WHEREAS, The fact that a boy is an Eagle Scout has always carried with it a special significance, not only in scouting but also as he enters higher education, business or industry, and community service; and

      WHEREAS, The Eagle Scout rank is the highest advancement rank in Scouting, and to earn this a boy must fulfill requirements in the areas of leadership, service, and outdoor skills; and

      WHEREAS, James Melvin Rhoden has achieved the ranks of Tenderfoot, Second Class, First Class, Star, and Life to attain this highest level of Scouting achievement; and

      WHEREAS, Merit badges signify the mastery of certain Scoutcraft skills, as well as helping boys increase their skills in an area of personal interest; and

      WHEREAS, James Melvin Rhoden has earned twenty-six merit badges, five merit badges above the twenty-one required to qualify for the Eagle Scout rank; and

      WHEREAS, For his Eagle Scout Service Project, James Melvin Rhoden provided Sunset Terrace Park in his community with two sturdy picnic tables, which he built and stained by organizing twenty-two volunteers and over ninety man hours; and

      WHEREAS, The rank of Eagle Scout is a significant achievement in a young man's life and takes many years of hard work, dedication, and perseverance;

      NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate honor James Melvin Rhoden as an outstanding citizen and member of the community, which he has proven to be by achieving the highest rank of Eagle Scout in the Boy Scouts of America Program; and

      BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Secretary of the Senate to James Melvin Rhoden, in recognition of his outstanding achievement, and to David Carter, Scoutmaster of Troop 414 in the Wapato District of the Pacific Harbor Council.

      Senators Franklin, Hargrove, Hewitt and Shin spoke to Senate Resolutions 8647 and 8648.

INTRODUCTION OF SPECIAL GUESTS

      The President welcomed and introduced Eagle Scouts, brothers John Pierce Rhoden and James Melvin Rhoden, who were seated on the rostrum.

      The President also welcomed their parents, Mark and Linda Rhoden, and their sister, Becky, who were seated in the back of the Chamber.

MOTION

      On motion of Senator Sheahan, the Senate reverted to the sixth order of business.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 1232, by House Committee on Criminal Justice and Corrections (originally sponsored by Representatives Kirby, Carrell and Flannigan)

Requiring jail booking fees to be based on actual costs.

      The bill was read the second time.

MOTION

      On motion of Senator Stevens, the rules were suspended, Substitute House Bill No. 1232 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debated ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1232.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1232 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 2; Absent, 1; Excused, 0.

     Voting yea: Senators Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 46.

     Voting nay: Senators Brandland and Keiser - 2.

     Absent: Senator Benton - 1.

      SUBSTITUTE HOUSE BILL NO. 1232, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 1495, by House Committee on Commerce and Labor (originally sponsored by Representatives Hudgins, Chandler, Conway and Kenney) (by request of Liquor Control Board)

Changing provisions relating to the summary suspension of a liquor license pending revocation proceedings.

      The bill was read the second time.

MOTION

      On motion of Senator Honeyford, the following Committee on Commerce and Trade striking amendment was adopted:

       Strike everything after the enacting clause and insert the following:

       "Sec. 1. RCW 66.08.150 and 1989 c 175 s 122 are each amended to read as follows:

       The action, order, or decision of the board as to any denial of an application for the reissuance of a permit or license or as to any revocation, suspension, or modification of any permit or license shall be an adjudicative proceeding and subject to the applicable provisions of chapter 34.05 RCW.

       (1) An opportunity for a hearing may be provided an applicant for the reissuance of a permit or license prior to the disposition of the application, and if no such opportunity for a prior hearing is provided then an opportunity for a hearing to reconsider the application must be provided the applicant.

       (2) An opportunity for a hearing must be provided a permittee or licensee prior to a revocation or modification of any permit or license and, except as provided in subsection (4) of this section, prior to the suspension of any permit or license.

       (3) No hearing shall be required until demanded by the applicant, permittee, or licensee.

       (4) The board may summarily suspend a license or permit for a period of up to ((thirty)) one hundred eighty days without a prior hearing if it finds that public health, safety, or welfare imperatively require emergency action, and incorporates a finding to that effect in its order; and proceedings for revocation or other action must be promptly instituted and determined. The board's enforcement division shall complete a preliminary staff investigation of the violation before requesting an emergency suspension by the board."

      There being no objection, the following title amendment was adopted:

       On page 1, line 2 of the title, after "proceedings;" strike the remainder of the title and insert "and amending RCW 66.08.150."

MOTION

      On motion of Senator Honeyford, the rules were suspended, Substitute House Bill No. 1495, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1495, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1495, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      SUBSTITUTE HOUSE BILL NO. 1495, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      On motion of Senator Hewitt, Senators Parlette and Swecker were excused.

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1463, by House Committee on Transportation (originally sponsored by Representatives Sullivan, Ericksen, Simpson, Jarrett and Anderson)

Allowing advertising on bus shelters.

      The bill was read the second time.

MOTION

      On motion of Senator Sheahan, the rules were suspended, Engrossed Substitute House Bill No. 1463 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1463.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1463 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 2; Absent, 1; Excused, 2.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Thibaudeau, West and Winsley - 44.

     Voting nay: Senators Fraser and Zarelli - 2.

     Absent: Senator Deccio - 1.

     Excused: Senators Parlette and Swecker - 2.

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1463, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      On motion of Senator Hewitt, Senator Honeyford was excused.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 1222, by House Committee on State Government (originally sponsored by Representatives Dickerson, Ruderman, Lovick, Romero, Schual-Berke, Hunt, Nixon, Wood, Conway, Simpson, Chase and Haigh)

Requiring voting devices to be accessible to individuals with disabilities.

      The bill was read the second time.

MOTION

      On motion of Senator Kastama, the rules were suspended, Substitute House Bill No. 1222 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1222.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1222 and the bill passed the Senate by the following vote Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Thibaudeau, West, Winsley and Zarelli - 46.

     Excused: Senators Honeyford, Parlette and Swecker - 3.

      SUBSTITUTE HOUSE BILL NO. 1222, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1787, by House Committee on Children and Family Services (originally sponsored by Representatives Pettigrew, Boldt, Moeller, Miloscia, Jarrett, Priest, Dickerson and Santos)

Establishing a 211 network.

      The bill was read the second time.

MOTION

      On motion of Senator Carlson, the rules were suspended, Engrossed Substitute House Bill No. 1787 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1787.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1787 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Thibaudeau, West, Winsley and Zarelli - 46.

     Excused: Senators Honeyford, Parlette and Swecker - 3.

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1787, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1853, by House Committee on Transportation (originally sponsored by Representatives Rockefeller, Woods, Haigh, Morris, Quall and Lantz)

Providing passenger ferry service.

      The bill was read the second time.

MOTION

      On motion of Senator Horn, the rules were suspended, Engrossed Substitute House Bill No. 1853 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1853.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1853 and the bill passed the Senate by the following vote:   Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Thibaudeau, West, Winsley and Zarelli - 46.

     Excused: Senators Honeyford, Parlette and Swecker - 3.

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1853, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SENATE BILL NO. 6074, by Senators Horn, Haugen, Swecker and Prentice

Making technical changes to passenger-only ferry service statutes.

MOTION

      On motion of Senator Horn, Substitute Senate Bill No. 6074 was substituted for Senate Bill No. 6074 and the substitute senate bill was placed on second reading and read the second time.

MOTION

      Senator Hargrove moved that the following striking amendment by Senators Hargrove, Fraser, Horn, Finkbeiner and Haugen be adopted:

       Strike everything after the enacting clause and insert the following:                         "Sec. 1. RCW 47.64.090 and 2003 c . . . (ESHB 1853) s 205 are each amended to read as follows:

       USE OF STATE FERRY FACILITIES. (1) Except as provided in section 203 ((of this act)), chapter . . . (ESHB 1853), Laws of 2003 and subsection (2) of this section, or as provided in section 303 ((of this act)), chapter . . . (ESHB 1853), Laws of 2003 and subsection (3) of this section, if any party assumes the operation and maintenance of any ferry or ferry system by rent, lease, or charter from the department of transportation, such party shall assume and be bound by all the provisions herein and any agreement or contract for such operation of any ferry or ferry system entered into by the department shall provide that the wages to be paid, hours of employment, working conditions, and seniority rights of employees will be established by the marine employees' commission in accordance with the terms and provisions of this chapter and it shall further provide that all labor disputes shall be adjudicated in accordance with chapter 47.64 RCW.

       (2) If a public transportation benefit area meeting the requirements of section 201 ((of this act)), chapter . . . (ESHB 1853), Laws of 2003 has voter approval to operate passenger-only ferry service, it may enter into an agreement with Washington State Ferries to rent, lease, or purchase passenger-only vessels, related equipment, or terminal space for purposes of loading and unloading the passenger- only ferry. Charges for the vessels, equipment, and space must be fair market value taking into account the public benefit derived from the ferry service. A benefit area or subcontractor of that benefit area that qualifies under this subsection is not subject to the restrictions of subsection (1) of this section, but is subject to:

       (a) The terms of those collective bargaining agreements that it or its subcontractors negotiate with the exclusive bargaining representatives of its or its subcontractors' employees under chapter 41.56 RCW or the National Labor Relations Act, as applicable;

       (b) Unless otherwise prohibited by federal or state law, a requirement that the benefit area and any contract with its subcontractors, give preferential hiring to former employees of the department of transportation who separated from employment with the department because of termination of the ferry service by the state of Washington; and

       (c) Unless otherwise prohibited by federal or state law, a requirement that the benefit area and any contract with its subcontractors, on any questions concerning representation of employees for collective bargaining purposes, may be determined by conducting a cross-check comparing an employee organization's membership records or bargaining authorization cards against the employment records of the employer.

       (3) If a ferry district is formed under section 301 ((of this act)), chapter . . . (ESHB 1853), Laws of 2003 to operate passenger- only ferry service, it may enter into an agreement with Washington State Ferries to rent, lease, or purchase vessels, related equipment, or terminal space for purposes of loading and unloading the ferry. Charges for the vessels, equipment, and space must be fair market value taking into account the public benefit derived from the ferry service. A ferry district or subcontractor of that district that qualifies under this subsection is not subject to the restrictions of subsection (1) of this section, but is subject to:

       (a) ((Subject to)) The terms of those collective bargaining agreements that it or its subcontractors negotiate with the exclusive bargaining representatives of its or its subcontractors' employees under chapter 41.56 RCW or the National Labor Relations Act, as applicable;

       (b) ((Subject to)) Unless otherwise prohibited by federal or state law, a requirement((, to be included by)) that the ferry district ((in)) and any contract with ((the district's)) its subcontractors, ((to)) give preferential hiring to former employees of the department of transportation who separated from employment with the department because of termination of the ferry service by the state of Washington; and

       (c) ((Subject to)) Unless otherwise prohibited by federal or state law, a requirement((, to be included by)) that the ferry district ((in)) and any contract with ((the district's)) its subcontractors, ((that)) on any questions concerning representation of employees for collective bargaining purposes, may be determined by conducting a cross-check comparing an employee organization's membership records or bargaining authorization cards against the employment records of the employer.

       NEW SECTION. Sec. 2. A new section is added to chapter 41.56 RCW to read as follows:

       In addition to the entities listed in RCW 41.56.020, this chapter does apply to:

       (1) Public employees of public transportation benefit areas providing passenger-only ferry service as provided in RCW 47.64.090; and

       (2) Public employees of ferry districts providing passenger-only ferry service as provided in RCW 47.64.090.

       Sec. 3. RCW 88.40.020 and 2000 c 69 s 31 are each amended to read as follows:

       (1) Any ((inland)) barge that transports hazardous substances in bulk as cargo, using any port or place in the state of Washington or the navigable waters of the state shall establish evidence of financial responsibility in the amount of the greater of ((one)) five million dollars, or ((one)) three hundred ((fifty)) dollars per gross ton of such vessel.

       (2)(a) Except as provided in (b) or (c) of this subsection, a tank vessel that carries oil as cargo in bulk shall demonstrate financial responsibility to pay at least five hundred million dollars. The amount of financial responsibility required under this subsection is one billion dollars after January 1, 2004.

       (b) The director by rule may establish a lesser standard of financial responsibility for ((barges)) tank vessels of three hundred gross tons or less. The standard shall set the level of financial responsibility based on the quantity of cargo the ((barge)) tank vessel is capable of carrying. The director shall not set the standard for ((barges)) tank vessels of three hundred gross tons or less below that required under federal law.

       (c) The owner or operator of a tank vessel who is a member of an international protection and indemnity mutual organization and is covered for oil pollution risks up to the amounts required under this section is not required to demonstrate financial responsibility under this chapter. The director may require the owner or operator of a tank vessel to prove membership in such an organization.

       (3)(a) A cargo vessel or passenger vessel that carries oil as fuel shall demonstrate financial responsibility to pay ((the greater of at least six hundred dollars per gross ton or five hundred thousand)) at least three hundred million dollars. However, a passenger vessel that transports passengers and vehicles between Washington state and a foreign country shall demonstrate financial responsibility to pay the greater of at least six hundred dollars per gross ton or five hundred thousand dollars.

       (b) The owner or operator of a cargo vessel or passenger vessel who is a member of an international protection and indemnity mutual organization and is covered for oil pollution risks up to the amounts required under this section is not required to demonstrate financial responsibility under this chapter. The director may require the owner or operator of a cargo vessel or passenger vessel to prove membership in such an organization.

       (4) A fishing vessel while on the navigable waters of the state must demonstrate financial responsibility in the following amounts: (a) For a fishing vessel carrying predominantly nonpersistent product, one hundred thirty-three dollars and forty cents per incident, for each barrel of total oil storage capacity, persistent and nonpersistent product, on the vessel or one million three hundred thirty-four thousand dollars, whichever is greater; or (b) for a fishing vessel carrying predominantly persistent product, four hundred dollars and twenty cents per incident, for each barrel of total oil storage capacity, persistent product and nonpersistent product, on the vessel or six million six hundred seventy thousand dollars, whichever is greater.

       (5) The documentation of financial responsibility shall demonstrate the ability of the document holder to meet state and federal financial liability requirements for the actual costs for removal of oil spills, for natural resource damages, and for necessary expenses.

       (((5) The department may by rule set a lesser amount of financial responsibility for a tank vessel that meets standards for construction, propulsion, equipment, and personnel established by the department. The department shall require as a minimum level of financial responsibility under this subsection the same level of financial responsibility required under federal law.))

       (6) This section shall not apply to a covered vessel owned or operated by the federal government or by a state or local government.

       NEW SECTION. Sec. 4. Sections 1 and 2 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately, but only if Engrossed Substitute House Bill No. 1853 has become law. If Engrossed Substitute House Bill No. 1853 has not become law by June 30, 2003, sections 1 and 2 of this act are null and void."

      Debate ensued.

      The President declared the question before the Senate to be adoption of the striking amendment by Senators Hargrove, Fraser, Horn, Finkbeiner and Haugen to Engrossed Substitute Senate Bill No. 6074.

      The motion by Senator Hargrove carried and the striking amendment was adopted.

      There being no objection, the following title amendment was adopted:

       On page 1, line 1 of the title, after "Relating to" strike the remainder of the title and insert "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."

MOTION

      On motion of Senator Horn, the rules were suspended, Engrossed Substitute Senate Bill No. 6074, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 6074.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6074, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6074, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

PERSONAL PRIVILEGE

      Senator Betti Sheldon: “A point of personal privilege, Mr. President. I would just like to say that I greatly admire Senator Bob Oke. He has been a real joy to work with and I also want to thank Senators Horn and Haugen for their help in getting these very important bills passed for our community. It is going to make quite a difference for us and I truly appreciate the cooperation we had.”

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 1128, by House Committee on Financial Services, Insurance and Housing (originally sponsored by Representatives Schual-Berke, Benson, Simpson, Ruderman, Wallace, Hunt, McDermott, Pflug, Campbell and Upthegrove) (by request of Insurance Commissioner Kreidler)

      Prohibiting insurers from taking certain underwriting actions regarding property insurance policies due to claims made for malicious harassment.

      The bill was read the second time.

MOTION

      Senator Benton moved that the following Committee on Financial Services, Insurance and Housing striking amendment be adopted:

       Strike everything after the enacting clause and insert the following:

       "NEW SECTION. Sec. 1. A new section is added to chapter 48.18 RCW to read as follows:

       (1) For the purposes of this section:

       (a) "Insured" means a current policyholder or a person or entity that is covered under the insurance policy.

       (b) "Malicious harassment" has the same meaning as RCW 9A.36.080. Under this section, the perpetrator does not have to be identified for an act of malicious harassment to have occurred.

       (c) "Underwriting action" means an insurer:

       (i) Cancels or refuses to renew an insurance policy; or

       (ii) Changes the terms or benefits in an insurance policy.

       (2) This section applies to property insurance policies if the insured is:

       (a) An individual;

       (b) A religious organization;

       (c) An educational organization; or

       (d) Any other nonprofit organization that is organized and operated for religious, charitable, or educational purposes.

       (3) An insurer may not take an underwriting action on a policy described in subsection (2) of this section because an insured has made one or more insurance claims for any loss that occurred during the preceding sixty months that is the result of malicious harassment. An insurer may take an underwriting action due to other factors that are not prohibited by this subsection.

       (4) If an insured sustains a loss that is the result of malicious harassment, the insured must file a report with the police or other law enforcement authority within thirty days of discovery of the incident, and that law enforcement authority shall determine that the crime of malicious harassment has occurred. For incidents of malicious harassment occurring prior to the effective date of this act, the insured must file the report within six months of the discovery of the incident. The report must contain sufficient information to provide an insurer with reasonable notice that the loss was the result of malicious harassment.

       (5) Annually, each insurer must report underwriting actions to the commissioner if the insurer has taken an underwriting action against any insured who has filed a claim during the preceding sixty months that was the result of malicious harassment. The report must include the policy number, name of the insured, location of the property, and the reason for the underwriting action."

MOTION

      On motion of Senator Benton, the following amendment by Senators Benton and Prentice to the Committee on Financial Services, Insurance and Housing striking amendment was adopted:

       Beginning on page 1, line 27 of the amendment, strike all of subsection (4) and insert the following:

       "(4) If an insured sustains a loss that is the result of malicious harassment, the insured must file a report with the police or other law enforcement authority within thirty days of discovery of the incident, and a law enforcement authority must determine that a crime has occurred. The report must contain sufficient information to provide an insurer with reasonable notice that the loss was the result of malicious harassment. The insured has a duty to reasonably cooperate with any law enforcement official or insurer investigation. For incidents of malicious harassment occurring prior to the effective date of this act, the insured must file the report within six months of the discovery of the incident."

      The President declared the question before the Senate to be the adoption of the Committee on Financial Services, Insurance and Housing striking amendment, as amended, to Substitute House Bill No. 1128.

      The motion by Senator Benton carried and the committee striking amendment, as amended, was adopted.

      There being no objection, the following title amendment was adopted:

       On page 1, line 2 of the title, after "harassment;" strike the remainder of the title and insert "and adding a new section to chapter 48.18 RCW."

MOTION

      On motion of Senator Benton, the rules were suspended, Substitute House Bill No. 1128, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1128, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1128, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      SUBSTITUTE HOUSE BILL NO. 1128, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 1785, by House Committee on Health Care (originally sponsored by Representatives Cody, Pflug, Skinner, Schual-Berke, Dickerson and Edwards)

Limiting disclosure of client information.

      The bill was read the second time.

