer of a water right or portion thereof from the trust water program for water banking purposes may be appealed to the pollution control hearings board under RCW 43.21B.230, or to a superior court conducting a general adjudication under RCW 90.03.210.

NEW SECTION. Sec. 5. A new section is added to chapter 90.42 RCW to read as follows:

(1) The department shall seek input from agricultural organizations, federal agencies, tribal governments, local governments, watershed groups, conservation groups, and developers on water banking, including water banking procedures and identification of areas in Washington state where water banking could assist in providing water supplies for instream and out-of-stream uses. The department shall summarize any comments received on water banking and submit a report, including any recommendations, to the appropriate committees of the legislature for their consideration in the subsequent legislative session.

(2) By December 31st of every even-numbered year, the department shall submit a report to the appropriate committees of the legislature on water banking activities authorized under section 2 of this act. The report shall:

(a) Evaluate the effectiveness of water banking in meeting the policies and objectives of this chapter;

(b) Describe any statutory, regulatory, or other impediments to water banking in other areas of the state; and

(c) Identify other basins or regions that may benefit from authorization for the department to use the trust water program for water banking purposes.

NEW SECTION. Sec. 6. A new section is added to chapter 90.42 RCW to read as follows:

Nothing in this act shall:

(1) Cause detriment or injury to existing rights or to the operation of the federal Yakima project to provide water for irrigation purposes, existing water supply contracts, or existing water rights;

(2) Diminish in any way existing rights or the total water supply available for irrigation and other purposes in the Yakima basin; or

(3) Affect or modify the authority of a court conducting a general adjudication pursuant to RCW 90.03.210.

NEW SECTION. Sec. 7. Nothing in this act may be construed to:

(1) Affect or modify any treaty or other federal rights of an Indian tribe, or the rights of any federal agency or other person or entity arising under state or federal law;

(2) Affect or modify the rights or jurisdictions of the United States, the state of Washington, the Yakama Nation, or other person or entity over waters of any river or stream or over any ground water resource;

(3) Alter, amend, repeal, interpret, modify, or be in conflict with any interstate compact made by the states;

(4) Alter, establish, or impair the respective rights of states, the United States, the Yakama Nation, or any other person or entity with respect to any water or water-related right;

(5) Alter, diminish, or abridge the rights and obligations of any federal, state, or local agency, the Yakama Nation, or other person or entity;

(6) Affect or modify the rights of the Yakama Indian Nation or its successors in interest to, and management and regulation of, those water resources arising or used, within the external boundaries of the Yakama Indian Reservation;

(7) Affect or modify the settlement agreement between the United States and the state of Washington filed in Yakima county superior court with regard to federal reserved water rights other than those rights reserved by the United States for the benefit of the Yakama Indian Nation and its members; or

(8) Affect or modify the rights of any federal, state, or local agency, the Yakama Nation, or any other person or entity, public or private, with respect to any unresolved and unsettled claims in any water right adjudications, or court decisions, including State v. Acquavella, or constitute evidence in any such proceeding in which any water or water-related right is adjudicated.

NEW SECTION. Sec. 8. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

Correct the title.

Representatives Hinkle and Linville spoke in favor of the adoption of the amendment.

The amendment was adopted. The bill was ordered engrossed

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Linville, Schoesler, Hinkle and Linville (again), spoke in favor of passage of the bill.

Representative Holmquist spoke against the passage of the bill.

MOTION

On motion of Representative Clements, Representative McDonald was excused. On motion of Representative Santos, Representative Gombosky was excused.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 1640.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1640 and the bill passed the House by the following vote: Yeas - 91, Nays - 5, Absent - 0, Excused - 2.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Berkey, Blake, Buck, Cairnes, Campbell, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Edwards, Eickmeyer, Ericksen, Flannigan, Fromhold, Grant, Haigh, Hankins, Hatfield, Hinkle, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Pearson, Pettigrew, Pflug, Priest, Quall, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, Simpson, Skinner, Sommers, Sullivan, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 91.

Voting nay: Representatives Boldt, Bush, Crouse, Holmquist and Sump - 5.

Excused: Representatives Gombosky and McDonald - 2.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1640, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 1462, By Representatives Morris, Cairnes, Gombosky, Ruderman, Nixon, Ericksen, Miloscia, Anderson, Wallace, Benson, Newhouse, Tom, Chandler, Orcutt, Woods, McMahan, Talcott and Campbell

Prohibiting local governments from imposing business and occupation tax on intellectual property.

The bill was read the second time. There being no objection, Substitute House Bill No. 1462 was substituted for House Bill No. 1462 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 1462 was read the second time.

Representative Morris moved the adoption of amendment (309):

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 35.21 RCW to read as follows:

(1) A city may not impose a gross receipts tax on intellectual property creating activities.

(2) A city may impose a gross receipts tax measured by gross receipts from royalties only on taxpayers domiciled in the city. For the purposes of this section, "royalties" does not include gross receipts from casual or isolated sales as defined in RCW 82.04.040, grants, capital contributions, donations, or endowments.

(3) This section does not prohibit a city from imposing a gross receipts tax measured by the value of products manufactured in the city merely because intellectual property creating activities are involved in the design or manufacturing of the products. An intellectual property creating activity shall not constitute an activity defined within the meaning of the term "to manufacture" under chapter 82.04 RCW.

(4) This section does not prohibit a city from imposing a gross receipts tax measured by the gross proceeds of sales made in the city merely because intellectual property creating activities are involved in creation of the articles sold.

(5) This section does not prohibit a city from imposing a gross receipts tax measured by the gross income received for services rendered in the city merely because intellectual property creating activities are some part of services rendered.

(6) A tax in effect on January 1, 2002, is not subject to this section until January 1, 2004.

(7) The definitions in this subsection apply to this section.

(a) "Gross receipts tax" means a tax measured by gross proceeds of sales, gross income of the business, or value proceeding or accruing.

(b) "City" includes cities, code cities, and towns.

(c) "Domicile" means the principal place from which the trade or business of the taxpayer is directed and managed. A taxpayer has only one domicile.

(d) "Intellectual property creating activity" means research, development, authorship, creation, or general or specific inventive activity without regard to whether the intellectual property creating activity actually results in the creation of patents, trademarks, trade secrets, subject matter subject to copyright, or other intellectual property.

(e) "Manufacture," "gross proceeds of sales," "gross income of the business," "value proceeding or accruing," and "royalties" have the same meanings as under chapter 82.04 RCW.

(f) "Value of products" means the value of products as determined under RCW 82.04.450."

Representatives Morris, Cairnes and McIntire spoke in favor of the adoption of the amendment.

The amendment was adopted. The bill was ordered engrossed.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Morris, Cairnes, McIntire and Benson spoke in favor of passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 1462.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1462 and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Berkey, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Edwards, Eickmeyer, Ericksen, Flannigan, Fromhold, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Pearson, Pettigrew, Pflug, Priest, Quall, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 96.

Excused: Representatives Gombosky and McDonald - 2.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1462, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 1865, By Representatives Cody, Campbell, Morrell, Schual-Berke, Kenney, Haigh, Conway and Santos

Improving patient safety practices.

The bill was read the second time. There being no objection, Second Substitute House Bill No. 1865 was substituted for House Bill No. 1865 and the second substitute bill was placed on the second reading calendar.

SECOND SUBSTITUTE HOUSE BILL NO. 1865 was read the second time.

With the consent of the House, amendment (243) was withdrawn.

Representative Cody moved the adoption of amendment (314):

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that thousands of patients are injured each year in the United States as a result of medical errors, and that a more comprehensive approach than looking only at the fault of individual practitioners is needed to effectively reduce the incidence of medical errors in our health care system. Incentives should be available to encourage health care providers, facilities, and health carriers to engage in proven patient safety and medical error reduction efforts. Investments in proven strategies can reduce medical errors, and thereby potentially reduce the need for disciplinary actions against licensed health care professionals and facilities, and the frequency and severity of medical malpractice claims. By authorizing contributions to fund proven patient safety and medical error reduction strategies through a patient safety program, the legislature intends to positively influence the safety and quality of care provided in Washington state's health care system.

NEW SECTION. Sec. 2. A new section is added to chapter 7.70 RCW to read as follows:

An injured claimant who receives a settlement or judgment in any action for damages based upon injuries resulting from health care may contribute a portion of that settlement or judgment to the department of health for deposit into the patient safety account established in section 5 of this act for the patient safety activities authorized in section 3 of this act. Proceeds of the contributions will be distributed by the department of health in the form of grants, loans, or other appropriate arrangements to support strategies that have been proven to reduce medical errors and enhance patient safety.

NEW SECTION. Sec. 3. A new section is added to chapter 43.70 RCW to read as follows:

Proceeds from the contributions authorized in section 2 of this act shall be administered by the department of health, in consultation with established patient safety coalitions. Upon receipt of at least one hundred thousand dollars in contributions under section 2 of this act or grants or other funds under section 4 of this act, patient safety proceeds will be distributed in the form of grants, loans, or other appropriate arrangements to support strategies that have been proven to reduce medical errors and enhance patient safety. In developing criteria for the award of grants, loans, or other funding arrangements under this section, the department shall:

(1) Consult with established patient safety coalitions and health care workers engaged in direct patient care activities; and

(2) Rely heavily upon evidence-based practices that have been shown to improve patient safety and have been identified and recommended by governmental and private organizations, including but not limited to:

(a) The federal agency for health care quality and research;

(b) The federal institute of medicine;

(d) The national quality forum.

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

The secretary may solicit and accept grants or other funds from public and private sources to support patient safety and medical error reduction efforts under this act. Any grants or funds received may be used to enhance these activities as long as program standards established by the secretary are maintained.

NEW SECTION. Sec. 5. A new section is added to chapter 43.70 RCW to read as follows:

The patient safety account is created in the custody of the state treasurer. All receipts from contributions authorized in section 2 of this act must be deposited into the account. Expenditures from the account may be used only for the purposes of this act. Only the secretary or the secretary's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION. Sec. 6. A new section is added to chapter 43.70 RCW to read as follows:

By December 1, 2006, the department shall report the following information to the governor and the health policy and fiscal committees of the legislature:

(1) The amount of contributions deposited to date in the patient safety account;

(2) The criteria for distribution of grants and loans under this act; and

(3) A description of the medical error reduction and patient safety grants and loans distributed to date, including their desired objectives, activities, timelines, and any available information on outcomes.

