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FIFTY EIGHTH LEGISLATURE - REGULAR SESSION

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NINETY FIFTH DAY

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House Chamber, Olympia, Thursday, April 17, 2003

The House was called to order at 10:00 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 Jasmine Elam and Ashlynn Owen. The Speaker (Representative Lovick presiding) led the Chamber in the Pledge of Allegiance. Prayer was offered by Pastor Lawrence Ricky Willis, Truevine of Holiness Missionary Baptist Church, Seattle.

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

MESSAGES FROM THE SENATE

April 17, 2003

Mr. Speaker:

The Senate has passed SUBSTITUTE HOUSE BILL NO. 1675, and the same is herewith transmitted.

Milt H. Doumit, Secretary

April 17, 2003

Mr. Speaker:

The Senate has passed SENATE BILL NO. 6059, and the same is herewith transmitted.

Milt H. Doumit, Secretary

April 16, 2003

Mr. Speaker:

The Senate has passed:

SUBSTITUTE SENATE BILL NO. 5337,

SECOND SUBSTITUTE SENATE BILL NO. 6017,

and the same are herewith transmitted.

Milt H. Doumit, Secretary

April 16, 2003

Mr. Speaker:

The Senate has passed:

HOUSE BILL NO. 1296,

HOUSE BILL NO. 1351,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1530,

HOUSE BILL NO. 1576,

HOUSE BILL NO. 1954,

SUBSTITUTE HOUSE BILL NO. 2196,

and the same are herewith transmitted.

Milt H. Doumit, Secretary

April 15, 2003

Mr. Speaker:

The President has signed:

ENGROSSED SUBSTITUTE SENATE BILL NO. 5223,

SUBSTITUTE SENATE BILL NO. 5236,

SUBSTITUTE SENATE BILL NO. 5600,

SUBSTITUTE SENATE BILL NO. 5601,

SUBSTITUTE SENATE BILL NO. 5616,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5766,

SENATE BILL NO. 5898,

SENATE JOINT MEMORIAL NO. 8003,

SENATE JOINT MEMORIAL NO. 8012,

SENATE JOINT MEMORIAL NO. 8015,

and the same are herewith transmitted.

Milt H. Doumit, Secretary

April 16, 2003

Mr. Speaker:

The Senate has passed:

SUBSTITUTE HOUSE BILL NO. 1153,

HOUSE BILL NO. 1170,

SUBSTITUTE HOUSE BILL NO. 1278,

SUBSTITUTE HOUSE BILL NO. 1291,

SUBSTITUTE HOUSE BILL NO. 1721,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1852,

SUBSTITUTE HOUSE BILL NO. 2040,

and the same are herewith transmitted.

Milt H. Doumit, Secretary

April 16, 2003

Mr. Speaker:

The Senate has passed:

HOUSE BILL NO. 1083,

HOUSE BILL NO. 1179,

HOUSE BILL NO. 1226,

HOUSE BILL NO. 1350,

SUBSTITUTE HOUSE BILL NO. 1837,

and the same are herewith transmitted.

Milt H. Doumit, Secretary

INTRODUCTION & FIRST READING

HB 2263 by Representatives Bush, Lantz and Darneille

AN ACT Relating to limiting house-banked cardrooms; amending RCW 9.46.0282; adding a new section to chapter 9.46 RCW; and providing an effective date.

Referred to Committee on Commerce & Labor.

HB 2264 by Representative Murray

AN ACT Relating to transportation funding and appropriations; creating a new section; and declaring an emergency.

Referred to Committee on Transportation.

HB 2265 by Representatives McCoy and Condotta

AN ACT Relating to tuition waivers at institutions of higher education; amending RCW 28B.15.380 and 28B.15.910; adding new sections to chapter 28B.15 RCW; and repealing RCW 28B.10.265, 28B.15.620, 28B.15.625, 28B.15.628, and 28B.15.629.

Referred to Committee on Higher Education.

HB 2266 by Representatives Hunt and Romero

AN ACT Relating to leave sharing; and amending RCW 41.04.655, 41.04.660, and 41.04.665.

Referred to Committee on Appropriations.

HB 2267 by Representatives Gombosky, Sommers, Moeller, Cody, Conway, Fromhold and McIntire

AN ACT Relating to revenue for dedicated accounts; amending RCW 82.08.020, 82.04.4282, 82.08.0293, 82.12.0293, 82.32.090, and 82.08.064; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.24 RCW; adding a new section to chapter 82.32 RCW; adding a new section to chapter 43.135 RCW; creating new sections; repealing RCW 82.04.4283; providing an effective date; and declaring an emergency.

Referred to Committee on Finance.

HB 2268 by Representative Gombosky

AN ACT Relating to reducing preferential tax treatment.

Referred to Committee on Finance.

HB 2269 by Representative Gombosky

AN ACT Relating to increasing revenue.

Referred to Committee on Finance.

HB 2270 by Representative Gombosky

AN ACT Relating to revenue.

Referred to Committee on Finance.

HB 2271 by Representatives McIntire, Sommers, Hunter and Fromhold

AN ACT Relating to education funds; amending RCW 84.52.068, 28A.505.210, 28A.150.380, 67.70.240, and 67.70.340; reenacting and amending RCW 43.135.045; adding a new section to chapter 43.79 RCW; providing an effective date; and declaring an emergency.

Referred to Committee on Appropriations.

HB 2272 by Representative Gombosky

AN ACT Relating to authorizing electronic scratch ticket gaming in specified venues and locations.

Referred to Committee on Commerce & Labor.

HB 2273 by Representative Gombosky

AN ACT Relating to the approval, licensing, and playing of electronic scratch ticket games and systems by bona fide charitable or nonprofit organizations; persons, associations, or organizations operating a business primarily engaged in the selling of food or drink for consumption on the premises; phase II house-banked card rooms operating at least five house-banked card tables; and class 1 horse racing facilities in operation for at least one year.

Referred to Committee on Commerce & Labor.

HB 2274 by Representative Gombosky

AN ACT Relating to electronic gaming.

Referred to Committee on Commerce & Labor.

SB 5149 by Senator Benton

AN ACT Relating to preventing businesses from taking multiple tax credits on the same employment positions; and amending RCW 82.62.090.

Referred to Committee on Finance.

SSB 5182 by Senate Committee on Ways & Means (originally sponsored by Senators Benton, Mulliken, McCaslin, Sheahan, T. Sheldon and Esser)

AN ACT Relating to extending the expiration date for the rural county information technology tax credit; amending RCW 82.04.4457; and providing an expiration date.

Referred to Committee on Finance.

SSB 5337 by Senate Committee on Highways & Transportation (originally sponsored by Senators Horn, Haugen and Rasmussen; by request of Office of Financial Management)

AN ACT Relating to the agency council on coordinated transportation; amending RCW 47.06B.015; and repealing RCW 47.06B.020, 47.06B.030, 47.06B.040, and 47.06B.900.

Referred to Committee on Transportation.

ESB 5529 by Senators Esser, Reardon, Finkbeiner, Schmidt, Sheahan, T. Sheldon, Doumit, Rasmussen, Roach, Rossi, Stevens, West and Eide

AN ACT Relating to removing the expiration date on the research and development business and occupation tax credit; and amending RCW 82.04.4452.

Referred to Committee on Finance.