MOTION

      On motion of Senator Deccio, the rules were suspended, Substitute House Bill No. 1785 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1785.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1785 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      SUBSTITUTE HOUSE BILL NO. 1785, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1076, by House Committee on Criminal Justice and Corrections (originally sponsored by Representatives Lovick, McDonald, O'Brien, Moeller, Chase, Haigh, Carrell, Simpson and Kagi)

Revising provisions relating to attempting to elude a pursuing police vehicle.

      The bill was read the second time.

MOTION

      Senator Esser moved that the following Committee on Judiciary striking amendment be adopted:

       Strike everything after the enacting clause and insert the following:

       "Sec. 1. RCW 46.61.024 and 1983 c 80 s 1 are each amended to read as follows:

       (1) Any driver of a motor vehicle who willfully fails or refuses to immediately bring his vehicle to a stop and who drives his vehicle in a reckless manner ((indicating a wanton or wilful disregard for the lives or property of others)) while attempting to elude a pursuing police vehicle, after being given a visual or audible signal to bring the vehicle to a stop, shall be guilty of a class C felony. The signal given by the police officer may be by hand, voice, emergency light, or siren. The officer giving such a signal shall be in uniform and ((his)) the vehicle shall be ((appropriately marked showing it to be an official police vehicle)) equipped with lights and sirens.

       (2) It is an affirmative defense to this section which must be established by a preponderance of the evidence that: (a) A reasonable person would not believe that the signal to stop was given by a police officer; and (b) driving after the signal to stop was reasonable under the circumstances.

       (3) The license or permit to drive or any nonresident driving privilege of a person convicted of a violation of this section shall be revoked by the department of licensing."

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the Committee on Judiciary striking amendment to Engrossed Substitute House Bill No. 1076.

      The motion by Senator Esser carried and the committee striking amendment was adopted.

      There being no objection, the following title amendment was adopted:

       On page 1, line 1 of the title, after "vehicle;" strike the remainder of the title and insert "amending RCW 46.61.024; and prescribing penalties."

MOTION

      On motion of Senator Esser, the rules were suspended, Engrossed Substitute House Bill No. 1076, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1076, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1076, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1076, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 1200, by Representatives Conway, Pflug and Cooper (by request of Joint Committee on Pension Policy)

Correcting retirement system statutes.

      The bill was read the second time.

MOTION

      On motion of Senator Carlson, the rules were suspended, House Bill No. 1200 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1200.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1200 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      HOUSE BILL NO. 1200, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      ENGROSSED HOUSE BILL NO. 1403, by Representatives Kenney, Cox, Grant, Fromhold, Jarrett, Conway, McIntire, Benson, Berkey and Upthegrove (by request of State Board for Community and Technical Colleges)

Changing exceptional faculty award grants.

      The bill was read the second time.

MOTION

      Senator Carlson moved that the following Committee on Higher Education striking amendment be adopted:

       Strike everything after the enacting clause and insert the following:

       "Sec. 1. RCW 28B.50.839 and 1994 c 234 s 3 are each amended to read as follows:

       (1) In consultation with eligible community and technical colleges, the college board shall set priorities and guidelines for the program.

       (2) ((Under this section, a college shall not receive more than four faculty grants in twenty-five thousand dollar increments, with a maximum total of one hundred thousand dollars per campus in any biennium.

       (3))) All community and technical colleges and their foundations shall be eligible for matching trust funds. When they can match the state funds with equal cash donations from private sources, institutions and foundations may apply to the college board for grants from the fund in ((twenty-five)) ten thousand dollar increments up to a maximum ((of one hundred thousand dollars when they can match the state funds with equal cash donations from private sources, except that in the initial year of the program, no college or foundation may receive more than one grant until every college or its foundation has received one grant)) set by the college board. These donations shall be made specifically to the exceptional faculty awards program and deposited by the institution or foundation in a local endowment fund or a foundation's fund. Otherwise unrestricted gifts may be deposited in the endowment fund by the institution or foundation.

       (((4))) (3) Once sufficient private donations are received by the institution or foundation, the institution shall inform the college board and request state matching funds. The college board shall evaluate the request for state matching funds based on program priorities and guidelines. The college board may ask the state treasurer to release the state matching funds to a local endowment fund established by the institution or a foundation's fund established by a foundation for each faculty award created.

       (((5))) (4) A college, by action of its board of trustees, may transfer those exceptional faculty award funds accumulated in its local endowment fund between July 1, 1991, and July 25, 1993, to its foundation's local endowment fund established as provided in subsection (((3))) (2) of this section.

       Sec. 2. RCW 28B.50.837 and 2002 c 371 s 902 are each amended to read as follows:

       (1) The Washington community and technical college exceptional faculty awards program is established. The program shall be administered by the college board. The college faculty awards trust fund hereby created shall be administered by the state treasurer.

       (2) Funds appropriated by the legislature for the community and technical college exceptional faculty awards program shall be deposited in the college faculty awards trust fund. At the request of the college board, the treasurer shall release the state matching funds to the local endowment fund of the college or its foundation. No appropriation is necessary for the expenditure of moneys from the fund. ((During the 2001-2003 fiscal biennium, the legislature may appropriate funds from the college faculty awards trust fund for the purposes of the settlement costs of the Mader v. State litigation regarding retirement contributions on behalf of part-time faculty.)) Expenditures from the fund may be used solely for the exceptional faculty awards program."

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the Committee on Higher Education striking amendment to Engrossed House Bill No, 1403.

      The motion by Senator Carlson carried and the committee striking amendment was adopted.

      There being no objection, the following title amendment was adopted.

       On page 1, line 1 of the title, after "grants;" strike the remainder of the title and insert "and amending RCW 28B.50.839 and 28B.50.837."

MOTION

      On motion of Senator Carlson, the rules were suspended, Engrossed House Bill No. 1403, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 1403, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed House Bill No. 1403, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      ENGROSSED HOUSE BILL NO. 1403, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      ENGROSSED HOUSE BILL NO. 1427, by Representatives Lantz, Delvin, O'Brien, Boldt, Blake, Hankins, Fromhold, Cody, Pearson, Mastin, Hunt, Roach, Moeller, Kagi, Benson, Rockefeller, McMahan and McDonald

      Allowing confessions and other admissions to be admitted into evidence if substantial independent evidence establishes the trustworthiness of the statement.

      The bill was read the second time.

MOTION

      On motion of Senator Esser, the rules were suspended, Engrossed House Bill No. 1427 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 1427.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed House Bill No. 1427 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      ENGROSSED HOUSE BILL NO. 1427, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SENATE BILL NO. 5614, by Senators T. Sheldon, Hale, Mulliken and Schmidt

Extending the expiration date on the rural county sales and use tax deferral program.

      The bill was read the second time.

MOTION

      Senator Reardon moved that the following amendment be adopted:

       On page 2, after line 1, insert the following:

       "Sec. 3. RCW 82.60.070 and 1999 c 164 s 303 are each amended to read as follows:

        (1) Each recipient of a deferral granted under this chapter after June 30, 1994, shall submit a report to the department on December 31st of the year in which the investment project is certified by the department as having been operationally completed, and on December 31st of each of the seven succeeding calendar years. The report shall contain information, as required by the department, from which the department may determine whether the recipient is meeting the requirements of this chapter. The report shall at least contain the following information:

       (a) Number of production workers;

       (b) Average wage of production workers;

       (c) Total wages for production workers;

       (d) Total sales as measured by taxable receipts for activities related to the deferral; and

       (e) Total wages for production workers as a percent of total sales related to the deferral.

       The department shall compile the information into a report containing aggregated data that does not violate any confidentially provisions and send an electronic copy to all members of the legislature on an annual basis.

       If the recipient fails to submit a report or submits an inadequate report, the department may declare the amount of deferred taxes outstanding to be immediately assessed and payable.

       (2) If, on the basis of a report under this section or other information, the department finds that an investment project is not eligible for tax deferral under this chapter, the amount of deferred taxes outstanding for the project shall be immediately due.

       (3) Notwithstanding any other subsection of this section, deferred taxes need not be repaid on machinery and equipment for lumber and wood products industries, and sales of or charges made for labor and services, of the type which qualifies for exemption under RCW 82.08.02565 or 82.12.02565 to the extent the taxes have not been repaid before July 1, 1995.

       (4) Notwithstanding any other subsection of this section, deferred taxes on the following need not be repaid:

       (a) Machinery and equipment, and sales of or charges made for labor and services, which at the time of purchase would have qualified for exemption under RCW 82.08.02565; and

       (b) Machinery and equipment which at the time of first use would have qualified for exemption under RCW 82.12.02565."

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senator Reardon on page 2, after line 1, to Senate Bill No. 5614.

      The motion by Senator Reardon failed and the amendment was not adopted.

MOTION

      On motion of Senator Tim Sheldon, the rules were suspended, Senate Bill No. 5614 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5614.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Bill No. 5614 and the bill passed the Senate by the following vote: Yeas, 37; Nays, 12; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Carlson, Deccio, Doumit, Eide, Esser, Finkbeiner, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Keiser, Kline, McCaslin, Morton, Mulliken, Oke, Parlette, Prentice, Rasmussen, Roach, Rossi, Schmidt, Sheahan, Sheldon, T., Shin, Spanel, Stevens, Swecker, West, Winsley and Zarelli - 37.

     Voting nay: Senators Brown, Fairley, Franklin, Fraser, Kastama, Kohl-Welles, McAuliffe, Poulsen, Reardon, Regala, Sheldon, B. and Thibaudeau - 12.

      SENATE BILL NO. 5614, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SENATE BILL NO. 5531, by Senators Finkbeiner, Reardon, Esser, T. Sheldon, Sheahan, Schmidt, Doumit, Hale, Rasmussen, Roach, Rossi, Stevens, West and Eide

Removing the expiration date for the high-technology research and development sales and use tax deferral program.

MOTION

      On motion of Senator Finkbeiner, the rules were suspended, Second Substitute Senate Bill No. 5531 was substituted for Senate Bill No. 5531 and the second substitute bill was placed second reading and read the second time.

MOTION

      Senator Poulsen moved that the following amendments be considered simultaneously and be adopted:

       On page 1, after line 4, insert the following:

       "NEW SECTION. Sec. 1. It is the intent of this act to extend the sales and use tax deferral program for high technology research and development but limit total use of the program in order to use the moneys that are made available for allocation to institutions of higher education to increase the annual average, full-time equivalent student enrollments, and related financial assistance, over levels supported by the general fund pursuant to section 602 of Substitute Senate Bill No. 5404 (omnibus operating appropriations act)."

       On page 1, after line 16, insert the following:

       "(3) The department shall keep a running total of all deferrals granted under this chapter during each calendar year. The department shall disallow any deferrals that would cause the tabulation to exceed thirty million dollars in any calendar year."

       On page 1, after line 16, insert the following:

       "NEW SECTION. Sec. 3. (1) The sum of $19,024,000, for fiscal year 2004 and $19,024,000 for fiscal year 2005, or so much thereof as may be necessary, is appropriated from the general fund to the higher education coordinating board for allocation to state baccalaureate institutions to increase the annual average, full-time equivalent student enrollments, and related financial assistance, by 1,000 over levels supported by the general fund pursuant to section 602 of Substitute Senate Bill No. 5404 (omnibus operating appropriations act).

       (2) The sum of $12,313,000, for fiscal year 2004 and $12,313,000 for fiscal year 2005, or so much thereof as may be necessary, is appropriated from the general fund to the state board for community and technical colleges for allocation to college districts to increase the annual average, full-time equivalent student enrollments by 3,140 over levels supported by the general fund pursuant to section 602 of Substitute Senate Bill No. 5404 (omnibus operating appropriations act)."

      Debate ensued.

      Senator Betti Sheldon demanded a roll call and the demand was sustained.

      Further debate ensued.

      The President declared the question before the Senate to be the roll call on the adoption of the amendments by Senators Poulsen on page 1, lines 4 and 16 (2), to Second Substitute Senate Bill No. 5531.

ROLL CALL

      The Secretary called the roll and the amendments were not adopted by the following vote: Yeas, 23; Nays, 26; Absent, 0; Excused, 0.

     Voting yea: Senators Brown, Carlson, Doumit, Eide, Fairley, Franklin, Fraser, Hargrove, Haugen, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Poulsen, Prentice, Reardon, Regala, Sheldon, B., Shin, Spanel and Thibaudeau - 23.

     Voting nay: Senators Benton, Brandland, Deccio, Esser, Finkbeiner, Hale, Hewitt, Honeyford, Horn, Johnson, McCaslin, Morton, Mulliken, Oke, Parlette, Rasmussen, Roach, Rossi, Schmidt, Sheahan, Sheldon, T., Stevens, Swecker, West, Winsley and Zarelli - 26.

MOTION

      Senator Reardon moved that the following amendment be adopted:

       On page 1, after line 16, strike the remainder of the bill and insert the following:

       "(3) This section shall expire July 1, ((2004)) 2014.

       NEW SECTION. Sec. 2. A new section is added to chapter 50.38 RCW to read as follows:

       (1) Based upon information provided to the department by the department of revenue and data obtained by the department from employers for other lawful purposes, the department shall identify for the year before and every five years after the renewal of the tax deferral in RCW 82.63.030 the following information:

       (a) North American industry classification for businesses utilizing the tax deferral;

       (b) The number of employees, reported in aggregate by North American industry classification, employed by businesses utilizing the tax deferral;

       (c) The average wages received by persons, reported by North American industry classification, employed by businesses utilizing the tax deferral.

       (2) The department shall provide to the joint legislative audit and review committee, for the year before and every five years after the renewal of the tax deferral in RCW 82.63.030, a report containing the following information:

       (a) The number of businesses, reported in aggregate by North American industry classification, utilizing the tax deferral;

       (b) The number of employees, reported in aggregate by North American industry classification, employed by businesses utilizing the tax deferral;

       (c) The average wages of employees employed by businesses utilizing the tax deferral reported in aggregate, and grouped by North American industry classification.

       (3) All information shall be based on calendar year data and shall be provided to the joint legislative audit and review committee by the fifteenth day of March of the year before and every five years after the renewal of the tax deferral in RCW 82.63.030.

       (4) Nothing in this section shall be construed to affect in any way the right of privacy and confidentiality as to individual and employer records maintained by the department, as provided under RCW 50.13.020.

       NEW SECTION. Sec. 3. A new section is added to chapter 82.32 RCW to read as follows:

       (1) Based upon information provided by taxpayers, on Form 26-0003e-1, or its successor form, or Form Rev 81-1013-1, or its successor form, or Form 81-1012, or its successor form, to the department, the department shall identify for the year before and every five years after the renewal of the tax deferral in RCW 82.63.030 the following information:

       (a) The businesses utilizing the tax deferral;

       (b) The total value of the tax deferral taken by each business for that year;

       (c) The qualifying investment made by the business utilizing the tax deferral.

       (2) The department shall provide to the employment security department a list of all businesses utilizing the tax deferral and the North American industry classification of each business. This information shall be based on calendar year data and shall be provided to the employment security department by the fifteenth day of February of the year before and every five years after the renewal of the tax deferral in RCW 82.63.030.

       (3) The department shall provide to the joint legislative audit and review committee the number of businesses utilizing the tax deferral, the value of the deferral received, and the value of qualifying investments made by businesses utilizing the tax deferral, reported in aggregate by North American industry classification. This information shall be based on calendar year data and shall be provided to the joint legislative audit and review committee by the fifteenth day of February of the year before and every five years after the renewal of the tax deferral in RCW 82.63.030.

       (4) Nothing in this section shall be construed to affect in any way the right of privacy and confidentiality as to individual and employer records maintained by the department as provided under RCW 82.32.330.

       NEW SECTION. Sec. 4. A new section is added to chapter 44.28 RCW to read as follows:

       (1) The joint legislative audit and review committee shall provide a report to the legislature the year before and every five years after the renewal of the tax deferral in RCW 82.63.030. The report shall be based upon information provided by the employment security department and the department of revenue. Proprietary information shall remain confidential as otherwise provided by law. The report shall include, but is not limited to:

       (a) Total value of tax revenue forgone or deferred as a result of the tax deferral;

       (b) Total value of qualifying investments made under the tax deferral;

       (c) Direct employment created or retained that is associated with the tax deferral and average wages, reported in aggregate by North American industry classification;

       (d) Total indirect employment created or retained associated with the tax deferral;

       (e) Additional sales, property, and business and occupation tax revenues associated with the tax deferral.

       (2) In conducting this evaluation, the joint legislative audit and review committee shall use a generally accepted economic model and may contract with outside economic experts."

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senator Reardon on page 1, after line 16, to Second Substitute Senate Bill No. 5531.

      The motion by Senator Reardon carried and the amendment was adopted.

      There being no objection, the following title amendment was adopted:

       On page 1, line 3 of the title, strike "and" and after "82.63.030" insert "; adding a new section to chapter 50.38 RCW; adding a new section to chapter 82.32 RCW; adding a new section to chapter 44.28 RCW; and providing an expiration date"

MOTION

      On motion of Senator Finkbeiner, the rules were suspended, Engrossed Second Substitute Senate Bill No. 5531 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      Senators Sheahan, Hale and Finkbeiner demanded the previous question and the demand was sustained.

      The President declared the question before the Senate to be shall the main question be now put.

      The demand for the previous question carried on a rising vote.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Second Substitute Senate Bill No. 5531.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Second Substitute Senate Bill No. 5531 and the bill passed the Senate by the following vote: Yeas, 33; Nays, 16; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Carlson, Deccio, Eide, Esser, Finkbeiner, Hale, Haugen, Hewitt, Honeyford, Horn, Johnson, Kohl-Welles, McCaslin, Morton, Mulliken, Oke, Parlette, Rasmussen, Reardon, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Stevens, Swecker, West, Winsley and Zarelli - 33.

     Voting nay: Senators Brown, Doumit, Fairley, Franklin, Fraser, Hargrove, Jacobsen, Kastama, Keiser, Kline, McAuliffe, Poulsen, Prentice, Regala, Spanel and Thibaudeau - 16.

      ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5531, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      At 11:52 a.m., on motion of Senator Sheahan, the Senate was declared to be at ease.

      The Senate was called to order at 1:34 p.m. by President Owen.

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENT

MOTION

      On motion of Senator Spanel, Gubernatorial Appointment No. 9109, Phil Sharpe, as a member of the Board of Trustees for Western Washington University, was confirmed.

      Senators Spanel and Brandland spoke to the confirmation of Phil Sharpe as a member of the Board of Trustees for Western Washington University.

APPOINTMENT OF PHIL SHARPE

      The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 39; Nays, 0; Absent, 10; Excused, 0.

     Voting yea: Senators Brandland, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Franklin, Fraser, Hale, Hargrove, Hewitt, Honeyford, Horn, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Parlette, Prentice, Rasmussen, Reardon, Regala, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West and Winsley - 39.

     Absent: Senators Benton, Brown, Finkbeiner, Haugen, Johnson, Mulliken, Oke, Poulsen, Roach and Zarelli - 10.

MOTION

      On motion of Senator Hewitt, Senator Roach was excused.

SECOND READING

      HOUSE BILL NO. 1088, by Representatives Fromhold and Moeller

Authorizing removal of vehicles from restricted parking zones.

      The bill was read the second time.

