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FIFTY EIGHTH LEGISLATURE - REGULAR SESSION

___________________________________________________________________________________________


SIXTIETH DAY

___________________________________________________________________________________________


House Chamber, Olympia, Thursday, March 11, 2004


             The House was called to order at 10:00 a.m. by the Speaker (Representative Lovick presiding). The Clerk called the roll and a quorum was present.


             The flag was escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Nicole Massengale and Jason Juhala. The Speaker (Representative Lovick presiding) led the Chamber in the Pledge of Allegiance. Prayer was offered by Pastor Lawrence R. Willis, True Vine of Holiness Missionary Baptist Church, Seattle.


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


MESSAGES FROM THE SENATE

March 10, 2004

Mr. Speaker:


             The President has signed:

SUBSTITUTE SENATE BILL NO. 5326,

SUBSTITUTE SENATE BILL NO. 5732,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5877,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6112,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6210,

SUBSTITUTE SENATE BILL NO. 6240,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6415,

SUBSTITUTE SENATE BILL NO. 6575,

SECOND SUBSTITUTE SENATE BILL NO. 6599,

SUBSTITUTE SENATE BILL NO. 6601,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


March 10, 2004

Mr. Speaker:


             The President has signed:

SUBSTITUTE HOUSE BILL NO. 2635,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2650,

SUBSTITUTE HOUSE BILL NO. 2657,

SUBSTITUTE HOUSE BILL NO. 2707,

SUBSTITUTE HOUSE BILL NO. 2708,

HOUSE BILL NO. 2727,

HOUSE BILL NO. 2765,

HOUSE BILL NO. 2811,

SUBSTITUTE HOUSE BILL NO. 2878,

HOUSE BILL NO. 3045,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 3078,

SUBSTITUTE HOUSE BILL NO. 3081,

SUBSTITUTE HOUSE BILL NO. 3083,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 3116,

SUBSTITUTE HOUSE BILL NO. 3141,

HOUSE BILL NO. 3172,

HOUSE JOINT MEMORIAL NO. 4007,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


March 10, 2004

Mr. Speaker:


             The President has signed:

SUBSTITUTE HOUSE BILL NO. 1995,

THIRD ENGROSSED SUBSTITUTE HOUSE BILL NO. 2195,

SUBSTITUTE HOUSE BILL NO. 2300,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2354,

SUBSTITUTE HOUSE BILL NO. 2382,

HOUSE BILL NO. 2387,

SUBSTITUTE HOUSE BILL NO. 2431,

SUBSTITUTE HOUSE BILL NO. 2489,

HOUSE BILL NO. 2519,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2556,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


RESOLUTIONS


             HOUSE RESOLUTION NO. 2004-4728, By Representatives Cox and Schoesler


             WHEREAS, It is the policy of the legislature to honor excellence in every field of endeavor; and

             WHEREAS, The Colfax Bulldogs Girls' Basketball Team proved their excellence this season by an incredible achievement; and

             WHEREAS, The Colfax Bulldogs Girls' Basketball Team's heroes showed real heart when they won the Girls State A Basketball Tournament by defeating the Lind-Ritzville Broncos 65-43 in the final championship game and built on the title they won in 2002; and

             WHEREAS, The Colfax Bulldogs Girls' Basketball Team achieved something no other Girls Team has done in the past - winning the state title after winning the regional championship, a feat that usually went to the team finishing second in the regionals; and

             WHEREAS, The Colfax Bulldogs Girls' Basketball Team had an overall record of 27-4 for the season and dominated State A play this year; and

             WHEREAS, The Colfax Bulldogs Girls' Basketball Team members include Ms. Arthur, Becky Burke, Katie Burns, Angie Dennison, Terri Fender, Calista Fowler, Gylling, Mellor, K. Shaw, Largent, Natalie Shaw, Allie Swan, Jenna Vuletich, and Kristin Watts, who together combined their exceptional skills, desires, and enthusiasm to win the championship; and

             WHEREAS, The Colfax Bulldogs Girls' Basketball Team Member, Natalie Shaw, was named the tournament's most valuable player (MVP) and a member of the State All-Tournament First Team; Team Member, Kristin Watts, was named to the State All-Tournament Second team; and Team members, Natalie Shaw, Kristin Watts, Jenna Vuletich, and Allie Swan were selected as All-League Players for the year; and

             WHEREAS, The Colfax Bulldogs Girls' Basketball Team Coach, Corey Baerlocher, showed amazing skill and motivation in leading this team to the heights of State A Basketball; and

             WHEREAS, The Colfax Bulldogs Girls' Basketball Team has been able to beat teams numerous times over the season, having excellent depth, outstanding ability to shoot the ball, being an outstanding transition team, and never giving up but gathering themselves together to do what needs to be done as a team when crunch time comes; and

             WHEREAS, The Colfax Bulldogs Girls' Basketball Team Members and Coach exemplify the success that is possible when clear goals are established and persistent effort is made toward those goals; and

             WHEREAS, The Colfax Bulldogs Girls' Basketball Team Members had a cumulative Team GPA average of 3.3;

             NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives recognize and honor the Colfax Bulldogs Girls' Basketball Team for their dedication, sacrifice, and hard work in achieving this significant accomplishment; and

             BE IT FURTHER RESOLVED, That the House of Representatives recognize and honor the Colfax Bulldogs Girls' Basketball Team Coach for his dedication, sacrifice, and leadership in achieving this significant accomplishment; and

             BE IT FURTHER RESOLVED, That the House of Representatives recognize and honor the parents, families, classmates, teachers, and community members of the Colfax Bulldogs Girls' Basketball Team Members and Coach for the important part they played in helping this team excel and achieve their goals; and

             BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to each of the Coaches and Team Members of the Colfax Bulldogs Girls' Basketball Team, and to the Principal of Colfax High School.


             HOUSE RESOLUTION NO. 4728 was adopted.


             HOUSE RESOLUTION NO. 2004-4730, By Representatives Pearson and Kristiansen


             WHEREAS, It is the practice of the Washington State House of Representatives to recognize excellence in all fields of endeavor; and

             WHEREAS, High school wrestling has long been recognized as a program that molds future leaders through teamwork, discipline, community pride, and the values of a true athlete; and

             WHEREAS, In an example of extraordinary accomplishment, the 2004 Sedro-Woolley wrestling team captured their third consecutive Team State Championship with a victory at the Washington Mat Classic; and

             WHEREAS, The 2004 Sedro-Woolley wrestling team has through great fortitude and ability won their eighth State Championship, finishing 54 points above the nearest competitor, with 160 points; and

             WHEREAS, The 2004 Sedro-Woolley High School Wrestling Championship Team includes members Derek Crouter, Brad Hayes, Zack Olsen, Nathan Decker, Patrick O'Neil, CJ Davis, Jason Davis, Craig Marsh, Devin Knight, Ethan Sandelin, Patrick Janicki, Jory Clark, Jordan Frisbee, Travis Schmelzer, Steven Scott, Michael Lomsdalen, and team captain, Tanner McCoy; and

             WHEREAS, The 2004 Sedro-Woolley High School wrestling team was ably led by Head Coach Jay Breckenridge, and Assistant Coaches Jack Hurd and Jerret Gacia;

             NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives recognize and honor the 2004 AAA State Wrestling Champions, their coaches, and the community that enabled these wrestlers to succeed; and

             BE IT FURTHER RESOLVED, That a copy of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to the members and coaches of the Sedro-Woolley High School Wrestling Team, the Superintendent of the Sedro-Woolley School District, the School District Athletic Director, and the Sedro-Woolley High School Principal.


             HOUSE RESOLUTION NO. 4730 was adopted.


             HOUSE RESOLUTION NO. 2004-4731, By Representatives Sump and McMorris


             WHEREAS, It is the policy of the legislature to honor excellence in every field of endeavor; and

             WHEREAS, The Republic Tigers Boys' Basketball Team proved their excellence this season by an incredible achievement; and

             WHEREAS, The Republic Tigers Boys' Basketball Team's twelve young heroes showed real heart when they won the Boys' State B Basketball Tournament by kicking the Wahkiakum Mules 65-43 in the final championship game; and

             WHEREAS, The Republic Tigers Boys' Basketball Team, with an overall record of 28-1 for the season, dominated State B play this year running its winning streak to 26 games and ending the 22-game winning streak of the Mules who had an overall record of 24-3 for the season; and

             WHEREAS, The Republic Tigers Boys' Basketball Team has no seniors this year which would probably have made their winning streak even a lot longer and bodes well for next season; and

             WHEREAS, The Republic Tigers Boys' Basketball Team members all had an outstanding season and final game, including sophomore star, Zach Gianukakis, who had a game-high 20 points; sophomore point guard, Tyler Orestad, who had 15 points, eight rebounds, four assists, and four steals; 6-foot-6 junior, Kyle Lehn, who was a presence inside with seven points; Gaeb Giddings and freshman reserve, Derek Gianukakis, who combined for 13 points and six blocked shots; junior, Aaron Michel, who had six points, five boards, two assists, and one steal; and fellow teammates, Drake Graham, Adam Hancock, Phin Hodges, Kaban Lehn, John Lewison, and Todd Orestad, who together combined their exceptional skills, desires, and enthusiasm to win the championship; and

             WHEREAS, The Republic Tigers Boys' Basketball Team Coach, John Gianukakis, and Assistant Coach, Seth Krohn, showed amazing skill and motivation in leading this young team to the heights of State B Basketball; and

             WHEREAS, The Republic Tigers Boys' Basketball Team has been able to beat bigger teams numerous times over the season having excellent depth and outstanding ability to shoot the ball, being an outstanding transition team, and never giving up but gathering themselves together to do what needs to be done as a team when crunch time comes; and

             WHEREAS, The Republic Tigers Boys' Basketball Team Members and Coaches exemplify the success that is possible when clear goals are established and persistent effort is made toward those goals;

             NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives of the state of Washington recognize and honor the Republic Tigers Boys' Basketball Team for their dedication, sacrifice, and hard work in achieving this significant accomplishment; and

             BE IT FURTHER RESOLVED, That the House of Representatives of the state of Washington recognize and honor the Republic Tigers Boys' Basketball Team Coaches for their dedication, sacrifice, and leadership in achieving this significant accomplishment; and

             BE IT FURTHER RESOLVED, That the House of Representatives of the state of Washington recognize and honor the parents, families, classmates, teachers, and community members of the Republic Tigers Boys' Basketball Team Members and Coaches for the important part they played in helping this team excel and achieve their goals; and

             BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to each of the Coaches and Team Members of the Republic Tigers Boys' Basketball Team, to Nancy Giddings, Principal of Republic High School, and John Glenewinkel, Superintendent of the Republic School District.


             HOUSE RESOLUTION NO. 4731 was adopted.