NEW SECTION. Sec. 7. A new section is added to chapter 43.131 RCW to read as follows:

The patient safety program shall be terminated December 31, 2008, as provided in section 8 of this act.

NEW SECTION. Sec. 8. A new section is added to chapter 43.131 RCW to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective December 31, 2009:

(1) Section 2 of this act;

(2) Section 3 of this act;

(3) Section 4 of this act;

(4) Section 5 of this act; and

(5) Section 6 of this act."

Correct the title.

Representatives Cody and Pflug spoke in favor of the adoption of the amendment.

The amendment was adopted. The bill was ordered engrossed.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Cody, Pflug, Campbell and Clements spoke in favor of passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Engrossed Second Substitute House Bill No. 1865.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 1865 and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

Excused: Representatives Gombosky and McDonald - 2.

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1865, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 1557, By Representatives McDermott, Ericksen, Simpson, Armstrong, Lovick, Campbell, Sullivan, Dickerson, Cody and Santos

Collecting voter-approved taxes by a city transportation authority.

The bill was read the second time. There being no objection, Substitute House Bill No. 1557 was substituted for House Bill No. 1557 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 1557 was read the second time.

With the consent of the House, amendment (198) was withdrawn.

Representative Dickerson moved the adoption of amendment (281):

On page 4, line 7, after "schedules." strike all material through "analysis." on line 8, and insert "To assist the panel in conducting its activities and analysis, the authority shall provide the panel all authority materials regarding financial risk analysis, materials associated with the interlocal agreement between the city and the authority, and any other materials related to the design, construction, operation, and financing of the public monorail transportation facility."

Representatives Dickerson and Ericksen spoke in favor of the adoption of the amendment.

The amendment was adopted.

With the consent of the House, amendments (158) and (184) were withdrawn.

The bill was ordered engrossed.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives McDermott, Ericksen and Armstrong spoke in favor of passage of the bill.

Representative McIntire spoke against the passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 1557.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1557 and the bill passed the House by the following vote: Yeas - 82, Nays - 15, Absent - 0, Excused - 1.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Chase, Cody, Condotta, Conway, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Eickmeyer, Ericksen, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Newhouse, O'Brien, Orcutt, Pflug, Priest, Quall, Roach, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tom, Wallace, Woods and Mr. Speaker - 82.

Voting nay: Representatives Berkey, Clements, Clibborn, Cooper, Edwards, Kristiansen, McIntire, Murray, Nixon, Pearson, Pettigrew, Rockefeller, Upthegrove, Veloria and Wood - 15.

Excused: Representative McDonald - 1.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1557, having received the necessary constitutional majority, was declared passed.

There being no objection, the House reverted to the fifth order of business.

REPORTS OF STANDING COMMITTEES

March 8, 2003

HB 2044 Prime Sponsor, Representative Hunter: Changing the school district levy base calculation. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass. Signed by Representatives Sommers, Chairman; Fromhold, Vice Chairman; Cody; Conway; Dunshee; Grant; Hunter; Kagi; Kenney; McIntire; Miloscia; Pflug; Ruderman and Schual-Berke.

MINORITY recommendation: Do not pass. Signed by Representatives Sehlin, Ranking Minority Member; Pearson, Assistant Ranking Minority Member; Alexander; Boldt; Buck; Clements; Cox; DeBolt; Kessler; Linville; McDonald; Sump and Talcott.

There being no objection, HOUSE BILL NO. 2044 was placed on Second Reading.

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

SECOND READING

HOUSE BILL NO. 1065, By Representatives Conway, Kenney, Wood, Hudgins, McCoy, Sullivan and Simpson

Establishing apprenticeship utilization requirements for public works projects.

The bill was read the second time. There being no objection, Second Substitute House Bill No. 1065 was substituted for House Bill No. 1065 and the second substitute bill was placed on the second reading calendar.

SECOND SUBSTITUTE HOUSE BILL NO. 1065 was read the second time.

Representative Orcutt moved the adoption of amendment (132):

On page 2, line 21, after "apprentices" insert "if the successful bidder employed fifty or more full-time equivalent employees in the previous year"

On page 2, line 25, after "apprentices" insert "if the successful bidder employed fifty or more full-time equivalent employees in the previous year"

Representative Orcutt spoke in favor of the adoption of the amendment.

Representative Conway spoke against the adoption of the amendment.

An electronic roll call vote was demanded and the demand was sustained.

The Speaker (Representative Lovick presiding) stated the question before the House to be adoption of amendment (132) to Second Substitute House Bill No. 1065.

ROLL CALL

The Clerk called the roll on the adoption of amendment (132) to Second Substitute House Bill No. 1065, and the amendment was not adopted by the following vote: Yeas - 45, Nays - 52, Absent - 0, Excused - 1.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Clements, Condotta, Cox, Crouse, DeBolt, Delvin, Ericksen, Hankins, Hinkle, Holmquist, Jarrett, Kristiansen, Mastin, McMahan, McMorris, Mielke, Newhouse, Nixon, Orcutt, Pearson, Pflug, Priest, Roach, Schindler, Schoesler, Sehlin, Shabro, Skinner, Sump, Talcott, Tom and Woods - 45.

Voting nay: Representatives Berkey, Blake, Chase, Clibborn, Cody, Conway, Cooper, Darneille, Dickerson, Dunshee, Edwards, Eickmeyer, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hatfield, Hudgins, Hunt, Hunter, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, O'Brien, Pettigrew, Quall, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Simpson, Sommers, Sullivan, Upthegrove, Veloria, Wallace, Wood and Mr. Speaker - 52.

Excused: Representative McDonald - 1.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Conway, McCoy, Kenney, Wood, Cooper and Hudgins spoke in favor of passage of the bill.

Representatives Orcutt, McMahan, Mielke, Chandler, Schindler, Schoesler, Boldt, Anderson, Clements and Armstrong spoke against the passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Second Substitute House Bill No. 1065.

ROLL CALL

The Clerk called the roll on the final passage of Second Substitute House Bill No. 1065 and the bill passed the House by the following vote: Yeas - 52, Nays - 45, Absent - 0, Excused - 1.

Voting yea: Representatives Berkey, Blake, Cairnes, Campbell, Chase, Clibborn, Cody, Conway, Cooper, Darneille, Dickerson, Dunshee, Edwards, Eickmeyer, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hudgins, Hunt, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McIntire, Miloscia, Moeller, Morrell, Murray, O'Brien, Pettigrew, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Simpson, Sommers, Sullivan, Upthegrove, Veloria, Wallace, Wood and Mr. Speaker - 52.

Voting nay: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Boldt, Buck, Bush, Carrell, Chandler, Clements, Condotta, Cox, Crouse, DeBolt, Delvin, Ericksen, Hinkle, Holmquist, Hunter, Jarrett, Kristiansen, Mastin, McMahan, McMorris, Mielke, Morris, Newhouse, Nixon, Orcutt, Pearson, Pflug, Priest, Quall, Roach, Schindler, Schoesler, Sehlin, Shabro, Skinner, Sump, Talcott, Tom and Woods - 45.

Excused: Representative McDonald - 1.

SECOND SUBSTITUTE HOUSE BILL NO. 1065, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 1689, By Representatives Linville, Schoesler, Cooper, Chandler, Holmquist and Hatfield

Implementing the federal permit requirements for municipal separate storm sewer system permits.

The bill was read the second time. There being no objection, Substitute House Bill No. 1689 was substituted for House Bill No. 1689 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 1689 was read the second time.

Representative McDermott moved the adoption of amendment (302):

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. INTENT. (1) The legislature finds that the federal clean water act (33 U.S.C. Sec. 1251 et seq.) required large counties and cities in Washington to obtain municipal separate storm sewer system permits under phase one of the national pollutant discharge elimination system permit program. The legislature also finds that under phase two of this program, many other counties and cities in Washington will be required to obtain permits for their systems. The legislature recognizes that the department, as the state agency delegated authority to administer the federal permit program in Washington, is responsible for renewal of the phase one permits and issuance of the phase two permits. The legislature also recognizes that the department must determine whether it is in the state’s interest to integrate these two permit programs and, if so, how to accomplish the integration.

(2) The legislature acknowledges and encourages the appropriate use of flexibility in storm water management. The legislature finds that storm water management must satisfy state and federal water quality requirements while also providing state and local agencies, development interests, and others with a flexible set of tools and alternatives that can help ensure cost-effective storm water management.

(3) The legislature finds that significant fragmentation in authority exists among local, state, and federal agencies in managing storm water and that these agencies can better coordinate standards, practices, and approaches for managing storm water. The legislature believes state agencies and local governments and, where appropriate, federal and tribal governments should identify streamlining opportunities to address and improve coordination of storm water management authority exercised by local, state, and federal jurisdictions.

(4) The legislature further finds that the federal permit programs and the state water pollution control laws provide numerous environmental and public health benefits to the citizens of Washington and to the state. The legislature also finds that storm water runoff can cause or increase pollution in our state’s waters. The legislature further finds that failure to prevent and control pollution discharges, including those associated with storm water runoff, can damage public health and industries, such as shellfish production, for which water quality is a critical component of their existence.

(5) The legislature also finds that implementing these programs involves great effort and significant costs for municipalities. The legislature recognizes that under federal law, municipalities required to obtain permits under phase two of the national pollutant discharge elimination system have up to five years after permit issuance to develop and implement the permit requirements. The legislature finds that as these permits are being developed, the department needs to identify mechanisms by which the state can best achieve environmental benefits from storm water management and satisfy the federal clean water act permit requirements in the most cost-effective manner to address the impacts on municipalities in implementing these permit programs.

(6) The legislature finds that coordinated permit programs and cooperative storm water management programs between and among local governments may reduce costs and enhance program effectiveness.