MOTION

      On motion of Senator Horn, the following Committee on Highways and Transportation striking amendment was adopted:

       Strike everything after the enacting clause and insert the following:

       "Sec. 1. RCW 46.55.113 and 1998 c 203 s 4 are each amended to read as follows:

       Whenever the driver of a vehicle is arrested for a violation of RCW 46.61.502 ((or)), 46.61.504 ((or of RCW)), 46.20.342, or ((46.20.420)) 46.20.345, the vehicle is subject to impoundment, pursuant to applicable local ordinance or state agency rule at the direction of a law enforcement officer. In addition, a police officer may take custody of a vehicle and provide for its prompt removal to a place of safety under any of the following circumstances:

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

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

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

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

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

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

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

       (8) When a vehicle is illegally occupying a truck, commercial loading zone, restricted parking zone, bus, loading, hooded-meter, taxi, street construction or maintenance, or other similar zone where, by order of the director of transportation or chiefs of police or fire or their designees, parking is limited to designated classes of vehicles or is prohibited during certain hours, on designated days or at all times, if the zone has been established with signage for at least twenty-four hours and where the vehicle is interfering with the proper and intended use of the zone. Signage must give notice to the public that a vehicle will be removed if illegally parked in the zone.

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

      There being no objection, the following title amendment was adopted:

       On line 1 of the title, after "vehicles;" strike the remainder of the title and insert "and amending RCW 46.55.113."

MOTION

      On motion of Senator Horn, the rules were suspended, House Bill No. 1088, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1088, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1088, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 48.

     Excused: Senator Roach - 1.

      HOUSE BILL NO. 1088, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      ENGROSSED HOUSE BILL NO. 1037, by Representatives Gombosky, Cairnes, Linville, Wood, Mielke, Sullivan and Nixon

Exempting retail sales of food and beverages from the litter tax that are consumed indoors on the seller's premises.

      The bill was read the second time.

MOTION

      On motion of Senator Rossi, the rules were suspended, Engrossed House Bill No. 1037 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 1037.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed House Bill No. 1037 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 1; Absent, 1; Excused, 1.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 46.

     Voting nay: Senator Kline - 1.

     Absent: Senator Finkbeiner - 1.

     Excused: Senator Roach - 1.

      ENGROSSED HOUSE BILL NO. 1037, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 1154, by Representatives Haigh, Woods, Miloscia, Armstrong, Hunt, Nixon, Shabro, Sehlin, Tom, Wallace, Conway and McDermott; by request of Secretary of State

Funding oral history and archives activities.

      The bill was read the second time.

MOTION

      On motion of Senator Stevens, the rules were suspended, House Bill No. 1154 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1154.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1154 and the bill passed the Senate by the following vote: Yeas, 45; Nays, 3; Absent, 1; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 45.

     Voting nay: Senators Johnson, Morton and Roach - 3.

    Absent: Senator Finkbeiner - 1.

      HOUSE BILL NO. 1154, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 1815, by Representatives Schual-Berke and Benson

Defining security account under the uniform transfer on death security registration act.

      The bill was read the second time.

MOTION

      On motion of Senator Benton, the rules were suspended, House Bill No. 1815 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1815.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1815 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      HOUSE BILL NO. 1815, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      At 1:59 p.m., on motion of Senator Sheahan, the Senate was declared to be at ease.

      The Senate was called to order at 3:59 p.m. by President Owen.

MOTION

      On motion of Senator Hewitt, Senators Honeyford and Morton were excused.

SECOND READING

      HOUSE BILL NO. 1654, by Representatives Schual-Berke and Benson

Borrowing money by domestic mutual insurers.

      The bill was read the second time.

MOTION

      On motion of Senator Benton, the rules were suspended, House Bill No. 1654 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1654.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1654 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 46.

     Absent: Senator Deccio - 1.

     Excused: Senators Honeyford and Morton - 2.

      HOUSE BILL NO. 1654, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      On motion of Senator Eide, Senators Brown and Fairley were excused.

SECOND READING

      SENATE BILL NO. 6063, by Senators Horn, Haugen, Swecker, Jacobsen, Finkbeiner, Spanel and McCaslin

Adjusting vehicle-related business fees.

      The bill was read the second time.

MOTION

      On motion of Senator Horn, the following Committee on Highways and Transportation striking amendment was adopted:

       Strike everything after the enacting clause and insert the following:

       "Sec. 1. RCW 46.55.030 and 1989 c 111 s 3 are each amended to read as follows:

       (1) Application for licensing as a registered tow truck operator shall be made on forms furnished by the department, shall be accompanied by an inspection certification from the Washington state patrol, shall be signed by the applicant or an agent, and shall include the following information:

       (a) The name and address of the person, firm, partnership, association, or corporation under whose name the business is to be conducted;

       (b) The names and addresses of all persons having an interest in the business, or if the owner is a corporation, the names and addresses of the officers of the corporation;

       (c) The names and addresses of all employees who serve as tow truck drivers;

       (d) Proof of minimum insurance required by subsection (3) of this section;

       (e) The vehicle license and vehicle identification numbers of all tow trucks of which the applicant is the registered owner;

       (f) Any other information the department may require; and

       (g) A certificate of approval from the Washington state patrol certifying that:

       (I) The applicant has an established place of business and that mail is received at the address shown on the application;

       (ii) The address of any storage locations where vehicles may be stored is correctly stated on the application;

       (iii) The place of business has an office area that is accessible to the public without entering the storage area; and

       (iv) The place of business has adequate and secure storage facilities, as defined in this chapter and the rules of the department, where vehicles and their contents can be properly stored and protected.

       (2) Before issuing a registration certificate to an applicant the department shall require the applicant to file with the department a surety bond in the amount of five thousand dollars running to the state and executed by a surety company authorized to do business in this state. The bond shall be approved as to form by the attorney general and conditioned that the operator shall conduct his business in conformity with the provisions of this chapter pertaining to abandoned or unauthorized vehicles, and to compensate any person, company, or the state for failure to comply with this chapter or the rules adopted hereunder, or for fraud, negligence, or misrepresentation in the handling of these vehicles. Any person injured by the tow truck operator's failure to fully perform duties imposed by this chapter and the rules adopted hereunder, or an ordinance or resolution adopted by a city, town, or county is entitled to recover actual damages, including reasonable attorney's fees against the surety and the tow truck operator. Successive recoveries against the bond shall be permitted, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. As a condition of authority to do business, the operator shall keep the bond in full force and effect. Failure to maintain the penalty value of the bond or cancellation of the bond by the surety automatically cancels the operator's registration.

       (3) Before the department may issue a registration certificate to an applicant, the applicant shall provide proof of minimum insurance requirements of:

       (a) One hundred thousand dollars for liability for bodily injury or property damage per occurrence; and

       (b) Fifty thousand dollars of legal liability per occurrence, to protect against vehicle damage, including but not limited to fire and theft, from the time a vehicle comes into the custody of an operator until it is redeemed or sold.

Cancellation of or failure to maintain the insurance required by (a) and (b) of this subsection automatically cancels the operator's registration.

       (4) The fee for each original registration and annual renewal is one hundred dollars per company, plus ((fifty)) seventy-five dollars per truck. The department shall forward the registration fee to the state treasurer for deposit in the motor vehicle fund.

       (5) The applicant must submit an inspection certificate from the state patrol before the department may issue or renew an operator's registration certificate or tow truck permits.

       (6) Upon approval of the application, the department shall issue a registration certificate to the registered operator to be displayed prominently at the operator's place of business.

       Sec. 2. RCW 46.70.061 and 2002 c 352 s 23 are each amended to read as follows:

       (1) The annual fees for original licenses issued for twelve consecutive months from the date of issuance under this chapter shall be:

       (a) Vehicle dealers, principal place of business for each and every license classification: Seven hundred fifty dollars;

       (b) Vehicle dealers, each subagency, and temporary subagency: One hundred dollars;

       (c) Vehicle manufacturers: ((Five)) Seven hundred fifty dollars.

       (2) The annual fee for renewal of any license issued pursuant to this chapter shall be:

       (a) Vehicle dealers, principal place of business for each and every license classification: ((Two)) Five hundred ((fifty)) dollars;

       (b) Vehicle dealer, each and every subagency: ((Twenty-five)) Fifty dollars;

       (c) Vehicle manufacturers: Two hundred fifty dollars.

       If any licensee fails or neglects to apply for such renewal within thirty days after the expiration of the license, or assigned renewal date under a staggered licensing system, the license shall be declared canceled by the director, in which case the licensee will be required to apply for an original license and pay the fee required for the original license.

       (3)(a) The fee for the transfer to another location of any license classification issued pursuant to this chapter ((shall be twenty-five)) is one hundred dollars.

       (b) The fee for changing a vehicle dealer's name is one hundred dollars.

       (4) The fee for vehicle dealer license plates and manufacturer license plates shall be the amount required by law for vehicle license plates exclusive of excise tax and gross weight and tonnage fees.

       (5) All fees collected under this chapter shall be deposited in the state treasury and credited to the motor vehicle fund.

       (6) The fees prescribed in this section are in addition to any excise taxes imposed by chapter 82.44 RCW.

       Sec. 3. RCW 46.76.040 and 1990 c 250 s 68 are each amended to read as follows:

       The fee for an original transporter's license is ((twenty-five)) one hundred dollars. Transporter license number plates bearing an appropriate symbol and serial number shall be attached to all vehicles being delivered in the conduct of the business licensed under this chapter. The plates may be obtained for a fee of two dollars for each set.

       Sec. 4. RCW 46.76.050 and 1985 c 109 s 3 are each amended to read as follows:

       A transporter's license expires on the date assigned by the director, and may be renewed by filing a proper application and paying an annual fee of ((fifteen)) fifty dollars.

       Sec. 5. RCW 46.79.040 and 1971 ex.s. c 110 s 4 are each amended to read as follows:

       Application for a hulk hauler's license, together with a fee of ((ten)) fifty dollars, or application for a scrap processor's license, together with a fee of twenty-five dollars, shall be forwarded to the director. Upon receipt of the application the director shall, if the application be in order, issue the license applied for authorizing him to do business as such and forward the fee, together with an itemized and detailed report, to the state treasurer, to be deposited in the motor vehicle fund. Upon receiving the certificate the owner shall cause it to be prominently displayed at the address shown in his application, where it may be inspected by an investigating officer at any time.

       Sec. 6. RCW 46.79.050 and 1985 c 109 s 5 are each amended to read as follows:

       A license issued pursuant to this chapter expires on the date assigned by the director, and may be renewed by filing a proper application and payment of a fee of ((ten)) twenty-five dollars.

       Whenever a hulk hauler or scrap processor ceases to do business or the license has been suspended or revoked, the license shall immediately be surrendered to the director.

       Sec. 7. RCW 46.80.040 and 1995 c 256 s 6 are each amended to read as follows:

       The application, together with a fee of ((twenty-five)) one hundred dollars, and a surety bond as provided in RCW 46.80.070, shall be forwarded to the department. Upon receipt of the application the department shall, if the application is in order, issue a vehicle wrecker's license authorizing the wrecker to do business as such and forward the fee to the state treasurer, to be deposited in the motor vehicle fund. Upon receiving the certificate the owner shall cause it to be prominently displayed in the place of business, where it may be inspected by an investigating officer at any time.

       Sec. 8. RCW 46.80.050 and 1995 c 256 s 7 are each amended to read as follows:

       A license issued on this application remains in force until suspended or revoked and may be renewed annually upon reapplication according to RCW 46.80.030 and upon payment of a fee of ((ten)) fifty dollars. A vehicle wrecker who fails or neglects to renew the license before the assigned expiration date shall pay the fee for an original vehicle wrecker license as provided in this chapter.

       Whenever a vehicle wrecker ceases to do business as such or the license has been suspended or revoked, the wrecker shall immediately surrender the license to the department."

      There being no objection, the following title amendment was adopted:

       On line 1 of the title, after "businesses;" strike the remainder of the title and insert "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."

MOTION

      On motion of Senator Horn, the rules were suspended, Engrossed Senate Bill No. 6063 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 6063.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 6063 and the bill passed the Senate by the following vote: Yeas, 41; Nays, 3; Absent, 1; Excused, 4.

     Voting yea: Senators Benton, Brandland, Carlson, Deccio, Doumit, Eide, Esser, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Oke, Parlette, Prentice, Rasmussen, Reardon, Regala, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Swecker, Thibaudeau, West, Winsley and Zarelli - 41.

     Voting nay: Senators Mulliken, Roach and Stevens - 3.

     Absent: Senator Poulsen - 1.

     Excused: Senators Brown, Fairley, Honeyford and Morton - 4.

      ENGROSSED SENATE BILL NO. 6063, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2228, by House Committee on Transportation (originally sponsored by Representatives Murray, Wallace, Cooper, Clibborn, Simpson, Rockefeller, Hudgins and Hankins)

Extending commute trip reduction incentives.

      The bill was read the second time.

MOTION

      Senator Horn moved that the following Committee on Highways and Transportation striking amendment be adopted:

      Strike everything after the enacting clause and insert the following:

       "NEW SECTION. Sec. 1. DEFINITIONS. The definitions in this section apply throughout this chapter and section 9 of this act unless the context clearly requires otherwise.

       (1) "Public agency" means any county, city, or other local government agency or any state government agency, board, or commission.

       (2) "Public transportation" means the same as "public transportation service" as defined in RCW 36.57A.010 and includes passenger services of the Washington state ferries.

       (3) "Nonmotorized commuting" means commuting to and from the workplace by an employee by walking or running or by riding a bicycle or other device not powered by a motor.

       (4) "Ride sharing" means the same as "flexible commuter ride sharing" as defined in RCW 46.74.010, including ride sharing on Washington state ferries.

       (5) "Car sharing" means a membership program intended to offer an alternative to car ownership under which persons or entities that become members are permitted to use vehicles from a fleet on an hourly basis.

       (6) "Telework" means a program where work functions that are normally performed at a traditional workplace are instead performed by an employee at his or her home at least one day a week for the purpose of reducing the number of trips to the employee's workplace.

       NEW SECTION. Sec. 2. TAX CREDITS--BUSINESS AND OCCUPATION AND PUBLIC UTILITY TAXES. (1) Employers in this state who are taxable under chapter 82.04 or 82.16 RCW and provide financial incentives to their own or other employees for ride sharing, for using public transportation, for using car sharing, or for using nonmotorized commuting before July 1, 2013, are allowed a credit against taxes payable under chapters 82.04 and 82.16 RCW for amounts paid to or on behalf of employees for ride sharing in vehicles carrying two or more persons, for using public transportation, for using car sharing, or for using nonmotorized commuting, not to exceed sixty dollars per employee per year.

       (2) Property managers who are taxable under chapter 82.04 or 82.16 RCW and provide financial incentives to persons employed at a worksite in this state managed by the property manager for ride sharing, for using public transportation, for using car sharing, or for using nonmotorized commuting before July 1, 2013, are allowed a credit against taxes payable under chapters 82.04 and 82.16 RCW for amounts paid to or on behalf of these persons for ride sharing in vehicles carrying two or more persons, for using public transportation, for using car sharing, or for using nonmotorized commuting, not to exceed sixty dollars per person per year.

       (3) The credit under this section is equal to the amount paid to or on behalf of each employee multiplied by fifty percent, but may not exceed sixty dollars per employee per year. The credit may not exceed the amount of tax that would otherwise be due under chapters 82.04 and 82.16 RCW.

       (4) A person may not receive credit under this section for amounts paid to or on behalf of the same employee under both chapters 82.04 and 82.16 RCW.

       (5) A person may not take a credit under this section for amounts claimed for credit by other persons.

       NEW SECTION. Sec. 3. TAX CREDIT FILING. (1) Application for tax credit under section 2 of this act may only be made in the form and manner prescribed in rules adopted by the department.

       (2) The credit under this section must be taken or deferred under section 4 of this act against taxes due for the same fiscal year in which the amounts for which credit is claimed were paid to or on behalf of employees for ride sharing, for using public transportation, for using car sharing, or for using nonmotorized commuting and must be claimed by the due date of the last tax return for the fiscal year in which the payment is made.

       (3) Any person who knowingly makes a false statement of a material fact in the application for a credit under section 2 of this act is guilty of a gross misdemeanor.

       NEW SECTION. Sec. 4. TAX CREDIT LIMITATIONS. (1) The department shall keep a running total of all credits accrued under section 2 of this act during each fiscal year. No person is eligible for tax credits under section 2 of this act if the credits would cause the tabulation for the total amount of credits taken in any fiscal year to exceed two million two hundred fifty thousand dollars. This limitation includes any credits carried forward under subsection (2)(b) of this section from prior years.

       (2)(a) No person is eligible for tax credits under section 2 of this act in excess of the amount of tax that would otherwise be due under chapter 82.04 or 82.16 RCW.

       (b) A person with taxes equal to or in excess of the credit under section 2 of this act, and therefore not subject to the limitation in (a) of this subsection, may defer tax credits for a period of not more than three years after the year in which the credits accrue. A person deferring tax credits under this subsection (2)(b) must submit an application in the year in which the tax credits will be applied. This application is subject to eligibility under subsection (1) of this section for the fiscal year in which the tax credits will be applied.

       (3) No person is eligible for tax credits under section 2 of this act in excess of two hundred thousand dollars in any fiscal year. This limitation does not apply to credits deferred in prior years under subsection (2)(b) of this section.

       (4) No person is eligible for tax credits, including deferred credits authorized under subsection (2)(b) of this section, after June 30, 2013.

       (5) Credits may not be carried forward or carried backward other than as authorized in subsection (2)(b) of this section.

       NEW SECTION. Sec. 5. FUND TRANSFER. (1) The director shall on the 25th of February, May, August, and November of each year advise the state treasurer of the amount of credit taken under section 2 of this act during the preceding calendar quarter ending on the last day of December, March, June, and September, respectively.

       (2) On the last day of March, June, September, and December of each year, the state treasurer, based upon information provided by the department, shall deposit to the general fund a sum equal to the dollar amount of the credit provided under section 2 of this act from the multimodal transportation account.

       NEW SECTION. Sec. 6. COMMUTE TRIP REDUCTION REPORTING. The commute trip reduction task force shall determine the effectiveness of the tax credit under section 2 of this act, the grant program in section 9 of this act, and the relative effectiveness of the tax credit and the grant program as part of its ongoing evaluation of the commute trip reduction law and report to the legislative transportation committee and to the fiscal committees of the house of representatives and the senate. The report must include information on the amount of tax credits claimed to date and recommendations on future funding between the tax credit program and the grant program. The report must be incorporated into the recommendations required in RCW 70.94.537(5).

       NEW SECTION. Sec. 7. ADMINISTRATION. Chapter 82.32 RCW applies to the administration of this chapter.

       NEW SECTION. Sec. 8. EXPIRATION. This chapter expires July 1, 2013, except for section 5 of this act, which expires January 1, 2014.

       NEW SECTION. Sec. 9. A new section is added to chapter 70.94 RCW to read as follows:

       (1) The department of transportation shall administer a performance-based grant program for private employers, public agencies, nonprofit organizations, developers, and property managers who provide financial incentives for ride sharing in vehicles carrying two or more persons, for using public transportation, for using car sharing, or for using nonmotorized commuting, including telework, before July 1, 2013, to their own or other employees. However, no employer is eligible for both grants provided under this section and tax credits under section 2 of this act within the same fiscal year.

       (2) The amount of the grant will be determined based on the value to the transportation system of the vehicle trips reduced. The commute trip reduction task force shall develop an award rate giving priority to applications achieving the greatest reduction in trips and commute miles per public dollar requested and considering the following criteria: The local cost of providing new highway capacity, congestion levels, and geographic distribution.

       (3) No private employer, public agency, nonprofit organization, developer, or property manager is eligible for grants under this section in excess of one hundred thousand dollars in any fiscal year.

       (4) The total of grants provided under this section may not exceed seven hundred fifty thousand dollars in any calendar year.

       (5) The department of transportation shall report to the department of revenue by the 15th day of each month the aggregate monetary amount of grants provided under this section in the prior month and the identity of the recipients of those grants.

       (6) The source of funds for this grant program is the multimodal transportation account.