E2SSB 5531 by Senate Committee on Ways & Means (originally sponsored by Senators Finkbeiner, Reardon, Esser, T. Sheldon, Sheahan, Schmidt, Doumit, Hale, Rasmussen, Roach, Rossi, Stevens, West and Eide)

AN ACT Relating to removing the expiration date for the high-technology research and development sales and use tax deferral program; and amending RCW 82.63.030.

Referred to Committee on Finance.

SB 5614 by Senators T. Sheldon, Hale, Mulliken and Schmidt

AN ACT Relating to extending the expiration date on the rural county sales and use tax deferral program; amending RCW 82.60.040 and 82.60.050; and providing expiration dates.

Referred to Committee on Finance.

2SSB 6017 by Senate Committee on Ways & Means (originally sponsored by Senators Stevens and Hargrove)

AN ACT Relating to modifying general assistance provisions; amending RCW 74.04.005 and 74.08A.100; adding a new section to chapter 74.08 RCW; repealing RCW 74.04.230, 74.04.266, 74.50.035, and 74.50.060; providing an effective date; and declaring an emergency.

Referred to Committee on Appropriations.

SB 6057 by Senators Parlette and Rossi; by request of Office of Financial Management

AN ACT Relating to basic health care plan enrollment; amending RCW 43.72.900; creating a new section; and declaring an emergency.

Referred to Committee on Appropriations.

SSB 6058 by Senate Committee on Ways & Means (originally sponsored by Senator Oke; by request of Office of Financial Management)

AN ACT Relating to the distribution of state property taxes; and amending RCW 84.52.068.

Referred to Committee on Finance.

ESB 6063 by Senators Horn, Haugen, Swecker, Jacobsen, Finkbeiner, Spanel and McCaslin

AN ACT Relating to fees for vehicle-related businesses; and amending RCW 46.55.030, 46.70.061, 46.76.040, 46.76.050, 46.79.040, 46.79.050, 46.80.040, and 46.80.050.

Referred to Committee on Transportation.

ESSB 6074 by Senate Committee on Highways & Transportation (originally sponsored by Senators Horn, Haugen, Swecker and Prentice)

AN ACT Relating to vessels; amending RCW 47.64.090 and 88.40.020; adding a new section to chapter 41.56 RCW; providing a contingent effective date; and declaring an emergency.

There being no objection, ENGROSSED SUBSTITUTE SENATE BILL NO. 6074 was read the first time, the rules were suspended and the bill was placed on the Second Reading calendar.

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

SECOND READING

ENGROSSED SUBSTITUTE SENATE BILL NO. 6074, By Senate Committee on Highways & Transportation (originally sponsored by Senators Horn, Haugen, Swecker and Prentice)

Making technical changes to passenger-only ferry service statutes.

The bill was read the second time.

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

Representatives Rockefeller, Woods, Buck and Kessler 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 Senate Bill No. 6074.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 6074 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 SENATE BILL NO. 6074, having received the necessary constitutional majority, was declared passed.

SUBSTITUTE SENATE BILL NO. 6012, By Senate Committee on Land Use & Planning (originally sponsored by Senators Mulliken, T. Sheldon and Morton)

Codifying shoreline rules.

The bill was read the second time.

There being no objection, the committee amendment by the Committee on Local Government was before the House for purpose of amendment. (For Committee amendment, see Journal, 82^nd Day, April 4, 2003.)

POINT OF ORDER

Representative Schindler requested a scope and object ruling on the committee amendment to Substitute Senate Bill No. 6012.

SPEAKER'S RULING

The Speaker (Representative Lovick presiding): "In ruling on the point of order raised by Representative Schindler to the Local Government committee amendment to Substitute Senate Bill No. 6012, the Speaker finds and rules as follows:

Substitute Senate Bill No. 6012 is entitled an act relating to "shoreline management". This is a broad title encompassing the general topic of shoreline management. The bill establishes shoreline management guidelines in statute, and includes repeal of RCW 90.58.060 and .080.

The amendment also relates to shoreline management guidelines. It establishes a staggered statutory schedule for development of shoreline management guidelines and requirements for periodic reviews. The Speaker would note that it amends the same two statutes cited above that the bill would repeal.

This simply presents a policy choice for the body to decide. The Speaker finds that the committee amendment is within the scope and object of the bill.

Representative Schindler, your point of order is not well taken."

With the consent of the House, amendment (308) was withdrawn.

Representative Schindler moved the adoption of amendment (389) to the committee amendment:

Beginning on page 1, after line 2 of the amendment, strike everything and insert the following:

"Sec. 1. RCW 90.58.080 and 1995 c 347 s 305 are each amended to read as follows:

Local governments shall develop or amend, within ((twenty-four)) sixty months after the adoption of guidelines as provided in RCW 90.58.060, a master program for regulation of uses of the shorelines of the state consistent with the required elements of the guidelines adopted by the department."

Correct the title.

Representative Schindler spoke in favor of the adoption of the amendment to the committee amendment.

Representative Romero spoke against the adoption of the amendment to the committee amendment.

The amendment to the committee amendment was not adopted.

Representative Jarrett moved the adoption of amendment (415) to the committee amendment:

On page 2, line 13 of the amendment, after "provisions." strike "Beginning July 1, 2015, and every seven years thereafter, the department shall conduct a review of the guidelines pursuant to the procedures outlined in subsection (2) of this section." and insert "((the department shall conduct a review of the guidelines pursuant to the procedures outlined in subsection (2) of this section.))"

Representatives Jarrett and Romero spoke in favor of the adoption of the amendment to the committee amendment.

The amendment to the committee amendment was adopted.

Representative Mielke moved the adoption of amendment (417) to the committee amendment:

On page 3, line 34 of the amendment, after "conduct a" strike "comprehensive"

On page 4, line 2 of the amendment, after "shall," strike "as" and insert "if"

On page 4, line 3 of the amendment, after "review" strike "and revision"

Representatives Mielke and Romero spoke in favor of the adoption of the amendment to the committee amendment.

The amendment to the committee amendment was adopted.

The committee amendment as amended was adopted.

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

Representatives Romero, Jarrett, Moeller, Berkey, Morris, Lantz and Upthegrove spoke in favor of passage of the bill.

Representatives Schindler, Pearson, Mielke, Mastin, McMahan, Ericksen, Ahern and DeBolt spoke against the passage of the bill.

COLLOQUY

Representative Jarrett: "The final sentence of Section 2(3)(a) in Engrossed Substitute Senate Bill No. 6012 applies only to the city of Everett. What is the effect of this language on the ongoing litigation in which the city of Everett's recently revised shoreline master program has been challenged?"

Representative Romero: "This language has no effect on the ongoing litigation. The parties to that litigation will have to comply with whatever the court orders. This language addresses the time line requirements, but does not address the validity of the substance of the master program that the court will decide."

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute Senate Bill No. 6012, as amended by the House.

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 6012, as amended by the House, and the bill passed the House by the following vote: Yeas - 61, Nays - 37, Absent - 0, Excused - 0.

Voting yea: Representatives Anderson, Berkey, Buck, Chase, Clibborn, Cody, Conway, Cooper, Darneille, Delvin, Dickerson, Dunshee, Edwards, Eickmeyer, Flannigan, Fromhold, Gombosky, Haigh, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McDonald, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, Nixon, O'Brien, Pettigrew, Pflug, Priest, Quall, Rockefeller, Romero, Ruderman, Santos, Schoesler, Schual-Berke, Shabro, Simpson, Sommers, Sullivan, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 61.

