WHEREAS, Gene Gotovac was a beloved friend, colleague, and eighteen year member of the Senate family; and

      WHEREAS, He began working for Senate security in 1985, and was elected sergeant-at-arms in 1999; and

      WHEREAS, Reminiscent of a Vatican Guard, Gene displayed a quiet dignity, upholding confidentiality and using discretion at all times; and

      WHEREAS, He was a wonderful ambassador of the Capitol Campus, taking great pride in the legislative institution and treating legislators, staff, pages, and visitors with kindness and respect; and

      WHEREAS, An Aberdeen native, he loved both Grays Harbor and Pacific Counties, always striving to make the area a better place to live; and

      WHEREAS, Concerned about Aberdeen's youth, Gene was instrumental in conducting a community fund raiser whose proceeds went toward the purchase of lights for Pioneer Park Baseball Field, allowing children to play baseball safely into the evening; and

      WHEREAS, A successful businessman, he owned Gotovac's, a men's clothing store, and the Spar Café in Aberdeen, a favorite gathering place for discussions of sports and politics; and 

      WHEREAS, Gene was "everyone's friend," always giving generously of himself, joyfully making others happy; and

      WHEREAS, An avid sportsman, he enjoyed going to Seattle Mariners baseball games and playing golf, particularly at Airport Golf Center in Tumwater, where within a year, he scored two holes in one; and

      WHEREAS, He is survived by his loving wife, Linda; daughter, Joanne Romayne Leach; grandson Patrick Leach; son, Norman Eugene; stepsons Wade Mitchell and Dave Mitchell; stepdaughters Kori Mitchell and Valerie Deyette; and extended family; and

      WHEREAS, On June 10, 2002, Gene Gotovac ended his fight with leukemia, surrounded by his loving family and close friends; and

      WHEREAS, Gene will forever remain in our hearts; in the words of former Senator Sid Snyder, "Goodbye – and Sine Die – old friend";

      NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate celebrate the life of our colleague, Gene Gotovac, and recognize his devotion to public service; and

      BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Secretary of the Senate to the Gotovac family.

      Senators Spanel, Hale, Betti Sheldon, Thibaudeau, Carlson, Shin, Franklin, Kastama, Jacobsen, Deccio, McAuliffe and Eide spoke to Senate Resolution 8680.

INTRODUCTION OF SPECIAL GUEST

      The President welcomed and introduced Gene’s wife, Linda Gotovac, who was seated in the back of the Chamber.

MOTION

      On motion of Senator Eide, Senator Prentice was excused.

MOTION

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

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

      On motion of Senator McAuliffe, Gubernatorial Appointment No. 9078, Dr. Gloria Mitchell, as a member of the Professional Education Standards Board, was confirmed.

APPOINTMENT OF DR. GLORIA MITCHELL

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

     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, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 47.

     Excused: Senators McCaslin and Prentice -2.

MOTION

      On motion of Senator Johnson, Gubernatorial Appointment No. 9013, Beverly Cheney, as a member of the Professional Education Standards Board, was confirmed.

APPOINTMENT OF BEVERLY CHENEY

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

     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, Rasmussen, Reardon, Regala, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 47.

     Excused: Senators McCaslin and Prentice -2.

MOTION

      On motion of Senator Eide, Senator Fairley was excused.

MOTION

      On motion of Senator Oke, Gubernatorial Appointment No. 9004, Clyde B. Anderson, as a member of the Parks and Recreation Commission, was confirmed.

APPOINTMENT OF CLYDE B. ANDERSON

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

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Hewitt, Honeyford, 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 - 46.

       Absent: Senator Horn - 1.

     Excused: Senators Fairley and McCaslin -2.

MOTION

      On motion of Senator Carlson, Gubernatorial Appointment No. 9018, Susan I. Davidson, as a member of the Board of Trustees for the State School for the Blind, was confirmed.

APPOINTMENT OF SUSAN I. DAVIDSON

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

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Doumit, Eide, Esser, 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 - 46.

     Excused: Senators Fairley and McCaslin -2.

MOTION

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

      There being no objection, the Senate resumed consideration of Engrossed Substitute Senate Bill No. 5659, deferred April 26, 2003.

RULING BY THE PRESIDENT

      President Owen: “In ruling upon the point of order by Senator Roach that the House amendment to Engrossed Substitute Senate Bill No. 5659 is improperly before the body because it violates Constitutional and Senate rule provisions limiting a bill to a single subject, the President finds as follows:

      “Both the Washington State Constitution and Senate Rule 25 mandate that ‘no bill shall embrace more than one subject and that shall be expressed in the title.’ The President has consistently ruled that issues relating to the legality of particular measures are better left to the courts, and that rulings will therefore address only parliamentary, not legal, inquiries. It is the duty of the President, however, to give full force and effect to the parliamentary rules and practices of this body.

      “It is instructive to keep in mind that the purpose of parliamentary procedure is to provide clear processes that ensure the rights of all members are observed and the will of the body, as expressed through a majority of its members, may be done. Reed's Rule 49, under the duties of members, makes clear that members have both duties and responsibilities to the body.

      "The object and purpose of an assembly is to enable members to act together as a body, and each member ought to so conduct him- or her-self as to facilitate the result, or at least so as not to hinder it. Part of this conduct includes timely raising of parliamentary issues before the body has taken action upon a question. Reed's Rule 112 provides in part, ‘Objections to present action must be presented before consideration has been entered upon. After debate has begun or other action has been taken it is too late.’

      “The purpose of this rule is clear. There must be some point at which the body may be assured that questions upon which it has expressed its will, most commonly by a vote of its majority, are properly concluded and may not be revisited time and time again. Any other result would allow for any member to hold the body hostage by raising procedural questions which should have been earlier debated and decided. As the rules make clear, a member has a duty to raise such issues as soon as possible or the right to object is deemed waived. The President reserves, for future consideration, the issue of timeliness with respect to other parliamentary inquiries.

      “Applying this rationale to the matters before us, the amendments to the bill which added modifications to the Growth Management Act may or may not violate the ‘single subject’ rule, but the time for raising such an objection was prior to the passage of that amendment in the Senate. Once the measure left this body with that language, that objection was waived along with the final passage.

      “With respect to the performance audit language added by the House, however, the first opportunity which any member of this body had to raise a ‘single subject’ objection was when the measure came back for concurrence or dispute. In this case, Senator Roach's point is timely, and the President finds that performance audits of cities and counties constitute an entirely new policy which is well outside of the original title, which relates to local funding. This language is not limited to the tax increase, but would appear to apply to all aspects of the city or county government, and this is clearly another subject from local funding. For this reason, the House amendment includes a second subject in violation of Rule 25, and Senator Roach's point is well taken. The House amendment is out of order.”

      The President ruled that the House amendment to Engrossed Substitute Senate Bill No. 5659 to be out of order.

MOTION

      On motion of Senator Winsley, the Senate refuses to concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5659 and asks the House to recede therefrom.

MOTION

      On motion of Senator Sheahan, the Senate recessed until 5:00 p.m.

      The Senate was called to order at 5:05 p.m. by President Owen.

MOTION

      On motion of Senator Sheahan, the Senate recessed until 7:00 p.m.

      The Senate was called to order at 7:00 p.m. by President Owen.

MOTION

      At 7:00 p.m., on motion of Senator Sheahan, the Senate was declared to be at ease.

      The Senate was called to order at 9:17 p.m. by President Owen.

MOTION

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

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

      The House concurred in the Senate amendment(s) to SUBSTITUTE HOUSE BILL NO. 2172.

CYNTHIA ZEHNDER, Chief Clerk

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

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

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1033,

      HOUSE BILL NO. 2065.

CYNTHIA ZEHNDER, Chief Clerk

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

      The Speaker has signed:

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1163,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1754,

      SUBSTITUTE HOUSE BILL NO. 1788, 

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2056,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2231, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Chief Clerk

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

      The Speaker has signed:

      HOUSE BILL NO. 1126,

      SUBSTITUTE HOUSE BILL NO. 1173,

      SUBSTITUTE HOUSE BILL NO. 1204,

      SUBSTITUTE HOUSE BILL NO. 1233,

      SUBSTITUTE HOUSE BILL NO. 1335,

      SUBSTITUTE HOUSE BILL NO. 1571,

      HOUSE BILL NO. 1712,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1827,

      SUBSTITUTE HOUSE BILL NO. 1829,

      SECOND SUBSTITUTE HOUSE BILL NO. 1841,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1933,

      SUBSTITUTE HOUSE BILL NO. 2215, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Chief Clerk

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8402, and the same is herewith transmitted.