(7) The legislature finds that a municipal separate storm sewer system faces different challenges than other types of storm sewer systems. The legislature recognizes the difficulty of predicting and sampling storm water pollutants in these systems. The legislature also recognizes the problems inherent in identifying the sources of and controlling the introduction of pollutants that may contribute to the contamination of storm water discharged through municipal separate storm sewer systems. Further, the legislature finds that municipal separate storm sewer systems have distinct characteristics that must be considered when the department develops permit programs to control storm water runoff, including that these systems may:

(a) Consist of complex, widely dispersed conveyance networks that drain public roads and other key elements of infrastructure;

(b) Include numerous inlets and outfalls that can be difficult to locate and maintain;

(d) Receive storm water that has been polluted from a variety of sources.

(8) The legislature recognizes that in 2001 the department developed a stormwater management manual for western Washington. The legislature also recognizes that the department has established a stakeholder process in eastern Washington to develop a stormwater manual for that area of the state. The legislature finds that issues associated with storm water management in eastern Washington are significantly different from those in western Washington. The legislature also finds that the federal phase two permits developed by the department must recognize these differences.

(9) The legislature intends to:

(a) Provide direction to the department and to municipalities regarding the development and implementation of phase two of the federal clean water act’s national pollutant discharge elimination system permit program in Washington;

(b) Recognize the eastern Washington stakeholder process for developing a stormwater manual and direct the department to work within that process when implementing the phase two program in eastern Washington; and

(c) Establish a stakeholder process to assist the department in identifying and addressing issues related to developing and implementing the federal national pollutant discharge elimination system permit programs in western Washington and to advise and assist the department as it drafts these permits.

NEW SECTION. Sec. 2. A new section is added to chapter 90.48 RCW to read as follows:

STANDARDS FOR MUNICIPAL SEPARATE STORM SEWER SYSTEM PERMITS. (1) In accordance with federal and state law, permits for municipal separate storm sewer systems shall require the development, implementation and enforcement of stormwater management programs designed to reduce the discharge of pollutants to the maximum extent practicable, to protect water quality, and to satisfy the appropriate water quality requirements of the federal clean water act and this chapter. Permits issued to municipalities subject to federal regulations implementing phase two of the national pollutant discharge elimination system permit program shall include the following minimum control measures established according to the federal regulations implementing the federal national pollutant discharge elimination system permit program:

(a) Public education and outreach on stormwater impacts;

(b) Public involvement and participation;

(d) Construction site storm water runoff control;

(e) Post-construction stormwater management in new development and redevelopment;

(f) Pollution prevention/good housekeeping for municipal operations, including:

(i) Compliance with any more stringent effluent limitations that modify or are in addition to the federal minimum control measures based on an approved total maximum daily load (TMDL) or equivalent analysis; and

(ii) evaluation of program compliance, the appropriateness of identified best management practices, and progress toward achieving identified measurable goals; and

(g) Appropriate recordkeeping and reporting requirements.

(2) For municipal separate storm sewer system permits, the reduction of pollutants to the maximum extent practicable (MEP) shall be equivalent to all known available and reasonable methods of prevention control and treatment (AKART). In interpreting and implementing these standards with respect to municipal separate storm sewer system permits, the department shall consider:

(a) Factors such as on-site practicability analysis, innovations, incentives for alternative storm water management strategies, and retrofit strategies for existing impervious surfaces within project boundaries; and

(b) Whether the probable benefits are greater than the probable costs, in a manner similar to that required for adoption of significant legislative rules according to RCW 34.05.328(1)(c).

(3) For the purposes of this section, narrative effluent limitations requiring the implementation of best management practices are generally the most appropriate form of effluent limitations when designed to satisfy the requirements of subsection (1) of this section.

NEW SECTION. Sec. 3. A new section is added to chapter 90.48 RCW to read as follows:

WATERSHED-BASED PERMITS. The department is encouraged to consider the development and issuance of permits for municipal separate storm sewer systems on a watershed basis. In determining whether to issue a general permit for municipal separate storm sewer systems by watershed, the department should consider the:

(1) Physical interconnections between and among municipal separate storm sewer systems;

(2) Location of discharges from municipalities required to obtain permits under phase two of the federal national pollutant discharge elimination system permit program relative to discharges from municipalities permitted and operating under phase one of the federal permit system;

(3)Potential for integrating municipalities permitted and operating under phase one of the federal national pollutant discharge elimination system permit program and those that will obtain permits and implement permit requirements under phase two of the federal permit system; and

(3) Relationships between and among municipalities and the potential to encourage and facilitate cooperative and cost-efficient programs for storm water management.

NEW SECTION. Sec. 4. A new section is added to chapter 90.48 RCW to read as follows:

INTERLOCAL COOPERATION. Local governments are encouraged to cooperate with each other, share resources and coordinate actions to develop and implement programs and activities to satisfy the requirements of permits issued to them according to this chapter. This section shall not be interpreted as a requirement for local governments. Nothing in this section shall be construed to alter or create exemptions to the requirements of chapter 39.04 RCW.

NEW SECTION. Sec. 5. A new section is added to chapter 90.48 RCW to read as follows:

WESTERN WASHINGTON PERMIT DEVELOPMENT ADVISORY GROUP. (1) The department shall establish a permit development advisory group for western Washington to advise and assist the department regarding permits for municipal separate storm sewer systems. The advisory group shall work within a facilitated process according to subsection (5) of this section to review the issues identified in section 7 of this act and to make recommendations and submit reports to the legislature according to sections 7 and 8 of this act. The permit development advisory group shall:

(a) Review and address the issues specified in section 7 of this act and any other issues regarding municipal separate storm sewer systems for which the department requests advice and assistance; and

(b) Advise and assist the department in drafting a permit or permits for municipal separate storm sewer systems in western Washington as required by federal regulations implementing phase two of the national pollutant discharge elimination system permit program under the federal clean water act (33 U.S.C. Sec. 1251 et seq.).

(2) The permit development advisory group may include up to 18 members selected according to this subsection and any members electing to participate as provided in subsections (3) and (4) of this section. The permit development advisory group shall include a representative from the department of transportation and from the puget sound action team. In addition, the permit development advisory group shall include at least one representative of each of the following interests, selected by the associations representing those interests:

(a) Counties and cities that have obtained and are operating under a municipal separate storm sewer system permit issued under phase one of the federal national pollutant discharge elimination system permit program;

(b) Counties and cities that will be required to obtain a municipal separate storm sewer system permit issued under phase two of the federal national pollutant discharge elimination system permit program;

(d) Ports;

(e) Realtors;

(f) Residential contractors;

(g) Business;

(h) Shellfish growers;

(i) Agricultural and timber organizations; and

(j) Environmental organizations.

(3) The department shall invite and encourage members of the legislature with interest in storm water management to participate in the permit development advisory group. Legislative members who do participate shall be reimbursed for travel expenses as provided in RCW 44.04.120.

(4) The department shall invite and encourage representatives of appropriate federal agencies and representatives of tribes located in western Washington to participate in the permit development advisory group.

(5) (a) No later than ten days after the effective date of this act, the agencies and interests identified in subsection (2) of this section shall submit to the department the names of their representatives for the permit development advisory group. The department shall schedule the first meeting of the permit development advisory group to occur no later than thirty days after the effective date of this act.

(b) At its first meeting the permit development advisory group shall establish an executive committee with a minimum of three and a maximum of five members. The executive committee shall include representatives of local government, business associations, and environmental organizations. The executive committee shall advise and assist the department to develop a request for proposals for a facilitator to work with and facilitate the advisory group's review of the issues identified in section 7 of this act and to develop recommendations and submit reports to the legislature according to sections 7 and 8 of this act. The executive committee also shall review the responses to the request for proposals and select the facilitator. The department and the executive committee shall work expeditiously to select a facilitator who can begin working with the permit development advisory group by June 1, 2003.

NEW SECTION. Sec. 6. A new section is added to chapter 90.48 RCW to read as follows:

EASTERN WASHINGTON PERMIT DEVELOPMENT. The department shall develop a municipal separate storm sewer system permit or permits that addresses the issues and needs of municipalities operating these systems in eastern Washington. The department shall use the advisory group it has established in eastern Washington to develop a storm water management manual to advise and assist the department regarding permits for municipal separate storm sewer systems to be issued in eastern Washington. The eastern Washington advisory group shall:

(1) Review and address the issues specified in section 7 of this act as they pertain to eastern Washington and any other issues regarding municipal separate storm sewer systems for which the department requests advice and assistance; and

(2) Assist and advise the department in drafting a permit or permits for municipal separate storm sewer systems in eastern Washington as required by federal regulations implementing phase two of the national pollutant discharge elimination system permit program under the federal clean water act (33 U.S.C. Sec. 1251 et seq.).

(4) The department shall invite and encourage representatives of the department of transportation, department of fish and wildlife, business associations, general and residential contractors, environmental organizations, appropriate federal agencies, and representatives of tribes located in eastern Washington to participate in the permit development advisory group.

NEW SECTION. Sec. 7. A new section is added to chapter 90.48 RCW to read as follows:

PERMIT DEVELOPMENT ISSUES. (1) No later than March 1, 2004, the permit development advisory group for western Washington established in section 5 of this act and the eastern Washington storm water management group identified in section 6 of this act shall review and make recommendations to the department regarding the development of permits for municipal separate storm sewer systems. Issues considered by these groups shall include the:

(a) Types of discharges being regulated under these permits;

(b) Areas being regulated by these permits under phases one and two of the federal national pollutant discharge elimination system permit program as they relate to municipal borders;

(d) Coordination of permits and permit requirements for phase one and phase two of the federal national pollutant discharge elimination system permit program;

(e) Application of these permits to ground water discharges;

(f) Level of effort required of municipalities to satisfy federal requirements regarding:

(i) Public education and outreach;

(ii) Public participation and public involvement;

(iii) Illicit discharge detection and elimination;

(iv) Construction site runoff control;

(v) Post-construction runoff control;

(vi) Pollution prevention and good housekeeping, including implementation of applicable total maximum daily loads and program evaluation and reporting;

(g) Protection for shellfish areas;

(h) The use of land use planning and existing land use plans and regulations as a best management practice for storm water management and to protect water quality; and

(i) Potential funding sources for implementation of permit requirements.