             HOUSE RESOLUTION NO. 2004-4732, By Representatives Armstrong, Condotta and Priest


             WHEREAS, The Brewster High School boys' basketball team recently won the Washington State 1A boys basketball state championship for the second straight year; and

             WHEREAS, The Brewster High School boys' basketball team has won the Caribou Trail League for three straight years; and

             WHEREAS, The Brewster High School boys' basketball team has won the North Central District 1A championship for three straight years; and

             WHEREAS, The Brewster High School boys' basketball team has won the District 6/7 1A Regional title three straight years; and

             WHEREAS, The Brewster community has repeatedly united behind their team and shown tremendous community support;

             NOW, THEREFORE, BE IT RESOLVED, That the Washington State House of Representatives recognize and honor the Brewster High School boys' basketball team for their tremendous accomplishments during the 2003-2004 season; and

             BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to the Principal of Brewster High School, the head coach of the Brewster High School boys' basketball team, every player on the Brewster High School boys' basketball team, and the Mayor of the City of Brewster, Washington.


             HOUSE RESOLUTION NO. 4732 was adopted.


             The Speaker assumed the chair.


SIGNED BY THE SPEAKER


             The Speaker signed:


ENGROSSED HOUSE BILL NO. 1433,

ENGROSSED HOUSE BILL NO. 1777,

SUBSTITUTE HOUSE BILL NO. 2321,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2400,

SUBSTITUTE HOUSE BILL NO. 2452,

SUBSTITUTE HOUSE BILL NO. 2455,

SUBSTITUTE HOUSE BILL NO. 2475,

HOUSE BILL NO. 2476,

HOUSE BILL NO. 2485,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2488,

SUBSTITUTE HOUSE BILL NO. 2660,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2675,

SUBSTITUTE HOUSE BILL NO. 2988,

SUBSTITUTE HOUSE BILL NO. 3103,

SUBSTITUTE SENATE BILL NO. 5326,

SUBSTITUTE SENATE BILL NO. 5732,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5877,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6112,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6210,

SUBSTITUTE SENATE BILL NO. 6240,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6415,

SUBSTITUTE SENATE BILL NO. 6575,

SECOND SUBSTITUTE SENATE BILL NO. 6599,

SUBSTITUTE SENATE BILL NO. 6601,


SENATE AMENDMENTS TO HOUSE BILL

March 2, 2004

Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2474, with the following amendment:


              Strike everything after the enacting clause and insert the following:


"GENERAL GOVERNMENT AGENCIES--OPERATING


              Sec. 101. 2003 c 360 s 102 (uncodified) is amended to read as follows:

FOR THE MARINE EMPLOYEES COMMISSION

Puget Sound Ferry Operations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($352,000))

$365,000


              NEW SECTION. Sec. 102. A new section is added to 2003 c 360 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--INITIATIVE MEASURE NO. 776 COSTS

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,200,000

Motor Vehicle Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,100,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,300,000


              The appropriations in this section are subject to the following conditions and limitations: $1,200,000 of the motor vehicle account--state appropriation and $2,100,000 of the motor vehicle account--local appropriation are provided solely for the administrative costs associated with issuing refunds resulting from Pierce County et al. v. State of Washington et al. (Supreme Court Cause No. 73607-3), upholding the Initiative Measure No. 776. Funds may not be expended unless the King county superior court issues a final order requiring the repayment of fees collected.


TRANSPORTATION AGENCIES--OPERATING


              Sec. 201. 2003 c 360 s 202 (uncodified) is amended to read as follows:

FOR THE COUNTY ROAD ADMINISTRATION BOARD

Rural Arterial Trust Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $769,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,927,000))

$1,936,000

County Arterial Preservation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$719,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,415,000))

$3,424,000


              Sec. 202. 2003 c 360 s 203 (uncodified) is amended to read as follows:

FOR THE TRANSPORTATION IMPROVEMENT BOARD

Urban Arterial Trust Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,611,000))

$1,613,000

Transportation Improvement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,620,000))

$1,622,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,231,000))

$3,235,000


              Sec. 203. 2003 c 360 s 204 (uncodified) is amended to read as follows:

FOR THE BOARD OF PILOTAGE COMMISSIONERS

Pilotage Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($272,000))

$344,000


              Sec. 204. 2003 c 360 s 206 (uncodified) is amended to read as follows:

FOR THE TRANSPORTATION COMMISSION

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($807,000))

$814,000


              Sec. 205. 2003 c 360 s 207 (uncodified) is amended to read as follows:

FOR THE FREIGHT MOBILITY STRATEGIC INVESTMENT BOARD

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($616,000))

$625,000


              Sec. 206. 2003 c 360 s 208 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE PATROL--FIELD OPERATIONS BUREAU

State Patrol Highway Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($171,269,000))

$174,149,000

State Patrol Highway Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($6,167,000))

$6,957,000

State Patrol Highway Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $175,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($177,611,000))

$181,281,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Washington state patrol officers engaged in off-duty uniformed employment providing traffic control services to the department of transportation or other state agencies are authorized to use state patrol vehicles for the purposes of that employment, subject to guidelines adopted by the chief of the Washington state patrol. The Washington state patrol shall be reimbursed for the use of the vehicle at the prevailing state employee rate for mileage and hours of usage, subject to guidelines developed by the chief of the Washington state patrol. The patrol shall report to the house of representatives and senate transportation committees by December 31, 2004, on the use of agency vehicles by officers engaging in the off-duty employment specified in this subsection. The report shall include an analysis that compares cost reimbursement and cost-impacts, including increased vehicle mileage, maintenance costs, and indirect impacts, associated with the private use of patrol vehicles.

              (2) $2,075,000 of the state patrol highway account--state appropriation in this section is provided solely for the addition of thirteen troopers to those permanently assigned to vessel and terminal security. The Washington state patrol shall continue to provide the enhanced services levels established after September 11, 2001.

              (3) In addition to the user fees, the patrol shall transfer into the state patrol nonappropriated airplane revolving account created under section 1501 of this act, no more than the amount of appropriated state patrol highway account and general fund funding necessary to cover the costs for the patrol's use of the aircraft. The state patrol highway account and general fund--state funds shall be transferred proportionately in accordance with a cost allocation that differentiates between highway traffic enforcement services and general policing purposes.

              (4) The patrol shall not account for or record locally provided DUI cost reimbursement payments as expenditure credits to the state patrol highway account. The patrol shall report the amount of expected locally provided DUI cost reimbursements to the transportation committees of the senate and house of representatives by December 31 of each year.

              (5) $1,848,000 of the state patrol highway account--state appropriation is provided solely for additional security personnel and equipment necessary to comply with the ferry security plan submitted by the Washington state ferry system to the United States coast guard.

              (6) $264,600 of the state patrol highway account--state appropriation in this subsection is provided solely for two full-time detectives to work solely to investigate incidents of identity fraud, drivers' license fraud, and identity theft. The detectives, as part of their duty to police the public highways, shall work cooperatively with the department of licensing's driver's special investigation unit.


              Sec. 207. 2003 c 360 s 209 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE PATROL--SUPPORT SERVICES BUREAU

State Patrol Highway Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($69,993,000))

$69,799,000

State Patrol Highway Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,290,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($71,283,000))

$71,089,000


              The appropriations in this section are subject to the following conditions and limitations:

              (((1))) Under the direction of the legislative auditor, the patrol shall update the pursuit vehicle life-cycle cost model developed in the 1998 Washington state patrol performance audit (JLARC Report 99-4). The patrol shall utilize the updated model as a basis for determining maintenance and other cost impacts resulting from the increase to pursuit vehicle mileage above 110 thousand miles in the 2003-05 biennium. The patrol shall submit a report, that includes identified cost impacts, to the transportation committees of the senate and house of representatives by December 31, 2003.

              (((2) The Washington state patrol shall assign two full-time detectives to work solely to investigate incidents of identity fraud, drivers' license fraud, and identity theft. The detectives shall work cooperatively with the department of licensing's driver's special investigation unit.))


              Sec. 208. 2003 c 360 s 210 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--MANAGEMENT AND SUPPORT SERVICES

Marine Fuel Tax Refund Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($7,000))

$3,000

Motorcycle Safety Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($85,000))

$97,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($77,000))

$84,000

Highway Safety Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($8,286,000))

$8,278,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($4,623,000))

$4,451,000

DOL Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($107,000))

$144,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($13,185,000))

$13,063,000


              The appropriations in this section are subject to the following conditions and limitations: $71,000 of the highway safety account--state appropriation is provided solely to implement Engrossed Substitute Senate Bill No. 5428 or House Bill No. 1681. Funds provided in this subsection may not be expended unless the department of licensing charges a convenience fee of $1.00 to persons using the internet driver's license or identicard renewal option to defray the credit card costs associated with offering driver's license and identicard renewals on-line. If Engrossed Senate Bill No. 5428 or House Bill No. 1681 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              Sec. 209. 2003 c 360 s 211 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--INFORMATION SERVICES

Marine Fuel Tax Refund Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,000

Motorcycle Safety Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($133,000))

$144,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($58,000))

$55,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($10,489,000))

$11,684,000

Highway Safety Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,000

Highway Safety Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$60,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($6,569,000))

$6,319,000

DOL Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($670,000))

$1,220,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($17,927,000))

$19,490,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The department shall submit a report to the transportation committees of the legislature detailing the progress made in transitioning off of the Unisys system by December 1, 2003, and each December 1 thereafter.

              (2) $55,000 of the highway safety account--state appropriation is provided solely to implement Engrossed Substitute Senate Bill No. 5428 or House Bill No. 1681. Funds provided in this subsection may not be expended unless the department of licensing charges a convenience fee of $1.00 to persons using the internet driver's license or identicard renewal option to defray the credit card costs associated with offering driver's license and identicard renewals on-line. If Engrossed Senate Bill No. 5428 or House Bill No. 1681 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (3) $151,000 of the highway safety account--state appropriation is provided solely for the implementation of Senate Bill No. 5412. Within the amount provided, the department of licensing shall prepare to implement a "one-to-one" biometric matching system that compares the biometric identifier submitted to the individual applicant's record. If Senate Bill No. 5412 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              Sec. 210. 2003 c 360 s 212 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--VEHICLE SERVICES

Marine Fuel Tax Refund Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,000

License Plate Technology Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,000,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$585,000

Motor Vehicle Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,372,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($61,509,000))

$58,661,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $600,000

DOL Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($3,211,000))

$3,844,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($67,337,000))

$67,122,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $144,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Substitute Senate Bill No. 5435 or Engrossed Substitute House Bill No. 1592.

              (2) If Engrossed Senate Bill No. 6063 is not enacted by June 30, 2003, $1,100,000 of the motor vehicle account--state appropriation shall lapse.

              (3) $81,000 of the DOL services account--state appropriation is provided solely for the implementation of Substitute House Bill No. 1036.