Voting nay: Representatives Ahern, Alexander, Armstrong, Bailey, Benson, Blake, Boldt, Bush, Cairnes, Campbell, Carrell, Chandler, Clements, Condotta, Cox, Crouse, DeBolt, Ericksen, Grant, Hankins, Hatfield, Hinkle, Holmquist, Kristiansen, Mastin, McMahan, McMorris, Mielke, Newhouse, Orcutt, Pearson, Roach, Schindler, Sehlin, Skinner, Sump, and Talcott - 37.

SUBSTITUTE SENATE BILL NO. 6012, as amended by the House, having received the necessary constitutional majority, was declared passed.

SENATE BILL NO. 5515, By Senators Johnson, Kline and Sheahan

Allowing judicial members on the board of industrial insurance appeals.

The bill was read the second time.

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

Representative Conway 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 Senate Bill No. 5515.

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 5515 and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

SENATE BILL NO. 5515, having received the necessary constitutional majority, was declared passed.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5586, By Senate Committee on Natural Resources, Energy & Water (originally sponsored by Senators Hargrove, Hewitt, Carlson, Oke, Fraser, Regala, Keiser and Kline)

Granting authority to address concerns with lead-based paint activities.

The bill was read the second time.

There being no objection, the committee amendment by the Committee on Fisheries, Ecology & Parks was before the House for purpose of amendments. (For committee amendment, see Journal, 81^st Day, April 3, 2003.)

Representative Cooper moved the adoption of amendment (432) to the committee amendment:

On page 2, line 35 of the amendment, after "hazards." insert "The legislature recognizes the department of community, trade, and economic development is not a regulatory agency and may delegate enforcement responsibilities under this act to local governments or private entities."

Representatives Cooper and Sump spoke in favor of the adoption of the amendment to the committee amendment.

The amendment to the committee amendment was adopted.

Representative Cooper moved the adoption of amendment (431) to the committee amendment:

On page 7, after line 15 of the amendment, insert:

"(6) The department shall collect a fee in the amount of twenty-five dollars for certification and recertification of lead paint firms, inspectors, project developers, risk assessors, supervisors, and abatement workers.

(7) The department shall collect a fee in the amount of two hundred dollars for the accreditation of lead paint training programs."

On page 10, beginning on line 3 of the amendment, strike all of section 7

Renumber remaining sections consecutively and correct any internal references accordingly.

Correct the title.

Representatives Cooper and Sump spoke in favor of the adoption of the amendment to the committee amendment.

The amendment to the committee amendment was adopted.

Representative Cooper moved the adoption of amendment (433) to the committee amendment:

On page 12, line 3 of the amendment, after "section." insert "This act expires if the federal environmental protection agency does not authorize a state program within two years of the effective date of this act."

Representatives Cooper and Sump spoke in favor of the adoption of the amendment to the committee amendment.

The amendment to the committee amendment was adopted.

The committee amendment as amended was adopted.

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

Representatives Darneille, Sump and Cooper 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 Senate Bill No. 5586, as amended by the House.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 5586, as amended by the House, and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5586, as amended by the House, having received the necessary constitutional majority, was declared passed.

SENATE BILL NO. 5176, By Senators Roach and Doumit

Providing wildland fire fighting training.

The bill was read the second time.

There being no objection, the committee amendment by the Committee on State Government was adopted. (For Committee amendment, see Journal, 82^nd Day, April 4, 2003.)

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

Representatives Haigh, Hinkle, Morris, Orcutt and Cooper 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 Senate Bill No. 5176, as amended by the House.

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 5176, as amended by the House, and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

SENATE BILL NO. 5176, as amended by the House, having received the necessary constitutional majority, was declared passed.

SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8401, By Senate Committee on Higher Education (originally sponsored by Senators Kohl-Welles, Carlson, Johnson, Shin, Jacobsen, McAuliffe, Schmidt, Rasmussen and B. Sheldon)

Authorizing an interim study creating a master plan for education.

The concurrent resolution was read the second time.

There being no objection, the committee amendment by the Committee on Higher Education was not adopted. (For committee amendment, see Journal, 82^nd Day, April 4, 2003.)

Representative Kenney moved the adoption of amendment (416):

On page 1, strike everything after "WHEREAS," on line 1 and insert the following:

"Collaboration and coordination among all sectors of education including but not limited to prekindergarten, the K-12 system, the community and technical college system, the four-year colleges and universities, and the independent colleges and private career schools are essential to developing an educated citizenry;

WHEREAS, The education and higher education committees of the Washington State Senate and House of Representatives each intend separately to examine issues of strategic planning, coordination, and governance for the K-12 and postsecondary education systems during the 2003 legislative interim; and

WHEREAS, A forum should be created to expand collaboration among educational sectors, starting with the education oversight committees of the Legislature;

NOW, THEREFORE, BE IT RESOLVED, By the Senate of the State of Washington, the House of Representatives concurring, That the Senate committee on education, the Senate committee on higher education, the House of Representatives committee on education, and the House of Representatives committee on higher education shall convene a joint work session along with education and higher education stakeholders before December 31, 2003; and

BE IT FURTHER RESOLVED, That the purpose of the joint work session shall be for the committees and stakeholders to share the findings and recommendations of their interim work on strategic planning, coordination, and governance in K-12 and postsecondary education and to discuss common topics and themes that cross educational sectors, including the readiness of the state's higher education institutions to meet the anticipated needs of students educated in a standards-based K-12 environment; the need for college admissions to be aligned with K-12 standards and assessments; and what changes in the education environment will reduce the need for remediation as students are placed in college courses; and

BE IT FURTHER RESOLVED, At the joint work session, the committees and stakeholders shall discuss opportunities for further collaboration in policy development and oversight of the various educational sectors in Washington."

Representatives Kenney, Cox and Talcott spoke in favor of the adoption of the amendment.

The amendment was adopted.

There being no objection, the rules were suspended, the second reading considered the third and the concurrent resolution as amended by the House, was placed on final passage.

Representatives Kenney and Cox spoke in favor of adoption of the concurrent resolution.

Representatives McMahan and Schindler spoke against the adoption of the concurrent resolution.

The Speaker (Representative Lovick presiding) stated the question before the House to be the adoption of Substitute Senate Concurrent Resolution No. 8401, as amended by the House.

SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8401, as amended by the House was adopted.

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5135, By Senate Committee on Ways & Means (originally sponsored by Senators Carlson, West, Horn, Schmidt and Rossi)

Creating tuition surcharges.

The bill was read the second time.

There being no objection, the committee amendment by the Committee on Higher Education was adopted. (For committee amendment, see Journal, 82^nd Day, April 4, 2003.)

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

Representative Fromhold 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 Senate Bill No. 5135, as amended by the House.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Second Substitute Senate Bill No. 5135, as amended by the House, 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, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, 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 McCoy - 1.

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5135, as amended by the House, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2249, By Representatives Kessler, Skinner, Rockefeller, Hatfield, Mielke, Carrell, Alexander, Nixon, Lovick, Darneille, O'Brien, Ahern, Orcutt, Berkey, Eickmeyer, Conway, McMahan, Talcott, Santos, Hunt, Moeller and Ruderman

Waiving penalties for late renewal of licenses by members of the armed forces assigned or deployed out-of-state.