CYNTHIA ZEHNDER, Chief Clerk

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

      The House has passed:

      SUBSTITUTE SENATE BILL NO. 5179,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5889,

      SUBSTITUTE SENATE BILL NO. 5974,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5990,

      SENATE BILL NO. 6052,

      ENGROSSED SENATE BILL NO. 6062, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Chief Clerk

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

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

      SUBSTITUTE HOUSE BILL NO. 1100,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2228.

CYNTHIA ZEHNDER, Chief Clerk

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

      The Speaker has signed:

      SUBSTITUTE HOUSE BILL NO. 1100,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2228, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Chief Clerk

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

      The Speaker has signed:

      SUBSTITUTE HOUSE BILL NO. 2172, and the same is herewith transmitted.

CYNTHIA ZEHNDER, Chief Clerk

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

      The Speaker has signed:

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1033,

      HOUSE BILL NO. 2065, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Chief Clerk

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6072, and the same is herewith transmitted.

CYNTHIA ZEHNDER, Chief Clerk

SIGNED BY THE PRESIDENT

      The President signed:

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1163,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1754,

      SUBSTITUTE HOUSE BILL NO. 1788, 

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2056,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2231.

SIGNED BY THE PRESIDENT

      The President signed:

      HOUSE BILL NO. 1126,

      SUBSTITUTE HOUSE BILL NO. 1173,

      SUBSTITUTE HOUSE BILL NO. 1204,

      SUBSTITUTE HOUSE BILL NO. 1233,

      SUBSTITUTE HOUSE BILL NO. 1335,

      SUBSTITUTE HOUSE BILL NO. 1571,

      HOUSE BILL NO. 1712,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1827,

      SUBSTITUTE HOUSE BILL NO. 1829,

      SECOND SUBSTITUTE HOUSE BILL NO. 1841,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1933,

      SUBSTITUTE HOUSE BILL NO. 2215.

SIGNED BY THE PRESIDENT

      The President signed:

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5247,

      SENATE BILL NO. 5769,

      SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8402.

SIGNED BY THE PRESIDENT

      The President signed:

      SUBSTITUTE SENATE BILL NO. 5179,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5889,

      SUBSTITUTE SENATE BILL NO. 5974,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5990,

      SENATE BILL NO. 6052, 

      ENGROSSED SENATE BILL NO. 6062.

SIGNED BY THE PRESIDENT

      The President signed:

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1033,

      SUBSTITUTE HOUSE BILL NO. 1100,

      HOUSE BILL NO. 2065,

      SUBSTITUTE HOUSE BILL NO. 2172,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2228. 

SIGNED BY THE PRESIDENT

      The President signed:

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6072.

APPOINTMENT TO INTERIM COMMITTEES

      The President announced the following appointments to the interim committees:

      JOINT LEGISLATIVE AND AUDIT REVIEW COMMITTEE: Senators Fairley, Horn, Kohl-Welles, Oke, Regala, Stevens, Thibaudeau and Zarelli

      LEGISLATIVE COMMITTEE ON ECONOMIC DEVELOPMENT AND INTERNATIONAL RELATIONS: Senators Franklin, Hale, Hewitt, Sheahan Betti Sheldon and Shin

      LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM : Senators Fairley, Horn, Kastama and Winsley

      LEGISLATIVE TRANSPORTATION COMMITTEE: Senators Benton, Finkbeiner, Haugen, Horn, Kastama, Jacobsen, Mulliken, Oke, Prentice, Tim Sheldon, Spanel and Swecker

MOTION

      On motion of Senator Sheahan, the Interim Committee Appointments were confirmed.

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

The Speaker has signed:

      SUBSTITUTE SENATE BILL NO. 5179,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5247,

      SENATE BILL NO. 5769,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5889,

      SUBSTITUTE SENATE BILL NO. 5974,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5990,

      SENATE BILL NO. 6052,

      ENGROSSED SENATE BILL NO. 6062,

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6072,

      SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8402, and the same is herewith transmitted.

CYNTHIA ZEHNDER, Chief Clerk

MESSAGE FROM THE HOUSE

April 26, 2003

MR. PRESIDENT:

      The House insists on its position regarding the House amendment(s) to SUBSTITUTE SENATE BILL NO. 5039 and once again asks the Senate to concur therein, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Chief Clerk

MOTION

      Senator Kastama moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 5039.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Kastama that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 5039.

      The motion by Senator Kastama carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 5039.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5039, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5039, as amended by the House, 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.

      SUBSTITUTE SENATE BILL NO. 5039, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

      The House refuses to concur in the Senate amendment(s) to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1689 and asks the Senate to recede therefrom, and the same are herewith transmitted.

CYNTHIA ZEHNDER, Chief Clerk

MOTION

      Senator Morton moved that the Senate insist on its position regarding the Senate amendment(s) to Engrossed Substitute House Bill No. 1689 and asks that the House concur therein.

      Debate ensued.

      The President declared the question before the Senate to be the motion by Senator Morton that the Senate insists on its position regarding the Senate amendment(s) to Engrossed Substitute House Bill No. 1689.

      The motion by Senator Morton carried and the Senate insists on its position regarding the Senate amendment(s) to Engrossed Substitute House Bill No. 1689.

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

      Under suspension of the rules, ENGROSSED SUBSTITUTE SENATE BILL NO. 5903 was returned to second reading for purpose of an amendment and the following amendment was adopted:

       Strike everything after the enacting clause and insert the following:

       "NEW SECTION. Sec. 1. A new section is added to chapter 72.05 RCW to read as follows:

       (1) It is the intent of the legislature that appropriate treatment services be provided to juvenile offenders in order to achieve rehabilitation. The treatment should be provided at either local detention facilities or at state institutions depending upon which facility best meets the needs of the individual juvenile offender.

       (2) No juvenile rehabilitation administration institution shall be closed without specific authorization in an act of the legislature.

       (3) If a juvenile rehabilitation administration institution is closed by the legislature, the department of corrections shall be prohibited from operating the institution and the institution shall not be used to incarcerate adult offenders.

       Sec. 2. RCW 13.40.0357 and 2002 c 324 s 3 and 2002 c 175 s 20 are each reenacted and amended to read as follows:

¹Escape 1 and 2 and Attempted Escape 1 and 2 are classed as C offenses and the standard range is established as follows:

       1st escape or attempted escape during 12-month period - 4 weeks confinement

       2nd escape or attempted escape during 12-month period - 8 weeks confinement

       3rd and subsequent escape or attempted escape during 12-month period - 12 weeks confinement

²If the court finds that a respondent has violated terms of an order, it may impose a penalty of up to 30 days of confinement.

       JUVENILE SENTENCING STANDARDS

This schedule must be used for juvenile offenders. The court may select sentencing option A, B, ((or)) C, D, or section 4 of this act.

NOTE: References in the grid to days or weeks mean periods of confinement.

     (1) The vertical axis of the grid is the current offense category. The current offense category is determined by the offense of adjudication.

     (2) The horizontal axis of the grid is the number of prior adjudications included in the juvenile's criminal history. Each prior felony adjudication shall count as one point. Each prior violation, misdemeanor, and gross misdemeanor adjudication shall count as 1/4 point. Fractional points shall be rounded down.

     (3) The standard range disposition for each offense is determined by the intersection of the column defined by the prior adjudications and the row defined by the current offense category.

     (4) RCW 13.40.180 applies if the offender is being sentenced for more than one offense.

     (5) A current offense that is a violation is equivalent to an offense category of E. However, a disposition for a violation shall not include confinement.

                                                                                                                           OR

                                                                                                                    OPTION B                                                                                                                              SUSPENDED DISPOSITION ALTERNATIVE

     (1) If the offender is subject to a standard range disposition involving confinement by the department, the court may impose the standard range and suspend the disposition on condition that the offender comply with one or more local sanctions and any educational or treatment requirement. The treatment programs provided to the offender must be research-based best practice programs as identified by the Washington state institute for public policy or the joint legislative audit and review committee.

     (2) If the offender fails to comply with the suspended disposition, the court may impose sanctions pursuant to RCW 13.40.200 or may revoke the suspended disposition and order the disposition's execution.