              (4) $400,000 of the motor vehicle account--state appropriation is provided solely for additional dealer and manufacturer services enforcement activities to ensure compliance with the laws governing the licensing and regulation of vehicle manufacturers, dealers, wreckers, tow truck operators, hulk haulers, scrap processors, motor vehicle transporters, snowmobile dealers, off-road vehicle dealers, mobile home dealers, travel trailer dealers, vessel dealers, and other miscellaneous dealers operating or doing business in Washington. If Engrossed Senate Bill No. 6063 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (5) $2,000,000 of the license plate technology account--state appropriation and $400,000 of the motor vehicle account--state appropriation are provided solely for the implementation of a digital license plate printing system. Within the amounts provided, the department shall fund the implementation of a digital license plate system including: The purchase of digital license plate printing equipment by correctional industries; the remodeling of space to provide climate control, ventilation, and power requirements, for the equipment that will be housed at correctional industries; and the purchase of digital license plate inventory. The department shall expend all of the license plate technology account--state appropriation before expending any of the motor vehicle account--state appropriation. By December 1, 2004, the department and correctional industries shall submit a joint report to the transportation committees of the legislature detailing a digital license plate printing system implementation plan. By June 30, 2005, the department and correctional industries shall submit a joint report to the transportation committees of the legislature concerning the cost of the consumables used in the digital license plate printing process.

              (6) $67,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Substitute Senate Bill No. 6325. If Substitute Senate Bill No. 6325 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (7) $192,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Senate Bill No. 6110. If Senate Bill No. 6110 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (8) $25,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Substitute Senate Bill No. 6688. If Substitute Senate Bill No. 6688 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (9) $35,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Substitute House Bill No. 2910. If Substitute House Bill No. 2910 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (10) $25,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Substitute Senate Bill No. 6148 or House Bill No. 2471. If neither Substitute Senate Bill No. 6148 or House Bill No. 2471 is enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (11) The department shall study the feasibility of requiring that proof of insurance be provided as a condition of vehicle registration renewal. The department shall consult with the office of the insurance commissioner, and representatives from the county auditors, vehicle subagents, the insurance industry, and interested citizens. The department shall report the findings of this study to the transportation committees of the legislature by December of 2004.


              Sec. 211. 2003 c 360 s 213 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--DRIVER SERVICES

Motorcycle Safety Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,576,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($84,809,000))

$86,721,000

Highway Safety Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $318,000

Highway Safety Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$67,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($87,703,000))

$89,682,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $178,000 of the highway safety account--state appropriation is provided solely for two temporary collision processing FTEs to eliminate the backlog of collision reports. The department shall report, informally, to the house of representatives and senate transportation committees quarterly, beginning October 1, 2003, on the progress made in eliminating the backlog.

              (2) $305,000 of the highway safety account--state appropriation is provided solely to implement Engrossed Substitute Senate Bill No. 5428 or House Bill No. 1681. Funds provided in this subsection may not be expended unless the department of licensing charges a convenience fee of $1.00 to persons using the internet driver's license or identicard renewal option to defray the credit card costs associated with offering driver's license and identicard renewals on-line. If Engrossed Substitute Senate Bill No. 5428 or House Bill No. 1681 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (3) $282,000 of the highway safety account--state appropriation is provided solely for the implementation of Third Substitute Senate Bill No. 5412. Within the amount provided, the department of licensing shall prepare to implement a "one-to-one" biometric matching system that compares the biometric identifier submitted to the individual applicant's record. If Third Substitute Senate Bill No. 5412 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              Sec. 212. 2003 c 360 s 214 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--INFORMATION TECHNOLOGY--PROGRAM C

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($58,661,000))

$57,634,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,163,000

Puget Sound Ferry Operations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($6,583,000))

$7,038,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $363,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($70,770,000))

$70,198,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) (($715,000 of the motor vehicle account--state appropriation is provided solely to retain an external consultant to provide an assessment of the department's review of current major information technology systems and planning for system and application modernization. The legislative transportation committee shall approve the statement of work before the consultant is hired. The consultant shall also work with the department to prepare an application modernization strategy and preliminary project plan.

              The department and the consultant shall work with the office of financial management and the department of information services to ensure that (a) the department's current and future system development is consistent with the overall direction of other key state systems; and (b) when possible, common statewide information systems are used or developed to encourage coordination and integration of information used by the department and other state agencies and to avoid duplication. The department shall provide a report on its proposed application modernization plan to the transportation committees of the legislature by June 30, 2004.)) $850,000 of the motor vehicle account--state appropriation is provided for the continued maintenance and support of the transportation executive information system (TEIS). The TEIS shall be enhanced during the 2004 interim to shift towards a monitoring and reporting system capable of tracking and reporting on major project milestones and measurements. The department shall work with the legislature to identify and define meaningful milestones and measures to be used in monitoring the scope, schedule, and cost of projects.

              (2)(a) (($2,963,000)) $2,959,000 of the motor vehicle account--state appropriation and $2,963,000 of the motor vehicle account--federal appropriation are provided solely for implementation of a new revenue collection system, including the integration of the regional fare coordination system (smart card), at the Washington state ferries. By December 1st of each year, an annual update must be provided to the legislative transportation committee concerning the status of implementing and completing this project.

              (b) (($400,000)) $200,000 of the Puget Sound ferry operation account--state appropriation is provided solely for implementation of the smart card program. (($200,000 of this amount must be held in allotment reserve until a smart card report is delivered to the legislative transportation committee indicating that an agreement on which technology will be used throughout the state of Washington for the smart card program has been reached among smart card participants.))

              (3) The department shall contract with the department of information services to conduct a survey that identifies possible opportunities and benefits associated with siting and use of technology and wireless facilities located on state right of way authorized by RCW 47.60.140. The department shall submit a report regarding the survey to the appropriate legislative committees by December 1, 2004.


              Sec. 213. 2003 c 360 s 215 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--FACILITY MAINTENANCE, OPERATIONS AND CONSTRUCTION--PROGRAM D--OPERATING

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($31,048,000))

$31,068,000


              Sec. 214. 2003 c 360 s 216 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--AVIATION--PROGRAM F

Aeronautics Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($5,107,000))

$5,355,000

Aeronautics Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($650,000))

$2,150,000

Aircraft Search and Rescue Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . (($282,000))

$160,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($6,039,000))

$7,665,000


              The appropriations in this section are subject to the following conditions and limitations: (($1,381,000)) $1,129,000 of the aeronautics account--state appropriation is provided solely for additional preservation grants to airports. (($122,000 of the aircraft search and rescue safety and education account--state appropriation is provided for additional search and rescue and safety and education activities.)) If Senate Bill No. 6056 is not enacted by June 30, 2003, the amounts provided shall lapse.


              Sec. 215. 2003 c 360 s 217 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--PROGRAM DELIVERY MANAGEMENT AND SUPPORT--PROGRAM H

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($49,010,000))

$49,056,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $400,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($49,410,000))

$49,456,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $14,310,000 of the motor vehicle account--state appropriation is provided solely for the staffing, activities, and overhead of the department's environmental affairs office. This funding is provided in lieu of funding provided in sections 305 and 306 of this act.

              (2) $3,100,000 of the motor vehicle account--state appropriation is provided solely for the staffing and activities of the transportation permit efficiency and accountability committee. The committee shall develop a model national environmental policy act (NEPA) tribal consultation process for federal transportation aid projects related to the preservation of cultural, historic, and environmental resources. The process shall ensure that Tribal participation in the NEPA consultation process is conducted pursuant to treaty rights, federal law, and state statutes, consistent with their expectations for protection of such resources.

              (3) $300,000 of the motor vehicle account--state appropriation is provided to the department in accordance with RCW 46.68.110(2) and 46.68.120(3) and shall be used by the department solely for the purposes of providing contract services to the association of Washington cities and Washington state association of counties to implement section 2(3)(c), (5), and (6), chapter 8 (ESB 5279), Laws of 2003 for activities of the transportation permit efficiency and accountability committee.


              Sec. 216. 2003 c 360 s 218 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--ECONOMIC PARTNERSHIPS--PROGRAM K

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,011,000))

$1,411,000


              The appropriation in this section is subject to the following conditions and limitations: $400,000 of the motor vehicle account--state appropriation is provided solely for a traffic and economic study of the Mount Saint Helens tourist and recreational area. The study shall analyze existing and potential traffic patterns in the area and develop funding strategies sufficient to fund construction of a connection between state route number 504 and forest service road number 99. The study shall also include an analysis of potential partnership funding plans involving the use of tolls in order to determine the potential to pay for ongoing maintenance and operations requirements of visitor centers, roads, and other amenities provided to tourists. The purpose and results of this study shall be made available to citizens, businesses, and community organizations in the affected area. The study shall be completed and submitted to the transportation committees of the legislature by December 31, 2004.


              Sec. 217. 2003 c 360 s 219 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MAINTENANCE--PROGRAM M

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($283,350,000))

$283,672,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,426,000

Motor Vehicle Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,253,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($289,029,000))

$289,351,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) If portions of the appropriations in this section are required to fund maintenance work resulting from major disasters not covered by federal emergency funds such as fire, flooding, and major slides, supplemental appropriations must be requested to restore state funding for ongoing maintenance activities.

              (2) The department shall request an unanticipated receipt for any federal moneys received for emergency snow and ice removal and shall place an equal amount of the motor vehicle account--state into unallotted status. This exchange shall not affect the amount of funding available for snow and ice removal.

              (3) The department shall request an unanticipated receipt for any private or local funds received for reimbursements of third party damages that are in excess of the motor vehicle account--private/local appropriation.

              (4) Funding is provided for maintenance on the state system to allow for a continuation of the level of service targets included in the 2001-03 biennium. In delivering the program, the department should concentrate on the following areas:

              (a) Meeting or exceeding the target for structural bridge repair on a statewide basis;

              (b) Eliminating the number of activities delivered in the "f" level of service at the region level;

              (c) Reducing the number of activities delivered in the "d" level of service by increasing the resources directed to those activities on a statewide and region basis; and

              (d) Evaluating, analyzing, and potentially redistributing resources within and among regions to provide greater consistency in delivering the program statewide and in achieving overall level of service targets.


              Sec. 218. 2003 c 360 s 220 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--TRAFFIC OPERATIONS--PROGRAM Q-- OPERATING

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($38,869,000))

$38,924,000

Motor Vehicle Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$125,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($38,994,000))

$39,049,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) A maximum of $8,800,000 of the motor vehicle account--state appropriation may be expended for the incident response program, including the service patrols. The department and the Washington state patrol shall continue to consult and coordinate with private sector partners, such as towing companies, media, auto, insurance and trucking associations, and the legislative transportation committees to ensure that limited state resources are used most effectively. No funds shall be used to purchase tow trucks.

              (2) $4,400,000 of the motor vehicle account--state appropriation is provided solely for low-cost enhancements. The department shall give priority to low-cost enhancement projects that improve safety or provide congestion relief. The department shall prioritize low-cost enhancement projects on a statewide rather than regional basis.