The bill was read the second time.

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

Representatives Kessler, Skinner, Benson, Ahern, Eickmeyer 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 House Bill No. 2249.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 2249 and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

HOUSE BILL NO. 2249, having received the necessary constitutional majority, was declared passed.

SUBSTITUTE SENATE BILL NO. 5912, By Senate Committee on Highways & Transportation (originally sponsored by Senators Mulliken, Haugen, Sheahan, Horn, Parlette, Rasmussen and Spanel)

Creating the Produce Railcar Pool.

The bill was read the second time.

There being no objection, the committee amendment by the Committee on Transportation was adopted. (For committee amendment, see Journal, 82^nd Day, April 4, 2003.)

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

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

Representatives Mielke, Nixon and McMahan spoke against the passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute Senate Bill No. 5912, as amended by the House.

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5912, as amended by the House, and the bill passed the House by the following vote: Yeas - 80, Nays - 18, Absent - 0, Excused - 0.

Voting yea: Representatives Armstrong, Bailey, Benson, Berkey, Blake, Buck, Campbell, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Crouse, Darneille, Delvin, Dickerson, Dunshee, Edwards, Eickmeyer, Ericksen, 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, McMorris, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, O'Brien, Pearson, Pettigrew, Priest, Quall, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood and Mr. Speaker - 80.

Voting nay: Representatives Ahern, Alexander, Anderson, Boldt, Bush, Cairnes, Carrell, Cox, DeBolt, Flannigan, McMahan, Mielke, Nixon, Orcutt, Pflug, Roach, Shabro and Woods - 18.

SUBSTITUTE SENATE BILL NO. 5912, as amended by the House, having received the necessary constitutional majority, was declared passed.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5942, By Senate Committee on Commerce & Trade (originally sponsored by Senators Reardon, Hewitt, Prentice and Honeyford)

Concerning licensing requirements for elevator mechanics and contractors.

The bill was read the second time.

There being no objection, the committee amendment by the Committee on Commerce & Labor was adopted. (For committee amendment, see Journal, 82^nd Day, April 4, 2003.)

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

Representative Wood 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 Senate Bill No. 5942, as amended by the House.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 5942, as amended by the House, and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5942, as amended by the House, having received the necessary constitutional majority, was declared passed.

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

INTRODUCTION & FIRST READING

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

The Speaker assumed the chair.

MESSAGE FROM THE SENATE

April 17, 2003

Mr. Speaker:

The President has signed ENGROSSED SUBSTITUTE SENATE BILL NO. 6074, and the same is herewith transmitted.

Milt H. Doumit, Secretary

SIGNED BY THE SPEAKER

The Speaker signed:

SUBSTITUTE HOUSE BILL NO. 2197,

SUBSTITUTE HOUSE BILL NO. 2198,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6074,

The Speaker called upon Representative Lovick to preside.

MESSAGES FROM THE SENATE

April 17, 2003

Mr. Speaker:

The President has signed:

ENGROSSED SENATE BILL NO. 5210,

SUBSTITUTE SENATE BILL NO. 5274,

SUBSTITUTE SENATE BILL NO. 5641,

SENATE BILL NO. 5654,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5785,

SUBSTITUTE SENATE BILL NO. 5824,

and the same are herewith transmitted.

Milt H. Doumit, Secretary

April 17, 2003

Mr. Speaker:

The Senate has passed:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1009,

ENGROSSED HOUSE BILL NO. 1010,

SUBSTITUTE HOUSE BILL NO. 1059,

HOUSE BILL NO. 1084,

HOUSE BILL NO. 1246,

and the same are herewith transmitted.

Milt H. Doumit, Secretary

April 17, 2003

Mr. Speaker:

The Senate has passed:

SUBSTITUTE SENATE BILL NO. 5181,

SUBSTITUTE SENATE BILL NO. 5401,

SUBSTITUTE SENATE BILL NO. 5423,

SUBSTITUTE SENATE BILL NO. 6073,

and the same are herewith transmitted.

Milt H. Doumit, Secretary

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

SECOND READING

SUBSTITUTE SENATE BILL NO. 5737, By Senate Committee on Ways & Means (originally sponsored by Senators Benton and Prentice)

Reporting abandoned property.

The bill was read the second time.

There being no objection, the committee amendment by the Committee on Finance was adopted. (For committee amendment, see Journal, 82^nd Day, April 4, 2003.)

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

Representatives Gombosky and Cairnes 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 Substitute Senate Bill No. 5737, as amended by the House.

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5737, as amended by the House, and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

SUBSTITUTE SENATE BILL NO. 5737, as amended by the House, having received the necessary constitutional majority, was declared passed.

SUBSTITUTE SENATE BILL NO. 5189, By Senate Committee on Higher Education (originally sponsored by Senators Benton, Swecker, Kohl-Welles, Shin, Stevens, Oke, Roach and Winsley)

Waiving tuition and fees for veterans of the Korean conflict.

The bill was read the second time.

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

Representatives McCoy and Cox 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 Substitute Senate Bill No. 5189.

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5189 and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

SUBSTITUTE SENATE BILL NO. 5189, having received the necessary constitutional majority, was declared passed.

SENATE BILL NO. 5284, By Senators Stevens, Horn, Benton, Haugen, Oke, Swecker, Esser and Mulliken

Penalizing failure to use required traction equipment.

The bill was read the second time.

Representative Mielke moved the adoption of amendment (430):

On page 2, line 21, strike "five hundred" and insert "two hundred fifty"

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

Representative Simpson spoke against the adoption of the amendment.

The amendment was not adopted.

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

Representatives Simpson and Mielke 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 Senate Bill No. 5284.

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 5284 and the bill passed the House by the following vote: Yeas - 98, Nays - 0, Absent - 0, Excused - 0.

SENATE BILL NO. 5284, having received the necessary constitutional majority, was declared passed.

SENATE BILL NO. 5893, By Senator Oke

Allowing the fish and wildlife commission to set a transaction fee on recreational documents issued through an automated licensing system.

The bill was read the second time.

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

Representatives Cooper and Pearson 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 Senate Bill No. 5893.

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 5893 and the bill passed the House by the following vote: Yeas - 94, Nays - 4, Absent - 0, Excused - 0.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Berkey, Blake, Buck, Bush, Campbell, 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, 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 - 94.

Voting nay: Representatives Boldt, Cairnes, Carrell, and McMahan - 4.

SENATE BILL NO. 5893, 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

April 16, 2003

HB 2192 Prime Sponsor, Representatives Cody: Taxing parimutuel machines. Reported by Committee on Finance

MAJORITY recommendation: The substitute bill be substituted therefor and the substitute bill do pass. Signed by Representatives Gombosky, Chairman; McIntire, Vice Chairman; Cairnes, Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Ahern; Conway; Morris; Roach and Santos.

Passed to Committee on Rules for second reading.

April 16, 2003

ESSB 5071 Prime Sponsor, Senate Committee On Ways & Means: Revising business and occupation taxation for certain aviation businesses. Reported by Committee on Finance

MAJORITY recommendation: Do pass. Signed by Representatives Gombosky, Chairman; McIntire, Vice Chairman; Cairnes, Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Ahern; Conway; Morris; Roach and Santos.