     (3) An offender is ineligible for the suspended disposition option under this section if the offender is:

     (a) Adjudicated of an A+ offense;

     (b) Fourteen years of age or older and is adjudicated of one or more of the following offenses:

     (I) A class A offense, or an attempt, conspiracy, or solicitation to commit a class A offense;

     (ii) Manslaughter in the first degree (RCW 9A.32.060); or

     (iii) Assault in the second degree (RCW 9A.36.021), extortion in the first degree (RCW 9A.56.120), kidnapping in the second degree (RCW 9A.40.030), robbery in the second degree (RCW 9A.56.210), residential burglary (RCW 9A.52.025), burglary in the second degree (RCW 9A.52.030), drive-by shooting (RCW 9A.36.045), vehicular homicide (RCW 46.61.520), hit and run death (RCW 46.52.020(4)(a)), intimidating a witness (RCW 9A.72.110), violation of the uniform controlled substances act (RCW 69.50.401(a)(1) (I) or (ii)), or manslaughter 2 (RCW 9A.32.070), when the offense includes infliction of bodily harm upon another or when during the commission or immediate withdrawal from the offense the respondent was armed with a deadly weapon;

     (c) Ordered to serve a disposition for a firearm violation under RCW 13.40.193; or

     (d) Adjudicated of a sex offense as defined in RCW 9.94A.030.

                                                                                                                           OR

                                                                                                                    OPTION C                                                                                                                              CHEMICAL DEPENDENCY DISPOSITION ALTERNATIVE

     If the juvenile offender is subject to a standard range disposition of local sanctions or 15 to 36 weeks of confinement and has not committed an A- or B + offense, the court may impose a disposition under RCW 13.40.160(4) and 13.40.165.

                                                                                                                           OR

                                                                                                                OPTION ((c)) D                                                                                                                              MANIFEST INJUSTICE

If the court determines that a disposition under option A ((or)), B, or C would effectuate a manifest injustice, the court shall impose a disposition outside the standard range under RCW 13.40.160(2).

     Sec. 3. RCW 13.40.160 and 2002 c 175 s 22 are each amended to read as follows:

     (1) The standard range disposition for a juvenile adjudicated of an offense is determined according to RCW 13.40.0357.

     (a) When the court sentences an offender to a local sanction as provided in RCW 13.40.0357 option A, the court shall impose a determinate disposition within the standard ranges, except as provided in subsection((s)) (2), (3), ((and)) (4), (5), or (6) of this section. The disposition may be comprised of one or more local sanctions.

     (b) When the court sentences an offender to a standard range as provided in RCW 13.40.0357 option A that includes a term of confinement exceeding thirty days, commitment shall be to the department for the standard range of confinement, except as provided in subsection((s)) (2), (3), ((and)) (4), (5), or (6) of this section.

     (2) If the court concludes, and enters reasons for its conclusion, that disposition within the standard range would effectuate a manifest injustice the court shall impose a disposition outside the standard range, as indicated in option ((c)) D of RCW 13.40.0357. The court's finding of manifest injustice shall be supported by clear and convincing evidence.

     A disposition outside the standard range shall be determinate and shall be comprised of confinement or community supervision, or a combination thereof. When a judge finds a manifest injustice and imposes a sentence of confinement exceeding thirty days, the court shall sentence the juvenile to a maximum term, and the provisions of RCW 13.40.030(2) shall be used to determine the range. A disposition outside the standard range is appealable under RCW 13.40.230 by the state or the respondent. A disposition within the standard range is not appealable under RCW 13.40.230.

     (3) When a juvenile offender is found to have committed a sex offense, other than a sex offense that is also a serious violent offense as defined by RCW 9.94A.030, and has no history of a prior sex offense, the court, on its own motion or the motion of the state or the respondent, may order an examination to determine whether the respondent is amenable to treatment.

     The report of the examination shall include at a minimum the following: The respondent's version of the facts and the official version of the facts, the respondent's offense history, an assessment of problems in addition to alleged deviant behaviors, the respondent's social, educational, and employment situation, and other evaluation measures used. The report shall set forth the sources of the evaluator's information.

     The examiner shall assess and report regarding the respondent's amenability to treatment and relative risk to the community. A proposed treatment plan shall be provided and shall include, at a minimum:

     (a)(I) Frequency and type of contact between the offender and therapist;

     (ii) Specific issues to be addressed in the treatment and description of planned treatment modalities;

     (iii) Monitoring plans, including any requirements regarding living conditions, lifestyle requirements, and monitoring by family members, legal guardians, or others;

     (iv) Anticipated length of treatment; and

     (v) Recommended crime-related prohibitions.

     The court on its own motion may order, or on a motion by the state shall order, a second examination regarding the offender's amenability to treatment. The evaluator shall be selected by the party making the motion. The defendant shall pay the cost of any second examination ordered unless the court finds the defendant to be indigent in which case the state shall pay the cost.

     After receipt of reports of the examination, the court shall then consider whether the offender and the community will benefit from use of this special sex offender disposition alternative and consider the victim's opinion whether the offender should receive a treatment disposition under this section. If the court determines that this special sex offender disposition alternative is appropriate, then the court shall impose a determinate disposition within the standard range for the offense, or if the court concludes, and enters reasons for its conclusions, that such disposition would cause a manifest injustice, the court shall impose a disposition under option ((c)) D, and the court may suspend the execution of the disposition and place the offender on community supervision for at least two years. As a condition of the suspended disposition, the court may impose the conditions of community supervision and other conditions, including up to thirty days of confinement and requirements that the offender do any one or more of the following:

     (b)(I) Devote time to a specific education, employment, or occupation;

     (ii) Undergo available outpatient sex offender treatment for up to two years, or inpatient sex offender treatment not to exceed the standard range of confinement for that offense. A community mental health center may not be used for such treatment unless it has an appropriate program designed for sex offender treatment. The respondent shall not change sex offender treatment providers or treatment conditions without first notifying the prosecutor, the probation counselor, and the court, and shall not change providers without court approval after a hearing if the prosecutor or probation counselor object to the change;

     (iii) Remain within prescribed geographical boundaries and notify the court or the probation counselor prior to any change in the offender's address, educational program, or employment;

     (iv) Report to the prosecutor and the probation counselor prior to any change in a sex offender treatment provider. This change shall have prior approval by the court;

     (v) Report as directed to the court and a probation counselor;

     (vi) Pay all court-ordered legal financial obligations, perform community restitution, or any combination thereof;

     (vii) Make restitution to the victim for the cost of any counseling reasonably related to the offense;

     (viii) Comply with the conditions of any court-ordered probation bond; or

     (ix) The court shall order that the offender may not attend the public or approved private elementary, middle, or high school attended by the victim or the victim's siblings. The parents or legal guardians of the offender are responsible for transportation or other costs associated with the offender's change of school that would otherwise be paid by the school district. The court shall send notice of the disposition and restriction on attending the same school as the victim or victim's siblings to the public or approved private school the juvenile will attend, if known, or if unknown, to the approved private schools and the public school district board of directors of the district in which the juvenile resides or intends to reside. This notice must be sent at the earliest possible date but not later than ten calendar days after entry of the disposition.

     The sex offender treatment provider shall submit quarterly reports on the respondent's progress in treatment to the court and the parties. The reports shall reference the treatment plan and include at a minimum the following: Dates of attendance, respondent's compliance with requirements, treatment activities, the respondent's relative progress in treatment, and any other material specified by the court at the time of the disposition.

     At the time of the disposition, the court may set treatment review hearings as the court considers appropriate.

     Except as provided in this subsection (3), after July 1, 1991, examinations and treatment ordered pursuant to this subsection shall only be conducted by sex offender treatment providers certified by the department of health pursuant to chapter 18.155 RCW. A sex offender therapist who examines or treats a juvenile sex offender pursuant to this subsection does not have to be certified by the department of health pursuant to chapter 18.155 RCW if the court finds that: (A) The offender has already moved to another state or plans to move to another state for reasons other than circumventing the certification requirements; (B) no certified providers are available for treatment within a reasonable geographical distance of the offender's home; and (c) the evaluation and treatment plan comply with this subsection (3) and the rules adopted by the department of health.

     If the offender violates any condition of the disposition or the court finds that the respondent is failing to make satisfactory progress in treatment, the court may revoke the suspension and order execution of the disposition or the court may impose a penalty of up to thirty days' confinement for violating conditions of the disposition. The court may order both execution of the disposition and up to thirty days' confinement for the violation of the conditions of the disposition. The court shall give credit for any confinement time previously served if that confinement was for the offense for which the suspension is being revoked.

     For purposes of this section, "victim" means any person who has sustained emotional, psychological, physical, or financial injury to person or property as a direct result of the crime charged. "Victim" may also include a known parent or guardian of a victim who is a minor child unless the parent or guardian is the perpetrator of the offense.

     A disposition entered under this subsection (3) is not appealable under RCW 13.40.230.

     (4) If the juvenile offender is subject to a standard range disposition of local sanctions or 15 to 36 weeks of confinement and has not committed an A- or B+ offense, the court may impose the disposition alternative under RCW 13.40.165.