       (7) This section expires January 1, 2014.

       NEW SECTION. Sec. 10. The following acts or parts of acts are each repealed:

       (1) RCW 82.04.4453 (Credit--Ride-sharing, public transportation, or nonmotorized commuting incentives--Penalty--Report to legislature) and 1999 c 402 s 1, 1996 c 128 s 1, & 1994 c 270 s 2;

       (2) RCW 82.04.4454 (Credit--Ride-sharing, public transportation, or nonmotorized commuting incentives--Ceiling) and 1999 c 402 s 3, 1996 c 128 s 2, & 1994 c 270 s 3;

       (3) RCW 82.16.048 (Credit--Ride-sharing, public transportation, or nonmotorized commuting incentives--Penalty--Report to legislature) and 1999 c 402 s 2, 1996 c 128 s 3, & 1994 c 270 s 4;

       (4) RCW 82.16.049 (Credit--Ride-sharing, public transportation, or nonmotorized commuting incentives--Ceiling) and 1999 c 402 s 4, 1996 c 128 s 4, & 1994 c 270 s 5; and

       (5) RCW 47.01.900 (Commute trip reduction program--Transfer from state energy office--References to director or state energy office) and 1998 c 245 s 93 & 1996 c 186 s 301.

       Sec. 11. RCW 70.94.527 and 1997 c 250 s 2 are each amended to read as follows:

       (1) Each county with a population over one hundred fifty thousand, and each city or town within those counties containing a major employer ((shall, by October 1, 1992,)) may adopt by ordinance and implement a commute trip reduction plan for all major employers. The plan shall be developed in cooperation with local transit agencies, regional transportation planning organizations as established in RCW 47.80.020, major employers, and the owners of and employers at major worksites. The plan shall be designed to achieve reductions in the proportion of single-occupant vehicle commute trips and the commute trip vehicle miles traveled per employee by employees of major public and private sector employers in the jurisdiction.

       (2) All other counties, and cities and towns in those counties, may adopt and implement a commute trip reduction plan.

       (3) The department of ecology may, after consultation with the department of transportation, as part of the state implementation plan for areas that do not attain the national ambient air quality standards for carbon monoxide or ozone, require municipalities other than those identified in subsection (1) of this section to adopt and implement commute trip reduction plans if the department determines that such plans are necessary for attainment of said standards.

       (4) A commute trip reduction plan shall be consistent with the guidelines established under RCW 70.94.537 and shall include but is not limited to (a) goals for reductions in the proportion of single- occupant vehicle commute trips and the commute trip vehicle miles traveled per employee; (b) designation of commute trip reduction zones; (c) requirements for major public and private sector employers to implement commute trip reduction programs; (d) a commute trip reduction program for employees of the county, city, or town; (e) a review of local parking policies and ordinances as they relate to employers and major worksites and any revisions necessary to comply with commute trip reduction goals and guidelines; (f) an appeals process by which major employers, who as a result of special characteristics of their business or its locations would be unable to meet the requirements of a commute trip reduction plan, may obtain waiver or modification of those requirements; and (g) means for determining base year values of the proportion of single-occupant vehicle commute trips and the commute trip vehicle miles traveled per employee and progress toward meeting commute trip reduction plan goals on an annual basis. Goals which are established shall take into account existing transportation demand management efforts which are made by major employers. Each jurisdiction shall ensure that employers shall receive full credit for the results of transportation demand management efforts and commute trip reduction programs which have been implemented by major employers prior to the base year. The goals for miles traveled per employee for all major employers shall not be less than a fifteen percent reduction from the worksite base year value or the base year value for the commute trip reduction zone in which their worksite is located by January 1, 1995, twenty percent reduction from the base year values by January 1, 1997, twenty-five percent reduction from the base year values by January 1, 1999, and a thirty-five percent reduction from the base year values by January 1, 2005.

       (5) A county, city, or town may, as part of its commute trip reduction plan, require commute trip reduction programs for employers with ten or more full time employees at major worksites in federally designated nonattainment areas for carbon monoxide and ozone. The county, city or town shall develop the programs in cooperation with affected employers and provide technical assistance to the employers in implementing such programs.

       (6) The commute trip reduction plans adopted by counties, cities, and towns under this chapter shall be consistent with and may be incorporated in applicable state or regional transportation plans and local comprehensive plans and shall be coordinated, and consistent with, the commute trip reduction plans of counties, cities, or towns with which the county, city, or town has, in part, common borders or related regional issues. Such regional issues shall include assuring consistency in the treatment of employers who have worksites subject to the requirements of this chapter in more than one jurisdiction. Counties, cities, or towns adopting commute trip reduction plans may enter into agreements through the interlocal cooperation act or by resolution or ordinance as appropriate with other jurisdictions, local transit agencies, or regional transportation planning organizations to coordinate the development and implementation of such plans. Transit agencies shall work with counties, cities, and towns to take into account the location of major employer worksites when planning transit service changes or the expansion of public transportation services. Counties, cities, or towns adopting a commute trip reduction plan shall review it annually and revise it as necessary to be consistent with applicable plans developed under RCW 36.70A.070.

       (7) Each county, city, or town implementing a commute trip reduction program shall, within thirty days submit a summary of its plan along with certification of adoption to the commute trip reduction task force established under RCW 70.94.537.

       (8) Each county, city, or town implementing a commute trip reduction program shall submit an annual progress report to the commute trip reduction task force established under RCW 70.94.537. The report shall be due July 1, 1994, and each July 1st thereafter through July 1, 2006. The report shall describe progress in attaining the applicable commute trip reduction goals for each commute trip reduction zone and shall highlight any problems being encountered in achieving the goals. The information shall be reported in a form established by the commute trip reduction task force.

       (9) Any waivers or modifications of the requirements of a commute trip reduction plan granted by a jurisdiction shall be submitted for review to the commute trip reduction task force established under RCW 70.94.537. The commute trip reduction task force may not deny the granting of a waiver or modification of the requirements of a commute trip reduction plan by a jurisdiction but they may notify the jurisdiction of any comments or objections.

       (10) Each county, city, or town implementing a commute trip reduction program shall count commute trips eliminated through work-at- home options or alternate work schedules as one and two-tenths vehicle trips eliminated for the purpose of meeting trip reduction goals.

       (11) Each county, city, or town implementing a commute trip reduction program shall ensure that employers that have modified their employees' work schedules so that some or all employees are not scheduled to arrive at work between 6:00 a.m. and 9:00 a.m. are provided credit when calculating single-occupancy vehicle use and vehicle miles traveled at that worksite. This credit shall be awarded if implementation of the schedule change was an identified element in that worksite's approved commute trip reduction program or if the schedule change occurred because of impacts associated with chapter 36.70A RCW, the growth management act.

       (12) Plans implemented under this section shall not apply to commute trips for seasonal agricultural employees.

       (13) Plans implemented under this section shall not apply to construction worksites when the expected duration of the construction project is less than two years.

       Sec. 12. RCW 82.08.0287 and 2001 c 320 s 4 are each amended to read as follows:

       The tax imposed by this chapter shall not apply to sales of passenger motor vehicles which are to be used for commuter ride sharing or ride sharing for persons with special transportation needs, as defined in RCW 46.74.010, if the vehicles are used as ride-sharing vehicles for thirty-six consecutive months beginning from the date of purchase.

       To qualify for the tax exemption, those passenger motor vehicles with five or six passengers, including the driver, used for commuter ride-sharing, must be operated ((either)) within ((the state's eight largest)) counties that ((are required to)) develop commute trip reduction plans as directed by chapter 70.94 RCW or in other counties, or cities and towns within those counties, that elect to adopt and implement a commute trip reduction plan. Additionally at least one of the following conditions must apply: (1) The vehicle must be operated by a public transportation agency for the general public; or (2) the vehicle must be used by a major employer, as defined in RCW 70.94.524 as an element of its commute trip reduction program for their employees; or (3) the vehicle must be owned and operated by individual employees and must be registered either with the employer as part of its commute trip reduction program or with a public transportation agency serving the area where the employees live or work. Individual employee owned and operated motor vehicles will require certification that the vehicle is registered with a major employer or a public transportation agency. Major employers who own and operate motor vehicles for their employees must certify that the commuter ride- sharing arrangement conforms to a carpool/vanpool element contained within their commute trip reduction program or used primarily for van or car pooling purposes.

       Sec. 13. RCW 82.12.0282 and 2001 c 320 s 5 are each amended to read as follows:

       The tax imposed by this chapter shall not apply with respect to the use of passenger motor vehicles used as ride-sharing vehicles by not less than five persons, including the driver, with a gross vehicle weight not to exceed 10,000 pounds where the primary usage is for commuter ride-sharing, as defined in RCW 46.74.010, by not less than four persons including the driver when at least two of those persons are confined to wheelchairs when riding, or passenger motor vehicles where the primary usage is for ride-sharing for persons with special transportation needs, as defined in RCW 46.74.010, if the vehicles are used as ride-sharing vehicles for thirty-six consecutive months beginning with the date of first use.

       To qualify for the tax exemption, those passenger motor vehicles with five or six passengers, including the driver, used for commuter ride-sharing, must be operated ((either)) within ((the state's eight largest)) counties that ((are required to)) develop commute trip reduction plans as directed by chapter 70.94 RCW or in other counties, or cities and towns within those counties, that elect to adopt and implement a commute trip reduction plan. Additionally at least one of the following conditions must apply: (1) The vehicle must be operated by a public transportation agency for the general public; or (2) the vehicle must be used by a major employer, as defined in RCW 70.94.524 as an element of its commute trip reduction program for their employees; or (3) the vehicle must be owned and operated by individual employees and must be registered either with the employer as part of its commute trip reduction program or with a public transportation agency serving the area where the employees live or work. Individual employee owned and operated motor vehicles will require certification that the vehicle is registered with a major employer or a public transportation agency. Major employers who own and operate motor vehicles for their employees must certify that the commuter ride- sharing arrangement conforms to a carpool/vanpool element contained within their commute trip reduction program or used primarily for van or car pooling purposes.

       Sec. 14. RCW 82.44.015 and 1996 c 244 s 7 are each amended to read as follows:

       For the purposes of this chapter, in addition to the exclusions under RCW 82.44.010, "motor vehicle" shall not include passenger motor vehicles used primarily for commuter ride sharing and ride sharing for persons with special transportation needs, as defined in RCW 46.74.010. The registered owner of one of these vehicles shall notify the department of licensing upon termination of primary use of the vehicle in commuter ride sharing or ride sharing for persons with special transportation needs and shall be liable for the tax imposed by this chapter, prorated on the remaining months for which the vehicle is licensed.

       To qualify for the tax exemption, those passenger motor vehicles with five or six passengers, including the driver, used for commuter ride-sharing, must be operated ((either)) within ((the state's eight largest)) counties that ((are required to)) develop commute trip reduction plans as directed by chapter 70.94 RCW or in other counties, or cities and towns within those counties, that elect to adopt and implement a commute trip reduction plan. Additionally at least one of the following conditions must apply: (1) The vehicle must be operated by a public transportation agency for the general public; or (2) the vehicle must be used by a major employer, as defined in RCW 70.94.524 as an element of its commute trip reduction program for their employees; or (3) the vehicle must be owned and operated by individual employees and must be registered either with the employer as part of its commute trip reduction program or with a public transportation agency serving the area where the employees live or work. Individual employee owned and operated motor vehicles will require certification that the vehicle is registered with a major employer or a public transportation agency. Major employers who own and operate motor vehicles for their employees must certify that the commuter ride- sharing arrangement conforms to a carpool/vanpool element contained within their commute trip reduction program or used primarily for van or car pooling purposes.

       NEW SECTION. Sec. 15. Sections 1 through 8 of this act constitute a new chapter in Title 82 RCW.

       NEW SECTION. Sec. 16. The code reviser shall place cross- reference sections to chapter 82.-- RCW (sections 1 through 8 of this act) in chapters 82.04 and 82.16 RCW.

       NEW SECTION. Sec. 17. (1) Sections 1 through 10, 15, and 16 of this act take effect July 1, 2004, but only if legislation that provides additional revenues, excluding transfers, for the multimodal transportation account is in effect on that date.

       (2) Sections 11 through 14 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2003.

       NEW SECTION. Sec. 18. Captions used in this act are not part of the law."

MOTION

      On motion of Senator Horn, the following amendment by Senators Horn and Haugen to the Committee on Highways and Transportation striking amendment was adopted:

       On page 5, line 12, strike "calendar" and insert "fiscal"

      The President declared the question before the Senate to be the adoption of the Committee on Highways and Transportation striking amendment, as amended, to Engrossed Substitute House Bill No. 2228.

      The motion by Senator Horn carried and the committee striking amendment, as amended, was adopted.

      There being no objection, the following title amendment was adopted:

       On page 1, line 1 of the title, after "incentives;" strike the remainder of the title and insert "amending RCW 70.94.527, 82.08.0287, 82.12.0282, and 82.44.015; adding a new section to chapter 70.94 RCW; adding a new chapter to Title 82 RCW; creating new sections; repealing RCW 82.04.4453, 82.04.4454, 82.16.048, 82.16.049, and 47.01.900; prescribing penalties; providing an effective date; providing a contingent effective date; providing expiration dates; and declaring an emergency."

MOTION

      On motion of Senator Horn, the rules were suspended, Engrossed Substitute House Bill No. 2228, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 2228, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 2228, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 36; Nays, 9; Absent, 0; Excused, 4.

     Voting yea: Senators Benton, Brandland, Carlson, Deccio, Doumit, Eide, Esser, Finkbeiner, Hale, Hargrove, Haugen, Hewitt, Horn, Jacobsen, Johnson, Keiser, McAuliffe, McCaslin, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Shin, Stevens, Swecker, West, Winsley and Zarelli - 36.

     Voting nay: Senators Franklin, Fraser, Kastama, Kline, Kohl-Welles, Regala, Sheldon, T., Spanel and Thibaudeau - 9.

     Excused: Senators Brown, Fairley, Honeyford and Morton - 4.

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2228, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION FOR RECONSIDERATION

      Having voted on the prevailing side by which Substitute House Bill No. 1128, as amended by the Senate, passed the Senate earlier today, Senator Benton moved that the Senate immediately reconsider the vote by which the bill passed the Senate.

      The President declared the question before the Senate to be the motion by Senator Benton to immediately reconsider the vote by which

Substitute House Bill No. 1128, as amended by the Senate, passed the Senate earlier today.

      The motion by Senator Benton carried and the Senate will immediately reconsider the vote by which Substitute House Bill No. 1128, as amended by the Senate, passed the Senate.

MOTION

      On motion of Senator Benton, the rules were suspended and Substitute House Bill No. 1128, as amended by the Senate, was returned to second reading.

      Having voted on the prevailing side, Senator Benton moved to reconsider the vote by which the Committee on Financial Services, Insurance and Housing striking amendment, as amended, was adopted.

      The President declared the question before the Senate to be the motion by Senator Benton to reconsider the vote by which the Committee on Financial Services, Insurance and Housing striking amendment, as amended, was adopted.

      The motion by Senator Benton carried and the Senate will immediately reconsider the vote by which the committee amendment, as amended, was adopted.

MOTION

      Having voted on the prevailing side, Senator Benton moved to reconsider the vote by which the amendment by Senators Benton and Prentice on page 1, line 27, to the Committee on Financial Services, Insurance and Housing striking amendment was adopted.

      Senator Benton moved that the amendment to the committee striking amendment not be adopted on reconsideration.

      The motion by Senator Benton carried and the amendment to the committee striking amendment was not adopted on reconsideration.

MOTION

      On motion of Senator Benton, the following amendment by Senators Benton and Prentice to the Committee on Financial Services, Insurance and Housing striking amendment, on reconsideration, was adopted:

Beginning on page 1, line 27 of the amendment, strike all of subsection (4) and insert the following:

       "(4) If an insured sustains a loss that is the result of malicious harassment, the insured must file a report with the police or other law enforcement authority within thirty days of discovery of the incident, and a law enforcement authority must determine that a crime has occurred. The report must contain sufficient information to provide an insurer with reasonable notice that the loss was the result of malicious harassment. The insured has a duty to cooperate with any law enforcement official or insurer investigation. For incidents of malicious harassment occurring prior to the effective date of this act, the insured must file the report within six months of the discovery of the incident."

      The President declared the question before the Senate to be the adoption of the Committee on Financial Insurance and Housing striking amendment, as amended, on reconsideration to Substitute House Bill No. 1128.

      The motion by Senator Benton carried and the committee striking amendment, as amended, on reconsideration, was adopted.

MOTION

      On motion of Senator Benton, the rules were suspended, Substitute House Bill No. 1128, as amended by the Senate on reconsideration, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1128, as amended by the Senate on reconsideration.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1128, as amended by the Senate on reconsideration, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      SUBSTITUTE HOUSE BILL NO. 1128, as amended by the Senate on reconsideration, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      ENGROSSED HOUSE BILL NO. 1252, by Representatives Linville, Schoesler, Rockefeller, Sump and Upthegrove (by request of Commissioner of Public Lands Sutherland)

Making technical, nonsubstantive, corrections to and recodifying various department of natural resources' public land statutes.

      The bill was read the second time.

MOTION

      On motion of Senator Hewitt, the rules were suspended, Engrossed House Bill No. 1252 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 1252.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed House Bill No. 1252 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      ENGROSSED HOUSE BILL NO. 1252, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 1444, by Representatives Haigh, Eickmeyer, Clibborn, Dickerson, Rockefeller and Morrell

Protecting proprietary or confidential information acquired through state health services purchasing.

      The bill was read the second time.

MOTION

      On motion of Senator Winsley, the following Committee on Health and Long-Term Care striking amendment was adopted:

       Strike everything after the enacting clause and insert the following:

       "Sec. 1. RCW 42.30.110 and 2001 c 216 s 1 are each amended to read as follows:

       (1) Nothing contained in this chapter may be construed to prevent a governing body from holding an executive session during a regular or special meeting:

       (a) To consider matters affecting national security;

       (b) To consider the selection of a site or the acquisition of real estate by lease or purchase when public knowledge regarding such consideration would cause a likelihood of increased price;

       (c) To consider the minimum price at which real estate will be offered for sale or lease when public knowledge regarding such consideration would cause a likelihood of decreased price. However, final action selling or leasing public property shall be taken in a meeting open to the public;

       (d) To review negotiations on the performance of publicly bid contracts when public knowledge regarding such consideration would cause a likelihood of increased costs;

       (e) To consider, in the case of an export trading company, financial and commercial information supplied by private persons to the export trading company;

       (f) To receive and evaluate complaints or charges brought against a public officer or employee. However, upon the request of such officer or employee, a public hearing or a meeting open to the public shall be conducted upon such complaint or charge;

       (g) To evaluate the qualifications of an applicant for public employment or to review the performance of a public employee. However, subject to RCW 42.30.140(4), discussion by a governing body of salaries, wages, and other conditions of employment to be generally applied within the agency shall occur in a meeting open to the public, and when a governing body elects to take final action hiring, setting the salary of an individual employee or class of employees, or discharging or disciplining an employee, that action shall be taken in a meeting open to the public;

       (h) To evaluate the qualifications of a candidate for appointment to elective office. However, any interview of such candidate and final action appointing a candidate to elective office shall be in a meeting open to the public;

       (I) To discuss with legal counsel representing the agency matters relating to agency enforcement actions, or to discuss with legal counsel representing the agency litigation or potential litigation to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party, when public knowledge regarding the discussion is likely to result in an adverse legal or financial consequence to the agency.