Passed to Committee on Rules for second reading.

2SSB 5364 Prime Sponsor, Seattle Committee On Ways & Means: Promoting economic development and community revitalization. Reported by Committee on Finance

April 16, 2003

SB 5725 Prime Sponsor, Senator Zarelli: Providing tax incentives to support the state's semiconductor cluster. Reported by Committee on Finance

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. FINDINGS. The legislature finds that the welfare of the people of the state of Washington is positively impacted through the encouragement and expansion of family wage employment in the state's manufacturing industries. The legislature further finds that targeting tax incentives to focus on key industry clusters is an important business climate strategy. The Washington competitiveness council has recognized the semiconductor industry, which includes the design and manufacture of semiconductor materials, as one of the state's existing key industry clusters. Businesses in this cluster in the state of Washington are facing increasing pressure to expand elsewhere. The sales and use tax exemptions for manufacturing machinery and equipment enacted by the 1995 legislature improved Washington's ability to compete with other states for manufacturing investment. However, additional incentives for the semiconductor cluster need to be put in place in recognition of the unique forces and global issues involved in business decisions that key businesses in this cluster face.

Therefore, the legislature intends to enact comprehensive tax incentives for the semiconductor cluster that address activities of the lead product industry and its suppliers and customers. Tax incentives for the semiconductor cluster are important in both retention and expansion of existing business and attraction of new businesses, all of which will strengthen this cluster. The legislature also recognizes that the semiconductor industry involves major investment that results in significant construction projects, which will create jobs and bring many indirect benefits to the state during the construction phase.

Sec. 2. RCW 82.04.260 and 2001 2nd sp.s. c 25 s 2 are each amended to read as follows:

(1) Upon every person engaging within this state in the business of manufacturing:

(a) Wheat into flour, barley into pearl barley, soybeans into soybean oil, canola into canola oil, canola meal, or canola byproducts, or sunflower seeds into sunflower oil; as to such persons the amount of tax with respect to such business shall be equal to the value of the flour, pearl barley, oil, canola meal, or canola byproduct manufactured, multiplied by the rate of 0.138 percent;

(b) Seafood products which remain in a raw, raw frozen, or raw salted state at the completion of the manufacturing by that person; as to such persons the amount of tax with respect to such business shall be equal to the value of the products manufactured, multiplied by the rate of 0.138 percent;

(c) By canning, preserving, freezing, processing, or dehydrating fresh fruits and vegetables, or selling at wholesale fresh fruits and vegetables canned, preserved, frozen, processed, or dehydrated by the seller and sold to purchasers who transport in the ordinary course of business the goods out of this state; as to such persons the amount of tax with respect to such business shall be equal to the value of the products canned, preserved, frozen, processed, or dehydrated multiplied by the rate of 0.138 percent. As proof of sale to a person who transports in the ordinary course of business goods out of this state, the seller shall annually provide a statement in a form prescribed by the department and retain the statement as a business record; and

(d) Dairy products that as of September 20, 2001, are identified in 21 C.F.R., chapter 1, parts 131, 133, and 135, including byproducts from the manufacturing of the dairy products such as whey and casein; or selling the same to purchasers who transport in the ordinary course of business the goods out of state; as to such persons the tax imposed shall be equal to the value of the products manufactured multiplied by the rate of 0.138 percent. As proof of sale to a person who transports in the ordinary course of business goods out of this state, the seller shall annually provide a statement in a form prescribed by the department and retain the statement as a business record.

(2) Upon every person engaging within this state in the business of splitting or processing dried peas; as to such persons the amount of tax with respect to such business shall be equal to the value of the peas split or processed, multiplied by the rate of 0.138 percent.

(3) Upon every nonprofit corporation and nonprofit association engaging within this state in research and development, as to such corporations and associations, the amount of tax with respect to such activities shall be equal to the gross income derived from such activities multiplied by the rate of 0.484 percent.

(4) Upon every person engaging within this state in the business of slaughtering, breaking and/or processing perishable meat products and/or selling the same at wholesale only and not at retail; as to such persons the tax imposed shall be equal to the gross proceeds derived from such sales multiplied by the rate of 0.138 percent.

(5) Upon every person engaging within this state in the business of making sales, at retail or wholesale, of nuclear fuel assemblies manufactured by that person, as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds of sales of the assemblies multiplied by the rate of 0.275 percent.

(6) Upon every person engaging within this state in the business of manufacturing nuclear fuel assemblies, as to such persons the amount of tax with respect to such business shall be equal to the value of the products manufactured multiplied by the rate of 0.275 percent.

(7) Upon every person engaging within this state in the business of acting as a travel agent or tour operator; as to such persons the amount of the tax with respect to such activities shall be equal to the gross income derived from such activities multiplied by the rate of 0.275 percent.

(8) Upon every person engaging within this state in business as an international steamship agent, international customs house broker, international freight forwarder, vessel and/or cargo charter broker in foreign commerce, and/or international air cargo agent; as to such persons the amount of the tax with respect to only international activities shall be equal to the gross income derived from such activities multiplied by the rate of 0.275 percent.

(9) Upon every person engaging within this state in the business of stevedoring and associated activities pertinent to the movement of goods and commodities in waterborne interstate or foreign commerce; as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds derived from such activities multiplied by the rate of 0.275 percent. Persons subject to taxation under this subsection shall be exempt from payment of taxes imposed by chapter 82.16 RCW for that portion of their business subject to taxation under this subsection. Stevedoring and associated activities pertinent to the conduct of goods and commodities in waterborne interstate or foreign commerce are defined as all activities of a labor, service or transportation nature whereby cargo may be loaded or unloaded to or from vessels or barges, passing over, onto or under a wharf, pier, or similar structure; cargo may be moved to a warehouse or similar holding or storage yard or area to await further movement in import or export or may move to a consolidation freight station and be stuffed, unstuffed, containerized, separated or otherwise segregated or aggregated for delivery or loaded on any mode of transportation for delivery to its consignee. Specific activities included in this definition are: Wharfage, handling, loading, unloading, moving of cargo to a convenient place of delivery to the consignee or a convenient place for further movement to export mode; documentation services in connection with the receipt, delivery, checking, care, custody and control of cargo required in the transfer of cargo; imported automobile handling prior to delivery to consignee; terminal stevedoring and incidental vessel services, including but not limited to plugging and unplugging refrigerator service to containers, trailers, and other refrigerated cargo receptacles, and securing ship hatch covers.

(10) Upon every person engaging within this state in the business of disposing of low-level waste, as defined in RCW 43.145.010; as to such persons the amount of the tax with respect to such business shall be equal to the gross income of the business, excluding any fees imposed under chapter 43.200 RCW, multiplied by the rate of 3.3 percent.

If the gross income of the taxpayer is attributable to activities both within and without this state, the gross income attributable to this state shall be determined in accordance with the methods of apportionment required under RCW 82.04.460.

(11) Upon every person engaging within this state as an insurance agent, insurance broker, or insurance solicitor licensed under chapter 48.17 RCW; as to such persons, the amount of the tax with respect to such licensed activities shall be equal to the gross income of such business multiplied by the rate of 0.484 percent.