     (5) If a juvenile is subject to a commitment of 15 to 65 weeks of confinement, the court may impose the disposition alternative under section 4 of this act.

     (6) When the offender is subject to a standard range commitment of 15 to 36 weeks and is ineligible for a suspended disposition alternative, a manifest injustice disposition below the standard range, special sex offender disposition alternative, chemical dependency disposition alternative, or mental health disposition alternative, the court in a county with a pilot program under section 5 of this act may impose the disposition alternative under section 5 of this act.

     (7) RCW 13.40.193 shall govern the disposition of any juvenile adjudicated of possessing a firearm in violation of RCW 9.41.040(1)(b)(iii) or any crime in which a special finding is entered that the juvenile was armed with a firearm.

     (((6))) (8) Whenever a juvenile offender is entitled to credit for time spent in detention prior to a dispositional order, the dispositional order shall specifically state the number of days of credit for time served.

     (((7))) (9) Except as provided under subsection (3) ((or)), (4), (5), or (6) of this section, or option B of RCW 13.40.0357, or RCW 13.40.127, the court shall not suspend or defer the imposition or the execution of the disposition.

     (((8))) (10) In no case shall the term of confinement imposed by the court at disposition exceed that to which an adult could be subjected for the same offense.

     NEW SECTION. Sec. 4. A new section is added to chapter 13.40 RCW to read as follows:

     (1) When an offender is subject to a standard range commitment of 15 to 65 weeks, the court may:

     (a) Impose the standard range; or

     (b) Suspend the standard range disposition on condition that the offender complies with the terms of this mental health disposition alternative.

     (2) The court may impose this disposition alternative when the court finds the following:

     (a) The offender has a current diagnosis, consistent with the American psychiatry association diagnostic and statistical manual of mental disorders, of axis I psychiatric disorder, excluding youth that are diagnosed as solely having a conduct disorder, oppositional defiant disorder, substance abuse disorder, paraphilia, or pedophilia;

     (b) An appropriate treatment option is available in the local community;

     (c) The plan for the offender identifies and addresses requirements for successful participation and completion of the treatment intervention program including: Incentives and graduated sanctions designed specifically for amenable youth, including the use of detention, detoxication, and in-patient or outpatient substance abuse treatment and psychiatric hospitalization, and structured community support consisting of mental health providers, probation, educational and vocational advocates, child welfare services, and family and community support. For any mental health treatment ordered for an offender under this section, the treatment option selected shall be chosen from among programs which have been successful in addressing mental health needs of juveniles and successful in mental health treatment of juveniles and identified as research-based best practice programs. A list of programs which meet these criteria shall be agreed upon by: The Washington association of juvenile court administrators, the juvenile rehabilitation administration of the department of social and health services, a representative of the division of public behavioral health and justice policy at the University of Washington, and the Washington institute for public policy. The list of programs shall be created not later than July 1, 2003. The group shall provide the list to all superior courts, its own membership, the legislature, and the governor. The group shall meet annually and revise the list as appropriate; and

     (d) The offender, offender's family, and community will benefit from use of the mental health disposition alternative.

     (3) The court on its own motion may order, or on motion by either party, shall order a comprehensive mental health evaluation to determine if the offender has a designated mental disorder. The court may also order a chemical dependency evaluation to determine if the offender also has a co-occurring chemical dependency disorder. The evaluation shall include at a minimum the following: The offender's version of the facts and the official version of the facts, the offender's offense, an assessment of the offender's mental health and drug-alcohol problems and previous treatment attempts, and the offender's social, criminal, educational, and employment history and living situation.

     (4) The evaluator shall determine if the offender is amenable to research-based treatment. A proposed case management and treatment plan shall include at a minimum:

     (a) The availability of treatment;

     (b) Anticipated length of treatment;

     (c) Whether one or more treatment interventions are proposed and the anticipated sequence of those treatment interventions;

     (d) The education plan;

     (e) The residential plan; and

     (f) The monitoring plan.

     (5) The court on its own motion may order, or on motion by either party, shall order a second mental health or chemical dependency evaluation. The party making the motion shall select the evaluator. The requesting party shall pay the cost of any examination ordered under this subsection and subsection (3) of this section unless the court finds the offender is indigent and no third party insurance coverage is available, in which case the state shall pay the cost.

     (6) Upon receipt of the assessments, evaluations, and reports the court shall consider whether the offender and the community will benefit from use of the mental health disposition alternative. The court shall consider the victim's opinion whether the offender should receive the option.

     (7) If the court determines that the mental health disposition alternative is appropriate, the court shall impose a standard range disposition of not more than 65 weeks, suspend execution of the disposition, and place the offender on community supervision up to one year and impose one or more other local sanctions. Confinement in a secure county detention facility, other than county group homes, inpatient psychiatric treatment facilities, and substance abuse programs, shall be limited to thirty days. As a condition of a suspended disposition, the court shall require the offender to participate in the recommended treatment interventions.

     (8) The treatment providers shall submit monthly reports to the court and parties on the offender's progress in treatment. The report shall reference the treatment plan and include at a minimum the following: Dates of attendance, offender's compliance with requirements, treatment activities, medication management, the offender's relative progress in treatment, and any other material specified by the court at the time of the disposition.

     (9) If the offender fails to comply with the suspended disposition, the court may impose sanctions pursuant to RCW 13.40.200 or may revoke the suspended disposition and order the disposition's execution.

     (10) An offender is ineligible for the mental health disposition option under this section if the offender is adjudicated of a sex or violent offense as defined in RCW 9.94A.030.

     NEW SECTION. Sec. 5. A new section is added to chapter 13.40 RCW to read as follows:

     Any charter county with a population of not more than seventy thousand shall establish a pilot program to implement the community commitment disposition alternative contained in this section. The pilot project shall be limited to five beds.

     (1) When the offender is subject to a standard range commitment of 15 to 36 weeks and is ineligible for a suspended disposition alternative, a manifest injustice disposition below the standard range, special sex offender disposition alternative, chemical dependency disposition alternative, or mental health disposition alternative, the court in a county with a pilot program under this section may impose a community commitment disposition alternative and:

     (a) Retain juvenile court jurisdiction over the youth;

     (b) Confine the youth in a county detention facility for a period of time not to exceed thirty days; and

     (c) Impose a term of postrelease community supervision for up to one year.

     If the youth receives a standard range disposition, the court shall set the release date within the standard range. The court shall determine the release date prior to expiration of sixty percent of the juvenile's minimum term of confinement.

     (2) The court may impose this community commitment disposition alternative if the court finds the following:

     (a) Placement in a local detention facility in close proximity to the youth's family or local support systems will facilitate a smoother reintegration to the youth's family and community;

     (b) Placement in the local detention facility will allow the youth to benefit from locally provided family intervention programs and other research-based treatment programs, school, employment, and drug and alcohol or mental health counseling; or

     (c) Confinement in a facility operated by the department would result in a negative disruption to local services, school, or employment or impede or delay developing those services and support systems in the community.

     (3) The court shall consider the youth's offense, prior criminal history, security classification, risk level, and treatment needs and history when determining whether the youth is appropriate for the community commitment disposition alternative. If the court finds that a community commitment disposition alternative is appropriate, the court shall order the youth into secure detention while the details of the reintegration program are developed.

     (4) Upon approval of the treatment and community reintegration plan, the court may order the youth to serve the term of confinement in one or more of the following placements or combination of placements: Secure detention, an alternative to secure detention such as electronic home monitoring, county group care, day or evening reporting, or home detention. The court may order the youth to serve time in detention on weekends or intermittently. The court shall set periodic reviews to review the youth's progress in the program. At least fifty percent of the term of confinement shall be served in secure detention.

     (5) If the youth violates the conditions of the community commitment program, the court may impose sanctions under RCW 13.40.200 or modify the terms of the reintegration plan and order the youth to serve all or a portion of the remaining confinement term in secure detention.

     (6) A county may enter into interlocal agreements with other counties to develop joint community commitment programs or to allow one county to send a youth appropriate for this alternative to another county that has a community commitment program.

     (7) Implementation of this alternative is subject to available state funding for the costs of the community commitment program, including costs of detention and community supervision.

     The Washington association of juvenile court administrators shall submit an interim report on the pilot program established in this section to the legislature and appropriate committees by December 31, 2004, and submit a final report to the legislature and the appropriate committees by June 30, 2005.

     This section expires July 1, 2005.