       This subsection (1)(I) does not permit a governing body to hold an executive session solely because an attorney representing the agency is present. For purposes of this subsection (1)(I), "potential litigation" means matters protected by RPC 1.6 or RCW 5.60.060(2)(a) concerning:

       (A) Litigation that has been specifically threatened to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party;

       (B) Litigation that the agency reasonably believes may be commenced by or against the agency, the governing body, or a member acting in an official capacity; or

       (c) Litigation or legal risks of a proposed action or current practice that the agency has identified when public discussion of the litigation or legal risks is likely to result in an adverse legal or financial consequence to the agency;

       (j) To consider, in the case of the state library commission or its advisory bodies, western library network prices, products, equipment, and services, when such discussion would be likely to adversely affect the network's ability to conduct business in a competitive economic climate. However, final action on these matters shall be taken in a meeting open to the public;

       (k) To consider, in the case of the state investment board, financial and commercial information when the information relates to the investment of public trust or retirement funds and when public knowledge regarding the discussion would result in loss to such funds or in private loss to the providers of this information;

       (l) To consider proprietary or confidential nonpublished information related to the development, acquisition, or implementation of state purchased health care services as provided in RCW 41.05.026.

       (2) Before convening in executive session, the presiding officer of a governing body shall publicly announce the purpose for excluding the public from the meeting place, and the time when the executive session will be concluded. The executive session may be extended to a stated later time by announcement of the presiding officer.

       Sec. 2. RCW 41.05.026 and 1991 c 79 s 1 are each amended to read as follows:

       (1) When soliciting proposals for the purpose of awarding contracts for goods or services, the administrator shall, upon written request by the bidder, exempt from public inspection and copying such proprietary data, trade secrets, or other information contained in the bidder's proposal that relate to the bidder's unique methods of conducting business or of determining prices or premium rates to be charged for services under terms of the proposal.

       (2) When soliciting information for the development, acquisition, or implementation of state purchased health care services, the administrator shall, upon written request by the respondent, exempt from public inspection and copying such proprietary data, trade secrets, or other information submitted by the respondent that relate to the respondent's unique methods of conducting business, data unique to the product or services of the respondent, or to determining prices or rates to be charged for services.

       (3) Actuarial formulas, statistics, cost and utilization data, or other proprietary information submitted upon request of the administrator ((or)), board, or a technical review committee created to facilitate the development, acquisition, or implementation of state purchased health care under this chapter by a contracting insurer, health care service contractor, health maintenance organization, ((or)) vendor, or other health services organization may be withheld at any time from public inspection when necessary to preserve trade secrets or prevent unfair competition.

       (((3))) (4) The board, or a technical review committee created to facilitate the development, acquisition, or implementation of state purchased health care under this chapter, may hold an executive session in accordance with chapter 42.30 RCW during any regular or special meeting to discuss information submitted in accordance with subsections (1) ((or (2))) through (3) of this section.

       (5) A person who challenges a request for or designation of information as exempt under this section is entitled to seek judicial review pursuant to chapter 42.17 RCW.

       Sec. 3. RCW 42.17.310 and 2002 c 335 s 1, 2002 c 224 s 2, 2002 c 205 s 4, and 2002 c 172 s 1 are each reenacted and amended to read as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

       (w)(I) The federal social security number of individuals governed under chapter 18.130 RCW maintained in the files of the department of health, except this exemption does not apply to requests made directly to the department from federal, state, and local agencies of government, and national and state licensing, credentialing, investigatory, disciplinary, and examination organizations; (ii) the current residential address and current residential telephone number of a health care provider governed under chapter 18.130 RCW maintained in the files of the department, if the provider requests that this information be withheld from public inspection and copying, and provides to the department an accurate alternate or business address and business telephone number. On or after January 1, 1995, the current residential address and residential telephone number of a health care provider governed under RCW 18.130.040 maintained in the files of the department shall automatically be withheld from public inspection and copying unless the provider specifically requests the information be released, and except as provided for under RCW 42.17.260(9).

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

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

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

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

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

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

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

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

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

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

       (hh) Information and documents created specifically for, and collected and maintained by a quality improvement committee pursuant to RCW 43.70.510 or 70.41.200, or by a peer review committee under RCW 4.24.250, regardless of which agency is in possession of the information and documents.

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

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

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

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

       (mm) The personally identifying information of current or former participants or applicants in a paratransit or other transit service operated for the benefit of persons with disabilities or elderly persons.

       (nn) The personally identifying information of persons who acquire and use transit passes and other fare payment media including, but not limited to, stored value smart cards and magnetic strip cards, except that an agency may disclose this information to a person, employer, educational institution, or other entity that is responsible, in whole or in part, for payment of the cost of acquiring or using a transit pass or other fare payment media, or to the news media when reporting on public transportation or public safety. This information may also be disclosed at the agency's discretion to governmental agencies or groups concerned with public transportation or public safety.

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

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

       (qq) Financial and commercial information supplied by or on behalf of a person, firm, corporation, or entity under chapter 28B.95 RCW relating to the purchase or sale of tuition units and contracts for the purchase of multiple tuition units.

       (rr) Any records of investigative reports prepared by any state, county, municipal, or other law enforcement agency pertaining to sex offenses contained in chapter 9A.44 RCW or sexually violent offenses as defined in RCW 71.09.020, which have been transferred to the Washington association of sheriffs and police chiefs for permanent electronic retention and retrieval pursuant to RCW 40.14.070(2)(b).

       (ss) Credit card numbers, debit card numbers, electronic check numbers, card expiration dates, or bank or other financial account numbers supplied to an agency for the purpose of electronic transfer of funds, except when disclosure is expressly required by law.

       (tt) Financial information, including but not limited to account numbers and values, and other identification numbers supplied by or on behalf of a person, firm, corporation, limited liability company, partnership, or other entity related to an application for a liquor license, gambling license, or lottery retail license.

       (uu) Records maintained by the employment security department and subject to chapter 50.13 RCW if provided to another individual or organization for operational, research, or evaluation purposes.

       (vv) Individually identifiable information received by the work force training and education coordinating board for research or evaluation purposes.

       (ww) Those portions of records assembled, prepared, or maintained to prevent, mitigate, or respond to criminal terrorist acts, which are acts that significantly disrupt the conduct of government or of the general civilian population of the state or the United States and that manifest an extreme indifference to human life, the public disclosure of which would have a substantial likelihood of threatening public safety, consisting of:

       (I) Specific and unique vulnerability assessments or specific and unique response or deployment plans, including compiled underlying data collected in preparation of or essential to the assessments, or to the response or deployment plans; and

       (ii) Records not subject to public disclosure under federal law that are shared by federal or international agencies, and information prepared from national security briefings provided to state or local government officials related to domestic preparedness for acts of terrorism.

       (xx) Commercial fishing catch data from logbooks required to be provided to the department of fish and wildlife under RCW 77.12.047, when the data identifies specific catch location, timing, or methodology and the release of which would result in unfair competitive disadvantage to the commercial fisher providing the catch data. However, this information may be released to government agencies concerned with the management of fish and wildlife resources.

       (yy) Sensitive wildlife data obtained by the department of fish and wildlife. However, sensitive wildlife data may be released to government agencies concerned with the management of fish and wildlife resources. Sensitive wildlife data includes:

       (I) The nesting sites or specific locations of endangered species designated under RCW 77.12.020, or threatened or sensitive species classified by rule of the department of fish and wildlife;

       (ii) Radio frequencies used in, or locational data generated by, telemetry studies; or

       (iii) Other location data that could compromise the viability of a specific fish or wildlife population, and where at least one of the following criteria are met:

       (A) The species has a known commercial or black market value;

       (B) There is a history of malicious take of that species; or

       (c) There is a known demand to visit, take, or disturb, and the species behavior or ecology renders it especially vulnerable or the species has an extremely limited distribution and concentration.

       (zz) The personally identifying information of persons who acquire recreational licenses under RCW 77.32.010 or commercial licenses under chapter 77.65 or 77.70 RCW, except name, address of contact used by the department, and type of license, endorsement, or tag. However, the department of fish and wildlife may disclose personally identifying information to:

       (I) Government agencies concerned with the management of fish and wildlife resources;

       (ii) The department of social and health services, child support division, and to the department of licensing in order to implement RCW 77.32.014 and 46.20.291; and

       (iii) Law enforcement agencies for the purpose of firearm possession enforcement under RCW 9.41.040.

       (aaa)(I) Discharge papers of a veteran of the armed forces of the United States filed at the office of the county auditor before July 1, 2002, that have not been commingled with other recorded documents. These records will be available only to the veteran, the veteran's next of kin, a deceased veteran's properly appointed personal representative or executor, a person holding that veteran's general power of attorney, or to anyone else designated in writing by that veteran to receive the records.

       (ii) Discharge papers of a veteran of the armed forces of the United States filed at the office of the county auditor before July 1, 2002, that have been commingled with other records, if the veteran has recorded a "request for exemption from public disclosure of discharge papers" with the county auditor. If such a request has been recorded, these records may be released only to the veteran filing the papers, the veteran's next of kin, a deceased veteran's properly appointed personal representative or executor, a person holding the veteran's general power of attorney, or anyone else designated in writing by the veteran to receive the records.

       (iii) Discharge papers of a veteran filed at the office of the county auditor after June 30, 2002, are not public records, but will be available only to the veteran, the veteran's next of kin, a deceased veteran's properly appointed personal representative or executor, a person holding the veteran's general power of attorney, or anyone else designated in writing by the veteran to receive the records.

       (iv) For the purposes of this subsection (1)(aaa), next of kin of deceased veterans have the same rights to full access to the record. Next of kin are the veteran's widow or widower who has not remarried, son, daughter, father, mother, brother, and sister.

       (bbb) Those portions of records containing specific and unique vulnerability assessments or specific and unique emergency and escape response plans at a city, county, or state adult or juvenile correctional facility, the public disclosure of which would have a substantial likelihood of threatening the security of a city, county, or state adult or juvenile correctional facility or any individual's safety.

       (ccc) Information compiled by school districts or schools in the development of their comprehensive safe school plans pursuant to RCW 28A.320.125, to the extent that they identify specific vulnerabilities of school districts and each individual school.

       (ddd) Information regarding the infrastructure and security of computer and telecommunications networks, consisting of security passwords, security access codes and programs, access codes for secure software applications, security and service recovery plans, security risk assessments, and security test results to the extent that they identify specific system vulnerabilities.

       (eee) Information obtained and exempted or withheld from public inspection by the health care authority under RCW 41.05.026, whether retained by the authority, transferred to another state purchased health care program by the authority, or transferred by the authority to a technical review committee created to facilitate the development, acquisition, or implementation of state purchased health care under chapter 41.05 RCW.

       (fff) Proprietary data, trade secrets, or other information that relates to: (I) A vendor's unique methods of conducting business; (ii) data unique to the product or services of the vendor; or (iii) determining prices or rates to be charged for services, submitted by any vendor to the department of social and health services for purposes of the development, acquisition, or implementation of state purchased health care as defined in RCW 41.05.011.

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

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

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

      There being no objection, the following title amendment was adopted:

       On page 1, line 2 of the title, after "purchasing;" strike the remainder of the title and insert "amending RCW 42.30.110 and 41.05.026; and reenacting and amending RCW 42.17.310."

MOTION

      On motion of Senator Winsley, the rules were suspended, House Bill No. 1444, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1444, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1444, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      HOUSE BILL NO. 1444, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1299, by House Committee on Health Care (originally sponsored by Representatives Cody, Sommers, Morrell, Schual-Berke and Dickerson)

Providing for uniform policies for health services purchasing by state purchased health care programs.

      The bill was read the second time.

MOTION

      On motion of Senator Parlette, the rules were suspended, Engrossed Substitute House Bill No. 1299 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1299.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1299 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1299, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1754, by House Committee on Agriculture and Natural Resources (originally sponsored by Representatives Eickmeyer, Schoesler, Sump, Hunt, Grant, Pettigrew, Haigh, McDermott, Blake, Quall, Rockefeller and Romero)

Concerning the slaughter, preparation, and sale of certain poultry.

      The bill was read the second time.

MOTION

      Senator Swecker moved that the following Committee on Agriculture striking amendment be adopted:

       Strike everything after the enacting clause and insert the following:

       "NEW SECTION. Sec. 1. A new section is added to chapter 16.49 RCW to read as follows:

       This chapter does not apply to the slaughter and preparation of one thousand or fewer pastured chickens in a calendar year by the agricultural producer of the chickens for the sale of whole raw chickens by the producer directly to the ultimate consumer at the producer's farm.

       NEW SECTION. Sec. 2. A new section is added to chapter 69.07 RCW to read as follows:

       (1) A special, temporary permit issued by the department under this section is required for the slaughter and preparation of one thousand or fewer pastured chickens in a calendar year by the agricultural producer of the chickens for the sale of whole raw chickens by the producer directly to the ultimate consumer at the producer's farm, and for such sale. Such activities shall not be conducted without the permit. However, if the activities are conducted under such a permit, the activities are exempted from any other licensing requirements of this chapter.

       (2)(a) The department must adopt by rule requirements for a special, temporary permit for the activities described in subsection (1) of this section. The requirements must be generally patterned after those established by WAC 246-215-190 as it exists on the effective date of this section for temporary food service establishments, but must be tailored specifically to these slaughter, preparation, and sale activities. The requirements must include, but are not limited to, those for: Cooling procedures, when applicable; sanitary facilities, equipment, and utensils; clean water; washing and other hygienic practices; and waste and wastewater disposal.

       (b) The rules must also identify the length of time such a permit is valid. In determining the length of time, the department must take care to ensure that it is adequate to accommodate the seasonal nature of the permitted activities. In adopting any rule under this section, the department must also carefully consider the economic constraints on the regulated activity.

       (3) The department shall conduct such inspections of the activities permitted under this section as are reasonably necessary to ensure compliance with permit requirements.

       (4) The fee for a special permit issued under this section is seventy-five dollars."

MOTION

      Senator Jacobsen moved that the following amendments to the Committee on Agriculture striking amendments be considered simultaneously and be adopted:

       On page 1, line 5 of the amendment, before "This" insert "(1)"

       On page 1, after line 9 of the amendment, insert the following:

       "(2) For the purposes of this section, "chicken" means the species Gallus domesticus."

       On page 2, after line 13 of the amendment, insert the following:

       "(5) For the purposes of this section, "chicken" means the species Gallus domesticus."

POINT OF INQUIRY

      Senator Honeyford: “Senator Jacobsen, can you tell me which came first, the chicken or the egg?”

      Senator Jacobsen: “ Senator Fraser stood up. Maybe she has the answer.”

POINT OF INQUIRY

      Senator Fraser: “Would Senator Jacobsen yield to a question?”

      Senator Jacobsen: “Boy, this is a lot of responsibility for an assistant ranking minority member on the Agriculture Committee. I do.”

      Senator Fraser: “Well, thank you. I am actually very interested in this bill because it is a bill that provides women in agriculture more opportunity. So, my question is, do your amendments which define chickens--does it limit the number and types of chickens that people can include and take advantage of the opportunity provided by this bill? Does it include bantam chickens? I don’t know how many kinds of chickens there are, but I am concerned about narrowing the definition too much.”

      Senator Jacobsen: “That is a very good question. I need to do a little more research and I am not sure that bantam chickens fall under that Latin name in the amendments. I am just guessing that they came from the island in Indonesia called Bantam. So, I would assume that we need to look at that Latin term there. That is a very good question, because perhaps it is a different--I think it is a different specie.”       Further debate ensued.

POINT OF INQUIRY

      Senator Rasmussen: “Senator Jacobsen, is a rooster a chicken?”

      Senator Jacobsen: “Yes, it is--definitely that. It takes a rooster and a chicken to make more chickens.”

      The President declared the question before the Senate to be the adoption of the amendments by Senator Jacobsen on page 1, lines 5 and 9, and page 2, line 13, to the Committee on Agriculture striking amendment to Engrossed House Bill No. 1754.

      The motion by Senator Jacobsen carried and the amendments to the committee striking amendment were adopted.

      The President declared the question before the Senate to be the adoption of the Committee on Agriculture striking amendment, as amended, to Engrossed House Bill No. 1754.

      The motion by Senator Swecker carried and the committee striking amendment, as amended, was adopted.

      There being no objection, the following title amendment was adopted:

       On page 1, beginning on line 1 of the title, after "poultry;" strike the remainder of the title and insert "adding a new section to chapter 16.49 RCW; and adding a new section to chapter 69.07 RCW."

MOTION

      On motion of Senator Swecker, the rules were suspended, Engrossed Substitute House Bill No. 1754, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1754, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1754, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1754 as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      On motion of Senator Zarelli, Senator Deccio was excused.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 1036, by House Committee on Transportation (originally sponsored by Representatives Hatfield, Woods, Simpson, Cooper, Rockefeller and Mielke)

Modifying subagent authority to process mail-in vehicle registration renewals.

      The bill was read the second time.

MOTION

       On motion of Senator Horn, the following Committee on Highways and Transportation striking amendment was adopted:

       Strike everything after the enacting clause and insert the following:

       "Sec. 1. RCW 46.01.230 and 1994 c 262 s 1 are each amended to read as follows:

       (1) The department of licensing is authorized to accept checks and money orders for payment of drivers' licenses, certificates of ownership and registration, motor vehicle excise taxes, gross weight fees, and other fees and taxes collected by the department, in accordance with regulations adopted by the director. The director's regulations shall duly provide for the public's convenience consistent with sound business practice and shall encourage the annual renewal of vehicle registrations by mail to the department, authorizing checks and money orders for payment. Such regulations shall contain provisions for cancellation of any registrations, licenses, or permits paid for by checks or money orders which are not duly paid and for the necessary accounting procedures in such cases: PROVIDED, That any bona fide purchaser for value of a vehicle shall not be liable or responsible for any prior uncollected taxes and fees paid, pursuant to this section, by a check which has subsequently been dishonored: AND PROVIDED FURTHER, That no transfer of ownership of a vehicle may be denied to a bona fide purchaser for value of a vehicle if there are outstanding uncollected fees or taxes for which a predecessor paid, pursuant to this section, by check which has subsequently been dishonored nor shall the new owner be required to pay any fee for replacement vehicle license number plates that may be required pursuant to RCW 46.16.270 as now or hereafter amended.

       (2) It is a traffic infraction to fail to surrender within ten days to the department or any authorized agent of the department any certificate, license, or permit after being notified that such certificate, license, or permit has been canceled pursuant to this section. Notice of cancellation may be accomplished by sending a notice by first class mail using the last known address in department records for the holder of the certificate, license, or permit, and recording the transmittal on an affidavit of first class mail.

       (3) Whenever registrations, licenses, or permits have been paid for by checks that have been dishonored by nonacceptance or nonpayment, a reasonable handling fee may be assessed for each such instrument. Notwithstanding provisions of any other laws, county auditors, agents, and subagents, appointed or approved by the director pursuant to RCW 46.01.140, may collect restitution, and where they have collected restitution may retain the reasonable handling fee. The amount of the reasonable handling fee may be set by rule by the director.

       (4) In those counties where the county auditor has been appointed an agent of the director under RCW 46.01.140, the auditor shall continue to process mail-in registration renewals until directed otherwise by legislative authority. Subagents appointed by the director under RCW 46.01.140 have the same authority to mail out registrations and replacement plates to Internet payment option customers as the agents until directed otherwise by legislative authority. The department shall provide separate statements giving notice to Internet payment option customers that: (a) A subagent service fee, as provided in RCW 46.01.140(5)(b), will be collected by a subagent office for providing mail and pick-up services; and (b) a filing fee will be collected on all transactions listed under RCW 46.01.140(4)(a). The statement must include the amount of the fee and be published on the department's Internet web site on the page that lists each department, county auditor, and subagent office, eligible to provide mail or pick-up services for registration renewals and replacement plates. The statements must be published below each office listed.