(2) During the development of permits according to this chapter, the permit development advisory group for western Washington established in section 5 of this act and the eastern Washington advisory group identified in section 6 of this act shall advise and assist the department to develop a menu of best management practices as required under the federal clean water act (33 U.S.C. Sec. 1251 et seq.). These groups also shall review and provide advice and assistance on the draft permits as they are developed.

(3) In addition, these groups shall consider the requirements of federal and state water pollution control laws and identify whether the elements of these permits are required by federal law, by state law, or by both federal and state law. These groups shall consider the costs and benefits associated with each permit element not required under federal law and make recommendations to the legislature regarding these elements.

(4) These groups shall coordinate efforts with the transportation permit efficiency and accountability committee established by RCW 47.06C.030. These groups also shall build upon the 2000 storm water advisory committee report to the legislature. In addition, these groups shall determine and make recommendations regarding whether the probable benefits of the permits developed according to this chapter are greater than the probable costs in a manner similar to that required for adoption of significant legislative rules according to RCW 34.05.328(1)(c).

NEW SECTION. Sec. 8. A new section is added to chapter 90.48 RCW to read as follows:

REPORTS TO THE LEGISLATURE. (1) No later than December 1, 2003, the department shall submit a progress report regarding the work of the western Washington permit development advisory group established in section 5 of this act and the eastern Washington advisory group identified in section 6 of this act to the appropriate committees of the legislature.

(2) The department shall submit a report regarding the recommendations of the western Washington permit development advisory group established in section 5 of this act and the eastern Washington advisory group identified in section 6 of this act to the appropriate committees of the legislature. In reporting on these groups’ progress, the department shall identify the recommendations made by these groups, list the issues upon which the members of these groups were not able to reach agreement, and reflect the comments of all members of these groups. The department also shall identify any legislative recommendations from these groups or from the department based on the work of these groups.

(3) After the permits are developed according to the process specified in sections 5 and 6 of this act, the department shall submit a final report to the appropriate committees of the legislature regarding these permits and the work of the advisory groups. The department also shall identify any legislative recommendations from these groups or from the department based on the work of these groups.

NEW SECTION. Sec. 9. EXPIRATION. Sections 5 through 8 of this act expire June 30, 2006.

NEW SECTION. Sec. 10. CAPTIONS. As used in this act, captions constitute no part of the law.

NEW SECTION. Sec. 11. SEVERABILITY. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 12. EMERGENCY. 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.

Representatives McDermott and Schoesler spoke in favor of the adoption of the amendment.

The amendment was adopted. The bill was ordered engrossed.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

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

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 1689.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1689 and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Berkey, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Edwards, Eickmeyer, Ericksen, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Pearson, Pettigrew, Pflug, Priest, Quall, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 98.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1689, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 1960, By Representatives Murray, Jarrett, Cooper, Dickerson and Hudgins

Governing regional transportation.

The bill was read the second time. There being no objection, Substitute House Bill No. 1960 was substituted for House Bill No. 1960 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 1960 was read the second time.

With the consent of the House, amendment (263) was withdrawn.

Representative Armstrong moved the adoption of amendment (233):

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature intends to study whether the creation of a Puget Sound regional transportation district governed by an elected board would lead to better use of transportation resources and whether this district would improve transportation planning and governance in the Puget Sound region.

NEW SECTION. Sec. 2. Subject to legislative funding, the legislative transportation committee shall conduct a study to determine whether the creation of a Puget Sound regional transportation district governed by an elected board would lead to better use of transportation resources and whether this district would improve transportation planning and governance in the region. The study shall:

(1) Review current local and regional transportation planning and governance structures located in King, Pierce, Snohomish, and Kitsap counties;

(2) Review the interaction between state transportation planning and governance and the local and regional structures in King, Pierce, Snohomish, and Kitsap counties;

(3) Examine whether an elected board assuming the functions of the current metropolitan planning organization and the current regional transportation planning organization would improve transportation planning;

(4) Examine whether the state should consider delegating state transportation planning for the region to an elected board;

(5) Examine whether an elected board would provide more efficient and accountable governance than the current board of the regional transportation investment district;

(6) Examine how the size of the board, and whether the board was elected by council districts, would influence transportation governance;

(7) Examine the elected board assuming the governance of local transit districts in King, Pierce, Snohomish, and Kitsap counties would provide more efficient transportation governance; and

(8) Examine whether lesser steps than transferral of governing authority over local transit districts or the regional transportation investment district, such as coordination of existing transportation planning, operations, and services, might enhance transportation efficiency.

NEW SECTION. Sec. 3. The legislative transportation committee shall report the results of its study to the transportation committees of the house of representatives and senate by December 10, 2003. The legislative transportation committee may report electronically, and shall post its report on its web site."

Correct the title.

Representatives Armstrong and Murray spoke in favor of the adoption of the amendment.

The amendment was adopted. The bill was ordered engrossed.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Murray, Ericksen and Jarrett spoke in favor of passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 1960.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1960 and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Berkey, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Edwards, Eickmeyer, Ericksen, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Pearson, Pettigrew, Pflug, Priest, Quall, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 98.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1960, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 1928, By Representatives Lantz, Carrell, McMahan, Clibborn, Campbell, Moeller, Schual-Berke, Cody, Newhouse, Morrell, Rockefeller, Kirby, Lovick, Kenney, Linville, Veloria, Conway, Simpson, Sommers and Haigh

Changing provisions relating to parties liable for damages in actions under chapter 7.70 RCW.

The bill was read the second time. There being no objection, Substitute House Bill No. 1928 was substituted for House Bill No. 1928 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 1928 was read the second time.

With the consent of the House, amendment (321) was withdrawn.

Representative Schual-Berke moved the adoption of amendment (175):

On page 2, line 16, after "to" strike everything through "hospital" on line 23 and insert "health care providers as defined in RCW 7.70.020, in all cases governed by chapter 7.70 RCW with respect to judgments for noneconomic damages. In all cases governed by chapter 7.70 RCW, the liability of health care providers"

Representatives Schual-Berke, Carrell, Campbell, Morris, Lantz and Newhouse spoke in favor of the adoption of the amendment.

Representative Kessler spoke against the adoption of the amendment.

The amendment was adopted. The bill was ordered engrossed.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Lantz, Carrell and Schual-Berke spoke in favor of passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 1928.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1928 and the bill passed the House by the following vote: Yeas - 97, Nays - 1, Absent - 0, Excused - 0.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Berkey, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Edwards, Eickmeyer, Ericksen, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Pearson, Pettigrew, Pflug, Priest, Quall, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 97.

Voting nay: Representative Kessler - 1.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1928, having received the necessary constitutional majority, was declared passed.

The Speaker assumed the chair.

HOUSE BILL NO. 1530, By Representatives Grant, Holmquist, Armstrong, Blake, Shabro, Talcott, Ruderman, Schual-Berke, Schoesler, Hinkle, Condotta, Newhouse, Skinner, Sehlin, Bailey, Woods, Kristiansen and Alexander

Changing rules for venue for declaratory judgments under the administrative procedure act.

The bill was read the second time. There being no objection, Substitute House Bill No. 1530 was substituted for House Bill No. 1530 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 1530 was read the second time.

With the consent of the House, amendments (112), (100), (097) and (079) were withdrawn.

Representative Holmquist moved the adoption of amendment (092):

On page 2, line 5, after "Thurston county" insert ", Clark county, Spokane county, Whatcom county,"

Representatives Holmquist and Armstrong spoke in favor of the adoption of the amendment.

Representative Romero spoke against the adoption of the amendment.

The amendment was adopted. The bill was ordered engrossed.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Grant, Holmquist and Armstrong spoke in favor of passage of the bill.

The Speaker stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 1530.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1530 and the bill passed the House by the following vote: Yeas - 83, Nays - 15, Absent - 0, Excused - 0.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Berkey, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Clements, Clibborn, Condotta, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Eickmeyer, Ericksen, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDonald, McIntire, McMahan, McMorris, Mielke, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Pearson, Pettigrew, Pflug, Priest, Quall, Roach, Ruderman, Santos, Schindler, Schoesler, Sehlin, Shabro, Skinner, Sommers, Sullivan, Sump, Talcott, Tom, Veloria, Wallace, Wood, Woods and Mr. Speaker - 83.

Voting nay: Representatives Chase, Cody, Conway, Dickerson, Dunshee, Edwards, Flannigan, Hunt, McDermott, Miloscia, Rockefeller, Romero, Schual-Berke, Simpson, and Upthegrove - 15.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1530, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 1517, By Representatives Cooper, Simpson, Conway, Sullivan and Wallace

Establishing objectives for certain fire department services.

The bill was read the second time. There being no objection, Substitute House Bill No. 1517 was substituted for House Bill No. 1517 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 1517 was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Cooper, Miloscia and Morris spoke in favor of passage of the bill.

Representatives Chandler and Clibborn spoke against the passage of the bill.

The Speaker stated the question before the House to be the final passage of Substitute House Bill No. 1517.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 1517 and the bill passed the House by the following vote: Yeas - 52, Nays - 46, Absent - 0, Excused - 0.

Voting yea: Representatives Berkey, Blake, Cairnes, Campbell, Chase, Cody, Conway, Cooper, Darneille, Delvin, Dickerson, Dunshee, Edwards, Eickmeyer, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hudgins, Hunt, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McIntire, Miloscia, Morrell, Morris, Murray, O'Brien, Pettigrew, Quall, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Simpson, Sommers, Sullivan, Upthegrove, Veloria, Wallace, Wood and Mr. Speaker - 52.