     Sec. 6. RCW 13.40.165 and 2002 c 175 s 23 and 2002 c 42 s 1 are each reenacted and amended to read as follows:

     (1) The purpose of this disposition alternative is to ensure that successful treatment options to reduce recidivism are available to eligible youth, pursuant to RCW 70.96A.520. The court must consider eligibility for the chemical dependency disposition alternative when a juvenile offender is subject to a standard range disposition of local sanctions or 15 to 36 weeks of confinement and has not committed an A- or B+ offense, other than a first time B+ offense under chapter 69.50 RCW. The court, on its own motion or the motion of the state or the respondent if the evidence shows that the offender may be chemically dependent or substance abusing, may order an examination by a chemical dependency counselor from a chemical dependency treatment facility approved under chapter 70.96A RCW to determine if the youth is chemically dependent or substance abusing. The offender shall pay the cost of any examination ordered under this subsection unless the court finds that the offender is indigent and no third party insurance coverage is available, in which case the state shall pay the cost.

     (2) The report of the examination shall include at a minimum the following: The respondent's version of the facts and the official version of the facts, the respondent's offense history, an assessment of drug-alcohol problems and previous treatment attempts, the respondent's social, educational, and employment situation, and other evaluation measures used. The report shall set forth the sources of the examiner's information.

     (3) The examiner shall assess and report regarding the respondent's relative risk to the community. A proposed treatment plan shall be provided and shall include, at a minimum:

     (a) Whether inpatient and/or outpatient treatment is recommended;

     (b) Availability of appropriate treatment;

     (c) Monitoring plans, including any requirements regarding living conditions, lifestyle requirements, and monitoring by family members, legal guardians, or others;

     (d) Anticipated length of treatment; and

     (e) Recommended crime-related prohibitions.

     (4) The court on its own motion may order, or on a motion by the state or the respondent shall order, a second examination. The evaluator shall be selected by the party making the motion. The requesting party shall pay the cost of any examination ordered under this subsection unless the requesting party is the offender and the court finds that the offender is indigent and no third party insurance coverage is available, in which case the state shall pay the cost.

     (5)(a) After receipt of reports of the examination, the court shall then consider whether the offender and the community will benefit from use of this chemical dependency disposition alternative and consider the victim's opinion whether the offender should receive a treatment disposition under this section.

     (b) If the court determines that this chemical dependency disposition alternative is appropriate, then the court shall impose the standard range for the offense, or if the court concludes, and enters reasons for its conclusion, that such disposition would effectuate a manifest injustice, the court shall impose a disposition above the standard range as indicated in option ((c)) D of RCW 13.40.0357 if the disposition is an increase from the standard range and the confinement of the offender does not exceed a maximum of fifty-two weeks, suspend execution of the disposition, and place the offender on community supervision for up to one year. As a condition of the suspended disposition, the court shall require the offender to undergo available outpatient drug/alcohol treatment and/or inpatient drug/alcohol treatment. For purposes of this section, inpatient treatment may not exceed ninety days. As a condition of the suspended disposition, the court may impose conditions of community supervision and other sanctions, including up to thirty days of confinement, one hundred fifty hours of community restitution, and payment of legal financial obligations and restitution.

     (6) The drug/alcohol treatment provider shall submit monthly reports on the respondent's progress in treatment to the court and the parties. The reports shall reference the treatment plan and include at a minimum the following: Dates of attendance, respondent's compliance with requirements, treatment activities, the respondent's relative progress in treatment, and any other material specified by the court at the time of the disposition.

     At the time of the disposition, the court may set treatment review hearings as the court considers appropriate.

     If the offender violates any condition of the disposition or the court finds that the respondent is failing to make satisfactory progress in treatment, the court may impose sanctions pursuant to RCW 13.40.200 or revoke the suspension and order execution of the disposition. The court shall give credit for any confinement time previously served if that confinement was for the offense for which the suspension is being revoked.

     (7) For purposes of this section, "victim" means any person who has sustained emotional, psychological, physical, or financial injury to person or property as a direct result of the offense charged.

     (8) Whenever a juvenile offender is entitled to credit for time spent in detention prior to a dispositional order, the dispositional order shall specifically state the number of days of credit for time served.

     (9) In no case shall the term of confinement imposed by the court at disposition exceed that to which an adult could be subjected for the same offense.

     (10) A disposition under this section is not appealable under RCW 13.40.230.

     NEW SECTION. Sec. 7. Because model adherence and competent delivery of research-based intervention programs is critical for reducing recidivism, the Washington state institute for public policy shall develop adherence and outcome standards for measuring effectiveness of treatment programs referred to in this act. The standards shall be developed and presented to the governor and legislature no later than January 1, 2004. The standards shall include methods for measuring competent delivery of interventions as well as success factors following treatment. The standards shall include, but not be limited to hiring, training and retaining qualified providers, managing and overseeing the delivery of treatment services, and developing quality assurance measures. The department shall utilize these standards to assess program effectiveness. The courts shall also utilize these standards in determining their continued use of these alternatives. The courts shall not continue to use programs that do not comply with these standards.

     NEW SECTION. Sec. 8. (1) A task force is created for the purpose of examining the coordination of information, education services, and matters of public safety when juvenile offenders are placed into public schools, following their conviction.

     (2) The task force shall be chaired by the superintendent of public instruction and include a representative from the juvenile rehabilitation administration of the department of social and health services, the state board of education, associations which represent school teachers, administrators, and school boards, superior court judges, the Washington association of juvenile court administrators, prosecuting attorneys, the governor, attorneys whose practice includes criminal defense work for juvenile defendants, three groups whose primary purpose is the delivery of services to families and children, and law enforcement. The three groups who deliver services shall be selected by the superintendent of public instruction.

     (3) The task force shall identify specific policies and statutory, administrative, and practice processes and barriers that may operate to impede: (a) The identification and delivery of appropriate and coordinated services to juvenile offenders who are placed in, or returned to public schools following conviction of an offense; and (b) transmittal of information regarding juvenile offenders who are returned to, or placed in, public schools following conviction of an offense. The task force shall recommend specific statutory and administrative changes as it finds appropriate to eliminate or reduce the barriers identified as a result of this subsection (3).

     (4) The task force shall report its findings and recommendations to the governor, the legislature, and the agencies represented on the task force not later than December 1, 2003.

     NEW SECTION. Sec. 9. Sections 7 and 8 of this act expire December 31, 2003.

     NEW SECTION. Sec. 10. 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."

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

CYNTHIA ZEHNDER, Chief Clerk

MOTION

Senator Hargrove moved that the Senate concur in the House amendment to Engrossed Substitute Senate Bill No. 5903.

    Debate ensued.

    The President declared the question before the Senate to be the motion by Senator Hargrove that the Senate concur in the House amendment to Engrossed Substitute Senate Bill No. 5903.

    The motion by Senator Hargrove carried and the Senate concurred in the House amendment to Engrossed Substitute Senate Bill No. 5903.

POINT OF INQUIRY

    Senator Roach: “Senator Hargrove, not to be antagonistic or anything, but I am wondering, because I am not a member of the this committee, I have noticed before that the Washington Association of Prosecuting Attorneys is not on record as supporting the bill. Can you tell me why or is that fair to ask?”

    Senator Hargrove: “Yes, I believe it is the Option B provisions--that was part of the juvenile justice ‘quote’ deal in 1997. We passed it out of here with that in it. The House totally agreed with that provision of it. It is still in it; there were no changes to those sections of the bill in the last amendment.”

    Senator Roach: “And they had wanted it changed? Is that why--”

    Senator Hargrove: “No, the amendment had to do with the piece of the bill that did not relate to that.”

    Senator Roach: “Thank you.”

    The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5903, as amended by the House.

ROLL CALL

    The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5903, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 41; Nays, 7; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Brandland, Brown, Carlson, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Hewitt, Honeyford, Horn, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Regala, Rossi, Schmidt, Sheahan, Sheldon, B., Shin, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 42.

     Voting nay: Senators Doumit, Eide, Esser, Haugen, Johnson, Roach, Sheldon, T. - 7.

     Excused: Senator McCaslin - 1.

    ENGROSSED SUBSTITUTE SENATE BILL NO. 5903, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

    The House has passed SENATE BILL NO. 6056 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

     "Sec. 1. RCW 47.68.233 and 2000 c 176 s 1 are each amended to read as follows:

     The department shall require that every pilot who is a resident of this state and every nonresident pilot who regularly operates any aircraft in this state be registered with the department. The department shall charge an annual fee ((not to exceed ten dollars)) of fifteen dollars for each registration. For the period of July 1, 2003, through June 30, 2005, seven dollars of each registration fee collected shall be deposited into the aeronautics account, to be used solely for airport maintenance. All registration certificates issued under this section shall be renewed annually during the month of the registrant's birthdate.

     Except as provided in the paragraph above, the registration fee imposed by this section shall be used by the department for the purpose of (a) search and rescue of lost and downed aircraft and airmen under the direction and supervision of the secretary, (b) safety and education, and (c) volunteer recognition and support.