       NEW SECTION. Sec. 2. This act takes effect October 1, 2003.

       NEW SECTION. Sec. 3. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2003, in the omnibus transportation appropriations act, this act is null and void."

      There being no objection, the following title amendment was adopted:

       On line 2 of the title, after "provisions;" strike the remainder of the title and insert "amending RCW 46.01.230; providing contingent effect; and providing an effective date."

MOTION

      On motion of Senator Horn, the rules were suspended, Substitute House Bill No. 1036, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1036, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1036, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 36; Nays, 12; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Doumit, Eide, Esser, Finkbeiner, Fraser, Hale, Hargrove, Hewitt, Honeyford, Horn, Johnson, Keiser, Kline, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Reardon, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Stevens, Swecker, West, Winsley and Zarelli - 36.

     Voting nay: Senators Fairley, Franklin, Haugen, Jacobsen, Kastama, Kohl-Welles, Prentice, Rasmussen, Regala, Shin, Spanel and Thibaudeau - 12.

     Excused: Senator Deccio - 1.

      SUBSTITUTE HOUSE BILL NO. 1036, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      On motion of Senator Eide, Senator Tim Sheldon was excused.

SECOND READING

      HOUSE BILL NO. 1727, by Representatives O'Brien and Kirby

Providing that no fee may be charged for death certificates of sex offenders supplied to law enforcement agencies.

      The bill was read the second time.

MOTION

      On motion of Senator Stevens, the rules were suspended, House Bill No. 1727 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1727.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1727 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 47.

    Excused: Senators Deccio and Sheldon, T. - 2.

      HOUSE BILL NO. 1727, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      At 5:07 p.m., on motion of Senator Sheahan, the Senate was declared to be at ease.

      The Senate was called to order at 6:40 p.m. by President Owen.

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

      On motion of Senator Regala, Gubernatorial Appointment No. 9126, Jim Tsang, as a member of the Board of Trustees for Pierce Community College District No. 11, was confirmed.

APPOINTMENT OF JIM TSANG

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

     Voting yea: Senators Brandland, Brown, Carlson, Doumit, Eide, Esser, Fairley, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 45.

     Absent: Senators Benton, Finkbeiner and Mulliken - 3.

     Excused: Senator Deccio - 1.

MOTION

      On motion of Senator Hewitt, Senator Mulliken was excused.

MOTION

      On motion of Senator Fairley, Gubernatorial Appointment No. 9134, Elsa Welch, as a member of the Board of Trustees for Shoreline Community College District No. 7, was confirmed.

APPOINTMENT OF ELSA WELCH

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

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 48.

     Excused: Senator Mulliken - 1.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 1409, by House Committee on Fisheries, Ecology and Parks (originally sponsored by Representatives Upthegrove, Hunt and Clibborn)

Defining "potentially dangerous litter" and making it a civil infraction to improperly dispose of potentially dangerous litter.

      The bill was read the second time.

MOTION

      Senator Morton moved that the following Committee on Natural Resources, Energy and Water striking amendment be adopted:

       Strike everything after the enacting clause and insert the following:

       "NEW SECTION. Sec. 1. The legislature finds that the littering of potentially dangerous products poses a greater danger to the public safety than other classes of litter. Broken glass, human waste, and other dangerous materials along roadways, within parking lots, and on pedestrian, bicycle, and recreation trails elevates the risk to public safety, such as vehicle tire punctures, and the risk to the community volunteers who spend their time gathering and properly disposing of the litter left behind by others. As such, the legislature finds that a higher penalty should be imposed on those who improperly dispose of potentially dangerous products, such as is imposed on those who improperly dispose of tobacco products.

       Sec. 2. RCW 70.93.030 and 2000 c 154 s 1 are each amended to read as follows:

       ((As used in)) The definitions in this section apply throughout this chapter unless the context ((indicates)) clearly requires otherwise((:)).

       (1) "Conveyance" means a boat, airplane, or vehicle((;)).

       (2) "Department" means the department of ecology((;)).

       (3) "Director" means the director of the department of ecology((;)).

       (4) "Disposable package or container" means all packages or containers defined as such by rules ((and regulations)) adopted by the department of ecology((;)).

       (5) "Junk vehicle" has the same meaning as defined in RCW 46.55.010((;)).

       (6) "Litter" means all waste material including but not limited to disposable packages or containers thrown or deposited as herein prohibited and solid waste that is illegally dumped, but not including the wastes of the primary processes of mining, logging, sawmilling, farming, or manufacturing((;)). "Litter" includes the material described in subsection (10) of this section as "potentially dangerous litter."

       (7) "Litter bag" means a bag, sack, or other container made of any material which is large enough to serve as a receptacle for litter inside the vehicle or watercraft of any person. It is not necessarily limited to the state approved litter bag but must be similar in size and capacity((;)).

       (8) "Litter receptacle" means those containers adopted by the department of ecology and which may be standardized as to size, shape, capacity, and color and which shall bear the state anti-litter symbol, as well as any other receptacles suitable for the depositing of litter((;)).

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

       (10) "Potentially dangerous litter" means litter that is likely to injure a person or cause damage to a vehicle or other property. "Potentially dangerous litter" means:

       (a) Cigarettes, cigars, or other tobacco products that are capable of starting a fire;

       (b) Glass;

       (c) A container or other product made predominantly or entirely of glass;

       (d) A hypodermic needle or other medical instrument designed to cut or pierce;

       (e) Raw human waste, including soiled baby diapers, regardless of whether or not the waste is in a container of any sort; and

       (f) Nails or tacks.

       (11) "Public place" means any area that is used or held out for use by the public whether owned or operated by public or private interests((;)).

       (((11))) (12) "Recycling" means transforming or remanufacturing waste materials into a finished product for use other than landfill disposal or incineration((;)).

       (((12))) (13) "Recycling center" means a central collection point for recyclable materials((;)).

       (((13))) (14) "To litter" means a single or cumulative act of disposing of litter((;)).

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

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

       (((16))) (17) "Watercraft" means any boat, ship, vessel, barge, or other floating craft.

       Sec. 3. RCW 70.93.060 and 2002 c 175 s 45 are each amended to read as follows:

       (1) It is a violation of this section to abandon a junk vehicle upon any property. In addition, no person shall throw, drop, deposit, discard, or otherwise dispose of litter upon any public property in the state or upon private property in this state not owned by him or her or in the waters of this state whether from a vehicle or otherwise including but not limited to any public highway, public park, beach, campground, forest land, recreational area, trailer park, highway, road, street, or alley except:

       (a) When the property is designated by the state or its agencies or political subdivisions for the disposal of garbage and refuse, and the person is authorized to use such property for that purpose;

       (b) Into a litter receptacle in a manner that will prevent litter from being carried away or deposited by the elements upon any part of the private or public property or waters.

       (2)(a) Except as provided in subsection (4) of this section, it is a class 3 civil infraction as provided in RCW 7.80.120 for a person to litter in an amount less than or equal to one cubic foot.

       (b) It is a misdemeanor for a person to litter in an amount greater than one cubic foot but less than one cubic yard. The person shall also pay a litter cleanup restitution payment equal to twice the actual cost of cleanup, or fifty dollars per cubic foot of litter, whichever is greater. The court shall distribute one-half of the restitution payment to the landowner and one-half of the restitution payment to the law enforcement agency investigating the incident. The court may, in addition to or in lieu of part or all of the cleanup restitution payment, order the person to pick up and remove litter from the property, with prior permission of the legal owner or, in the case of public property, of the agency managing the property. The court may suspend or modify the litter cleanup restitution payment for a first- time offender under this section, if the person cleans up and properly disposes of the litter.

       (c) It is a gross misdemeanor for a person to litter in an amount of one cubic yard or more. The person shall also pay a litter cleanup restitution payment equal to twice the actual cost of cleanup, or one hundred dollars per cubic foot of litter, whichever is greater. The court shall distribute one-half of the restitution payment to the landowner and one-half of the restitution payment to the law enforcement agency investigating the incident. The court may, in addition to or in lieu of part or all of the cleanup restitution payment, order the person to pick up and remove litter from the property, with prior permission of the legal owner or, in the case of public property, of the agency managing the property. The court may suspend or modify the litter cleanup restitution payment for a first- time offender under this section, if the person cleans up and properly disposes of the litter.

       (d) If a junk vehicle is abandoned in violation of this section, RCW 46.55.230 governs the vehicle's removal, disposal, and sale, and the penalties that may be imposed against the person who abandoned the vehicle.

       (3) If the violation occurs in a state park, the court shall, in addition to any other penalties assessed, order the person to perform twenty-four hours of community restitution in the state park where the violation occurred if the state park has stated an intent to participate as provided in RCW 79A.05.050.

       (4) It is a class 1 civil infraction as provided in RCW 7.80.120 for a person to discard, in violation of this section, ((a cigarette, cigar, or other tobacco product that is capable of starting a fire)) potentially dangerous litter in any amount.

       Sec. 4. RCW 7.80.120 and 1997 c 159 s 2 are each amended to read as follows:

       (1) A person found to have committed a civil infraction shall be assessed a monetary penalty.

       (a) The maximum penalty and the default amount for a class 1 civil infraction shall be two hundred fifty dollars, not including statutory assessments, except for an infraction of state law involving ((tobacco products)) potentially dangerous litter as specified in RCW 70.93.060(4), in which case the maximum penalty and default amount is five hundred dollars;

       (b) The maximum penalty and the default amount for a class 2 civil infraction shall be one hundred twenty-five dollars, not including statutory assessments;

       (c) The maximum penalty and the default amount for a class 3 civil infraction shall be fifty dollars, not including statutory assessments; and

       (d) The maximum penalty and the default amount for a class 4 civil infraction shall be twenty-five dollars, not including statutory assessments.

       (2) The supreme court shall prescribe by rule the conditions under which local courts may exercise discretion in assessing fines for civil infractions.

       (3) Whenever a monetary penalty is imposed by a court under this chapter it is immediately payable. If the person is unable to pay at that time the court may grant an extension of the period in which the penalty may be paid. If the penalty is not paid on or before the time established for payment, the court may proceed to collect the penalty in the same manner as other civil judgments and may notify the prosecuting authority of the failure to pay.

       (4) The court may also order a person found to have committed a civil infraction to make restitution.

       Sec. 5. RCW 46.61.645 and 1965 ex.s. c 155 s 77 are each amended to read as follows:

       (1) ((No person shall throw or deposit upon any highway any glass bottle, glass, nails, tacks, wire, cans or any other substance likely to injure any person, animal or vehicle upon such highway.

       (2))) Any person who drops, or permits to be dropped or thrown, upon any highway any ((destructive or injurious)) material shall immediately remove the same or cause it to be removed.

       (((3))) (2) Any person removing a wrecked or damaged vehicle from a highway shall remove any glass or other injurious substance dropped upon the highway from such vehicle.

       NEW SECTION. Sec. 6. RCW 70.93.100 (Litter bags--Design and distribution by department authorized--Violations--Penalties) and 1981 c 260 s 15 are each repealed."

MOTION

       Senator Kline moved that the following amendments by Senators McCaslin and Kline to the Committee on Natural Resources, Energy and Water striking amendment be considered simultaneously and be adopted:

       On page 1, line 3 of the amendment, after "Sec. 1." insert "(1)"

       On page 1, after line 13 of the amendment, insert the following:

       "(2) The legislature further finds that litter is a nuisance, and, in order to alleviate such a nuisance, counties must be provided statutory authority to declare what shall be a nuisance, to abate a nuisance, and to impose and collect fines upon parties who may create, cause, or commit a nuisance."

       On page 6, after line 6 of the amendment, insert the following:

       "Sec. 6. RCW 36.32.120 and 1994 c 301 s 8 are each amended to read as follows:

       The legislative authorities of the several counties shall:

       (1) Provide for the erection and repairing of court houses, jails, and other necessary public buildings for the use of the county;

       (2) Lay out, discontinue, or alter county roads and highways within their respective counties, and do all other necessary acts relating thereto according to law, except within cities and towns which have jurisdiction over the roads within their limits;

       (3) License and fix the rates of ferriage; grant grocery and other licenses authorized by law to be by them granted at fees set by the legislative authorities which shall not exceed the costs of administration and operation of such licensed activities;

       (4) Fix the amount of county taxes to be assessed according to the provisions of law, and cause the same to be collected as prescribed by law;

       (5) Allow all accounts legally chargeable against the county not otherwise provided for, and audit the accounts of all officers having the care, management, collection, or disbursement of any money belonging to the county or appropriated to its benefit;

       (6) Have the care of the county property and the management of the county funds and business and in the name of the county prosecute and defend all actions for and against the county, and such other powers as are or may be conferred by law;

       (7) Make and enforce, by appropriate resolutions or ordinances, all such police and sanitary regulations as are not in conflict with state law, and within the unincorporated area of the county may adopt by reference Washington state statutes and recognized codes and/or compilations printed in book form relating to the construction of buildings, the installation of plumbing, the installation of electric wiring, health, or other subjects, and may adopt such codes and/or compilations or portions thereof, together with amendments thereto, or additions thereto: PROVIDED, That except for Washington state statutes, there shall be filed in the county auditor's office one copy of such codes and compilations ten days prior to their adoption by reference, and additional copies may also be filed in library or city offices within the county as deemed necessary by the county legislative authority: PROVIDED FURTHER, That no such regulation, code, compilation, and/or statute shall be effective unless before its adoption, a public hearing has been held thereon by the county legislative authority of which at least ten days' notice has been given. Any violation of such regulations, ordinances, codes, compilations, and/or statutes or resolutions shall constitute a misdemeanor or a civil violation subject to a monetary penalty: PROVIDED FURTHER, That violation of a regulation, ordinance, code, compilation, and/or statute relating to traffic including parking, standing, stopping, and pedestrian offenses is a traffic infraction, except that violation of a regulation, ordinance, code, compilation, and/or statute equivalent to those provisions of Title 46 RCW set forth in RCW 46.63.020 remains a misdemeanor. However, the punishment for any criminal ordinance shall be the same as the punishment provided in state law for the same crime and no act that is a state crime may be made a civil violation. The notice must set out a copy of the proposed regulations or summarize the content of each proposed regulation; or if a code is adopted by reference the notice shall set forth the full official title and a statement describing the general purpose of such code. For purposes of this subsection, a summary shall mean a brief description which succinctly describes the main points of the proposed regulation. When the county publishes a summary, the publication shall include a statement that the full text of the proposed regulation will be mailed upon request. An inadvertent mistake or omission in publishing the text or a summary of the content of a proposed regulation shall not render the regulation invalid if it is adopted. The notice shall also include the day, hour, and place of hearing and must be given by publication in the newspaper in which legal notices of the county are printed;

       (8) Have power to compound and release in whole or in part any debt due to the county when in their opinion the interest of their county will not be prejudiced thereby, except in cases where they or any of them are personally interested;

       (9) Have power to administer oaths or affirmations necessary in the discharge of their duties and commit for contempt any witness refusing to testify before them with the same power as district judges;

       (10) Have power to declare by ordinance what shall be deemed a nuisance within the county, including but not limited to "litter" and "potentially dangerous litter" as defined in RCW 70.93.030; to prevent, remove, and abate a nuisance at the expense of the parties creating, causing, or committing the nuisance; and to levy a special assessment on the land or premises on which the nuisance is situated to defray the cost, or to reimburse the county for the cost of abating it. This assessment shall constitute a lien against the property which shall be of equal rank with state, county, and municipal taxes."

       Renumber the sections consecutively and correct any internal references accordingly.

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendments by Senators Kline and McCaslin on page 1, lines 3 and 13, page 6, line 6, to the Committee on Natural Resources, Energy and Water striking amendment to Substitute House Bill No. 1409.

      The motion by Senator Kline carried and the amendments to the committee striking amendment were adopted.

      The President declared the question before the Senate to be the adoption of the Committee on Natural Resources, Energy and Water striking amendment to Substitute House Bill No. 1409, as amended.

      The committee amendment, as amended, was adopted.

      There being no objection, the following title amendment was adopted:

       On page 1, line 1 of the title, after "littering;" strike the remainder of the title and insert "amending RCW 70.93.030, 70.93.060, 7.80.120, and 46.61.645; creating a new section; repealing RCW 70.93.100; and prescribing penalties."

       On page 6, on line 12 of the title amendment, strike "and 46.61.645" and insert "46.61.645, and 36.32.120"

MOTION

      On motion of Senator Morton, the rules were suspended, Substitute House Bill No. 1409, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1409, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1409, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 48.

     Excused: Senator Mulliken - 1.

      SUBSTITUTE HOUSE BILL NO. 1409, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      ENGROSSED HOUSE BILL NO. 1395, by Representatives Sullivan, Bailey, Wood, Chandler and Pflug

      Concerning the catering of alcoholic beverages at events by nonprofit organizations.

      The bill was read the second time.

MOTION

      On motion of Senator Sheahan, the rules were suspended, Engrossed House Bill No. 1395 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 1395.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed House Bill No. 1395 and the bill passed the Senate by the following vote: Yeas, 45; Nays, 4; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 45.

     Voting nay: Senators Hargrove, Haugen, Oke and Shin - 4.

      ENGROSSED HOUSE BILL NO. 1395, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SENATE BILL NO. 6057, by Senators Parlette and Rossi (by request of Office of Financial Management)

Revising basic health care plan enrollment provisions.

      The bill was read the second time.

MOTION

      On motion of Senator Sheahan, further consideration of Senate Bill No. 6057 was deferred.

INTRODUCTION OF SPECIAL GUEST

      The President welcomed and introduced John Coleman, the father-in-law of Secretary of the Senate, Milt Doumit, who was seated in the back of the Chamber. Mr. Coleman is visiting from the city of Stanmore in the county of Middlesex, which is near London, England.

PERSONAL PRIVILEGE

      Senator Brown: “A point of personal privilege, Mr. President. I just want to take a moment. I think many of you may remember a few weeks ago when I lost my purse and I told you the story about the woman in Seattle who found it and spent the weekend trying to contact me and ultimately got it back to me. She was staying at the YWCA Emergency Womens Shelter. After I told that story, many of you began to give me donations and I ended up getting donations from several members, staff, lobbyists, some of our security personnel, the interns took up a collection and many of our Legislative Assistants took up a collection. In fact, the donations poured in.

      “I went and met Darwnian and thanked her. She gave me my purse back. We ended up collecting nearly a thousand dollars, which was given to the Spokane and Seattle YWCA Womens Shelters. Darwnian, herself, was also given a gift. They bought gift cards, phone cards, bus passes and some Fred Meyer gift certificates for the women at the shelter. They were very excited about it. We gave them a video tape of my ‘point of personal privilege’ on the Senate floor. I am sure they would not want to hear all of my speeches. I just want to thank everybody for your generosity that I was able to pass on to them. They were very excited about it and the workers, particularly, at the Shelter--the women who work there--were really thrilled. They said this came at a great time for them and it really was going to help them renew their efforts to find some employment and some transitional housing. So, thank you all very much.”

PERSONAL PRIVILEGE

      Senator Brandland: “A point of personal privilege, Mr. President. I just want to announce to the body that I just lost my wallet. Donations will be gratefully accepted. Thank you very much.”

      There being no objection, the Senate resumed consideration of Senate Bill No. 6057, which was deferred after the bill was read in earlier this evening.