(12) Upon every person engaging within this state in business as a hospital, as defined in chapter 70.41 RCW, that is operated as a nonprofit corporation or by the state or any of its political subdivisions, as to such persons, the amount of tax with respect to such activities shall be equal to the gross income of the business multiplied by the rate of 0.75 percent through June 30, 1995, and 1.5 percent thereafter. The moneys collected under this subsection shall be deposited in the health services account created under RCW 43.72.900.

(13) Until July 1, 2017, upon every person engaging within this state in the business of manufacturing semiconductor materials, as to such persons the amount of tax with respect to such business shall, in the case of manufacturers, be equal to the value of the product manufactured, or, in the case of processors for hire, be equal to the gross income of the business, multiplied by the rate of 0.138 percent. For the purposes of this subsection "semiconductor materials" means silicon crystals, silicon ingots, raw polished semiconductor wafers, compound semiconductors, integrated circuits, and microchips.

Sec. 3. RCW 82.04.240 and 1998 c 312 s 3 are each amended to read as follows:

Upon every person ((except persons taxable under RCW 82.04.260 (1), (2), (4), (5), or (6))) engaging within this state in business as a manufacturer, except persons taxable as manufacturers under another section of this chapter; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, manufactured, multiplied by the rate of 0.484 percent.

The measure of the tax is the value of the products, including byproducts, so manufactured regardless of the place of sale or the fact that deliveries may be made to points outside the state.

Sec. 4. RCW 82.04.280 and 1998 c 343 s 3 are each amended to read as follows:

Upon every person engaging within this state in the business of: (1) Printing, and of publishing newspapers, periodicals, or magazines; (2) building, repairing or improving any street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used, primarily for foot or vehicular traffic including mass transportation vehicles of any kind and including any readjustment, reconstruction or relocation of the facilities of any public, private or cooperatively owned utility or railroad in the course of such building, repairing or improving, the cost of which readjustment, reconstruction, or relocation, is the responsibility of the public authority whose street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle is being built, repaired or improved; (3) extracting for hire or processing for hire, except persons taxable as processors for hire under another section of this chapter; (4) operating a cold storage warehouse or storage warehouse, but not including the rental of cold storage lockers; (5) representing and performing services for fire or casualty insurance companies as an independent resident managing general agent licensed under the provisions of RCW 48.05.310; (6) radio and television broadcasting, excluding network, national and regional advertising computed as a standard deduction based on the national average thereof as annually reported by the Federal Communications Commission, or in lieu thereof by itemization by the individual broadcasting station, and excluding that portion of revenue represented by the out-of-state audience computed as a ratio to the station's total audience as measured by the 100 micro-volt signal strength and delivery by wire, if any; (7) engaging in activities which bring a person within the definition of consumer contained in RCW 82.04.190(6); as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of 0.484 percent.

As used in this section, "cold storage warehouse" means a storage warehouse used to store fresh and/or frozen perishable fruits or vegetables, meat, seafood, dairy products, or fowl, or any combination thereof, at a desired temperature to maintain the quality of the product for orderly marketing.

As used in this section, "storage warehouse" means a building or structure, or any part thereof, in which goods, wares, or merchandise are received for storage for compensation, except field warehouses, fruit warehouses, fruit packing plants, warehouses licensed under chapter 22.09 RCW, public garages storing automobiles, railroad freight sheds, docks and wharves, and "self-storage" or "mini storage" facilities whereby customers have direct access to individual storage areas by separate entrance. "Storage warehouse" does not include a building or structure, or that part of such building or structure, in which an activity taxable under RCW 82.04.272 is conducted.

As used in this section, "periodical or magazine" means a printed publication, other than a newspaper, issued regularly at stated intervals at least once every three months, including any supplement or special edition of the publication.

NEW SECTION. Sec. 5. A new section is added to chapter 82.08 RCW to read as follows:

SALES TAX EXEMPTION FOR CONSTRUCTION. (1) The tax levied by RCW 82.08.020 shall not apply to charges made for labor and services rendered in respect to the constructing of new buildings used for the manufacturing of semiconductor materials, to sales of tangible personal property that will be incorporated as an ingredient or component of such buildings during the course of the constructing, or to labor and services rendered in respect to installing, during the course of constructing, building fixtures not otherwise eligible for the exemption under RCW 82.08.02565(2)(b). The exemption is available only when the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller shall retain a copy of the certificate for the seller's files.

(2) To be eligible under this section the manufacturer or processor for hire must meet the following requirements for an eight-year period, such period beginning the day the new building commences commercial production, or a portion of tax otherwise due shall be immediately due and payable pursuant to subsection (3) of this section:

(a) The manufacturer or processor for hire must maintain at least seventy-five percent of full employment at the new building for which the exemption under this section is claimed.

(b) Before commencing commercial production at a new facility the manufacturer or processor for hire must meet with the department to review projected employment levels in the new buildings. The department, using information provided by the taxpayer, shall make a determination of the number of positions that would be filled at full employment. This number shall be used throughout the eight-year period to determine whether any tax is to be repaid. This information is not subject to the confidentiality provisions of RCW 82.32.330 and may be disclosed to the public upon request.

(c) In those situations where a production building in existence on the effective date of this section will be phased out of operation during which time employment at the new building at the same site is increased, the manufacturer or processor for hire shall maintain seventy-five percent of full employment at the manufacturing site overall.

(d) No application is necessary for the tax exemption. The person is subject to all the requirements of chapter 82.32 RCW. A person taking the exemption under this section must report as required under section 11 of this act.

(3) If the employment requirement is not met for any one calendar year, one-eighth of the exempt sales and use taxes shall be due and payable by April 1st of the following year. The department shall assess interest to the date the tax was imposed, but not penalties, on the taxes for which the person is not eligible.

(4) The exemption applies to new buildings, or parts of buildings, that are used exclusively in the manufacturing of semiconductor materials, including the storage of raw materials and finished product.

(5) For the purposes of this section:

(a) "Commencement of commercial production" is deemed to have occurred when the equipment and process qualifications in the new building are completed and production for sale has begun; and

(b) "Full employment" is the number of positions required for full capacity production at the new building, for positions such as line workers, engineers, and technicians.

(6) No exemption may be taken after July 1, 2017, however all of the eligibility criteria and limitations are applicable to any exemptions claimed before that date.

(7) This section expires July 1, 2017.

NEW SECTION. Sec. 6. A new section is added to chapter 82.12 RCW to read as follows:

USE TAX EXEMPTION FOR CONSTRUCTION MATERIALS AND INSTALLATION SERVICES. (1) The provisions of this chapter do not apply with respect to the use of tangible personal property that will be incorporated as an ingredient or component of new buildings used for the manufacturing of semiconductor materials during the course of constructing such buildings or to labor and services rendered in respect to installing, during the course of constructing, building fixtures not otherwise eligible for the exemption under RCW 82.08.02565(2)(b).

(2) The eligibility requirements, conditions, and definitions in section 5 of this act apply to this section.

(3) No exemption may be taken after July 1, 2017, however all of the eligibility criteria and limitations are applicable to any exemptions claimed before that date.

(4) This section expires July 1, 2017.