              (3) At a frequency determined by the department, the interstate-5 variable message signs shall display a message advising slower traffic to keep right.

              (4) The appropriation authority under this section includes spending authority to administer the motorist information sign panel program. The department shall establish the fees charged for these services so that all costs to administer this program are recovered; in no event, however, shall the department charge more than:

              (a) $1,000 per business per location on freeways and expressways with average daily trips greater than 80,000;

              (b) $750 per business per location on freeways and expressways with average daily trips less than 80,000; and

              (c) $400 per business per location on conventional highways.


              Sec. 219. 2003 c 360 s 221 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION MANAGEMENT AND SUPPORT--PROGRAM S

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($24,852,000))

$24,888,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $636,000

Puget Sound Ferry Operations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,093,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $973,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($27,554,000))

$27,590,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $627,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Substitute Senate Bill No. 5248. If Substitute Senate Bill No. 5248 is not enacted by June 30, 2003, the amount provided in this subsection shall lapse. The agency may transfer between programs funds provided in this subsection.

              (2) The department shall transfer at no cost to the Washington state patrol the title to the Walla Walla colocation facility.


              Sec. 220. 2003 c 360 s 222 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION PLANNING, DATA, AND RESEARCH--PROGRAM T

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($30,064,000))

$30,105,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$14,814,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,021,000

Multimodal Transportation Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,000,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($47,899,000))

$47,940,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $3,800,000 of the motor vehicle account--state appropriation is provided solely for a study of regional congestion relief solutions for Puget Sound (including state route 169), Spokane, and Vancouver. The study must include proposals to alleviate congestion consistent with population and land use expectations under the growth management act, and must include measurement of all modes of transportation.

              (2) $2,000,000 of the motor vehicle account--state appropriation is provided solely for additional assistance to support regional transportation planning organizations and long-range transportation planning efforts. As a condition of receiving this support, a regional transportation planning organization containing any county with a population in excess of one million shall provide voting membership on its executive board to any incorporated principal city of a metropolitan statistical area within the region, as designated by the United States census bureau.

              (3) $3,000,000 of the motor vehicle account--state appropriation is provided solely for the costs of the regional transportation investment district (RTID) election and department of transportation project oversight. These funds are provided as a loan to the RTID and shall be repaid to the state motor vehicle account within one year following the certification of the election results related to the RTID.

              (4) $650,000 of the motor vehicle account--state appropriation is provided to the department in accordance with RCW 46.68.110(2) and 46.68.120(3) and shall be used by the department to support the processing and analysis of the backlog of city and county collision reports.

              (5) The department shall contribute to the report required in section 208(1) of this act in the form of an analysis of the cost impacts incurred by the department as the result of the policy implemented in section 208(1) of this act. The analysis shall contrast overtime costs charged by the patrol prior to July 1, 2003, with contract costs for similar services after July 1, 2003.

              (6) $60,000 of the distribution under RCW 46.68.110(2) and 46.68.120(3) is provided solely to the department for the Washington strategic freight transportation analysis.


              Sec. 221. 2003 c 360 s 223 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--CHARGES FROM OTHER AGENCIES--PROGRAM U

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($61,082,000))

$56,219,000


              The appropriation in this section is subject to the following conditions and limitations:

              (1) (($50,799,000)) $45,280,000 of the motor vehicle fund--state appropriation is provided solely for the liabilities attributable to the department of transportation. The office of financial management must provide a detailed accounting of the revenues and expenditures of the self-insurance fund to the transportation committees of the legislature on December 31st and June 30th of each year.

              (2) Payments in this section represent charges from other state agencies to the department of transportation.

              (a) FOR PAYMENT OF OFFICE OF FINANCIAL MANAGEMENT DIVISION OF RISK MANAGEMENT FEES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($989,000))

$848,000

              (b) FOR PAYMENT OF COSTS OF THE OFFICE OF

THE STATE AUDITOR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($823,000))

$819,000

              (c) FOR PAYMENT OF COSTS OF DEPARTMENT OF GENERAL ADMINISTRATION

FACILITIES AND SERVICES AND CONSOLIDATED MAIL SERVICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,850,000

              (d) FOR PAYMENT OF COSTS OF THE DEPARTMENT OF PERSONNEL. . . . . . . . . . . . . . . . . .(($2,252,000))

$2,786,000

              (e) FOR PAYMENT OF SELF-INSURANCE LIABILITY PREMIUMS AND

ADMINISTRATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($50,799,000))

$45,280,000

              (f) FOR PAYMENT OF THE DEPARTMENT OF GENERAL ADMINISTRATION

CAPITAL PROJECTS SURCHARGE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,846,000

              (g) FOR ARCHIVES AND RECORDS MANAGEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($523,000))

$538,000

              (h) FOR PAYMENT OF COSTS OF THE OFFICE OF MINORITY AND WOMEN'S BUSINESS ENTERPRISES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$252,000


              Sec. 222. 2003 c 360 s 224 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--PUBLIC TRANSPORTATION--PROGRAM V

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$46,457,000

Multimodal Transportation Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,574,000

Multimodal Transportation Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $155,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $49,186,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) (($4,000,000 of the multimodal transportation account--state appropriation is provided solely for a grant program for nonprofit providers of transportation for persons with special transportation needs. $14,000,000 of the multimodal transportation account--state appropriation is provided solely for a grant program for transit agencies to transport persons with special transportation needs. Moneys shall be to provide additional service only and may not be used to supplant current funding. Grants shall only be used by nonprofit providers and transit agencies for capital and operating costs directly associated with adding additional service. Grants for nonprofit providers shall be based on need, including the availability of other providers of service in the area, efforts to coordinate trips among providers and riders, and the cost effectiveness of trips provided. Grants for transit agencies shall be prorated based on the amount expended for demand response service and route deviated service in calendar year 2001 as reported in the "Summary of Public Transportation - 2001" published by the department of transportation. No transit agency may receive more than thirty percent of these distributions.)) $18,000,000 of the multimodal transportation account--state appropriation is provided solely for a grant program for special needs transportation provided by transit agencies and nonprofit providers of transportation.

              (a) $4,000,000 of the amount provided in this subsection is provided solely for grants to nonprofit providers of special needs transportation. Grants for nonprofit providers shall be based on need, including the availability of other providers of service in the area, efforts to coordinate trips among providers and riders, and the cost effectiveness of trips provided.

              (b) $14,000,000 of the amount provided in this subsection is provided solely for grants to transit agencies to transport persons with special transportation needs. To receive a grant, the transit agency must have a maintenance of effort for special needs transportation that is no less than the previous year's maintenance of effort for special needs transportation. Grants for transit agencies shall be prorated based on the amount expended for demand response service and route deviated service in calendar year 2001 as reported in the "Summary of Public Transportation - 2001" published by the department of transportation. No transit agency may receive more than thirty percent of these distributions.

              (2) $1,500,000 of the multimodal transportation account--state appropriation is provided solely for grants to implement section 9 of Engrossed Substitute House Bill No. 2228.

              (3) Funds are provided for the rural mobility grant program as follows:

              (a) $6,000,000 of the multimodal transportation account--state appropriation is provided solely for grants for those transit systems serving small cities and rural areas as identified in the Summary of Public Transportation - 2001 published by the department of transportation. Noncompetitive grants must be distributed to the transit systems serving small cities and rural areas in a manner similar to past disparity equalization programs.

              (b) $4,000,000 of the multimodal transportation account--state appropriation is provided solely to providers of rural mobility service in areas not served or underserved by transit agencies through a competitive grant process.

              (4) $4,000,000 of the multimodal transportation account--state appropriation is provided solely for a vanpool grant program for: (a) Public transit agencies to add vanpools; and (b) incentives for employers to increase employee vanpool use. The grant program for public transit agencies will cover capital costs only; no operating costs for public transit agencies are eligible for funding under this grant program. ((Only grants that add vanpools are eligible, no)) No additional employees may be hired for the vanpool grant program, and supplanting of transit funds currently funding vanpools is not allowed. Additional criteria for selecting grants will include leveraging funds other than state funds. The commute trip reduction task force shall determine the cost effectiveness of the grants, including vanpool system coordination, regarding the use of the funds.

              (5) $3,000,000 of the multimodal transportation account--state appropriation is provided to the city of Seattle for the Seattle streetcar project on South Lake Union.


              Sec. 223. 2003 c 360 s 225 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--MARINE--PROGRAM X

Puget Sound Ferry Operations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($309,580,000))

$312,011,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($5,120,000))

$4,509,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($314,700,000))

$316,520,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The appropriation is based on the budgeted expenditure of (($34,701,000)) $35,264,000 for vessel operating fuel in the 2003-2005 biennium. If the actual cost of fuel is less than this budgeted amount, the excess amount may not be expended. If the actual cost exceeds this amount, the department shall request a supplemental appropriation.

              (2) The appropriation provides for the compensation of ferry employees. The expenditures for compensation paid to ferry employees during the 2003-2005 biennium may not exceed (($207,757,000)) $208,125,000, plus a dollar amount, as prescribed by the office of financial management, that is equal to any insurance benefit increase granted general government employees in excess of (($495.30)) $482.35 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for fiscal year 2004 and (($567.67)) $482.35 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for fiscal year 2005, a dollar amount as prescribed by the office of financial management for costs associated with pension amortization charges, and a dollar amount prescribed by the office of financial management for salary increases during the 2003-2005 biennium. For the purposes of this section, the expenditures for compensation paid to ferry employees shall be limited to salaries and wages and employee benefits as defined in the office of financial management's policies, regulations, and procedures named under objects of expenditure "A" and "B" (7.2.6.2).

              The prescribed salary increase or decrease dollar amount that shall be allocated from the governor's compensation appropriations is in addition to the appropriation contained in this section and may be used to increase or decrease compensation costs, effective July 1, 2003, and thereafter, as established in the 2003-2005 general fund operating budget.

              (3) (($4,234,000 of the multimodal transportation account--state appropriation and $800,000 of the Puget Sound ferry operations account--state appropriation are provided solely for operating costs associated with the Vashon to Seattle passenger-only ferry. The Washington state ferries will develop a plan to increase passenger-only farebox recovery to at least forty percent by July 1, 2003, with an additional goal of eighty percent, through increased fares, lower operation costs, and other cost-saving measures as appropriate. In order to implement the plan, ferry system management is authorized to negotiate changes in work hours (requirements for split shift work), but only with respect to operating passenger-only ferry service, to be included in a collective bargaining agreement in effect during the 2003-05 biennium that differs from provisions regarding work hours in the prior collective bargaining agreement. The department must report to the transportation committees of the legislature by December 1, 2003.)) No more than $500,000 of the Puget Sound ferry operations account--state appropriation and $1,000,000 of the multimodal transportation account--state appropriation may be spent in fiscal year 2005 on operational costs for the passenger-only ferry service from Vashon to Seattle. It is the intent of the legislature to eliminate passenger-only ferry service after these funds have been expended and to explore and encourage cost-effective alternatives to state run passenger-only ferry service that will address the transportation needs of existing passengers.