Voting nay: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Boldt, Buck, Bush, Carrell, Chandler, Clements, Clibborn, Condotta, Cox, Crouse, DeBolt, Ericksen, Flannigan, Hinkle, Holmquist, Hunter, Jarrett, Kristiansen, Mastin, McDonald, McMahan, McMorris, Mielke, Moeller, Newhouse, Nixon, Orcutt, Pearson, Pflug, Priest, Roach, Schindler, Schoesler, Sehlin, Shabro, Skinner, Sump, Talcott, Tom and Woods - 46.

SUBSTITUTE HOUSE BILL NO. 1517, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2030, By Representatives Kessler, Cairnes, Talcott, McDonald, Schindler, Shabro, Pearson and Holmquist; by request of Governor Locke

Changing requirements regarding state and local tax to provide for municipal business and occupation tax uniformity and fairness.

The bill was read the second time.

Representative Kessler moved the adoption of amendment (323):

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. LEGISLATIVE FINDINGS AND INTENT. The legislature finds that businesses in Washington are concerned about the potential for multiple taxation that arises due to the various city business and occupation taxes and are concerned about the lack of uniformity among city jurisdictions. The current system has a negative impact on Washington's business climate. The legislature further finds that local business and occupation tax revenue provides a sizable portion of city revenue that is used for essential services. The legislature recognizes that local government services contribute to a healthy business climate.

The legislature intends to provide for a more uniform system of city business and occupation taxes that eliminates multiple taxation, while allowing for some continued local control and flexibility to cities.

NEW SECTION. Sec. 2. MUNICIPAL BUSINESS AND OCCUPATION TAX-- LIMITED SCOPE. This act does not apply to taxes on any service that historically or traditionally has been taxed as a utility business for municipal tax purposes, such as:

(1) A light and power business or a natural gas distribution business, as defined in RCW 82.16.010;

(2) A telephone business, as defined in RCW 82.04.065;

(3) Cable television services;

(4) Sewer or water services;

(5) Drainage services;

(6) Solid waste services; or

(7) Steam services.

NEW SECTION. Sec. 3. MUNICIPAL GROSS RECEIPTS TAX--DEFINITIONS.

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

(1) "Business" has the same meaning as given in chapter 82.04 RCW.

(2) "City" means a city, town, or code city.

(3) "Business and occupation tax" or "gross receipts tax" means a tax imposed on or measured by the value of products, the gross income of the business, or the gross proceeds of sales, as the case may be, and that is the legal liability of the business.

(4) "Value of products" has the same meaning as given in chapter 82.04 RCW.

(5) "Gross income of the business" has the same meaning as given in chapter 82.04 RCW.

(6) "Gross proceeds of sales" has the same meaning as given in chapter 82.04 RCW.

NEW SECTION. Sec. 4. MUNICIPAL BUSINESS AND OCCUPATION TAX--MODEL ORDINANCE. (1)(a) The cities, working through the association of Washington cities, shall form a model ordinance development committee made up of a representative sampling of cities that as of the effective date of this section impose a business and occupation tax. This committee shall work through the association of Washington cities to adopt a model ordinance on municipal gross receipts business and occupation tax. The model ordinance and subsequent amendments shall be adopted using a process that includes opportunity for substantial input from business stakeholders and other members of the public. Input shall be solicited from statewide business associations and from local chambers of commerce and downtown business associations in cities that levy a business and occupation tax.

(b) The municipal research council shall contract to post the model ordinance on an internet web site and to make paper copies available for inspection upon request. The department of revenue and the department of licensing shall post copies of or links to the model ordinance on their internet web sites. Additionally, a city that imposes a business and occupation tax must make copies of its ordinance available for inspection and copying as provided in chapter 42.17 RCW.

(c) The definitions and tax classifications in the model ordinance may not be amended more frequently than once every four years, however the model ordinance may be amended at any time to comply with changes in state law. Any amendment to a mandatory provision of the model ordinance must be adopted with the same effective date by all cities.

(2) A city that imposes a business and occupation tax must adopt the mandatory provisions of the model ordinance. The following provisions are mandatory:

(a) A system of credits that meets the requirements of section 6 of this act and a form for such use;

(b) A uniform, minimum small business tax threshold of at least the equivalent of twenty thousand dollars in gross income annually. A city may elect to deviate from this requirement by creating a higher threshold or exemption but it shall not deviate lower than the level required in this subsection. If a city has a small business threshold or exemption in excess of that provided in this subsection as of January 1, 2003, and chooses to deviate below the threshold or exemption level that was in place as of January 1, 2003, the city must notify all businesses licensed to do business within the city at least one hundred twenty days prior to the potential implementation of a lower threshold or exemption amount;

(d) Penalty and interest provisions that meet the requirements of sections 8 and 9 of this act;

(e) Claim periods that meet the requirements of section 10 of this act;

(f) Refund provisions that meet the requirements of section 11 of this act; and

(g) Definitions, which at a minimum, must include the definitions enumerated in sections 3 and 12 of this act. The definitions in chapter 82.04 RCW shall be used as the baseline for all definitions in the model ordinance, and any deviation in the model ordinance from these definitions must be described by a comment in the model ordinance.

(3) Except for the system of credits developed to address multiple taxation under subsection (2)(a) of this section, a city may adopt its own provisions for tax exemptions, tax credits, and tax deductions.

(4) Any city that adopts an ordinance that deviates from the nonmandatory provisions of the model ordinance shall make a description of such differences available to the public, in written and electronic form.

NEW SECTION. Sec. 5. MUNICIPAL GROSS RECEIPTS TAX--NEXUS. A city may not impose a business and occupation tax on a person unless that person has nexus with the city. For the purposes of this section, the term "nexus" means business activities conducted by a person sufficient to subject that person to the taxing jurisdiction of a city under the standards established for interstate commerce under the commerce clause of the United States Constitution.

NEW SECTION. Sec. 6. MUNICIPAL BUSINESS AND OCCUPATION TAX-- MULTIPLE TAXATION--CREDIT SYSTEM. (1) A city that imposes a business and occupation tax shall provide for a system of credits to avoid multiple taxation as follows:

(a) Persons who engage in business activities that are within the purview of more than one classification of the tax shall be taxable under each applicable classification.

(b) Notwithstanding anything to the contrary in this section, if imposition of the tax would place an undue burden upon interstate commerce or violate constitutional requirements, a taxpayer shall be allowed a credit only to the extent necessary to preserve the validity of the tax.

(c) Persons taxable under the retailing or wholesaling classification with respect to selling products in a city shall be allowed a credit against those taxes for any eligible gross receipts taxes paid by the person (i) with respect to the manufacturing of the products sold in the city, and (ii) with respect to the extracting of the products, or the ingredients used in the products, sold in the city. The amount of the credit shall not exceed the tax liability arising with respect to the sale of those products.

(d) Persons taxable under the manufacturing classification with respect to manufacturing products in a city shall be allowed a credit against that tax for any eligible gross receipts tax paid by the person with respect to extracting the ingredients of the products manufactured in the city and with respect to manufacturing the products other than in the city. The amount of the credit shall not exceed the tax liability arising with respect to the manufacturing of those products.

(e) Persons taxable under the retailing or wholesaling classification with respect to selling products in a city shall be allowed a credit against those taxes for any eligible gross receipts taxes paid by the person with respect to the printing, or the printing and publishing, of the products sold within the city. The amount of the credit shall not exceed the tax liability arising with respect to the sale of those products.

(2) The model ordinance shall be drafted to address the issue of multiple taxation for those tax classifications that are in addition to those enumerated in subsection (1)(c) through (e) of this section. The objective of any such provisions shall be to eliminate multiple taxation of the same income by two or more cities.

NEW SECTION. Sec. 7. MUNICIPAL BUSINESS AND OCCUPATION TAX-- REPORTING FREQUENCY. A city that imposes a business and occupation tax shall allow reporting and payment of tax on a monthly, quarterly, or annual basis. The frequency for any particular person may be assigned at the discretion of the city, except that monthly reporting may be assigned only if it can be demonstrated that the taxpayer is remitting excise tax to the state on a monthly basis. For persons assigned a monthly frequency, payment is due within the same time period provided for monthly taxpayers under RCW 82.32.045. For persons assigned a quarterly or annual frequency, payment is due within the same time period as provided for quarterly or annual frequency under RCW 82.32.045.

NEW SECTION. Sec. 8. MUNICIPAL BUSINESS AND OCCUPATION TAX-- PENALTIES AND INTEREST. (1) A city that imposes a business and occupation tax shall compute interest charged a taxpayer on an underpaid tax or penalty in accordance with RCW 82.32.050.

(2) A city that imposes a business and occupation tax shall compute interest paid on refunds or credits of amounts paid or other recovery allowed a taxpayer in accordance with RCW 82.32.060.

NEW SECTION. Sec. 9. MUNICIPAL BUSINESS AND OCCUPATION TAX-- PENALTIES. A city that imposes a business and occupation tax shall provide for the imposition of penalties in accordance with chapter 82.32 RCW.

NEW SECTION. Sec. 10. MUNICIPAL BUSINESS AND OCCUPATION TAX-- CLAIM PERIOD. The provisions relating to the time period allowed for an assessment or correction of an assessment for additional taxes, penalties, or interest shall be in accordance with chapter 82.32 RCW.

NEW SECTION. Sec. 11. MUNICIPAL BUSINESS AND OCCUPATION TAX-- REFUND PERIOD. The provisions relating to the time period allowed for a refund of taxes paid shall be in accordance with chapter 82.32 RCW.

NEW SECTION. Sec. 12. MUNICIPAL BUSINESS AND OCCUPATION TAX-- DEFINITIONS--TAX CLASSIFICATIONS. (1) In addition to the definitions in section 3 of this act, the following terms and phrases must be defined in the model ordinance under section 4 of this act, and such definitions shall include any specific requirements as noted in this subsection:

(a) Eligible gross receipts tax.

(b) Extracting.

(d) Retailing.

(e) Retail sale.

(f) Services. The term "services" excludes retail or wholesale services.

(g) Wholesale sale.

(h) Wholesaling.

(i) To manufacture.

(j) Commercial and industrial use.

(k) Engaging in business.

(l) Person.