NEW SECTION. Sec. 7. A new section is added to chapter 82.08 RCW to read as follows:

SALES TAX EXEMPTION FOR GASES AND CHEMICALS. (1) The tax levied by RCW 82.08.020 shall not apply to sales of gases and chemicals used by a manufacturer or processor for hire in the manufacturing of semiconductor materials. This exemption is limited to gases and chemicals used in the manufacturing process to grow the product, deposit or grow permanent or sacrificial layers on the product, to etch or remove material from the product, to anneal the product, to immerse the product, to clean the product, and other such uses whereby the gases and chemicals come into direct contact with the product during the manufacturing process, or uses of gases and chemicals to clean the chambers and other like equipment in which such processing takes place. For the purposes of this section, "semiconductor materials" has the same meaning as provided in RCW 82.04.260(13).

(2) A person taking the exemption under this section must report under section 11 of this act. No application is necessary for the tax exemption. The person is subject to all of the requirements of chapter 82.32 RCW.

(3) This section expires July 1, 2017.

NEW SECTION. Sec. 8. A new section is added to chapter 82.12 RCW to read as follows:

USE TAX EXEMPTION FOR GASES AND CHEMICALS. (1) The provisions of this chapter do not apply with respect to the use of gases and chemicals used by a manufacturer or processor for hire in the manufacturing of semiconductor materials. This exemption is limited to gases and chemicals used in the manufacturing process to grow the product, deposit or grow permanent or sacrificial layers on the product, to etch or remove material from the product, to anneal the product, to immerse the product, to clean the product, and other such uses whereby the gases and chemicals come into direct contact with the product during the manufacturing process, or uses of gases and chemicals to clean the chambers and other like equipment in which such processing takes place. For purposes of this section, "semiconductor materials" has the same meaning as provided in RCW 82.04.260(13).

(3) This section expires July 1, 2017.

NEW SECTION. Sec. 9. A new section is added to chapter 82.04 RCW to read as follows:

BUSINESS AND OCCUPATION TAX JOB CREDIT. (1) Subject to the limits and provisions of this section, a credit is authorized against the tax otherwise due under RCW 82.04.260(13) for persons engaged in the business of manufacturing semiconductor materials. For the purposes of this section "semiconductor materials" has the same meaning as provided in RCW 82.04.260(13).

(2)(a) The credit under this section shall equal three thousand dollars for each employment position used in manufacturing production that takes place in a new building exempt from sales and use tax under sections 5 and 6 of this act. A credit is earned for the calendar year a person fills a position. Additionally a credit is earned for each year the position is maintained over the subsequent consecutive years, up to eight years. Those positions that are not filled for the entire year are eligible for fifty percent of the credit if filled less than six months, and the entire credit if filled more than six months.

(b) To qualify for the credit, the manufacturing activity of the person must be conducted at a new building that qualifies for the exemption from sales and use tax under sections 5 and 6 of this act.

(c) In those situations where a production building in existence on the effective date of this section will be phased out of operation, during which time employment at the new building at the same site is increased, the person is eligible for credit for employment at the existing building and new building, with the limitation that the combined eligible employment not exceed full employment at the new building. "Full employment" has the same meaning as in section 5 of this act. The credit may not be earned until the commencement of commercial production, as that term is used in section 5 of this act.

(3) No application is necessary for the tax credit. The person is subject to all of the requirements of chapter 82.32 RCW. In no case may a credit earned during one calendar year be carried over to be credited against taxes incurred in a subsequent calendar year. No refunds may be granted for credits under this section.

(4) If at any time the department finds that a person is not eligible for tax credit under this section, the amount of taxes for which a credit has been claimed shall be immediately due. The department shall assess interest, but not penalties, on the taxes for which the person is not eligible. The interest shall be assessed at the rate provided for delinquent excise taxes under chapter 82.32 RCW, shall be retroactive to the date the tax credit was taken, and shall accrue until the taxes for which a credit has been used are repaid.

(5) A person taking the credit under this section must report under section 11 of this act.

(6) Credits may be taken after July 1, 2017, for those buildings at which commercial production began before July 1, 2017, subject to all of the eligibility criteria and limitations of this section.

(7) This section expires July 1, 2017.

NEW SECTION. Sec. 10. A new section is added to chapter 84.36 RCW to read as follows:

PROPERTY TAX EXEMPTION FOR MANUFACTURING MACHINERY AND EQUIPMENT.

(1) Machinery and equipment exempt under RCW 82.08.02565 or 82.12.02565 used in manufacturing semiconductor materials at a building exempt from sales and use tax and in compliance with the employment requirement under sections 5 and 6 of this act are tax exempt from taxation. "Semiconductor materials" has the same meaning as provided in RCW 82.04.260(13).

(2) A person seeking this exemption must make application to the county assessor, on forms prescribed by the department.

(3) A person receiving an exemption under this section must report in the manner prescribed in section 11 of this act.

(4) This section is effective for taxes levied for collection in 2006 and thereafter.

(5) This section expires December 31, 2017, for taxes levied for collection in 2018.

NEW SECTION. Sec. 11. A new section is added to chapter 82.32 RCW to read as follows:

ACCOUNTABILITY. (1) The legislature finds that accountability and effectiveness are important aspects of setting tax policy. In order to make policy choices regarding the best use of limited state resources the legislature needs information on how a tax incentive is used.

(2)(a) A person who reports taxes under RCW 82.04.260(13) or who claims an exemption or credit under sections 5 through 10 of this act, shall make an annual report to the department detailing employment, wages, and employer-provided health and retirement benefits per job at the manufacturing site. The report shall not include names of employees. The report shall also detail employment by the total number of full-time, part-time, and temporary positions. The first report filed under this subsection shall include employment, wage, and benefit information for the twelve-month period immediately before first use of a preferential tax rate under RCW 82.04.260(13), or tax exemption or credit under sections 5 through 10 of this act. The report is due by March 31st following any year in which a preferential tax rate under RCW 82.04.260(13) is used, or tax exemption or credit under sections 5 through 10 of this act is taken. This information is not subject to the confidentiality provisions of RCW 82.32.330 and may be disclosed to the public upon request.

(b) If a person fails to submit an annual report under (a) of this subsection the department shall declare the amount of taxes exempted or credited for that year to be immediately due and payable. Excise taxes payable under this subsection are subject to interest, as provided under this chapter. This information is not subject to the confidentiality provisions of RCW 82.32.330 and may be disclosed to the public upon request.

(3) By November 1, 2010, and November 1, 2016, the fiscal committees of the house of representatives and the senate, in consultation with the department, shall report to the legislature on the effectiveness of chapter . . ., Laws of 2003 (this act) in regard to keeping Washington competitive. The report shall measure the effect of chapter . . ., Laws of 2003 (this act) on job retention, net jobs created for Washington residents, company growth, diversification of the state's economy, cluster dynamics, and other factors as the committees select. The reports shall include a discussion of principles to apply in evaluating whether the legislature should reenact any or all of the tax preferences in chapter . . ., Laws of 2003 (this act).

NEW SECTION. Sec. 12. CAPTIONS. Captions used in this act are not part of the law.

NEW SECTION. Sec. 13. This act takes effect July 1, 2005."

Signed by Representatives Gombosky, Chairman; Cairnes, Ranking Minority Member; Orcutt, Assistant Ranking Minority Member; Ahern; Conway; Morris; Roach and Santos.

MINORITY recommendation: Do not pass. Signed by Representatives McIntire, Vice Chairman;

April 16, 2003

SSB 6054 Prime Sponsor, Senate Committee On Ways & Means: Clarifying the application of the industrial welfare act to public employers. Reported by Committee on Commerce & Labor

MAJORITY recommendation: Do pass as amended.