              (4) $805,000 of the Puget Sound ferry operations account--state appropriation is provided solely for ferry security operations necessary to comply with the ferry security plan submitted by the Washington state ferry system to the United States coast guard. The department shall track security costs and expenditures. Ferry security operations costs shall not be included as part of the operational costs that are used to calculate farebox recovery.

              (5) $866,000 of the multimodal transportation account--state appropriation and $200,000 of the Puget Sound ferry operations account--state appropriation are provided solely for operating costs associated with the Bremerton to Seattle passenger-only ferry service for thirteen weeks.

              (((5))) (6) The department shall study the potential for private or public partners, including but not limited to King county, to provide passenger-only ferry service from Vashon to Seattle. The department shall report to the legislative transportation committees by December 31, 2003.

              (((6))) (7) The Washington state ferries shall continue to provide service to Sidney, British Columbia.

              (((7))) (8) When augmenting the existing ferry fleet, the department of transportation ferry capital program shall explore cost-effective options to include the leasing of ferries from private-sector organizations.

              (((8))) (9) The Washington state ferries shall work with the department of general administration, office of state procurement to improve the existing fuel procurement process and solicit, identify, and evaluate, purchasing alternatives to reduce the overall cost of fuel and mitigate the impact of market fluctuations and pressure on both short- and long-term fuel costs. Consideration shall include, but not be limited to, long-term fuel contracts, partnering with other public entities, and possibilities for fuel storage in evaluating strategies and options. The department shall report back to the transportation committees of the legislature by December 1, 2003, on the options, strategies, and recommendations for managing fuel purchases and costs.

              (((9))) (10) The department must provide a separate accounting of passenger-only ferry service costs and auto ferry service costs, and must provide periodic reporting to the legislature on the financial status of both passenger-only and auto ferry service in Washington state.

              (((10))) (11) The Washington state ferries must work with the department's information technology division to implement a new revenue collection system, including the integration of the regional fare coordination system (smart card). Each December, annual updates are to be provided to the transportation committees of the legislature concerning the status of implementing and completing this project, with updates concluding the first December after full project implementation.

              (((11))) (12) The Washington state ferries shall evaluate the benefits and costs of selling the depreciation rights to ferries purchased by the state in the future through sale and lease-back agreements, as permitted under RCW 47.60.010. The department is authorized to issue a request for proposal to solicit proposals from potential buyers. The department must report to the transportation committees of the legislature by December 1, 2004, on the options, strategies, and recommendations for sale/lease-back agreements on existing ferry boats as well as future ferry boat purchases.


              Sec. 224. 2003 c 360 s 226 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--RAIL--PROGRAM Y--OPERATING

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($35,075,000))

$34,205,000


              The appropriation in this section is subject to the following conditions and limitations:

              (1) (($30,831,000)) $29,961,000 of the multimodal transportation account--state appropriation is provided solely for the Amtrak service contract and Talgo maintenance contract associated with providing and maintaining the state-supported passenger rail service.

              (2) No Amtrak Cascade runs may be eliminated.

              (3) The department is directed to explore scheduling changes that will reduce the delay in Seattle when traveling from Portland to Vancouver B.C.

              (4) The department is directed to explore opportunities with British Columbia (B.C.) concerning the possibility of leasing an existing Talgo trainset to B.C. during the day for a commuter run when the Talgo is not in use during the Bellingham layover.

              (5) The department shall undertake an origin and destination study to provide data that may be used for a new passenger train cost sharing agreement with the state of Oregon. The study shall be delivered to the transportation committees of the legislature before July 1, 2004.


              Sec. 225. 2003 c 360 s 227 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--LOCAL PROGRAMS--PROGRAM Z--OPERATING

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($7,057,000))

$7,067,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,569,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($9,626,000))

$9,636,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Up to $75,000 of the total appropriation is provided in accordance with RCW 46.68.110(2) and 46.68.120(3) to fund the state's share of the 2004 Washington marine cargo forecast study. Public port districts, acting through their association, must provide funding to cover the remaining cost of the forecast.

              (2) $300,000 of the motor vehicle account--state appropriation is provided in accordance with RCW 46.68.110(2) and 46.68.120(3) solely to fund a study of the threats posed by flooding to the state and other infrastructure near the Interstate 5 crossing of the Skagit River. This funding is contingent on the receipt of federal matching funds.

              (3) In addition to other gubernatorial appointees, the state historic preservation officer shall be appointed to any steering committee that makes the final selection of projects funded from the surface transportation program enhancement funds or a similar program anticipated to be authorized in the extension or reauthorization of the transportation equity act for the 21st century (TEA-21).


TRANSPORTATION AGENCIES--CAPITAL


              Sec. 301. 2003 c 360 s 301 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE PATROL

State Patrol Highway Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,205,000))

$2,705,000


              The appropriation in this section is subject to the following conditions and limitations: $625,000 of the state patrol highway account appropriation is provided solely for the patrol's share of the Shelton area water and sewer regional plan. However, this amount is contingent on general fund--state funding of the Washington corrections center's portion of the Shelton area water and sewer regional plan. If general fund--state funding is not provided, the amount provided in this subsection shall lapse.


              Sec. 302. 2003 c 360 s 303 (uncodified) is amended to read as follows:

FOR THE TRANSPORTATION IMPROVEMENT BOARD

Urban Arterial Trust Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $99,201,000

Transportation Improvement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $98,215,000

Freight Mobility Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $23,000,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($197,416,000))

$220,416,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The transportation improvement account--state appropriation includes $23,955,000 in proceeds from the sale of bonds authorized in RCW 47.26.500. The transportation improvement board may authorize the use of current revenues available to the agency in lieu of bond proceeds for any part of the state appropriation.

              (2) The transportation improvement board shall maintain grant funding currently approved for the SR 3/SR 303 Interchange (Waaga Way).

              (3) $23,570,000 of the transportation improvement account--state appropriation in this section is provided solely for the following freight projects, with the specific funding listed provided solely for the respective project: SR 397 Ainsworth Ave. Grade Crossing, $6,180,000; Colville Alternate Truck Route, $2,200,000; Port of Kennewick Road (Exten. of Piert Rd.), $1,400,000; Duwamish Intelligent Transportation Systems (ITS), $2,500,000; Bigelow Gulch Road - Urban Boundary to Argonne Rd., $2,000,000; Pacific Hwy E / Port of Tacoma Rd to Alexander Ave, $2,290,000; and S. 228th Street Extension and Grade Separation, $7,000,000.


              Sec. 303. 2003 c 360 s 305 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--IMPROVEMENTS--PROGRAM I

Transportation 2003 Account (Nickel Account)--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($565,300,000))

$558,465,000

((Transportation 2003 Account (Nickel Account)--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$950,000

Transportation 2003 Account (Nickel Account)--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,434,000))

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($157,374,000))

$164,524,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($192,940,000))

$194,339,000

Motor Vehicle Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($13,258,000))

$30,158,000

Special Category C Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50,279,000

Tacoma Narrows Toll Bridge Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($613,300,000))

$603,992,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,596,835,000))

$1,601,607,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) (($157,374,000 of the motor vehicle account--state appropriation, $192,940,000 of the motor vehicle account--federal appropriation, $13,258,000 of the motor vehicle account--local appropriation, and $50,279,000 of the special category C account--state appropriation are provided solely to implement the activities and projects included in the Legislative 2003 Transportation Project List - Current Law report as transmitted to LEAP on April 27, 2003.)) The entire transportation 2003 account (nickel account) appropriation is provided solely for the projects and activities as listed by project, biennium, and amount in the Legislative 2003 Transportation Project List - New Law List under the heading "Nickel Funds" as transmitted to LEAP on March 11, 2004. Limited transfers of allocations between projects may occur for those amounts listed for the 2003-05 biennium subject to conditions and limitations in section 503 of this act.

              (a) Within the amount provided in this subsection, $11,000,000 of the transportation 2003 account (nickel account)--state appropriation is provided solely for the environmental impact statement on the SR 520 Evergreen floating bridge.

              (b) Within the amount provided in this subsection, $250,000 of the transportation 2003 account (Nickel Account)--state appropriation and an equal amount from the city of Seattle are provided solely for an analysis of the impacts that an expansion of the SR 520 Evergreen floating bridge will have on the streets of North Capitol Hill, Roanoke Park, and Montlake. An advisory committee with two members each from Portage Bay/Roanoke Park Community Council, Montlake Community Council, and the North Capitol Hill community organization along with the secretary of transportation is established. The seven-member committee shall hire and oversee the contract with a transportation consulting organization to: (a) Perform an analysis of such impacts; and (b) design a traffic and circulation plan that mitigates the adverse consequences of such impacts. If the city of Seattle does not agree to provide $250,000 by January 1, 2004, the amount provided in this subsection shall lapse.

              (2) $87,202,487 of the motor vehicle account--state appropriation, $39,330,766 of the motor vehicle account--federal appropriation, and $11,288,422 of the motor vehicle account--local appropriation are provided solely to implement the projects as indicated in the Legislative 2003 Transportation Project List - New Law List under the heading "Pre-Existing Revenues" as transmitted to LEAP on March 11, 2004.

              (3) The motor vehicle account--state appropriation includes (($78,000,000)) $93,615,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation. The motor vehicle account--state appropriation includes (($18,038,000)) $17,380,000 in unexpended proceeds from bond sales authorized in RCW 47.10.843 for mobility and economic initiative improvement projects.

              (((3))) (4) $42,189,749 of the motor vehicle account--state appropriation, $149,990,632 of the motor vehicle account--federal appropriation, $17,950,021 of the motor vehicle account--local appropriation, and $50,279,000 of the special category C account--state appropriation are provided solely to implement the projects included in the Legislative 2003 Transportation Project List - Current Law List under the heading "Improvement Projects" as transmitted to LEAP on March 11, 2004. The department shall manage all projects on the list within the overall expenditure authority provided in this subsection.

              (a) Within the amounts provided in this subsection, $1,700,000 of the motor vehicle account--state appropriation is provided solely for the I-5 Salmon creek noisewall project.

              (b) Within amounts provided in this subsection, $100,000 of the motor vehicle account--state appropriation is provided solely for the department to hire a consultant to complete a cost-benefit analysis comparing the efficiency of having high-occupancy vehicle (HOV) lanes in the right lane versus the left lane. The study shall compare the costs, and the traffic efficiencies of building HOV lanes in the right and left lanes. The study shall be completed and submitted to the transportation committees of the legislature by December 1, 2004.