(2) Any tax classifications in addition to those enumerated in subsection (1) of this section that are included in the model ordinance must be uniform among all cities.

NEW SECTION. Sec. 13. MUNICIPAL BUSINESS AND OCCUPATION TAX-- ALLOCATION AND APPORTIONMENT OF INCOME. A city that imposes a business and occupation tax shall provide for the allocation and apportionment of a person's gross income, other than persons subject to the provisions of chapter 82.14A RCW, as follows:

(1) Gross income derived from all activities other than those taxed as service or royalties shall be allocated to the location where the activity takes place.

(a) In the case of sales of tangible personal property, the activity takes place where delivery to the buyer occurs.

(b) If a business activity allocated under this subsection (1) takes place in more than one city and all cities impose a gross receipts tax, a credit shall be allowed as provided in section 6 of this act; if not all of the cities impose a gross receipts tax, the affected cities shall allow another credit or allocation system as they and the taxpayer agree.

(2) Gross income derived as royalties from the granting of intangible rights shall be allocated to the commercial domicile of the taxpayer.

(3) Gross income derived from activities taxed as services shall be apportioned to a city by multiplying apportionable income by a fraction, the numerator of which is the payroll factor plus the service-income factor and the denominator of which is two.

(a) The payroll factor is a fraction, the numerator of which is the total amount paid in the city during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period. Compensation is paid in the city if:

(i) The individual is primarily assigned within the city;

(ii) The individual is not primarily assigned to any place of business for the tax period and the employee performs fifty percent or more of his or her service for the tax period in the city; or

(iii) The individual is not primarily assigned to any place of business for the tax period, the individual does not perform fifty percent or more of his or her service in any city and the employee resides in the city.

(b) The service income factor is a fraction, the numerator of which is the total service income of the taxpayer in the city during the tax period, and the denominator of which is the total service income of the taxpayer everywhere during the tax period. Service income is in the city if:

(i) The customer location is in the city; or

(ii) The income-producing activity is performed in more than one location and a greater proportion of the service-income-producing activity is performed in the city than in any other location, based on costs of performance, and the taxpayer is not taxable at the customer location; or

(iii) The service-income-producing activity is performed within the city, and the taxpayer is not taxable in the customer location.

(c) If the allocation and apportionment provisions of this subsection do not fairly represent the extent of the taxpayer's business activity in the city or cities in which the taxpayer does business, the taxpayer may petition for or the tax administrators may jointly require, in respect to all or any part of the taxpayer's business activity, that one of the following methods be used jointly by the cities to allocate or apportion gross income, if reasonable:

(i) Separate accounting;

(ii) The use of a single factor;

(iii) The inclusion of one or more additional factors that will fairly represent the taxpayer's business activity in the city; or

(iv) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.

(4) The definitions in this subsection apply throughout this section.

(a) "Apportionable income" means the gross income of the business taxable under the service classifications of a city's gross receipts tax, including income received from activities outside the city if the income would be taxable under the service classification if received from activities within the city, less any exemptions or deductions available.

(b) "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to individuals for personal services that are or would be included in the individual's gross income under the federal internal revenue code.

(c) "Individual" means any individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer.

(d) "Customer location" means the city or unincorporated area of a county where the majority of the contacts between the taxpayer and the customer take place.

(e) "Primarily assigned" means the business location of the taxpayer where the individual performs his or her duties.

(f) "Service-taxable income" or "service income" means gross income of the business subject to tax under either the service or royalty classification.

(g) "Tax period" means the calendar year during which tax liability is accrued. If taxes are reported by a taxpayer on a basis more frequent than once per year, taxpayers shall calculate the factors for the previous calendar year for reporting in the current calendar year and correct the reporting for the previous year when the factors are calculated for that year, but not later than the end of the first quarter of the following year.

(h) "Taxable in the customer location" means either that a taxpayer is subject to a gross receipts tax in the customer location for the privilege of doing business, or that the government where the customer is located has the authority to subject the taxpayer to gross receipts tax regardless of whether, in fact, the government does so.

NEW SECTION. Sec. 14. MUNICIPAL BUSINESS AND OCCUPATION TAX-- IMPLEMENTATION BY CITIES--CONTINGENT AUTHORITY. Cities imposing business and occupation taxes must comply with all requirements of sections 2 through 13 of this act by December 31, 2004. A city that has not complied with the requirements of sections 2 through 13 of this act by December 31, 2004, may not impose a tax that is imposed by a city on the privilege of engaging in business activities. Cities imposing business and occupation taxes after December 31, 2004, must comply with sections 2 through 13 of this act.

NEW SECTION. Sec. 15. STUDY OF POTENTIAL NET FISCAL IMPACTS. (1) The department of revenue shall conduct a study of the net fiscal impacts of this act, with particular emphasis on the revenue impacts of the apportionment and allocation method contained in section 13 of this act and any revenue impact resulting from the increased uniformity and consistency provided through the model ordinance. In conducting the study, the department shall use, and regularly consult with, a committee composed of an equal representation from interested business representatives and from a representative sampling of cities imposing business and occupation taxes. The department shall report the final results of the study to the governor and the fiscal committees of the legislature by November 30, 2005. In addition, the department shall provide progress reports to the governor and the fiscal committees of the legislature on November 30, 2003, and November 30, 2004. As part of its report, the department shall examine and recommend options to address any adverse revenue impacts to local jurisdictions.

(2) For the purposes of this section, "net fiscal impacts" means accounting for the potential of both positive and negative fiscal impacts on local jurisdictions that may result from this act.

(3) It is the intent of the legislature through this study to provide accurate fiscal impact analysis and recommended options to alleviate revenue impacts from this act so as to allow local jurisdictions to anticipate and appropriately address any potential adverse revenue impacts from this act.

NEW SECTION. Sec. 16. BASELINE STUDY. The department of revenue shall report by December 31, 2004, to the governor and the fiscal committees of the legislature on the definitions used in the proposed model ordinance. The report shall detail the status of the definitions using the baseline standards under section 4(2)(g) of this act, noting any deviations from the definitions in chapter 82.04 RCW and the reason for such deviation. The report shall also estimate the fiscal impact on taxpayers of any deviations from the definitions under chapter 82.04 RCW.

NEW SECTION. Sec. 17. CAPTIONS. Captions used in this act are not any part of the law.

NEW SECTION. Sec. 18. Sections 2 through 14 of this act are each added to chapter 35.21 RCW.

NEW SECTION. Sec. 19. EFFECTIVE DATE. Section 13 of this act takes effect January 1, 2008."

Correct the title.

Representative Santos moved the adoption of amendment (324) to amendment (323):

On page 9, after line 31, insert the following:

"Sec. 15. RCW 35.21.710 and 2002 c 179 s 1 are each amended to read as follows:

(1) Any city which imposes a license fee or tax upon business activities consisting of the making of retail sales of tangible personal property which are measured by gross receipts or gross income from such sales, shall impose such tax at a single uniform rate upon all such business activities.

(2)(a) Except as provided under subsection (c) of this subsection, the taxing authority granted to cities for taxes upon business activities measured by gross receipts or gross income from sales shall not exceed a rate of .0020; except that any city with an adopted ordinance at a higher rate, as of January 1, 1982 shall be limited to a maximum increase of ten percent of the January 1982 rate, not to exceed an annual incremental increase of two percent of current rate((: PROVIDED, That)).

(b) Any adopted ordinance which classifies according to different types of business or services shall be subject to both the ten percent and the two percent annual incremental increase limitation on each tax rate((: PROVIDED FURTHER, That)).

(c)(i) A city that has imposed a tax under this subsection (2) as of the effective date of section 13 of this act may increase the rate or rates of tax pursuant to this subsection (c).

(ii) A city that incurs a reduction in municipal business and occupation tax revenue due to the implementation of the apportionment provisions under section 13 of this act may adjust its rate or rates to the extent necessary to offset any revenue losses. Such rate adjustments may not take effect before January 1, 2008.

(3) All surtaxes on business and occupation classifications in effect as of January 1, 1982, shall expire no later than December 31, 1982, or by expiration date established by local ordinance.

(4) Cities which impose a license fee or tax upon business activities consisting of the making of retail sales of tangible personal property which are measured by gross receipts or gross income from such sales shall be required to submit an annual report to the state auditor identifying the rate established and the revenues received from each fee or tax.

(5) This section shall not apply to any business activities subject to the tax imposed by chapter 82.16 RCW.

(6) For purposes of this section, the providing to consumers of competitive telephone service, as defined in RCW 82.04.065, or the providing of payphone service, shall be subject to tax at the same rate as business activities consisting of the making of retail sales of tangible personal property. As used in this section, "payphone service" means making telephone service available to the public on a fee-per-call basis, independent of any other commercial transaction, for the purpose of making telephone calls, when the telephone can only be activated by inserting coins, calling collect, using a calling card or credit card, or dialing a toll-free number, and the provider of the service owns or leases the telephone equipment but does not own the telephone line providing the service to that equipment and has no affiliation with the owner of the telephone line."

Renumber remaining sections consecutively and correct the title

Representatives Santos, McIntire and Conway spoke in favor of the adoption of the amendment to the amendment.

Representative Cairnes spoke against the adoption of the amendment to the amendment to the amendment.

The amendment to the amendment was not adopted.

Representatives Kessler and Cairnes in favor of amendment (323).

The amendment was adopted. The bill was ordered engrossed.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Kessler, Schoesler, Orcutt, Morris, Roach, Anderson and Woods spoke in favor of passage of the bill.

Representatives McIntire, Benson, Conway and Dickerson spoke against the passage of the bill.

The Speaker stated the question before the House to be the final passage of Engrossed House Bill No. 2030.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed House Bill No. 2030 and the bill passed the House by the following vote: Yeas - 73, Nays - 25, Absent - 0, Excused - 0.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Berkey, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Clements, Clibborn, Condotta, Cox, Crouse, DeBolt, Delvin, Eickmeyer, Ericksen, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Kessler, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDonald, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Newhouse, Nixon, O'Brien, Orcutt, Pearson, Pflug, Priest, Quall, Roach, Rockefeller, Ruderman, Schindler, Schoesler, Sehlin, Shabro, Simpson, Skinner, Sullivan, Sump, Talcott, Tom, Upthegrove, Wallace, Wood, Woods and Mr. Speaker - 73.