MOTION

      Senator Farley moved that the following amendment be adopted:

       On page 2, beginning on line 25, strike all material down to and including line 7 on page 3 and insert the following:

       "(c) Because of its demonstrated effectiveness in improving the health of low-income persons and addressing illnesses and diseases that harm low-income persons, the remainder of the funds deposited into the health services account under RCW 82.24.028 and 82.26.028 shall be appropriated solely for Washington basic health plan enrollment as provided in chapter 70.47 RCW. Funds appropriated pursuant to this subsection (2)(c) must supplement, and not supplant, the level of state funding needed to support enrollment of a minimum of one hundred twenty-five thousand persons for the fiscal year beginning July 1, ((2002)) 2005, and every fiscal year thereafter. ((The health care authority may enroll up to twenty thousand additional persons in the basic health plan during the biennium beginning July 1, 2001, above the base level of one hundred twenty-five thousand enrollees. The health care authority may enroll up to fifty thousand additional persons in the basic health plan during the biennium beginning July 1, 2003, above the base level of one hundred twenty-five thousand enrollees.)) For each biennium beginning on and after July 1, 2005, the health care authority may enroll up to at least one hundred seventy-five thousand enrollees. Funds appropriated under this subsection may be used to support outreach and enrollment activities only to the extent necessary to achieve the enrollment goals described in this section."

      Debate ensued.

      Senator Betti Sheldon demanded a roll call and the demand was sustained.

      Further debate ensued.

      The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senator Fairley on page 2, line 25, to Senate Bill No. 6057.

ROLL CALL

      The Secretary called the roll and the amendment was not adopted by the following vote: Yeas, 20; Nays, 29; Absent, 0; Excused, 0.

     Voting yea: Senators Brown, Eide, Fairley, Franklin, Fraser, Hargrove, Haugen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Poulsen, Prentice, Reardon, Regala, Sheldon, B., Shin, Spanel and Thibaudeau - 20.

     Voting nay: Senators Benton, Brandland, Carlson, Deccio, Doumit, Esser, Finkbeiner, Hale, Hewitt, Honeyford, Horn, Jacobsen, Johnson, McCaslin, Morton, Mulliken, Oke, Parlette, Rasmussen, Roach, Rossi, Schmidt, Sheahan, Sheldon, T., Stevens, Swecker, West, Winsley and Zarelli - 29.

MOTION

      On motion of Senator Rossi, the rules were suspended, Senate Bill No. 6057 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 6057.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Bill No. 6057 and the bill passed the Senate by the following vote: Yeas, 35; Nays, 14; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Carlson, Deccio, Doumit, Esser, Finkbeiner, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, McCaslin, Morton, Mulliken, Oke, Parlette, Rasmussen, Reardon, Roach, Rossi, Schmidt, Sheahan, Sheldon, T., Shin, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 35.

     Voting nay: Senators Brown, Eide, Fairley, Franklin, Fraser, Keiser, Kline, Kohl-Welles, McAuliffe, Poulsen, Prentice, Regala, Sheldon, B. and Spanel - 14.

      SENATE BILL NO. 6057, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SENATE BILL NO. 6058, by Senator Oke ( by request of Office of Financial Management)

Modifying the distribution of state property taxes.

MOTION

      On motion of Senator Rossi, Substitute Senate Bill No. 6058 was substituted for Senate Bill No. 6058 and the substitute bill was placed on second reading and read the second time.

      Debate ensued.

      Senators Sheahan, Hale and McCaslin demanded the previous question and the demand was sustained.

      The President declared the question before the Senate to be shall the main question be now put.

      The demand for the previous question failed.

      Further debate ensued.

MOTION

      On motion of Senator Rossi, the rules were suspended, Substitute Senate Bill No. 6058 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6058.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6058 and the bill passed the Senate by the following vote: Yeas, 29; Nays, 20; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Carlson, Deccio, Esser, Finkbeiner, Hale, Hargrove, Hewitt, Honeyford, Horn, Jacobsen, Johnson, McCaslin, Morton, Mulliken, Oke, Parlette, Rasmussen, Roach, Rossi, Schmidt, Sheahan, Sheldon, T., Stevens, Swecker, West, Winsley and Zarelli - 29.

     Voting nay: Senators Brown, Doumit, Eide Fairley, Franklin, Fraser, Haugen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Poulsen, Prentice, Reardon, Regala, Sheldon, B., Shin, Spanel and Thibaudeau - 20

      SUBSTITUTE SENATE BILL NO. 6058, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      On motion of Senator Sheahan, Senate Bill No. 6057 and Substitute Senate Bill No. 6058 were ordered to be immediately transmitted to the House of Representatives.

SECOND READING

      SENATE BILL NO. 5182, by Senators Benton, Mulliken, McCaslin, Sheahan, T. Sheldon and Esser

Extending the expiration date for the rural county information technology tax credit.

MOTIONS

      On motion of Senator Tim Sheldon, Substitute Senate Bill No. 5182 was substituted for Senate Bill No. 5182 and the substitute bill was placed on second reading and read the second time.

      Senator Reardon moved that the following amendment be adopted:

       On page 2, after line 19, strike all material down through line 32 and insert the following:

       "(7) A person taking tax credits under this section shall ((make an annual report to the department. The report shall be in a letter form and shall include the following information: Type of activity in which the person is engaged in the county, number of employees in the rural county, how long the person has been located in the county, and taxpayer name and registration number. The report must be filed by January 30th of each year for which credit was claimed during the previous year. Failure to file a report will not result in the loss of eligibility under this section. However, the department, through its research division, shall contact taxpayers who have not filed the report and obtain the data from the taxpayer or assist the taxpayer in the filing of the report, so that the data and information necessary to measure the program's effectiveness is maintained)) file a report to the department of revenue in the month following each calendar quarter containing the following information:

       (a) Number of production workers;

       (b) Average wage of production workers;

       (c) Total wages for production workers;

       (d) Total sales as measured by taxable receipts for activities subject to the tax credit; and

       (e) Total wages for production workers as a percent of total sales subject to the tax credit.

       A recipient who fails to submit a complete report under this section is ineligible on a prospective basis for the tax credit. The department of revenue shall notify the recipient in writing by mail that he or she is no longer eligible for the credit. The recipient is ineligible on the effective date of the postmark of the notice letter from the department of revenue. If the recipient satisfactorily completes the report, the department of revenue shall send a letter to the recipient indicating that the basis for the ineligibility has been corrected. The letter from the department of revenue is proof that eligibility has been restored, and eligibility is effective prospectively beginning on the date the letter is postmarked

       The department shall compile the information into a report containing aggregated data that does not violate any confidentially provisions and send an electronic copy to all members of the legislature on an annual basis."

      Debate ensued.

      Senator Betti Sheldon demanded a roll call and the demand was sustained.

      Further debate ensued.

      The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senator Reardon on page 2, line 19, to Substitute Senate Bill No. 5182.

ROLL CALL

      The Secretary called the roll and the amendment was not adopted by the following vote: Yeas, 24; Nays, 25; Absent, 0; Excused, 0.

     Voting yea: Senators Brown, Doumit, Eide, Fairley, Franklin, Fraser, Hargrove, Haugen, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Poulsen, Prentice, Rasmussen, Reardon, Regala, Sheldon, B., Shin, Spanel, Thibaudeau and Winsley - 24.

     Voting nay: Senators Benton, Brandland, Carlson, Deccio, Esser, Finkbeiner, Hale, Hewitt, Honeyford, Horn, Johnson, McCaslin, Morton, Mulliken, Oke, Parlette, Roach, Rossi, Schmidt, Sheahan, Sheldon, T., Stevens, Swecker, West, and Zarelli - 25.

MOTION .

      On motion of Senator Benton, the rules were suspended, Substitute Senate Bill No. 5182 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      Senators Sheahan, Hale and Carlson demanded the previous question and the demand was sustained.

      The President declared the question before the Senate to be shall the main question be now put.

      The demand for the previous question carried.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5182.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5182 and the bill passed the Senate by the following vote: Yeas, 33; Nays, 16; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Carlson, Deccio, Doumit, Esser, Finkbeiner, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Johnson, McCaslin, Morton, Mulliken, Oke, Parlette, Rasmussen, Reardon, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Stevens, Swecker, West, Winsley and Zarelli - 33.

     Voting nay: Senators Brown, Eide, Fairley, Franklin, Fraser, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Poulsen, Prentice, Regala, Spanel and Thibaudeau - 16.

      SUBSTITUTE SENATE BILL NO. 5182, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 2197, by House Committee on Appropriations (originally sponsored by Representatives Conway, Benson, Grant, McDonald, Dunshee, Cox, Ruderman, Buck, Miloscia, Delvin, Cooper, Hinkle, Gombosky, Campbell, Simpson, Linville, Hunt, Berkey and Bush)

Implementing Initiative Measure No. 790.

      The bill was read the second time.

MOTION

      On motion of Senator Rossi, the rules were suspended, Substitute House Bill No. 2197 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2197.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 2197 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      SUBSTITUTE HOUSE BILL NO. 2197, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 2198, by House Committee on Appropriations (originally sponsored by Representatives Cooper, Delvin and Simpson)

Removing the allocation of excess earnings from section 6 of Initiative Measure No. 790.

      The bill was read the second time.

MOTION

      On motion of Senator Rossi, the rules were suspended, Substitute House Bill No. 2198 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2198.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 2198 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 49.

      SUBSTITUTE HOUSE BILL NO. 2198, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      On motion of Senator Hewitt, Senator McCaslin was excused.

SECOND READING

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1336, by House Committee on Appropriations (originally sponsored by Representatives Linville, Kirby, Grant, Rockefeller, Quall, Hunt, Shabro, Jarrett, Delvin, Morris and Conway) (by request of Governor Locke)

Concerning watershed planning.

      The bill was read the second time.

MOTION

      On motion of Senator Honeyford, the following Committee on Natural Resources, Energy and Water striking amendment was not adopted:

       Strike everything after the enacting clause and insert the following:

       "NEW SECTION. Sec. 1. The legislature declares and reaffirms that a core principle embodied in chapter 90.82 RCW is that state agencies must work cooperatively with local citizens in a process of planning for future uses of water by giving local citizens and the governments closest to them the ability to determine the management of water in the WRIA or WRIAs being planned.

       The legislature further finds that this process of local planning must have all the tools necessary to accomplish this task and that it is essential for the legislature to provide a clear statutory process for implementation so that the locally developed plan will be the adopted and implemented plan to the greatest extent possible.

       Sec. 2. RCW 90.82.040 and 2001 c 237 s 2 are each amended to read as follows:

       (1) Once a WRIA planning unit has been initiated under RCW 90.82.060 and a lead agency has been designated, it shall notify the department and may apply to the department for funding assistance for conducting the planning and implementation. Funds shall be provided from and to the extent of appropriations made by the legislature to the department expressly for this purpose.

       (2)(a) Each planning unit that has complied with subsection (1) of this section is eligible to receive watershed planning grants in the following amounts for the first three phases of watershed planning and phase four watershed plan implementation:

       (i) Initiating governments may apply for an initial organizing grant of up to fifty thousand dollars for a single WRIA or up to seventy-five thousand dollars for a multi-WRIA management area in accordance with RCW 90.82.060(4);

       (ii)(A) A planning unit may apply for up to two hundred thousand dollars for each WRIA in the management area for conducting watershed assessments in accordance with RCW 90.82.070, except that a planning unit that chooses to conduct a detailed assessment or studies under (a)(ii)(B) of this subsection or whose initiating governments choose or have chosen to include an instream flow or water quality component in accordance with RCW 90.82.080 or 90.82.090 may apply for up to one hundred thousand additional dollars for each instream flow and up to one hundred thousand additional dollars for each water quality component included for each WRIA to conduct an assessment on that optional component and for each WRIA in which the assessments or studies under (a)(ii)(B) of this subsection are conducted.

       (B) A planning unit may elect to apply for up to one hundred thousand additional dollars to conduct a detailed assessment of multipurpose water storage opportunities or for studies of specific multipurpose storage projects which opportunities or projects are consistent with and support the other elements of the planning unit's watershed plan developed under this chapter; and

       (iii) A planning unit may apply for up to two hundred fifty thousand dollars for each WRIA in the management area for developing a watershed plan and making recommendations for actions by local, state, and federal agencies, tribes, private property owners, private organizations, and individual citizens, including a recommended list of strategies and projects that would further the purpose of the plan in accordance with RCW 90.82.060 through 90.82.100.

       (b) A planning unit may request a different amount for phase two or phase three of watershed planning than is specified in (a) of this subsection, provided that the total amount of funds awarded do not exceed the maximum amount the planning unit is eligible for under (a) of this subsection. The department shall approve such an alternative allocation of funds if the planning unit identifies how the proposed alternative will meet the goals of this chapter and provides a proposed timeline for the completion of planning. However, the up to one hundred thousand additional dollars in funding for instream flow and water quality components and for water storage assessments or studies that a planning unit may apply for under (a)(ii)(A) of this subsection may be used only for those instream flow, water quality, and water storage purposes.

       (c) By December 1, 2001, or within one year of initiating phase one of watershed planning, whichever occurs later, the initiating governments for each planning unit must inform the department whether they intend to have the planning unit establish or amend instream flows as part of its planning process. If they elect to have the planning unit establish or amend instream flows, the planning unit is eligible to receive one hundred thousand dollars for that purpose in accordance with (a)(ii) of this subsection. If the initiating governments for a planning unit elect not to establish or amend instream flows as part of the unit's planning process, the department shall retain one hundred thousand dollars to carry out an assessment to support establishment of instream flows and to establish such flows in accordance with RCW 90.54.020(3)(a) and chapter 90.22 RCW. The department shall not use these funds to amend an existing instream flow unless requested to do so by the initiating governments for a planning unit.

       (d) In administering funds appropriated for supplemental funding for optional plan components under (a)(ii) of this subsection, the department shall give priority in granting the available funds to proposals for setting or amending instream flows.

       (e) A planning unit may apply for a matching grant for phase four watershed plan implementation. A match of ten percent is required and may include financial contributions or in-kind goods and services directly related to coordination and oversight functions. The match can be provided by the planning unit or by the combined commitments from federal agencies, tribal governments, local governments, special districts, or other local organizations. The phase four grant may be up to one hundred thousand dollars for each planning unit for each of the first three years of implementation. At the end of the three-year period, a two-year extension may be available for up to fifty thousand dollars each year. For planning units that cover more than one WRIA, additional matching funds of up to twenty-five thousand dollars may be available for each additional WRIA per year for the first three years of implementation, and up to twelve thousand five hundred dollars per WRIA per year for each of the fourth and fifth years.

       (f) Within one year of accepting funding under (e) of this subsection, the planning unit must complete a detailed implementation plan. An implementation plan must clearly define coordination and oversight responsibilities; any needed interlocal agreements, rules, or ordinances; specific funding mechanisms; and timelines for carrying out the actions included in the plan. The planning unit must consider coordination of watershed planning implementation with salmon recovery efforts. Submittal of a detailed implementation plan to the department is a condition for receiving grants for the second and all subsequent years of the phase four grant.

       (3)(a) The department shall use the eligibility criteria in this subsection (3) instead of rules, policies, or guidelines when evaluating grant applications at each stage of the grants program.

       (b) In reviewing grant applications under this subsection (3), the department shall evaluate whether:

       (i) The planning unit meets all of the requirements of this chapter;

       (ii) The application demonstrates a need for state planning funds to accomplish the objectives of the planning process; and

       (iii) The application and supporting information evidences a readiness to proceed.

       (c) In ranking grant applications submitted at each stage of the grants program, the department shall give preference to applications in the following order of priority:

       (i) Applications from existing planning groups that have been in existence for at least one year;

       (ii) Applications that address protection and enhancement of fish habitat in watersheds that have aquatic fish species listed or proposed to be listed as endangered or threatened under the federal endangered species act, 16 U.S.C. Sec. 1531 et seq. and for which there is evidence of an inability to supply adequate water for population and economic growth from:

       (A) First, multi-WRIA planning; and

       (B) Second, single WRIA planning;

       (iii) Applications that address protection and enhancement of fish habitat in watersheds or for which there is evidence of an inability to supply adequate water for population and economic growth from:

       (A) First, multi-WRIA planning; and

       (B) Second, single WRIA planning.

       (d) Except for phase four watershed plan implementation, the department may not impose any local matching fund requirement as a condition for grant eligibility or as a preference for receiving a grant.

       (4) The department may retain up to one percent of funds allocated under this section to defray administrative costs.

       (5) Planning under this chapter should be completed as expeditiously as possible, with the focus being on local stakeholders cooperating to meet local needs.

       (6) Funding provided under this section shall be considered a contractual obligation against the moneys appropriated for this purpose.

       Sec. 3. RCW 90.82.130 and 2001 c 237 s 4 are each amended to read as follows:

       (1)(a) Upon completing its proposed watershed plan, the planning unit may approve the proposal by consensus of all of the members of the planning unit or by consensus among the members of the planning unit appointed to represent units of government and a majority vote of the nongovernmental members of the planning unit.

       (b) If the proposal is approved by the planning unit, the unit shall submit the proposal to the counties with territory within the management area. If the planning unit has received funding beyond the initial organizing grant under RCW 90.82.040, such a proposal approved by the planning unit shall be submitted to the counties within four years of the date that funds beyond the initial funding are first drawn upon by the planning unit.

       (c) If the watershed plan is not approved by the planning unit, the planning unit may submit the components of the plan for which agreement is achieved using the procedure under (a) of this subsection, or the planning unit may terminate the planning process.

       (2)(a) With the exception of a county legislative authority that chooses to opt out of watershed planning as provided in (c) of this subsection, the legislative authority of each of the counties with territory in the management area shall provide public notice of and conduct at least one public hearing on the proposed watershed plan submitted under this section. After the public hearings, the legislative authorities of these counties shall convene in joint session to consider the proposal. The counties may approve or reject the proposed watershed plan for the management area, but may not amend it. Approval of such a proposal shall be made by a majority vote of the members of each of the counties with territory in the management area.

       (b) If a proposed watershed plan is not approved, it shall be returned to the planning unit with recommendations for revisions. Approval of such a revised proposal by the planning unit and the counties shall be made in the same manner provided for the original watershed plan. If approval of the revised plan is not achieved, the process shall terminate.

       (c) A county legislative authority may choose to opt out of watershed planning under this chapter and the public hearing processes under (a) and (b) of this subsection if the county's affected territory within a particular management area is: (i) Less than five percent of the total territory within the management area; or (ii) five percent or more of the total territory within the management area and all other initiating governments within the management area consent. A county meeting these conditions and choosing to opt out shall notify the department and the other initiating governments of that choice prior to commencement of plan adoption under the provisions of (a) of this subsection. A county choosing to opt out shall not be bound by obligations contained in the watershed plan adopted for that management area under this chapter. Even if a county chooses to opt out as provided in this section, the other counties within a management area may adopt a proposed watershed plan as provided in this chapter.

       (3) The planning unit shall not add an element to its watershed plan that creates an obligation unless each of the governments to be obligated has at least one representative on the planning unit and the respective members appointed to represent those governments agree to adding the element that creates the obligation. A member's agreeing to add an element shall be evidenced by a recorded vote of all members of the planning unit in which the members record support for adding the element. If the watershed plan is approved under subsections (1) and (2) of this section and the plan creates obligations: (a) For agencies of state government, the agencies shall adopt by rule the obligations of both state and county governments and rules implementing the state obligations, or, with the consent of the planning unit, may adopt policies, procedures, or agreements related to the obligations or implementation of the obligations. The obligations on state agencies are binding upon adoption of the obligations ((into rule)), and the agencies shall take other actions to fulfill their obligations as soon as possible, and should annually review implementation needs with respect to budget and staffing; ((or)) (b) for counties, the obligations are binding on the counties and the counties shall adopt any necessary implementing ordinances and take other actions to fulfill their obligations as soon as possible, and should annually review implementation needs with respect to budget and staffing; or (c) for an organization voluntarily accepting an obligation, the organization must adopt policies, procedures, agreements, rules, or ordinances to implement the plan, and should annually review implementation needs with respect to budget and staffing.