On page 2, beginning on line 1, strike all of section 2 and insert the following:

"Sec. 2. RCW 49.12.005 and 1998 c 334 s 1 are each amended to read as follows:

For the purposes of this chapter:

(1) ((The term)) "Department" means the department of labor and industries.

(2) ((The term)) "Director" means the director of the department of labor and industries, or the director's designated representative.

(3) ((The term)) (a) Before the effective date of this act, "employer" means any person, firm, corporation, partnership, business trust, legal representative, or other business entity which engages in any business, industry, profession, or activity in this state and employs one or more employees ((and)) but does not include the state, any state institution, any state agency, political subdivisions of the state, and any municipal corporation or quasi-municipal corporation. However, for the purposes of RCW ((49.12.270)) 49.12.265 through 49.12.295 ((and)), 49.12.350 through 49.12.370, 49.12.450, and 49.12.460 only, "employer" also includes the state, any state institution, any state agency, political subdivisions of the state, and any municipal corporation or quasi-municipal corporation.

(b) On and after the effective date of this act, "employer" means any person, firm, corporation, partnership, business trust, legal representative, or other business entity which engages in any business, industry, profession, or activity in this state and employs one or more employees, and includes the state, any state institution, state agency, political subdivisions of the state, and any municipal corporation or quasi-municipal corporation.

(4) ((The term)) "Employee" means an employee who is employed in the business of the employee's employer whether by way of manual labor or otherwise.

(5) ((The term)) "Conditions of labor" ((shall)) means and includes the conditions of rest and meal periods for employees including provisions for personal privacy, practices, methods and means by or through which labor or services are performed by employees and includes bona fide physical qualifications in employment, but shall not include conditions of labor otherwise governed by statutes and rules and regulations relating to industrial safety and health administered by the department.

(6) For the purpose of chapter 16, Laws of 1973 2nd ex. sess. a minor is defined to be a person of either sex under the age of eighteen years.

Sec. 3. RCW 49.12.187 and 1973 2nd ex.s. c 16 s 18 are each amended to read as follows:

This chapter shall not be construed to interfere with, impede, or in any way diminish the right of employees to bargain collectively with their employers through representatives of their own choosing concerning wages or standards or conditions of employment. However, rules adopted under this chapter regarding appropriate rest and meal periods as applied to public employees may be superseded by a collective bargaining agreement negotiated under a state collective bargaining law if the terms of the collective bargaining agreement covering such employees specifically require rest and meal periods and prescribe requirements concerning those rest and meal periods.

Sec. 4. RCW 49.12.360 and 1989 1st ex.s. c 11 s 23 are each amended to read as follows:

(1) An employer must grant an adoptive parent or a stepparent, at the time of birth or initial placement for adoption of a child under the age of six, the same leave under the same terms as the employer grants to biological parents. As a term of leave, an employer may restrict leave to those living with the child at the time of birth or initial placement.

(2) An employer must grant the same leave upon the same terms for men as it does for women.

(3) The department shall administer and investigate violations of this section. Notices of infraction, penalties, and appeals shall be administered in the same manner as violations under RCW 49.12.285.

(4) ((For purposes of this section, "employer" includes all private and public employers listed in RCW 49.12.005(3).

(5))) For purposes of this section, "leave" means any leave from employment granted to care for a newborn or a newly adopted child at the time of placement for adoption.

(((6)))(5) Nothing in this section requires an employer to:

(a) Grant leave equivalent to maternity disability leave; or

(b) Establish a leave policy to care for a newborn or newly placed child if no such leave policy is in place for any of its employees.

Sec. 5. RCW 49.12.460 and 2001 c 173 s 1 are each amended to read as follows:

(1) An employer may not discharge from employment or discipline a volunteer fire fighter because of leave taken related to an alarm of fire or an emergency call.

(2)(a) A volunteer fire fighter who believes he or she was discharged or disciplined in violation of this section may file a complaint alleging the violation with the director. The volunteer fire fighter may allege a violation only by filing such a complaint within ninety days of the alleged violation.

(b) Upon receipt of the complaint, the director must cause an investigation to be made as the director deems appropriate and must determine whether this section has been violated. Notice of the director's determination must be sent to the complainant and the employer within ninety days of receipt of the complaint.

(c) If the director determines that this section was violated and the employer fails to reinstate the employee or withdraw the disciplinary action taken against the employee, whichever is applicable, within thirty days of receipt of notice of the director's determination, the volunteer fire fighter may bring an action against the employer alleging a violation of this section and seeking reinstatement or withdrawal of the disciplinary action.

(d) In any action brought under this section, the superior court shall have jurisdiction, for cause shown, to restrain violations under this section and to order reinstatement of the employee or withdrawal of the disciplinary action.

(3) For the purposes of this section:

(a) "Alarm of fire or emergency call" means responding to, working at, or returning from a fire alarm or an emergency call, but not participating in training or other nonemergency activities.

(b) "Employer" means ((any person)) an employer who had twenty or more full-time equivalent employees in the previous year.

(c) "Reinstatement" means reinstatement with back pay, without loss of seniority or benefits, and with removal of any related adverse material from the employee's personnel file, if a file is maintained by the employer.

(d) "Withdrawal of disciplinary action" means withdrawal of disciplinary action with back pay, without loss of seniority or benefits, and with removal of any related adverse material from the employee's personnel file, if a file is maintained by the employer.

(e) "Volunteer fire fighter" means a fire fighter who:

(i) Is not paid;

(ii) Is not already at his or her place of employment when called to serve as a volunteer, unless the employer agrees to provide such an accommodation; and

(iii) Has been ordered to remain at his or her position by the commanding authority at the scene of the fire.

(4) The legislature declares that the public policies articulated in this section depend on the procedures established in this section and no civil or criminal action may be maintained relying on the public policies articulated in this section without complying with the procedures set forth in this section, and to that end all civil actions and civil causes of action for such injuries and all jurisdiction of the courts of this state over such causes are hereby abolished, except as provided in this section."

Renumber the sections consecutively, correct internal references accordingly, and correct the title.

Signed by Representatives Conway, Chairman; Wood, Vice Chairman; Hudgins; Kenney and McCoy.

MINORITY recommendation: Do not pass. Signed by Representatives Chandler, Ranking Minority Member; Crouse and Holmquist.

Referred to Committee on Appropriations.

There being no objection, the bills listed on the day's committee reports sheet under the fifth order of business were referred to the committees so designated with the exception of SECOND SUBSTITUTE SENATE BILL NO. 5364 and SENATE BILL NO. 5725 which were placed on the Second Reading calendar.

There being no objection, the Rules Committee was relieved of the following bills which were placed on the Second Reading calendar:

HOUSE BILL NO. 2152,

HOUSE BILL NO. 2158,

SENATE BILL NO. 5437,

SENATE BILL NO. 5512,

SENATE BILL NO. 5705,

SECOND SUBSTITUTE SENATE BILL NO. 5890,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6026,

There being no objection, the Committee on Fisheries, Ecology & Parks was relieved of further consideration of SUBSTITUTE SENATE BILL NO. 5179, and the bill was placed on the Second Reading calendar.

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

There being no objection, the House adjourned until 10:00 a.m., April 18, 2003, the 96^th Day of the Regular Session.

FRANK CHOPP, Speaker CYNTHIA ZEHNDER, Chief Clerk