     Registration shall be effected by filing with the department a certified written statement that contains the information reasonably required by the department. The department shall issue certificates of registration and in connection therewith shall prescribe requirements for the possession and exhibition of the certificates.

     The provisions of this section do not apply to:

     (1) A pilot who operates an aircraft exclusively in the service of any government or any political subdivision thereof, including the government of the United States, any state, territory, or possession of the United States, or the District of Columbia;

     (2) A pilot registered under the laws of a foreign country;

     (3) A pilot engaged exclusively in commercial flying constituting an act of interstate or foreign commerce;

     (4) A person piloting an aircraft equipped with fully functioning dual controls when a licensed instructor is in full charge of one set of the controls and the flight is solely for instruction or for the demonstration of the aircraft to a bona fide prospective purchaser.

     Failure to register as provided in this section is a violation of RCW 47.68.230 and subjects the offender to the penalties incident thereto.

     Sec. 2. RCW 47.68.234 and 1993 c 208 s 3 are each amended to read as follows:

     The department shall require that every airman or airwoman that is not registered under RCW 47.68.233 and who is a resident of this state, or every nonresident airman or airwoman who is regularly performing duties as an airman or airwoman within this state, be registered with the department. The department shall charge an annual fee ((not to exceed ten dollars)) of fifteen dollars for each registration. For the period of July 1, 2003, through June 30, 2005, seven dollars of which shall be deposited into the aeronautics account, to be used solely for airport maintenance. A registration certificate issued under this section is to be renewed annually during the month of the registrant's birthdate.

     Except as provided in the paragraph above, the department shall use the registration fee imposed under this section for the purposes of: (1) Search and rescue of lost and downed aircraft and airmen or airwomen under the direction and supervision of the secretary; and (2) safety and education.

     Registration is ((affected [effected])) effected by filing with the department a certified written statement that contains the information reasonably required by the department. The department shall issue certificates of registration and, in connection with the certificates, shall provide requirements for the possession and exhibition of the certificates.

     Failure to register as provided in this section is a violation of RCW 47.68.230 and subjects the offender to the penalties incident to this section.

     Sec. 3. RCW 47.68.240 and 2000 c 229 s 2 are each amended to read as follows:

     (1) Any person violating any of the provisions of this chapter, or any of the rules, regulations, or orders issued pursuant thereto, shall be guilty of a misdemeanor and shall be punished as provided under chapter 9A.20 RCW, except that any person violating any of the provisions of RCW 47.68.220, 47.68.230, or 47.68.255 shall be guilty of a gross misdemeanor which shall be punished as provided under chapter 9A.20 RCW. In addition to, or in lieu of, the penalties provided in this section, or as a condition to the suspension of a sentence which may be imposed pursuant thereto, for violations of RCW 47.68.220 and 47.68.230, the court in its discretion may prohibit the violator from operating an aircraft within the state for such period as it may determine but not to exceed one year. Violation of the duly imposed prohibition of the court may be treated as a separate offense under this section or as a contempt of court.

     (2) In addition to the provisions of subsection (1) of this section, failure to register an aircraft, as required by this chapter is subject to the following civil penalties:

     (a) If the aircraft registration is sixty days to one hundred nineteen days past due, the civil penalty is one hundred dollars.

     (b) If the aircraft registration is one hundred twenty days to one hundred eighty days past due, the civil penalty is two hundred dollars.

     (c) If the aircraft registration is over one hundred eighty days past due, the civil penalty is four hundred dollars.

     (3) In addition to the provisions in subsection (1) of this section, failure to register as a pilot, airman, or airwoman, as required by this chapter, is subject to a civil penalty of four times the fees that are due. If the pilot registration is sixty days past due, the pilot, airman, or airwoman is subject to the civil penalty of four times the fees that are due.

     (4) The revenue from penalties prescribed in subsection (2) of this section must be deposited into the aeronautics account under RCW 82.42.090. The revenue from penalties prescribed in subsection (3) of this section must be deposited into the aircraft search and rescue, safety, and education account under RCW 47.68.236.

     Sec. 4. RCW 47.68.250 and 1999 c 302 s 2 are each amended to read as follows:

     Every aircraft shall be registered with the department for each calendar year in which the aircraft is operated or is based within this state. A fee of ((eight)) fifteen dollars shall be charged for each such registration and each annual renewal thereof.

     Possession of the appropriate effective federal certificate, permit, rating, or license relating to ownership and airworthiness of the aircraft, and payment of the excise tax imposed by Title 82 RCW for the privilege of using the aircraft within this state during the year for which the registration is sought, and payment of the registration fee required by this section shall be the only requisites for registration of an aircraft under this section.

     The registration fee imposed by this section shall be payable to and collected by the secretary. The fee for any calendar year must be paid during the month of January, and shall be collected by the secretary at the time of the collection by him or her of the said excise tax. If the secretary is satisfied that the requirements for registration of the aircraft have been met, he or she shall thereupon issue to the owner of the aircraft a certificate of registration therefor. The secretary shall pay to the state treasurer the registration fees collected under this section, which registration fees shall be credited to the aeronautics account in the transportation fund.

     It shall not be necessary for the registrant to provide the secretary with originals or copies of federal certificates, permits, ratings, or licenses. The secretary shall issue certificates of registration, or such other evidences of registration or payment of fees as he or she may deem proper; and in connection therewith may prescribe requirements for the possession and exhibition of such certificates or other evidences.

     The provisions of this section shall not apply to:

     (1) An aircraft owned by and used exclusively in the service of any government or any political subdivision thereof, including the government of the United States, any state, territory, or possession of the United States, or the District of Columbia, which is not engaged in carrying persons or property for commercial purposes;

     (2) An aircraft registered under the laws of a foreign country;

     (3) An aircraft which is owned by a nonresident and registered in another state: PROVIDED, That if said aircraft shall remain in and/or be based in this state for a period of ninety days or longer it shall not be exempt under this section;

     (4) An aircraft engaged principally in commercial flying constituting an act of interstate or foreign commerce;

     (5) An aircraft owned by the commercial manufacturer thereof while being operated for test or experimental purposes, or for the purpose of training crews for purchasers of the aircraft;

     (6) An aircraft being held for sale, exchange, delivery, test, or demonstration purposes solely as stock in trade of an aircraft dealer licensed under Title 14 RCW;

     (7) An aircraft based within the state that is in an unairworthy condition, is not operated within the registration period, and has obtained a written exemption issued by the secretary.

     The secretary shall be notified within ((one week)) thirty days of any change in ownership of a registered aircraft. The notification shall contain the N, NC, NR, NL, or NX number of the aircraft, the full name and address of the former owner, and the full name and address of the new owner. For failure to so notify the secretary, the registration of that aircraft may be canceled by the secretary, subject to reinstatement upon application and payment of a reinstatement fee of ten dollars by the new owner.

     ((A municipality or port district that owns, operates, or leases an airport, as defined in RCW 47.68.020, with the intent to operate, shall require from an aircraft owner proof of aircraft registration or proof of intent to register an aircraft as a condition of leasing or selling tiedown or hangar space for an aircraft. The airport shall inform the lessee or purchaser of the tiedown or hangar space of the state law requiring registration and direct the person to comply with the state law if the person has not already done so. The airport may lease or sell tiedown or hangar space to owners of nonregistered aircraft after presenting them with the appropriate state registration forms. It is then the responsibility of the lessee or purchaser to register the aircraft. The airport shall report to the department's aviation division at the end of each month, the names, addresses, and "N" numbers of those aircraft owners not yet registered)) A municipality or port district that owns, operates, or leases an airport, as defined in RCW 47.68.020, with the intent to operate, shall require from an aircraft owner proof of aircraft registration as a condition of leasing or selling tiedown or hanger space for an aircraft. It is the responsibility of the lessee or purchaser to register the aircraft. The airport shall work with the aviation division to assist in its efforts to register aircraft by providing information about based aircraft on an annual basis as requested by the division.

     Sec. 5. RCW 82.42.020 and 1996 c 104 s 13 are each amended to read as follows:

     There is hereby levied, and there shall be collected by every distributor of aircraft fuel, an excise tax at the rate ((computed under RCW 82.42.025)) of ten cents on each gallon of aircraft fuel sold, delivered or used in this state: PROVIDED HOWEVER, That such aircraft fuel excise tax shall not apply to fuel for aircraft that both operate from a private, non-state-funded airfield during at least ninety-five percent of the aircraft's normal use and are used principally for the application of pesticides, herbicides, or other agricultural chemicals and shall not apply to fuel for emergency medical air transport entities: PROVIDED FURTHER, That there shall be collected from every consumer or user of aircraft fuel either the use tax imposed by RCW 82.12.020, as amended, or the retail sales tax imposed by RCW 82.08.020, as amended, collection procedure to be as prescribed by law and/or rule or regulation of the department of revenue. The taxes imposed by this chapter shall be collected and paid to the state but once in respect to any aircraft fuel.