              (c) Within amounts provided in this subsection, $500,000 of the motor vehicle account--state appropriation is provided solely for a study to provide the legislature with information regarding the feasibility of pursuing a Washington commerce corridor. The department shall retain outside experts to conduct the study. The study must include the following conditions:

              (i) The Washington commerce corridor must be a north-south corridor starting in the vicinity of Lewis county and extending northerly to the vicinity of the Canadian border. The corridor must be situated east of state route number 405 and west of the Cascades. The corridor may include any of the following features:

              (A) Ability to carry long-haul freight;

              (B) Ability to provide for passenger auto travel;

              (C) Freight rail;

              (D) Passenger rail;

              (E) Public utilities; and

              (F) Other ancillary facilities as may be desired to maximize use of the corridor;

              (ii) The Washington commerce corridor must be developed, financed, designed, constructed, and operated by private sector consortiums;

              (iii) The Washington commerce corridor must be subject to a joint permitting process involving federal, state, and local agencies with jurisdiction; and

              (iv) The legislative transportation committee shall form a working group to work with the department and the outside consultant on the study.

              (c) Within the amounts provided in this subsection, $2,480,000 of the motor vehicle account--state appropriation is provided solely for the SR 28 east end of the George Sellar bridge - phase 1 project. Future biennia appropriations for this project are expected to be $6,510,000.

              (d) Within the amounts provided in this subsection, $400,000 of the motor vehicle account--state appropriation and $150,000 of the motor vehicle account--local appropriation are provided solely for a route development plan to identify the future transportation improvements that should be pursued for state route 169. The study shall include the following elements:

              (i) Documentation of existing conditions;

              (ii) Determination of present and future operating conditions;

              (iii) Development and testing of various transportation conceptual improvement strategies;

              (iv) Preliminary environmental analysis;

              (v) Public involvement; and

              (vi) Cost estimates for the identified conceptual improvements.

              (5) A maximum of $28,643,607 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation is provided for direct project support costs, including, but not limited to, direct project support, property management, scenic byways, and other administration.

              (6) A maximum of $9,238,726 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation is provided for environmental retrofit improvement projects not included in the list in subsection (4) of this section.

              (7) A maximum of $2,266,813 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation is provided for improvement projects programmed through the transportation commission's priority programming process.

              (8) The Tacoma Narrows toll bridge account--state appropriation includes $567,000,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The Tacoma Narrows toll bridge account--state appropriation includes (($46,300,000)) $36,992,000 in unexpended proceeds from the January 2003 bond sale authorized in RCW 47.10.843 for the Tacoma Narrows bridge project.

              (((4))) (9) The special category C account--state appropriation includes $44,000,000 in proceeds from the sale of bonds authorized by RCW 47.10.812. The transportation commission may authorize the use of current revenues available in the special category C account in lieu of bond proceeds for any part of the state appropriation.

              (((5) The entire transportation 2003 account (nickel account) appropriation is provided solely for the projects and activities as indicated in the Legislative 2003 Transportation Project List - New Law report transmitted to LEAP on April 27, 2003.

              (6))) (10) The ((motor vehicle account)) transportation 2003 account (nickel account)--state appropriation includes (($280,000,000)) $275,000,000 in proceeds from the sale of bonds authorized by Senate Bill No. 6062. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

              (((7) $11,000,000 of the motor vehicle account--state appropriation is provided solely for the environmental impact statement on the SR 520 Evergreen floating bridge.

              (8) $250,000 of the transportation 2003 account (Nickel Account)--state appropriation and an equal amount from the city of Seattle are provided solely for an analysis of the impacts that an expansion of the SR 520 Evergreen floating bridge will have on the streets of North Capitol Hill, Roanoke Park, and Montlake. An advisory committee with two members each from Portage Bay/Roanoke Park Community Council, Montlake Community Council, and the North Capitol Hill community organization along with the secretary of transportation is established. The seven-member committee shall hire and oversee the contract with a transportation consulting organization to: (a) Perform an analysis of such impacts; and (b) design a traffic and circulation plan that mitigates the adverse consequences of such impacts. If the city of Seattle does not agree to provide $250,000 by January 1, 2004, the amount provided in this subsection shall lapse.

              (9)(a) $500,000 of the motor vehicle account--state appropriation is provided solely for a study to provide the legislature with information regarding the feasibility of pursuing a Washington commerce corridor. The department shall retain outside experts to conduct the study. The study must include the following conditions:

              (i) The Washington commerce corridor must be a north-south corridor starting in the vicinity of Lewis county and extending northerly to the vicinity of the Canadian border. The corridor must be situated east of state route number 405 and west of the Cascades. The corridor may include any of the following features:

              (A) Ability to carry long-haul freight;

              (B) Ability to provide for passenger auto travel;

              (C) Freight rail;

              (D) Passenger rail;

              (E) Public utilities; and

              (F) Other ancillary facilities as may be desired to maximize use of the corridor;

              (ii) The Washington commerce corridor must be developed, financed, designed, constructed, and operated by private sector consortiums; and

              (iii) The Washington commerce corridor must be subject to a joint permitting process involving federal, state, and local agencies with jurisdiction.

              (b) The legislative transportation committee shall form a working group to work with the department and the outside consultant on the study.

              (10) $8,000,000 of the motor vehicle account--state appropriation is provided for the SR 522, University of Washington-Bothell campus access project. This amount will cover approximately one-half of the construction costs.))

              (11) The transportation permit efficiency and accountability committee (TPEAC) shall select from the project list under ((this)) subsection (1) of this section ten projects that have not yet secured state permits. TPEAC shall select projects from both urban and rural areas representing a wide variety of locations within the state. These projects shall be designated "Department of Transportation Permit Drafting Pilot Projects" and shall become a part of the work plan of TPEAC required under section 2(1)(b), chapter 8 (ESB 5279), Laws of 2003.

              (12) Of the amounts appropriated in this section and section 306 of this act, no more than $124,000 is provided for increased project costs due to the enactment of Substitute Senate Bill No. 5457.

              (((14))) (13) To manage some projects more efficiently, federal funds may be transferred from program Z to program I to replace those federal funds in a dollar-for-dollar match. However, funds may not be transferred between federal programs. Fund transfers authorized under this subsection shall not affect project prioritization status. Appropriations shall initially be allotted as appropriated in this act. The department shall not transfer funds as authorized under this subsection without approval of the transportation commission and the director of financial management. The department shall submit a report on those projects receiving fund transfers to the transportation committees of the senate and house of representatives by December 1, 2004.

              (14) The department shall, on a quarterly basis beginning July 1, 2004, provide to the legislature reports providing the status on each project in the project lists submitted pursuant to this act to LEAP on March 11, 2004, and on any additional projects for which the department has expended funds during the 2003-05 fiscal biennium. The department shall work with the transportation committees of the legislature to agree on report formatting and elements. Elements shall include, but not be limited to, project scope, schedule, and costs. The department shall also provide the information required under this subsection via the transportation executive information systems (TEIS).


              Sec. 304. 2003 1st sp.s. c 26 s 506 (uncodified) is amended to read as follows:

              FOR THE DEPARTMENT OF TRANSPORTATION--PRESERVATION--PROGRAM P

Transportation 2003 Account (Nickel Account). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,000,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($178,909,000))

$204,969,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($457,467,000))

$499,067,000

Motor Vehicle Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,666,000

Multimodal Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,690,000

((Multimodal Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,247,000))

Puyallup Tribal Settlement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$10,625,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($656,979,000))

$731,017,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) (($178,909,000 of the motor vehicle account--state appropriation, $457,467,000 of the motor vehicle account--federal appropriation, $12,666,000 of the motor vehicle account--local appropriation, $1,690,000 of the multimodal transportation account--state appropriation, and $4,247,000 of the multimodal transportation account--federal appropriation are provided solely to implement the activities and projects included in the Legislative 2003 Transportation Project List - Current Law report transmitted to LEAP on April 27, 2003.)) The entire 2003 transportation account (nickel account) appropriation is provided solely for the projects and activities as listed by project, biennium, and amount in the Legislative 2003 Transportation Project List - New Law List under the heading "Nickel Funds" as transmitted to LEAP on March 11, 2004. Limited transfers of allocations between projects may occur for those amounts listed for the 2003-05 biennium subject to conditions and limitations in section 503 of this act.

              (2) $58,681,145 of the motor vehicle account--state appropriation, $30,106,512 of the motor vehicle account--federal appropriation, $7,349,630 of the motor vehicle account--local appropriation, and $10,625,000 of the Puyallup tribal settlement account--state appropriation are provided solely to implement the projects included in the Legislative 2003 Transportation Project List - Current Law List under the heading "Bridge Improvements" as transmitted to LEAP on March 11, 2004. The department shall manage all projects on the list within the overall expenditure authority provided in this subsection.

              (a) Within the amounts provided in this subsection, $1,000,000 of the motor vehicle account--state appropriation is provided solely for the Purdy creek bridge project. The 2005-07 biennium appropriations for this project are expected to be $5,074,000.

              (b) Within the amounts provided in this subsection, $10,625,000 of the Puyallup tribal settlement account--state appropriation is provided solely for mitigation costs associated with the Murray Morgan/11st Street Bridge demolition. The department may negotiate with the city of Tacoma for the purpose of transferring ownership of the Murray Morgan/11th Street Bridge to the city. The department is allowed to use the Puyallup tribal settlement account appropriation, as well as any funds appropriated in the current biennium and planned in future biennia for the demolition and mitigation for the demolition of the bridge to rehabilitate or replace the bridge, if agreed to by the city. In no event will the department's participation exceed $26,500,000 and no funds may be expended unless the city of Tacoma agrees to take ownership of the bridge in its entirety and provide that the payment of these funds extinguishes any real or implied agreements regarding future expenditures on the bridge.

              (3) A maximum of $211,585,010 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation and $1,690,000 of the multimodal account--state appropriation are provided for roadway preservation projects.

              (4) A maximum of $55,336,893 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation is provided for bridge repair projects.

              (5) A maximum of $51,562,422 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation is provided for other facilities preservation projects.

              (6) A maximum of $38,968,540 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation is provided for other preservation projects programmed through the transportation commission's priority programming process.

              (7) A maximum of $56,737,803 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation is provided for direct project support costs, including, but not limited to, direct project support, property management, scenic byways, and other administration.

              (8) $81,147,069 of the motor vehicle account--state appropriation and $173,103,529 of the motor vehicle account--federal appropriation are provided solely for the Hood Canal bridge project.

              (9) The motor vehicle account--state appropriation includes (($2,850,000)) $3,066,000 in proceeds from the sale of bonds authorized in RCW 47.10.761 and 47.10.762 for emergency purposes.

              (((3))) (10) The motor vehicle account--state appropriation includes (($77,700,000)) $77,822,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

              (((4) The entire transportation 2003 account (nickel account) appropriation is provided solely for the projects and activities as indicated in the Legislative 2003 Transportation Project List - New Law report transmitted to LEAP on April 27, 2003.