Voting nay: Representatives Chase, Cody, Conway, Cooper, Darneille, Dickerson, Dunshee, Edwards, Flannigan, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kirby, McDermott, McIntire, Murray, Pettigrew, Romero, Santos, Schual-Berke, Sommers, and Veloria - 25.

ENGROSSED HOUSE BILL NO. 2030, having received the necessary constitutional majority, was declared passed.

SIGNED BY THE SPEAKER

The Speaker signed:

SUBSTITUTE HOUSE JOINT MEMORIAL NO. 4005,

There being no objection, the House reverted to the fourth order of business.

INTRODUCTION & FIRST READING

HB 2225 by Representatives Cody and Sommers

AN ACT Relating to the relationship between basic health plan enrollment levels and the expenditure of funds deposited into the health services account under RCW 82.24.028 and 82.26.028; amending RCW 43.72.900; creating a new section; and declaring an emergency.

Referred to Committee on Appropriations.

HB 2226 By Representatives Veloria and Kessler

AN ACT Relating to the office of minority and women's business enterprises; adding a new section to chapter 39.19 RCW; and declaring an emergency.

Referred to Committee on Appropriations.

2SSB 5024 by Senate Committee on Ways & Means (originally sponsored by Senators Honeyford and Hale)

AN ACT Relating to public water systems; amending RCW 90.03.015 and 90.03.386; and creating new sections.

Referred to Committee on Agriculture & Natural Resources.

SB 5042 by Senators T. Sheldon, Morton and Fraser; by request of Commissioner of Public Lands

AN ACT Relating to the department of natural resources' contractual authority; and amending RCW 43.30.130.

Referred to Committee on Agriculture & Natural Resources.

SSB 5062 by Senate Committee on Parks, Fish & Wildlife (originally sponsored by Senators Doumit, Oke, Jacobsen, Winsley, Rasmussen and Kohl-Welles)

AN ACT Relating to the recreational salmon and marine fish enhancement program; amending RCW 77.105.010 and 77.105.150; and adding a new section to chapter 77.105 RCW.

Referred to Committee on Fisheries, Ecology & Parks.

ESB 5073 by Senators Fraser, Honeyford, Hale and Kohl-Welles

AN ACT Relating to watershed management; amending RCW 39.34.020 and 35.21.210; adding new sections to chapter 39.34 RCW; adding a new section to chapter 36.01 RCW; adding a new section to chapter 36.94 RCW; adding a new section to chapter 36.89 RCW; adding a new section to chapter 35.67 RCW; adding a new section to chapter 57.08 RCW; adding a new section to chapter 54.16 RCW; adding a new section to chapter 87.03 RCW; adding a new section to chapter 53.08 RCW; adding a new section to chapter 85.38 RCW; adding a new section to chapter 86.09 RCW; adding a new section to chapter 86.15 RCW; and creating a new section.

Referred to Committee on Agriculture & Natural Resources.

2SSB 5074 by Senate Committee on Ways & Means (originally sponsored by Senators Morton, Oke, Doumit, T. Sheldon, Fraser and Rasmussen; by request of Commissioner of Public Lands)

AN ACT Relating to the authority of the department of natural resources to contract for the harvest of timber from state trust lands; amending RCW 76.12.030, 76.12.120, 79.64.040, 43.85.130, and 84.33.078; reenacting and amending RCW 43.79A.040 and 84.33.035; adding a new chapter to Title 79 RCW; and creating new sections.

Referred to Committee on Agriculture & Natural Resources.

SB 5076 by Senators Morton, Fraser, T. Sheldon and Doumit; by request of Commissioner of Public Lands

AN ACT Relating to the highest responsible bidder for sales of valuable materials from state-owned aquatic lands; and amending RCW 79.90.215.

Referred to Committee on Agriculture & Natural Resources.

SSB 5144 by Senate Committee on Natural Resources, Energy & Water (originally sponsored by Senators Morton and Oke)

AN ACT Relating to protecting forest health; amending RCW 76.06.010, 76.06.020, 76.09.050, and 17.24.171; reenacting and amending RCW 76.09.060; and adding a new section to chapter 76.06 RCW.

Referred to Committee on Agriculture & Natural Resources.

SSB 5145 by Senate Committee on Natural Resources, Energy & Water (originally sponsored by Senators Mulliken and T. Sheldon)

AN ACT Relating to withdrawals of public ground waters; and amending RCW 90.44.035.

Referred to Committee on Agriculture & Natural Resources.

SSB 5169 by Senate Committee on Children & Family Services & Corrections (originally sponsored by Senator Hargrove)

AN ACT Relating to court-ordered restitution; amending RCW 9.94A.750; and reenacting and amending RCW 9.94A.753.

Referred to Committee on Judiciary.

SSB 5325 by Senate Committee on Children & Family Services & Corrections (originally sponsored by Senators Winsley, Franklin, Kastama, Rasmussen, Oke and Regala)

AN ACT Relating to studying the economic impact of state facilities on local governments; and creating new sections.

Referred to Committee on Local Government.

SSB 5326 by Senate Committee on Government Operations & Elections (originally sponsored by Senators Winsley, B. Sheldon, Doumit and T. Sheldon)

AN ACT Relating to creating regional fire protection service authorities; amending RCW 57.90.010, 84.09.030, 84.52.069, and 35.21.766; reenacting and amending RCW 84.52.010 and 84.52.052; adding a new section to chapter 84.52 RCW; adding a new chapter to Title 52 RCW; and creating a new section.

Referred to Committee on Local Government.

ESSB 5352 by Senate Committee on Agriculture (originally sponsored by Senators Haugen, Swecker, Doumit, Morton, Rasmussen, Hargrove, Horn and Shin)

AN ACT Relating to agricultural conservation programs; amending RCW 90.58.065, 36.70A.060, and 36.70A.170; and adding a new section to chapter 89.08 RCW.

Referred to Committee on Agriculture & Natural Resources.

SSB 5365 by Senate Committee on Financial Services, Insurance & Housing (originally sponsored by Senators Benton, Prentice, Doumit, Keiser and Winsley; by request of Governor Locke)

AN ACT Relating to violations connected with the offer, sale, or purchase of securities; amending RCW 43.320.110, 21.20.400, 21.20.110, 21.20.390, 21.20.395, and 9A.20.021; adding a new section to chapter 43.320 RCW; and prescribing penalties.

Referred to Committee on Financial Institutions & Insurance.

SSB 5407 by Senate Committee on Commerce & Trade (originally sponsored by Senators Horn, Prentice, Honeyford and Benton)

AN ACT Relating to franchise agreements between motorsports vehicle dealers and manufacturers; adding a new chapter to Title 46 RCW; and repealing RCW 46.94.001, 46.94.005, 46.94.010, 46.94.020, 46.94.030, 46.94.040, 46.94.050, 46.94.060, and 46.94.900.

Referred to Committee on Commerce & Labor.

ESB 5450 by Senators Horn, Jacobsen, Finkbeiner, Eide, Swecker, Reardon, Regala, Fairley, Kline, Fraser, Haugen, Keiser and Kohl-Welles

AN ACT Relating to providing incentives to reduce air pollution through the licensing and use of neighborhood electric vehicles; amending RCW 46.04.320; adding a new section to chapter 46.04 RCW; adding a new section to chapter 46.61 RCW; prescribing penalties; and providing an effective date.

Referred to Committee on Transportation.

SSB 5457 by Senate Committee on Highways & Transportation (originally sponsored by Senators Horn, Haugen, Oke, Johnson, Hargrove, B. Sheldon, Roach, Zarelli, Sheahan, Jacobsen, Stevens, Schmidt, Rossi, Eide, Kline, T. Sheldon, West, Shin and Rasmussen)

AN ACT Relating to posting of hazards to motorcycles; amending RCW 47.36.200; and creating a new section.

Referred to Committee on Transportation.

SB 5507 by Senators T. Sheldon and Mulliken

AN ACT Relating to standing before growth management hearings boards; and amending RCW 36.70A.280.

Referred to Committee on Local Government.

SB 5512 by Senators Honeyford, Kastama, West, Keiser, Winsley and Rasmussen

AN ACT Relating to small business economic impact statements; and amending RCW 19.85.020.

Referred to Committee on State Government.

SSB 5550 by Senate Committee on Children & Family Services & Corrections (originally sponsored by Senators West, Stevens, Kastama, Roach, Kline, Johnson, Fairley, T. Sheldon, Thibaudeau, Benton, Keiser, Eide, Prentice, Kohl-Welles, Esser, Shin, Oke and Winsley)

AN ACT Relating to prohibiting secure community transition facilities from being sited near public and private youth camps; amending RCW 71.09.342; reenacting and amending RCW 71.09.020; creating a new section; and declaring an emergency.

Referred to Committee on Criminal Justice & Corrections.

SSB 5579 by Senate Committee on Health & Long-Term Care (originally sponsored by Senators Parlette, Jacobsen, Winsley, Brandland, Rasmussen, Esser, Reardon, Honeyford, T. Sheldon, Hargrove, Haugen, Doumit, Zarelli, Stevens, Deccio, Keiser, Mulliken and Shin)

AN ACT Relating to boarding homes; amending RCW 18.20.020, 18.20.030, 18.20.050, 18.20.125, and 18.20.190; adding a new section to chapter 18.20 RCW; creating new sections; providing an expiration date; and declaring an emergency.

Referred to Committee on Health Care.

SSB 5588 by Senate Committee on Children & Family Services & Corrections (originally sponsored by Senators Kline, Esser, Roach and Kohl-Welles; by request of Sentencing Guidelines Commission)

AN ACT Relating to pilot regional correctional facilities; and creating new sections.

Referred to Committee on Criminal Justice & Corrections.