       (4) After a plan is adopted in accordance with subsection (3) of this section, and if the department participated in the planning process, the plan shall be deemed to satisfy the watershed planning authority of the department with respect to the components included under the provisions of RCW 90.82.070 through 90.82.100 for the watershed or watersheds included in the plan. The department shall rely on such a plan in making all future water resource decisions for the planned watershed or watersheds. The department shall also rely upon the plan as a primary consideration in determining the public interest related to such decisions.

       (5) Once a plan is adopted under the provisions of RCW 90.82.130, the department may only modify the plan or obligations imposed by the plan through a negotiated rule-making process conducted among water right holders and other affected residents in a watershed or group of watersheds, and must include the members of the original planning unit, to the greatest extent practicable.

       (6) As used in this section, "obligation" means any action required as a result of this chapter that imposes upon a tribal government, county government, or state government, either: A fiscal impact; a redeployment of resources; or a change of existing policy.

       NEW SECTION. Sec. 4. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2003, in the omnibus appropriations act, this act is null and void."

MOTION

      Senator Honeyford moved that the following striking amendment by Senators Honeyford and Morton be adopted:

       Strike everything after the enacting clause and insert the following:

       "NEW SECTION. Sec. 1. The legislature declares and reaffirms that a core principle embodied in chapter 90.82 RCW is that state agencies must work cooperatively with local citizens in a process of planning for future uses of water by giving local citizens and the governments closest to them the ability to determine the management of water in the WRIA or WRIAs being planned.

       The legislature further finds that this process of local planning must have all the tools necessary to accomplish this task and that it is essential for the legislature to provide a clear statutory process for implementation so that the locally developed plan will be the adopted and implemented plan to the greatest extent possible.

       Sec.2. RCW 90.82.040 and 2001 c 237 s 2 are each amended to read as follows:

       (1) Once a WRIA planning unit has been initiated under RCW 90.82.060 and a lead agency has been designated, it shall notify the department and may apply to the department for funding assistance for conducting the planning and implementation. Funds shall be provided from and to the extent of appropriations made by the legislature to the department expressly for this purpose.

       (2)(a) Each planning unit that has complied with subsection (1) of this section is eligible to receive watershed planning grants in the following amounts for the first three phases of watershed planning and phase four watershed plan implementation:

       (i) Initiating governments may apply for an initial organizing grant of up to fifty thousand dollars for a single WRIA or up to seventy-five thousand dollars for a multi-WRIA management area in accordance with RCW 90.82.060(4);

       (ii)(A) A planning unit may apply for up to two hundred thousand dollars for each WRIA in the management area for conducting watershed assessments in accordance with RCW 90.82.070, except that a planning unit that chooses to conduct a detailed assessment or studies under (a)(ii)(B) of this subsection or whose initiating governments choose or have chosen to include an instream flow or water quality component in accordance with RCW 90.82.080 or 90.82.090 may apply for up to one hundred thousand additional dollars for each instream flow and up to one hundred thousand additional dollars for each water quality component included for each WRIA to conduct an assessment on that optional component and for each WRIA in which the assessments or studies under (a)(ii)(B) of this subsection are conducted.

       (B) A planning unit may elect to apply for up to one hundred thousand additional dollars to conduct a detailed assessment of multipurpose water storage opportunities or for studies of specific multipurpose storage projects which opportunities or projects are consistent with and support the other elements of the planning unit's watershed plan developed under this chapter; and

       (iii) A planning unit may apply for up to two hundred fifty thousand dollars for each WRIA in the management area for developing a watershed plan and making recommendations for actions by local, state, and federal agencies, tribes, private property owners, private organizations, and individual citizens, including a recommended list of strategies and projects that would further the purpose of the plan in accordance with RCW 90.82.060 through 90.82.100.

       (b) A planning unit may request a different amount for phase two or phase three of watershed planning than is specified in (a) of this subsection, provided that the total amount of funds awarded do not exceed the maximum amount the planning unit is eligible for under (a) of this subsection. The department shall approve such an alternative allocation of funds if the planning unit identifies how the proposed alternative will meet the goals of this chapter and provides a proposed timeline for the completion of planning. However, the up to one hundred thousand additional dollars in funding for instream flow and water quality components and for water storage assessments or studies that a planning unit may apply for under (a)(ii)(A) of this subsection may be used only for those instream flow, water quality, and water storage purposes.

       (c) By December 1, 2001, or within one year of initiating phase one of watershed planning, whichever occurs later, the initiating governments for each planning unit must inform the department whether they intend to have the planning unit establish or amend instream flows as part of its planning process. If they elect to have the planning unit establish or amend instream flows, the planning unit is eligible to receive one hundred thousand dollars for that purpose in accordance with (a)(ii) of this subsection. If the initiating governments for a planning unit elect not to establish or amend instream flows as part of the unit's planning process, the department shall retain one hundred thousand dollars to carry out an assessment to support establishment of instream flows and to establish such flows in accordance with RCW 90.54.020(3)(a) and chapter 90.22 RCW. The department shall not use these funds to amend an existing instream flow unless requested to do so by the initiating governments for a planning unit.

       (d) In administering funds appropriated for supplemental funding for optional plan components under (a)(ii) of this subsection, the department shall give priority in granting the available funds to proposals for setting or amending instream flows.

       (e) A planning unit may apply for a matching grant for phase four watershed plan implementation following approval under the provisions of RCW 90.82.130. A match of ten percent is required and may include financial contributions or in-kind goods and services directly related to coordination and oversight functions. The match can be provided by the planning unit or by the combined commitments from federal agencies, tribal governments, local governments, special districts, or other local organizations. The phase four grant may be up to one hundred thousand dollars for each planning unit for each of the first three years of implementation. At the end of the three-year period, a two- year extension may be available for up to fifty thousand dollars each year. For planning units that cover more than one WRIA, additional matching funds of up to twenty-five thousand dollars may be available for each additional WRIA per year for the first three years of implementation, and up to twelve thousand five hundred dollars per WRIA per year for each of the fourth and fifth years.

       (3)(a) The department shall use the eligibility criteria in this subsection (3) instead of rules, policies, or guidelines when evaluating grant applications at each stage of the grants program.

       (b) In reviewing grant applications under this subsection (3), the department shall evaluate whether:

       (i) The planning unit meets all of the requirements of this chapter;

       (ii) The application demonstrates a need for state planning funds to accomplish the objectives of the planning process; and

       (iii) The application and supporting information evidences a readiness to proceed.

       (c) In ranking grant applications submitted at each stage of the grants program, the department shall give preference to applications in the following order of priority:

       (i) Applications from existing planning groups that have been in existence for at least one year;

       (ii) Applications that address protection and enhancement of fish habitat in watersheds that have aquatic fish species listed or proposed to be listed as endangered or threatened under the federal endangered species act, 16 U.S.C. Sec. 1531 et seq. and for which there is evidence of an inability to supply adequate water for population and economic growth from:

       (A) First, multi-WRIA planning; and

       (B) Second, single WRIA planning;

       (iii) Applications that address protection and enhancement of fish habitat in watersheds or for which there is evidence of an inability to supply adequate water for population and economic growth from:

       (A) First, multi-WRIA planning; and

       (B) Second, single WRIA planning.

       (d) Except for phase four watershed plan implementation, the department may not impose any local matching fund requirement as a condition for grant eligibility or as a preference for receiving a grant.

       (4) The department may retain up to one percent of funds allocated under this section to defray administrative costs.

       (5) Planning under this chapter should be completed as expeditiously as possible, with the focus being on local stakeholders cooperating to meet local needs.

       (6) Funding provided under this section shall be considered a contractual obligation against the moneys appropriated for this purpose.

       NEW SECTION. Sec. 3. A new section is added to chapter 90.82 RCW to read as follows:

       (1) Within one year of accepting funding under RCW 90.82.040(2)(e), the planning unit must complete a detailed implementation plan. Submittal of a detailed implementation plan to the department is a condition of receiving grants for the second and all subsequent years of the phase four grant.

       (2) Each implementation plan must contain strategies to provide sufficient water for: (a) Production agriculture; (b) commercial, industrial, and residential use; and (c) instream flows. Each implementation plan must contain timelines to achieve these strategies and interim milestones to measure progress.

       (3) The implementation plan must clearly define coordination and oversight responsibilities; any needed interlocal agreements, rules, or ordinances; any needed state or local administrative approvals and permits that must be secured; and specific funding mechanisms.

       (4) In developing the implementation plan, the planning unit must consult with other entities planning in the watershed management area and identify and seek to eliminate any activities or policies that are duplicative or inconsistent.

       (5) By December 1, 2003, and by December 1st of each subsequent year, the director of the department shall report to the appropriate legislative standing committees regarding statutory changes necessary to enable state agency approval or permit decision making needed to implement a plan approved under this chapter.

       Sec. 4. RCW 90.82.080 and 1998 c 247 s 4 are each amended to read as follows:

       (1)(a) If the initiating governments choose, by majority vote, to include an instream flow component, it shall be accomplished in the following manner:

       (i) If minimum instream flows have already been adopted by rule for a stream within the management area, unless the members of the local governments and tribes on the planning unit by a recorded unanimous vote request the department to modify those flows, the minimum instream flows shall not be modified under this chapter. If the members of local governments and tribes request the planning unit to modify instream flows and unanimous approval of the decision to modify such flow is not achieved, then the instream flows shall not be modified under this section;

       (ii) If minimum stream flows have not been adopted by rule for a stream within the management area, setting the minimum instream flows shall be a collaborative effort between the department and members of the planning unit. The department must attempt to achieve consensus and approval among the members of the planning unit regarding the minimum flows to be adopted by the department. Approval is achieved if all government members and tribes that have been invited and accepted on the planning unit present for a recorded vote unanimously vote to support the proposed minimum instream flows, and all nongovernmental members of the planning unit present for the recorded vote, by a majority, vote to support the proposed minimum instream flows.

       (b) The department shall undertake rule making to adopt flows under (a) of this subsection. The department may adopt the rules either by the regular rules adoption process provided in chapter 34.05 RCW, the expedited rules adoption process as set forth in RCW ((34.05.230)) 34.05.353, or through a rules adoption process that uses public hearings and notice provided by the county legislative authority to the greatest extent possible. Such rules do not constitute significant legislative rules as defined in RCW 34.05.328, and do not require the preparation of small business economic impact statements.

       (c) If approval is not achieved within four years of the date the planning unit first receives funds from the department for conducting watershed assessments under RCW 90.82.040, the department may promptly initiate rule making under chapter 34.05 RCW to establish flows for those streams and shall have two additional years to establish the instream flows for those streams for which approval is not achieved.

       (2)(a) Notwithstanding RCW 90.03.345, minimum instream flows set under this section for rivers or streams that do not have existing minimum instream flow levels set by rule of the department shall have a priority date of two years after funding is first received from the department under RCW 90.82.040, unless determined otherwise by a unanimous vote of the members of the planning unit but in no instance may it be later than the effective date of the rule adopting such flow.

       (b) Any increase to an existing minimum instream flow set by rule of the department shall have a priority date of two years after funding is first received for planning in the WRIA or multi-WRIA area from the department under RCW 90.82.040 and the priority date of the portion of the minimum instream flow previously established by rule shall retain its priority date as established under RCW 90.03.345.

       (c) Any existing minimum instream flow set by rule of the department that is reduced shall retain its original date of priority as established by RCW 90.03.345 for the revised amount of the minimum instream flow level.

       (3) Before setting minimum instream flows under this section, the department shall engage in government-to-government consultation with affected tribes in the management area regarding the setting of such flows.

       (4) Nothing in this chapter either: (a) Affects the department's authority to establish flow requirements or other conditions under RCW 90.48.260 or the federal clean water act (33 U.S.C. Sec. 1251 et seq.) for the licensing or relicensing of a hydroelectric power project under the federal power act (16 U.S.C. Sec. 791 et seq.); or (b) affects or impairs existing instream flow requirements and other conditions in a current license for a hydroelectric power project licensed under the federal power act.

       (5) If the planning unit is unable to obtain unanimity under subsection (1) of this section, the department may adopt rules setting such flows.

       (6) The department shall report annually to the appropriate legislative standing committees on the progress of instream flows being set under this chapter, as well as progress toward setting instream flows in those watersheds not being planned under this chapter. The report shall be made by December 1, 2003, and by December 1st of each subsequent year.

       Sec. 5. RCW 90.82.130 and 2001 c 237 s 4 are each amended to read as follows:

       (1)(a) Upon completing its proposed watershed plan, the planning unit may approve the proposal by consensus of all of the members of the planning unit or by consensus among the members of the planning unit appointed to represent units of government and a majority vote of the nongovernmental members of the planning unit.

       (b) If the proposal is approved by the planning unit, the unit shall submit the proposal to the counties with territory within the management area. If the planning unit has received funding beyond the initial organizing grant under RCW 90.82.040, such a proposal approved by the planning unit shall be submitted to the counties within four years of the date that funds beyond the initial funding are first drawn upon by the planning unit.

       (c) If the watershed plan is not approved by the planning unit, the planning unit may submit the components of the plan for which agreement is achieved using the procedure under (a) of this subsection, or the planning unit may terminate the planning process.

       (2)(a) With the exception of a county legislative authority that chooses to opt out of watershed planning as provided in (c) of this subsection, the legislative authority of each of the counties with territory in the management area shall provide public notice of and conduct at least one public hearing on the proposed watershed plan submitted under this section. After the public hearings, the legislative authorities of these counties shall convene in joint session to consider the proposal. The counties may approve or reject the proposed watershed plan for the management area, but may not amend it. Approval of such a proposal shall be made by a majority vote of the members of each of the counties with territory in the management area.

       (b) If a proposed watershed plan is not approved, it shall be returned to the planning unit with recommendations for revisions. Approval of such a revised proposal by the planning unit and the counties shall be made in the same manner provided for the original watershed plan. If approval of the revised plan is not achieved, the process shall terminate.

       (c) A county legislative authority may choose to opt out of watershed planning under this chapter and the public hearing processes under (a) and (b) of this subsection if the county's affected territory within a particular management area is: (i) Less than five percent of the total territory within the management area; or (ii) five percent or more of the total territory within the management area and all other initiating governments within the management area consent. A county meeting these conditions and choosing to opt out shall notify the department and the other initiating governments of that choice prior to commencement of plan adoption under the provisions of (a) of this subsection. A county choosing to opt out under the provisions of this section shall not be bound by obligations contained in the watershed plan adopted for that management area under this chapter. Even if a county chooses to opt out under the provisions of this section, the other counties within a management area may adopt a proposed watershed plan as provided in this chapter.

       (3) The planning unit shall not add an element to its watershed plan that creates an obligation unless each of the governments to be obligated has at least one representative on the planning unit and the respective members appointed to represent those governments agree to adding the element that creates the obligation. A member's agreeing to add an element shall be evidenced by a recorded vote of all members of the planning unit in which the members record support for adding the element. If the watershed plan is approved under subsections (1) and (2) of this section and the plan creates obligations: (a) For agencies of state government, the agencies shall adopt by rule the obligations of both state and county governments and rules implementing the state obligations, or, with the consent of the planning unit, may adopt policies, procedures, or agreements related to the obligations or implementation of the obligations in addition to or in lieu of rules. The obligations on state agencies are binding upon adoption of the obligations ((into rule)), and the agencies shall take other actions to fulfill their obligations as soon as possible, and should annually review implementation needs with respect to budget and staffing; ((or)) (b) for counties, the obligations are binding on the counties and the counties shall adopt any necessary implementing ordinances and take other actions to fulfill their obligations as soon as possible, and should annually review implementation needs with respect to budget and staffing; or (c) for an organization voluntarily accepting an obligation, the organization must adopt policies, procedures, agreements, rules, or ordinances to implement the plan, and should annually review implementation needs with respect to budget and staffing.

       (4) After a plan is adopted in accordance with subsection (3) of this section, and if the department participated in the planning process, the plan shall be deemed to satisfy the watershed planning authority of the department with respect to the components included under the provisions of RCW 90.82.070 through 90.82.100 for the watershed or watersheds included in the plan. The department shall use the plan as the framework for making future water resource decisions for the planned watershed or watersheds. Additionally, the department shall rely upon the plan as a primary consideration in determining the public interest related to such decisions.

       (5) Once a WRIA plan has been approved under subsection (2) of this section for a watershed, the department may develop and adopt modifications to the plan or obligations imposed by the plan only through a form of negotiated rule making that uses the same processes that applied in that watershed for developing the plan.

       (6) As used in this section, "obligation" means any action required as a result of this chapter that imposes upon a tribal government, county government, or state government, either: A fiscal impact; a redeployment of resources; or a change of existing policy."

MOTION

      Senator Fraser moved that the following amendment to the striking amendment by Senators Honeyford and Morton to Engrossed Second Substitute House Bill No. 1336 be adopted:

       On page 5, line 15 after "flows" insert ", including sufficient flows for salmon recovery"

      Debate ensued.

      The President declared the question before the Senate to be the adoption of the amendment by Senator Fraser on page 5, line 15, to the striking amendment by Senators Honeyford and Morton to Engrossed Second Substitute House Bill No. 1336.

      The motion by Senator Fraser failed and the amendment to the striking amendment was not adopted.

      The President declared the question before the Senate to be the adoption of the striking amendment by Senators Honeyford and Morton to Engrossed Second Substitute House Bill No. 1336.

      The motion by Senator Honeyford carried and the striking amendment was adopted.

      There being no objection, the following title amendment was adopted:  

       On page 1, line 1 of the title, after "planning;" strike the remainder of the title and insert "amending RCW 90.82.040, 90.82.080, and 90.82.130; adding a new section to chapter 90.82 RCW; and creating a new section."

MOTION

      On motion of Senator Morton, the rules were suspended, Engrossed Second Substitute House Bill No. 1336, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Second Substitute House Bill No. 1336, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Second Substitute House Bill No. 1336, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 37; Nays, 11; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Brandland, Carlson, Deccio, Doumit, Eide, Esser, Finkbeiner, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Johnson, Kastama, Keiser, Kline, Morton, Mulliken, Oke, Parlette, Poulsen, Rasmussen, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Stevens, Swecker, West, Winsley and Zarelli - 37.

     Voting nay: Senators Brown, Fairley, Franklin, Fraser, Jacobsen, Kohl-Welles, McAuliffe, Prentice, Reardon, Spanel and Thibaudeau - 11.

     Excused: Senator McCaslin - 1.

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1336, as amended by the Senate,, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      On motion of Senator Sheahan, Engrossed Second Substitute House Bill No. 1336, as amended by the Senate, was ordered to be immediately transmitted to the House of Representatives.

SECOND READING

      SENATE BILL NO. 5149, by Senator Benton

Preventing businesses from taking multiple tax credits on the same employment positions.

      The bill was read the second time.

MOTION

      On motion of Senator Benton, the rules were suspended, Senate Bill No. 5149 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5149.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Bill No. 5149 and the bill passed the Senate by the following vote: Yeas, 48, Nays, 0; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 48.

     Excused: Senator McCaslin - 1.

      SENATE BILL NO. 5149, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

      At 8:45 p.m., on motion of Senator Sheahan, the Senate adjourned until 8:30 a.m., Wednesday, April 16, 2003.

BRAD OWEN, President of the Senate

MILTON H. DOUMIT, Jr., Secretary of the Senate