              (5))) (11) The department of transportation shall continue to implement the lowest life cycle cost planning approach to pavement management throughout the state to encourage the most effective and efficient use of pavement preservation funds. Emphasis should be placed on increasing the number of roads addressed on time and reducing the number of roads past due.

              (((6))) (12) Of the amounts appropriated in this section and section 305 of this act, no more than $124,000 is provided for increased project costs due to the enactment of Substitute Senate Bill No. 5457.

              (((7))) (13) To manage some projects more efficiently, federal funds may be transferred from program Z to program P to replace those federal funds in a dollar-for-dollar match. However, funds may not be transferred between federal programs. Fund transfers authorized under this subsection shall not affect project prioritization status. Appropriations shall initially be allotted as appropriated in this act. The department shall not transfer funds as authorized under this subsection without approval of the transportation commission and the director of financial management. The department shall submit a report on those projects receiving fund transfers to the transportation committees of the senate and house of representatives by December 1, 2004.

              (14) The department shall, on a quarterly basis beginning July 1, 2004, provide to the legislature reports providing the status on each project in the project lists submitted pursuant to this act to LEAP on March 11, 2004, and on any additional projects for which the department has expended funds during the 2003-05 fiscal biennium. The department shall work with the transportation committees of the legislature to agree on report formatting and elements. Elements shall include, but not be limited to, project scope, schedule, and costs. The department shall also provide the information required under this subsection via the transportation executive information systems (TEIS).


              Sec. 305. 2003 c 360 s 308 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--WASHINGTON STATE FERRIES CONSTRUCTION--PROGRAM W

Puget Sound Capital Construction Account-State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($129,066,000))

$108,427,000

Puget Sound Capital Construction Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($34,400,000))

$69,881,000

Puget Sound Capital Construction Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $249,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($13,381,000))

$11,977,000

Transportation 2003 Account (nickel account) Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,749,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($182,596,000))

$196,283,000


              The appropriations in this section are provided for improving the Washington state ferry system, including, but not limited to, vessel construction, major and minor vessel ((improvements)) preservation, and terminal preservation, construction, and improvements. The appropriations in this section are subject to the following conditions and limitations:

              (1) The multimodal transportation account--state appropriation includes $11,772,000 in proceeds from the sale of bonds authorized by Senate Bill No. 6062. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

              (2) (($129,066,000 of the Puget Sound capital construction account--state appropriation and $34,400,000 of the Puget Sound capital construction account--federal appropriation are provided solely for capital projects as listed in the Legislative 2003 Transportation Project List - Current Law as transmitted to the LEAP on April 27, 2003.

              (3) $17,521,000 of the transportation 2003 account (nickel account)--state appropriation is provided solely for capital projects as listed in the Legislative 2003 Transportation Project List - New Law as transmitted to the LEAP on April 27, 2003.

              (4))) $108,427,000 of the Puget Sound capital construction account--state appropriation, $69,881,000 of the Puget Sound capital construction account--federal appropriation, $249,000 of the Puget Sound capital construction account--local appropriation, and $205,000 of the multimodal transportation account--state appropriation are provided for ferry construction projects. The department shall report against the Legislative 2003 Transportation Project List - Current Law transmitted to LEAP on March 11, 2004. The department shall report quarterly on project delivery and expenditures.

              (a) Within the amounts provided in this subsection, a maximum of $58,412,000 of the Puget Sound capital construction account--state appropriation, $21,362,000 of the Puget Sound capital construction account--federal appropriation, and $249,000 of the Puget Sound capital construction account--local appropriation are provided for terminal projects.

              (b) Within the amounts provided in this subsection, a maximum of $44,765,000 of the Puget Sound capital construction account--state appropriation, $48,432,000 of the Puget Sound capital construction account--federal appropriation, and $205,000 of the multimodal transportation account--state appropriation are provided for vessel projects.

              (c) Within the amounts provided in this subsection, $5,250,000 of the Puget Sound capital construction account--state appropriation and $87,000 of the Puget Sound capital construction account--federal appropriation are provided for emergency repair projects. Additionally, unused funds under (a) and (b) of this subsection, may be transferred to emergency repair projects.

              (3) $11,772,000 of the multimodal transportation account--state appropriation and $5,749,000 of the transportation 2003 (nickel) account--state appropriation are provided solely for the projects and activities as listed by project, biennium, and amount in the Legislative 2003 Transportation Project List - New Law transmitted to LEAP on March 11, 2004. The department shall, on a quarterly basis, provide to the legislature status reports on each project in the Legislative 2003 Transportation Project List - New Law. The department is to work with the legislature to agree on report formatting and elements. Elements shall include, but are not limited to, project schedule and project costs.

              (4) $300,000 of the Puget Sound capital construction account--state appropriation is provided solely for a study of alternatives to relocating the Keystone Terminal. The study team shall consist of seven members. All members of the study team shall be selected by June 1, 2004. The transportation commission shall select the following study team members: One Washington state ferry pilot, two members of the traveling public that use the Keystone to Port Townsend route on a regular basis, one tug pilot, and three department staff members, two of whom work for the Washington state ferry system program. The department shall issue a request for proposals on behalf of the study team for an outside consulting firm to conduct the study. The consulting firm shall meet with the study team periodically. The study will include, but is not limited to the following topics regarding the existing terminal: (a) The costs and benefits associated with preserving and maintaining the terminal, including enlarging the harbor and dredging; (b) ridership projections associated with preserving and maintaining the current terminal; (c) maintaining and retrofitting existing vessels so they can serve the terminal; (d) coordinating the impact of vehicles using the ferry run with highway capacity; (e) how many, if any, new vessels should be constructed; and (f) the impact on the environment. The study group and consultant must report back to the legislative transportation committee no later than December 1, 2004. This report must include alternative scenarios to relocating the Keystone Terminal.

              (5) The Puget Sound capital construction account--state appropriation includes (($45,000,000)) $29,385,000 in proceeds from the sale of bonds authorized by RCW 47.10.843 for vessel and terminal acquisition, major and minor improvements, and long lead time materials acquisition for the Washington state ferries. The transportation commission may authorize the use of current revenues available to the motor vehicle account in lieu of bond proceeds for any part of the state appropriation.

              (((5))) (6) The Washington state ferries shall consult with the United States Coast Guard regarding operational and design standards required to meet Safety of Life at Sea requirements, in an effort to determine the most efficient and cost-effective vessel design that meets these requirements.


              Sec. 306. 2003 1st sp.s. c 26 s 508 (uncodified) is amended to read as follows:

              FOR THE DEPARTMENT OF TRANSPORTATION--RAIL--PROGRAM Y--CAPITAL

Essential Rail Assistance Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$770,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$34,530,000

Multimodal Transportation Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$9,499,000

Washington Fruit Express Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $45,299,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The multimodal transportation account--state appropriation includes $30,000,000 in proceeds from the sale of bonds authorized by Senate Bill No. 6062. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

              (2) $4,530,000 of the multimodal transportation account--state appropriation, $9,499,000 of the multimodal transportation account--federal appropriation, $500,000 of the Washington fruit express account--state appropriation, and $770,000 of the essential rail assistance account--state appropriation are provided solely for capital projects as listed in the Legislative 2003 Transportation Project List - Current Law as transmitted to the LEAP on ((April 27, 2003)) March 11, 2004.

              (3) $1,230,000 of the multimodal transportation account--state appropriation and $770,000 of the essential rail assistance account--state appropriation is to be placed in reserve status by the office of financial management to be held until the department identifies the location for a new transload facility at either Wenatchee or Quincy. The funds are to be released upon determination of a location and approval by the office of financial management.

              (4) $30,000,000 of the multimodal transportation account--state appropriation is provided solely for capital projects as listed in the Legislative 2003 Transportation Project List - New Law as transmitted to the LEAP on ((April 27, 2003)) March 11, 2004.

              (5) If federal block grant funding for freight or passenger rail is received, the department shall consult with the legislative transportation committee prior to spending the funds on additional projects.

              (6) If the department issues a call for projects, applications must be received by the department by November 1, 2003, and November 1, 2004.

              (7) The department may not execute the Palouse River & Coulee City Rail purchase until the chairs of the transportation committees of the legislature have reviewed, and the office of financial management has approved, a business plan that demonstrates the long term financial viability of state-owned, privately operated short rail service. The office of financial management shall issue to the chairs of the transportation committees of the legislature a report outlining reasons for the acceptance or rejection of the plan.


              Sec. 307. 2003 c 360 s 310 (uncodified) is amended to read as follows:

              FOR THE DEPARTMENT OF TRANSPORTATION--LOCAL PROGRAMS--PROGRAM Z--CAPITAL

Highway Infrastructure Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $207,000

Highway Infrastructure Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,602,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($28,425,000))

$21,826,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,000,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($13,726,000))

$15,226,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($43,960,000))

$39,861,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $6,000,000 of the multimodal transportation account--state appropriation is provided solely for the projects and activities as indicated in the Legislative 2003 Transportation Project List - New Law Local Projects report transmitted to LEAP on April 27, 2003.

              (2) To manage some projects more efficiently, federal funds may be transferred from program Z to programs I and P and state funds shall be transferred from programs I and P to program Z to replace those federal funds in a dollar-for-dollar match. However, funds may not be transferred between federal programs. Fund transfers authorized under this subsection shall not affect project prioritization status. Appropriations shall initially be allotted as appropriated in this act. The department may not transfer funds as authorized under this subsection without approval of the transportation commission. The department shall submit a report on those projects receiving fund transfers to the transportation committees of the senate and house of representatives by December 1, 2004.

              (3) $7,576,000 of the multimodal transportation account--state appropriation is reappropriated and provided solely to fund the first phase of a multiphase cooperative project with the state of Oregon to dredge the Columbia River. If dredge material is disposed of in the ocean, the department shall not expend the appropriation in this subsection unless agreement on ocean disposal sites has been reached that protects the state's commercial crab fishery. The amount provided in this subsection shall lapse unless the state of Oregon appropriates a dollar-for-dollar match to fund its share of the project.

              (4) (($1,156,000)) $647,000 of the motor vehicle account--state appropriation is reappropriated and provided solely for additional small city pavement preservation program grants, to be administered by the department's highways and local programs division. The department shall review all projects receiving grant awards under this program at least semiannually to determine whether the projects are making satisfactory progress. Any project that has been awarded small city pavement preservation program grant funds, but does not report activity on the project within one year of grant award, should be reviewed by the department to determine whether the grant should be terminated. The department must promptly close out grants when projects have been completed, and identify where unused grant funds remain because actual project costs were lower than estimated in the grant award. The department shall expeditiously extend new grant awards to qualified projects when funds become available either because grant awards have been rescinded for lack of sufficient project activity or because completed projects returned excess grant funds upon project closeout.