SB 5597 by Senators Oke, T. Sheldon, Swecker, Thibaudeau, Carlson, Shin, Winsley, Spanel, Kline, Regala, Haugen, Jacobsen, Poulsen, B. Sheldon, Stevens, Keiser, Kohl-Welles and Rasmussen

AN ACT Relating to protecting the health of minors by prohibiting tobacco product sampling; amending RCW 70.155.010, 70.155.050, 70.155.090, 70.155.100, 82.24.120, and 82.24.230; creating a new section; repealing RCW 70.155.060 and 82.24.270; and prescribing penalties.

Referred to Committee on Health Care.

SSB 5661 by Senate Committee on Land Use & Planning (originally sponsored by Senators Schmidt, Mulliken, Shin, Finkbeiner, Stevens, Esser, Johnson, Reardon and Oke)

AN ACT Relating to allowing the conservation of unused agricultural lands with interim recreational uses; and amending RCW 36.70A.060 and 36.70A.177.

Referred to Committee on Local Government.

SB 5665 by Senators Rasmussen and Swecker

AN ACT Relating to administration of irrigation districts; and amending RCW 87.03.138, 87.03.443, 87.06.030, 87.06.060, 87.06.110, 60.80.005, 60.80.010, and 60.80.020.

Referred to Committee on Agriculture & Natural Resources.

SSB 5674 by Senate Committee on Highways & Transportation (originally sponsored by Senators Finkbeiner, Prentice, Esser, Haugen and Horn)

AN ACT Relating to regional transit authorities; amending RCW 81.112.020, 81.112.050, 81.112.070, and 81.112.130; creating a new section; and declaring an emergency.

Referred to Committee on Transportation.

ESB 5676 by Senators Carlson, Kohl-Welles, Mulliken, Shin and Schmidt; by request of Higher Education Coordinating Board

AN ACT Relating to the educational opportunity grant program; and amending RCW 28B.101.005, 28B.101.010, 28B.101.020, and 28B.101.040.

Referred to Committee on Higher Education.

ESSB 5692 by Senate Committee on Children & Family Services & Corrections (originally sponsored by Senators Carlson, Hargrove, Esser, Parlette, Kohl-Welles, McAuliffe and Rasmussen)

AN ACT Relating to health and human services and information referral; adding a new chapter to Title 43 RCW; providing an effective date; and declaring an emergency.

Referred to Committee on Children & Family Services.

SSB 5695 by Senate Committee on Judiciary (originally sponsored by Senators Honeyford, Winsley, Mulliken, Johnson, T. Sheldon, Zarelli, Oke and Rasmussen)

AN ACT Relating to declaring buildings used for criminal activity to be a nuisance; adding a new chapter to Title 7 RCW; and prescribing penalties.

Referred to Committee on Judiciary.

SSB 5749 by Senate Committee on Children & Family Services & Corrections (originally sponsored by Senators Hargrove, Stevens and Rasmussen; by request of Indeterminate Sentence Review Board)

AN ACT Relating to hearings concerning violations by sex offenders of postrelease conditions; and amending RCW 9.95.435.

Referred to Committee on Criminal Justice & Corrections.

SSB 5751 by Senate Committee on Natural Resources, Energy & Water (originally sponsored by Senator Hargrove)

AN ACT Relating to sales of valuable materials; amending RCW 79.01.184, 79.01.200, and 79.01.188; and reenacting and amending RCW 79.01.132.

Referred to Committee on Agriculture & Natural Resources.

ESSB 5776 by Senate Committee on Land Use & Planning (originally sponsored by Senators Doumit, Morton, Hargrove, Mulliken, Rasmussen, Swecker, Haugen, Zarelli, Reardon, Parlette, McAuliffe and Winsley)

AN ACT Relating to review of permit decisions by state agencies and local governments for economic development projects; amending RCW 43.21B.110, 77.55.170, and 90.58.180; adding a new chapter to Title 43 RCW; and declaring an emergency.

Referred to Committee on State Government.

SSB 5797 by Senate Committee on Health & Long-Term Care (originally sponsored by Senators Parlette and Brandland)

AN ACT Relating to the timing of the inspection of adult family homes; and amending RCW 70.128.070.

Referred to Committee on Health Care.

ESSB 5819 by Senate Committee on Judiciary (originally sponsored by Senators Finkbeiner and Kline)

AN ACT Relating to operation of a vehicle, street car, rail fixed guideway system, vessel, aircraft, or other conveyance involved in an accident; and reenacting and amending RCW 46.20.308.

Referred to Committee on Judiciary.

SSB 5828 by Senate Committee on Health & Long-Term Care (originally sponsored by Senators Sheahan, Keiser, Regala, Kastama, Thibaudeau, Hale, Fraser and Winsley)

AN ACT Relating to provision of meningococcal immunization information to first-time students by degree-granting postsecondary educational institutions; adding a new section to chapter 70.54 RCW; and providing an effective date.

Referred to Committee on Health Care.

SB 5845 by Senators Schmidt, McAuliffe, Kastama, Winsley, Regala and Rasmussen

AN ACT Relating to school district capital demonstration projects; and amending RCW 39.10.067.

Referred to Committee on State Government.

SB 5893 by Senator Oke

AN ACT Relating to fish and wildlife automated recreational licensing; and amending RCW 77.32.050.

Referred to Committee on Fisheries, Ecology & Parks.

ESSB 5904 by Senate Committee on Ways & Means (originally sponsored by Senators Deccio, Thibaudeau, Winsley, Franklin, Parlette, Keiser, Brandland, Benton, Carlson, Hale, Johnson, Kline, McAuliffe, McCaslin, Mulliken, Oke, Rasmussen, West, Finkbeiner, Kohl-Welles, Shin, Stevens, Esser, B. Sheldon and Hewitt)

AN ACT Relating to prescription drug assistance programs for seniors; adding new sections to chapter 74.09 RCW; adding new sections to chapter 41.05 RCW; and creating new sections.

Referred to Committee on Health Care.

SSB 5910 by Senate Committee on Judiciary (originally sponsored by Senators Roach, McCaslin, Rasmussen, T. Sheldon, Stevens, Mulliken, Oke and Schmidt)

AN ACT Relating to sport shooting ranges; adding a new section to chapter 9.41 RCW; and creating a new section.

Referred to Committee on Local Government.

SSB 5912 by Senate Committee on Highways & Transportation (originally sponsored by Senators Mulliken, Haugen, Sheahan, Horn, Parlette, Rasmussen and Spanel)

AN ACT Relating to a state produce railcar pool; reenacting and amending RCW 43.84.092; adding new sections to chapter 47.76 RCW; and creating a new section.

Referred to Committee on Transportation.

SB 5935 by Senators Brandland, Oke, Swecker, Hale, Rasmussen, Schmidt and Winsley; by request of Washington State Patrol

AN ACT Relating to consolidation of state declared fire mobilization responsibilities within the Washington state patrol; amending RCW 38.54.010, 38.54.020, 38.54.030, and 38.54.050; adding new sections to chapter 43.43 RCW; and recodifying RCW 38.54.010, 38.54.020, 38.54.030, 38.54.040, 38.54.050, and 38.54.900.

Referred to Committee on State Government.

ESB 5938 by Senators Finkbeiner and Esser

AN ACT Relating to financial responsibility requirements for vessels; amending RCW 88.40.011, 88.40.020, and 88.40.040; and creating a new section.

Referred to Committee on Fisheries, Ecology & Parks.

ESSB 5942 by Senate Committee on Commerce & Trade (originally sponsored by Senators Reardon, Hewitt, Prentice and Honeyford)

AN ACT Relating to licensing requirements for elevator mechanics and contractors; amending RCW 70.87.010, 70.87.020, 70.87.030, 70.87.050, 70.87.060, 70.87.080, 70.87.110, 70.87.125, 70.87.170, 70.87.180, 70.87.220, 70.87.230, 70.87.240, 70.87.250, and 70.87.260; prescribing penalties; and declaring an emergency.

Referred to Committee on Commerce & Labor.

SSB 5955 by Senate Committee on Economic Development (originally sponsored by Senator Benton)

AN ACT Relating to the personal reemployment account program; adding a new chapter to Title 43 RCW; and providing an expiration date.

Referred to Committee on Commerce & Labor.

SSB 5974 by Senate Committee on Highways & Transportation (originally sponsored by Senators Benton, Haugen, Horn and Oke)

AN ACT Relating to the exercise of sound business practices to enhance revenues for Washington State Ferries; and amending RCW 47.60.135, 47.60.140, 47.60.150, 47.60.326, and 47.60.330.

Referred to Committee on Transportation.

SB 5989 by Senators Haugen, Horn and Jacobsen

AN ACT Relating to pilot members of the board of pilotage commissioners; and amending RCW 88.16.010.

Referred to Committee on Transportation.

SJM 8004 by Senators Morton, Haugen, Hargrove and T. Sheldon

Requesting that British Columbia refrain from releasing grizzly bears near our common border.

Referred to Committee on Fisheries, Ecology & Parks.

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

MESSAGE FROM THE SENATE

March 19, 2003

Mr. Speaker:

The Senate has passed:

SUBSTITUTE SENATE BILL NO. 5120,

SUBSTITUTE SENATE BILL NO. 5152,

SUBSTITUTE SENATE BILL NO. 5160,

SUBSTITUTE SENATE BILL NO. 5251,

SUBSTITUTE SENATE BILL NO. 5274,

SENATE BILL NO. 5340,

SENATE BILL NO. 5346,

ENGROSSED SENATE BILL NO. 5379,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5400,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5492,

SUBSTITUTE SENATE BILL NO. 5497,

SUBSTITUTE SENATE BILL NO. 5500,

SUBSTITUTE SENATE BILL NO. 5578,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5742,

SENATE BILL NO. 5801,

SENATE BILL NO. 5959,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5969,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6011,

SENATE JOINT MEMORIAL NO. 8012,

and the same are herewith transmitted.

Milt H. Doumit, Secretary

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

There being no objection, the House adjourned until 9:55 a.m., March 20, 2003, the 67^th Day of the Regular Session.

FRANK CHOPP, Speaker CYNTHIA ZEHNDER, Chief Clerk