     The tax required by this chapter, to be collected by the seller, is held in trust by the seller until paid to the department, and a seller who appropriates or converts the tax collected to his or her own use or to any use other than the payment of the tax to the extent that the money required to be collected is not available for payment on the due date as prescribed in this chapter is guilty of a felony, or gross misdemeanor in accordance with the theft and anticipatory provisions of Title 9A RCW. A person, partnership, corporation, or corporate officer who fails to collect the tax imposed by this section, or who has collected the tax and fails to pay it to the department in the manner prescribed by this chapter, is personally liable to the state for the amount of the tax.

     NEW SECTION. Sec. 6. RCW 82.42.025 (Computation of aircraft fuel tax rate) and 1983 c 49 s 2 & 1982 1st ex.s. c 25 s 3 are each repealed.

     NEW SECTION. Sec. 7. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2003.", and the same are herewith transmitted CYNTHIA ZEHNDER, Chief Clerk

                                                                                                      MOTION

On motion of Senator Horn, the Senate concurred in the House amendment to Senate Bill No. 6056.

    The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 6056, as amended by the House.

ROLL CALL

    The Secretary called the roll on the final passage of Senate Bill No. 6056, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 34; Nays, 14; Absent, 0; Excused, 1.

     Voting yea: Senators Brown, Carlson, Doumit, Eide, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Horn, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Oke, Poulsen, Prentice, Rasmussen, Reardon, Regala, Rossi, Schmidt, Sheahan, Sheldon, B., Shin, Spanel, Swecker, Thibaudeau, West and Winsley - 34.

     Voting nay: Senators Benton, Brandland, Deccio, Esser, Hewitt, Honeyford, Johnson, Morton, Mulliken, Parlette, Roach, Sheldon, T., Stevens and Zarelli - 14.

     Excused: Senator McCaslin - 1.

    SENATE BILL NO. 6056, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

    The House has passed SENATE BILL NO. 5725 with the following amendment(s)

     Strike everything after the enacting clause and insert the following:

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

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

     NEW SECTION. Sec. 2. A new section is added to chapter 82.04 RCW to read as follows:

     (1) The tax imposed by RCW 82.04.240(2) does not apply to any person in respect to the manufacturing of semiconductor microchips.

     (2) For the purposes of this section:

     (a) "Manufacturing semiconductor microchips" means taking raw polished semiconductor wafers and embedding integrated circuits on the wafers using processes such as masking, etching, and diffusion; and

     (b) "Integrated circuit" means a set of microminiaturized, electronic circuits.

     (3) This section expires nine years after the effective date of this act.

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

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

     (2) Upon every person engaging within this state in the business of manufacturing semiconductor materials, as to such persons the amount of tax with respect to such business shall, in the case of manufacturers, be equal to the value of the product manufactured, or, in the case of processors for hire, be equal to the gross income of the business, multiplied by the rate of 0.275 percent. For the purposes of this subsection "semiconductor materials" means silicon crystals, silicon ingots, raw polished semiconductor wafers, compound semiconductors, integrated circuits, and microchips. This subsection (2) expires twelve years after the effective date of this act.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     (5) For the purposes of this section:

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

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

     (c) "Semiconductor materials" has the same meaning as provided in RCW 82.04.240(2).

     (6) No exemption may be taken after twelve years after the effective date of this act, however all of the eligibility criteria and limitations are applicable to any exemptions claimed before that date.

     (7) This section expires twelve years after the effective date of this act.

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

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

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

     (3) No exemption may be taken twelve years after the effective date of this act, however all of the eligibility criteria and limitations are applicable to any exemptions claimed before that date.

     (4) This section expires twelve years after the effective date of this act.

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

     (1) The tax levied by RCW 82.08.020 shall not apply to sales of gases and chemicals used by a manufacturer or processor for hire in the manufacturing of semiconductor materials. This exemption is limited to gases and chemicals used in the manufacturing process to grow the product, deposit or grow permanent or sacrificial layers on the product, to etch or remove material from the product, to anneal the product, to immerse the product, to clean the product, and other such uses whereby the gases and chemicals come into direct contact with the product during the manufacturing process, or uses of gases and chemicals to clean the chambers and other like equipment in which such processing takes place. For the purposes of this section, "semiconductor materials" has the same meaning as provided in RCW 82.04.240(2).

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

     (3) This section expires twelve years after the effective date of this act.

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

     (1) The provisions of this chapter do not apply with respect to the use of gases and chemicals used by a manufacturer or processor for hire in the manufacturing of semiconductor materials. This exemption is limited to gases and chemicals used in the manufacturing process to grow the product, deposit or grow permanent or sacrificial layers on the product, to etch or remove material from the product, to anneal the product, to immerse the product, to clean the product, and other such uses whereby the gases and chemicals come into direct contact with the product during the manufacturing process, or uses of gases and chemicals to clean the chambers and other like equipment in which such processing takes place. For purposes of this section, "semiconductor materials" has the same meaning as provided in RCW 82.04.240(2).

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

     (3) This section expires twelve years after the effective date of this act.

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

     (1) Subject to the limits and provisions of this section, a credit is authorized against the tax otherwise due under RCW 82.04.240(2) for persons engaged in the business of manufacturing semiconductor materials. For the purposes of this section "semiconductor materials" has the same meaning as provided in RCW 82.04.240(2).

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

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

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

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

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

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

     (6) Credits may be taken after twelve years after the effective date of this act, for those buildings at which commercial production began before twelve years after the effective date of this act, subject to all of the eligibility criteria and limitations of this section.

     (7) This section expires twelve years after the effective date of this act.

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

     (1) Machinery and equipment exempt under RCW 82.08.02565 or 82.12.02565 used in manufacturing semiconductor materials at a building exempt from sales and use tax and in compliance with the employment requirement under sections 5 and 6 of this act are tax exempt from taxation. "Semiconductor materials" has the same meaning as provided in RCW 82.04.240(2).

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

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

     (4) This section is effective for taxes levied for collection one year after the effective date of this act and thereafter.

     (5) This section expires December 31st of the year occurring twelve years after the effective date of this act, for taxes levied for collection in the following year.

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

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

     (2)(a) A person who reports taxes under RCW 82.04.240(2) or who claims an exemption or credit under section 2 or 5 through 10 of this act, shall make an annual report to the department detailing employment, wages, and employer-provided health and retirement benefits per job at the manufacturing site. The report shall not include names of employees. The report shall also detail employment by the total number of full-time, part-time, and temporary positions. The first report filed under this subsection shall include employment, wage, and benefit information for the twelve-month period immediately before first use of a preferential tax rate under RCW 82.04.240(2), or tax exemption or credit under section 2 or 5 through 10 of this act. The report is due by March 31st following any year in which a preferential tax rate under RCW 82.04.240(2) is used, or tax exemption or credit under section 2 or 5 through 10 of this act is taken. This information is not subject to the confidentiality provisions of RCW 82.32.330 and may be disclosed to the public upon request.

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

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

     NEW SECTION. Sec. 12. (1)(a) This act is contingent upon the siting and commercial operation of a significant semiconductor microchip fabrication facility in the state of Washington.

     (b) For the purposes of this section:

     (I) "Commercial operation" means the same as "commencement of commercial production" as used in section 5 of this act.

     (ii) "Semiconductor microchip fabrication" means "manufacturing semiconductor microchips" as defined in section 2 of this act.

     (iii) "Significant" means the combined investment of new buildings and new machinery and equipment in the buildings, at the commencement of commercial production, will be at least one billion dollars.

     (2) This act takes effect the first day of the month in which a contract for the construction of a significant semiconductor fabrication facility is signed, as determined by the director of the department of revenue.

     (3)(a) The department of revenue shall provide notice of the effective date of this act to affected taxpayers, the legislature, and others as deemed appropriate by the department.

     (b) If, after making a determination that a contract has been signed and this act is effective, the department discovers that commencement of commercial production did not take place within three years of the date the contract was signed, the department shall make a determination that this act is no longer effective, and all taxes that would have been otherwise due shall be deemed deferred taxes and are immediately assessed and payable from any person reporting tax under RCW 82.04.240(2) or claiming an exemption or credit under section 2 or 5 through 10 of this act. The department is not authorized to make a second determination regarding the effective date of this act."

     Correct the title., and the same are herewith transmitted CYNTHIA ZEHNDER, Chief Clerk

                                                                                                      MOTION

Senator Zarelli moved that the Senate concur the House amendment to Senate Bill No. 5725.

    Debate ensued.

    The President declared the question before the Senate to be the motion by Senator Zarelli that the Senate concur in the House amendment to Senate Bill No. 5725.

    The motion by Senator Zarelli carried and the Senate concurred in the House amendment to Senate Bill No. 5725.

    The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5725, as amended by the House.

ROLL CALL

    The Secretary called the roll on the final passage of Senate Bill No. 5725, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 40; Nays, 8; Absent, 0; Excused, 1.

     Voting yea: Senators Benton, Brandland, Carlson, Deccio, Doumit, Eide, Esser, Finkbeiner, Hale, Hargrove, Haugen, Hewitt, Honeyford, Horn, Jacobsen, Johnson, Keiser, Kline, Kohl-Welles, McAuliffe, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Rasmussen, Reardon, Roach, Rossi, Schmidt, Sheahan, Sheldon, B., Sheldon, T., Shin, Stevens, Swecker, West, Winsley and Zarelli - 40.

     Voting nay: Senators Brown, Fairley, Franklin, Fraser, Kastama, Regala, Spanel and Thibaudeau - 8.

     Excused: Senator McCaslin - 1.

    SENATE BILL NO. 5725, as amended by the House, having received the constitutional majority was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MESSAGE FROM THE HOUSE

April 27, 2003

MR. PRESIDENT:

    The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6026 with the following amendment(s):

     Strike everything after the enacting clause and insert the following:

     "NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

     (1) "Area" means a tourism promotion area.

     (2) "Legislative authority" means the legislative authority of any county with a population greater than forty thousand but less than one million, or of any city or town within such a county, including unclassified cities or towns operating under special charters.

     (3) "Lodging business" means a person that furnishes lodging taxable by the state under chapter 82.08 RCW that has forty or more lodging units.

     (4) "Tourism promotion" means activities and expenditures designed to increase tourism and convention business, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists, and operating tourism destination marketing organizations.

     NEW SECTION. Sec. 2. For the purpose of establishing a tourism promotion area, an initiation petition must be presented to the legislative authority having jurisdiction of the area in which the proposed tourism promotion area is to be located. The initiation petition must include the following:

     (1) A description of the boundaries of the proposed area;

     (2) The proposed uses and projects to which the proposed revenue from the charge shall be put and the total estimated costs;

     (3) The estimated rate for the charge with a proposed breakdown by class of lodging business if such classification is to be used; and

     (4) The signatures of the persons who operate lodging businesses in the proposed area who would pay sixty percent or more of the proposed charges.

     NEW SECTION. Sec. 3. A legislative authority shall, after receiving a valid initiation petition under section 2 of this act, adopt a resolution of intention to establish an area. The resolution must state:

     (1) The time and place of a hearing to be held by the legislative authority to consider the establishment of an area;

     (2) A description of boundaries in the proposed area;

     (3) The proposed area uses and projects to which the proposed revenues from the charge shall be dedicated and the total estimated cost of projects; and

     (4) The estimated rate or rates of the charge with a proposed breakdown of classifications as described in section 5 of this act.

     NEW SECTION. Sec. 4. (1) Except as provided in subsection (2) of this section, no legislative authority may establish a tourism promotion area that includes within the boundaries of the area:

     (a) Any portion of an incorporated city or town, if the legislative authority is that of the county; and

     (b) Any portion of the county outside of an incorporated city or town, if the legislative authority is that of the city or town.

     (2) By interlocal agreement adopted pursuant to chapter 39.34 RCW, a county, city, or town may establish a tourism promotion area that includes within the boundaries of the area portions of its own jurisdiction and another jurisdiction, if the other jurisdiction is party to the agreement.

     NEW SECTION. Sec. 5. A legislative authority may impose a charge on the furnishing of lodging by a lodging business located in the area.

     (1) There shall not be more than six classifications upon which a charge can be imposed.

     (2) Classifications can be based upon the number of rooms, room revenue, or location within the area.

     (3) Each classification may have its own rate, which shall be expressed in terms of nights of stay.

     (4) In no case may the rate under this section be in excess of two dollars per night of stay.

     NEW SECTION. Sec. 6. Notice of a hearing held under section 3 of this act shall be given by:

     (1) One publication of the resolution of intention in a newspaper of general circulation in the city or county in which the area is to be established; and

     (2) Mailing a complete copy of the resolution of intention to each lodging business in the proposed area.

     Publication and mailing shall be completed at least ten days prior to the date and time of the hearing.

     NEW SECTION. Sec. 7. Whenever a hearing is held under section 3 of this act, the legislative authority shall hear all protests and receive evidence for or against the proposed action. The legislative authority may continue the hearing from time to time. Proceedings shall terminate if protest is made by the lodging businesses in the area which would pay a majority of the proposed charges.

     NEW SECTION. Sec. 8. Only after an initiation petition has been presented to the legislative authority under section 2 of this act and only after the legislative authority has conducted a hearing under section 3 of this act, may the legislative authority adopt an ordinance to establish an area. If the legislative authority adopts an ordinance to establish an area, the ordinance shall contain the following information:

     (1) The number, date, and title of the resolution of intention pursuant to which it was adopted;

     (2) The time and place the hearing was held concerning the formation of the area;

     (3) The description of the boundaries of the area;

     (4) The initial or additional rate of charges to be imposed with a breakdown by classification, if such classification is used;

     (5) A statement that an area has been established; and

     (6) The uses to which the charge revenue shall be put. Uses shall conform to the uses declared in the initiation petition under section 2 of this act.

     NEW SECTION. Sec. 9. (1) The charge authorized by this chapter shall be administered by the department of revenue and shall be collected by lodging businesses from those persons who are taxable by the state under chapter 82.08 RCW. Chapter 82.32 RCW applies to the charge imposed under this chapter.

     (2) At least seventy-five days prior to the effective date of the resolution or ordinance imposing the charge, the legislative authority shall contract for the administration and collection by the department of revenue.

     (3) The charges authorized by this chapter that are collected by the department of revenue shall be deposited by the department in the local tourism promotion account created in section 10 of this act.

     NEW SECTION. Sec. 10. The local tourism promotion account is created in the custody of the state treasurer. All receipts from the charges for tourism promotion must be deposited into this account. Expenditures from the account may only be used for tourism promotion. The state treasurer shall distribute the money in the account on a monthly basis to the legislative authority on whose behalf the money was collected.

     NEW SECTION. Sec. 11. The charges imposed under this chapter are in addition to the special assessments that may be levied under chapter 35.87A RCW.

     NEW SECTION. Sec. 12. The charges imposed under this chapter are not a tax on the "sale of lodging" for the purposes of RCW 82.14.410.

     NEW SECTION. Sec. 13. (1) The legislative authority imposing the charge shall have sole discretion as to how the revenue derived from the charge is to be used to promote tourism. However, the legislative authority may appoint existing advisory boards or commissions to make recommendations as to its use, or the legislative authority may create a new advisory board or commission for the purpose.

     (2) The legislative authority may contract with tourism destination marketing organizations or other similar organizations to administer the operation of the area, so long as the administration complies with all applicable provisions of law, including this chapter, and with all county, city, or town resolutions and ordinances, and with all regulations lawfully imposed by the state auditor or other state agencies.

     NEW SECTION. Sec. 14. The legislative authority may disestablish an area by ordinance after a hearing before the legislative authority. The legislative authority shall adopt a resolution of intention to disestablish the area at least fifteen days prior to the hearing required by this section. The resolution shall give the time and place of the hearing.

     Sec. 15. RCW 43.79A.040 and 2002 c 322 s 5, 2002 c 204 s 7, and 2002 c 61 s 6 are each reenacted and amended to read as follows:

     (1) Money in the treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.

     (2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.

     (3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

     (4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.

     (b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The Washington promise scholarship account, the college savings program account, the Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the basic health plan self-insurance reserve account, the Washington state combined fund drive account, the Washington international exchange scholarship endowment fund, the developmental disabilities endowment trust fund, the energy account, the fair fund, the fruit and vegetable inspection account, the game farm alternative account, the grain inspection revolving fund, the juvenile accountability incentive account, the local tourism promotion account, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility account, the self-insurance revolving fund, the sulfur dioxide abatement account, and the children's trust fund. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

     (c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the advanced environmental mitigation revolving account, the city and county advance right-of-way revolving fund, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.

     (5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

     NEW SECTION. Sec. 16. Sections 1 through 14 of this act constitute a new chapter in Title 35 RCW."

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