              (5) (($4,010,000)) $3,156,000 of the motor vehicle account--state appropriation is reappropriated and provided solely for additional traffic and pedestrian safety improvements near schools. The highways and local programs division within the department of transportation shall administer this program. The department shall review all projects receiving grant awards under this program at least semiannually to determine whether the projects are making satisfactory progress. Any project that has been awarded traffic and pedestrian safety improvement grant funds, but does not report activity on the project within one year of grant award should be reviewed by the department to determine whether the grant should be terminated. The department must promptly close out grants when projects have been completed, and identify where unused grant funds remain because actual project costs were lower than estimated in the grant award. The department shall expeditiously extend new grant awards to qualified projects when funds become available either because grant awards have been rescinded for lack of sufficient project activity or because completed projects returned excess grant funds upon project closeout.

              (6) The motor vehicle account--state appropriation includes (($20,452,000)) $15,317,000 in unexpended proceeds from the sale of bonds authorized by RCW 47.10.843.

              (7) The multimodal transportation account--state appropriation includes $6,000,000 in proceeds from the sale of bonds authorized by Senate Bill No. 6062. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

              (8) $500,000 of the multimodal account--state appropriation is provided solely to complete the engineering and permitting necessary to implement the Skagit county flood control project.

              (9) $1,000,000 of the multimodal transportation account--state appropriation is provided solely to support the safe routes to school program.


TRANSFERS AND DISTRIBUTIONS


              Sec. 401. 2003 c 360 s 401 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALES DISCOUNTS AND DEBT TO BE PAID BY MOTOR VEHICLE ACCOUNT AND TRANSPORTATION FUND REVENUE

Highway Bond Retirement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($258,971,000))

$250,000,000

Nondebt-Limit Reimbursable Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,131,000

Ferry Bond Retirement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $43,340,000

Transportation Improvement Board Bond Retirement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . $36,721,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,876,000))

$5,254,000

Special Category C Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($331,000))

$338,000

Transportation Improvement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$240,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $358,000

Transportation 2003 Account (nickel account) Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,100,000))

$2,117,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($350,068,000))

$342,499,000


              Sec. 402. 2003 c 360 s 402 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES AND FISCAL AGENT CHARGES

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,293,000

Special Category C Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$111,000

Transportation Improvement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($5,000))

$21,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $119,000

Transportation 2003 Account (nickel account)--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $700,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,228,000))

$2,244,000


              Sec. 403. 2003 c 360 s 403 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR MVFT BONDS AND TRANSFERS

              (1) Motor Vehicle Account--State Reappropriation:

For transfer to the Tacoma Narrows toll bridge account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$567,000,000


              The department of transportation is authorized to sell up to $567,000,000 in bonds authorized by RCW 47.10.843 for the Tacoma Narrows bridge project. Proceeds from the sale of the bonds shall be deposited into the motor vehicle account. The department of transportation shall inform the treasurer of the amount to be deposited.


              (2) Motor Vehicle Account--State Appropriation:

For transfer to the Puget Sound capital construction account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($45,000,000))

$29,385,000


              The department of transportation is authorized to sell up to $45,000,000 in bonds authorized by RCW 47.10.843 for vessel and terminal acquisition, major and minor improvements, and long lead-time materials acquisition for the Washington state ferries.


              Sec. 404. 2003 c 360 s 404 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--STATE REVENUES FOR DISTRIBUTION

              Motor Vehicle Account Appropriation for motor vehicle fuel tax distributions to

cities and counties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($441,359,000))

$440,228,000

              Motor Vehicle Account--State Appropriation:

For license permit and fee distributions to cities and counties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($51,652,000))

$13,119,000


              Sec. 405. 2003 c 360 s 405 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--TRANSFERS

              (1) State Patrol Highway Account--State Appropriation: For transfer to the Motor

Vehicle Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($20,000,000))

$15,000,000

              (2) Motor Vehicle Account--State Appropriation: For motor vehicle fuel tax

refunds and transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($465,152,000))

$770,347,000

              (3) Highway Safety Account--State Appropriation: For transfer to the motor

vehicle account--state. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($12,000,000))

$22,000,000


              The state treasurer shall perform the transfers from the state patrol highway account and the highway safety account to the motor vehicle account on a quarterly basis.


              Sec. 406. 2003 c 360 s 406 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--TRANSFERS

              (1) Motor Vehicle Account--State Appropriation:

For transfer to Puget Sound Ferry Operations Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$21,757,000

              (2) RV Account--State Appropriation:

For transfer to the Motor Vehicle Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,954,000

              (3) Motor Vehicle Account--State Appropriation:

For transfer to Puget Sound Capital Construction Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($64,287,000))

$58,287,000

              (4) Puget Sound Ferry Operations Account--State Appropriation: For transfer to Puget

Sound Capital Construction Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$22,000,000

              (5) Transportation Equipment Fund--State Appropriation: For transfer to the Motor Vehicle

Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,000,000

              (6) Advanced Right-of-Way Revolving Account--State Appropriation: For transfer to the

Motor Vehicle Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,000,000


              The transfers identified in this section are subject to the following conditions and limitations:

              (a) The department of transportation shall only transfer funds in subsections (2) and (3) of this section up to the level provided, on an as-needed basis.

              (b) The department of transportation shall transfer funds in subsection (4) of this section up to the amount identified, provided that a minimum balance of $5,000,000 is retained in the Puget Sound ferry operations account.

              (c) The amount identified in subsection (4) of this section may not include any revenues collected as passenger fares.


              Sec. 407. 2003 c 360 s 407 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF RETIREMENT SYSTEMS--TRANSFERS

              State Patrol Highway Account: For transfer to the department of retirement systems

expense account:

For the administrative expenses of the ((judicial)) Washington state patrol retirement system. . . . . . . . . . . . . . . (($223,304))

$290,000


MISCELLANEOUS


              Sec. 501. RCW 70.94.996 and 2003 c 364 s 9 are each amended to read as follows:

              (1) To the extent that funds are appropriated, the department of transportation shall administer a performance-based grant program for private employers, public agencies, nonprofit organizations, developers, and property managers who provide financial incentives for ride sharing in vehicles carrying two or more persons, for using public transportation, for using car sharing, or for using nonmotorized commuting, including telework, before July 1, 2013, to their own or other employees.

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

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

              (4) The total of grants provided under this section may not exceed seven hundred fifty thousand dollars in any fiscal year. However, this subsection does not apply during the 2003-2005 fiscal biennium.

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

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

              (7) This section expires January 1, 2014.


              NEW SECTION. Sec. 502. A new section is added to 2003 c 360 (uncodified) to read as follows:

              The department is given the authority to provide up to $3,000,000 in toll credits to Kitsap transit for its role in new passenger-only ferry service. The number of toll credits provided to Kitsap transit must be equal to, but no more than, a number sufficient to meet federal match requirements for grant funding for passenger-only ferry service, but shall not exceed the amount authorized under this section.


              NEW SECTION. Sec. 503. A new section is added to 2003 c 360 (uncodified) to read as follows:

              (1) The transportation commission may authorize a transfer of spending allocation within the appropriation provided and between projects as listed in the Legislative 2003 Transportation Project List - New Law to manage project spending near biennial cutoffs under the following conditions and limitations:

              (a) Transfers from a project may be made if the funds allocated to the project are in excess of the amount needed to complete the project, but transfers may only be made in the biennium in which the savings occur;

              (b) Transfers from a project may not be made as a result of the reduction of the scope of a project, nor shall a transfer be made to support increases in the scope of a project;

              (c) Transfers may be made within the current biennium from projects that are experiencing unavoidable expenditure delays, but the transfers may only occur if the commission finds that any resulting change to the nickel program financial plan provides that all projects on the list may be completed as intended by the legislature;

              (d) Transfers may not occur to projects not identified on the list; and

              (e) Transfers may not occur if they are for the purpose of advancing or delaying project milestones.

              (2) The legislature reserves the authority to: (a) Authorize transfer of spending allocation to adjust legislatively approved milestones; (b) increase or diminish the scope of a project; (c) provide for new projects; and (d) address significant project cost overruns.

              (3) For the purposes of this section, "project milestones" means the initiation of major project phases including preliminary design, right of way, project advertisement date, or other significant project management decisions.


              NEW SECTION. Sec. 504. A new section is added to 2003 c 360 (uncodified) to read as follows:

              It is the intent of the legislature that the freight mobility account created in Substitute Senate Bill No. 6680 maintain a zero or positive cash balance at the end of each biennium. Toward this purpose the Washington state department of transportation may make expenditures from the account before receiving reimbursements. Before the end of the biennium, the department shall transfer sufficient cash to cover any negative cash balances from the motor vehicle fund and the multimodal transportation account to the freight mobility account for unrecovered reimbursements. The department shall calculate the distribution of this transfer based on expenditures. In the ensuing biennium the department shall transfer the reimbursements received in the freight mobility account back to the motor vehicle fund and the multimodal transportation account to the extent of the cash transferred at biennium end. The department shall also distribute any interest charges accruing to the freight mobility account to the motor vehicle fund and the multimodal transportation account. Adjustments for any indirect cost recoveries may also be made at this time.


              NEW SECTION. Sec. 505. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.


              NEW SECTION. Sec. 506. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.


              On page 1, line 1 of the title, after "appropriations;" strike the remainder of the title and insert "amending RCW 70.94.996; amending 2003 1st sp.s. c 26 ss 506 and 508 (uncodified); amending 2003 c 360 ss 102, 202, 203, 204, 206, 207, 208, 209, 210, 211, 212, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 226, 227, 301, 303, 305, 308, 310, 401, 402, 403, 404, 405, 406, and 407 (uncodified); adding new sections to 2003 c 360 (uncodified); and declaring an emergency."


and the same is herewith transmitted.

Milt H. Doumit, Secretary


             There being no objection, the House refused to concur in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2474 and asked the Senate to recede therefrom.


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


SECOND READING


             ENGROSSED SENATE BILL NO. 6737, By Senators Hewitt and Honeyford


             Changing provisions relating to distribution of liquor.


             The bill was read the second time.


             Representative Conway moved the adoption of the following amendment (1214):


              On page 1, beginning on line 4, strike all of sections 1 and 2.


              Renumber the remaining section.


              On page 7, after line 18, insert the following:


              "NEW SECTION. Sec. 2. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."


              Correct the title.


             Representative Conway spoke in favor of adoption of the amendment.


             The amendment was adopted.


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


             Representatives Conway and Condotta spoke in favor of passage of the bill.


MOTIONS


             On motion of Representative Santos, Representative Edwards was excused. On motion of Representative Woods, Representative Hinkle was excused.


             The Speaker stated the question before the House to be the final passage of Engrossed Senate Bill No. 6737, as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Senate Bill No. 6737, as amended by the House, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

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

             Excused: Representatives Edwards and Hinkle - 2.


             ENGROSSED SENATE BILL NO. 6737, as amended by the House, having received the necessary constitutional majority, was declared.


MESSAGES FROM THE SENATE

March 11, 2004

Mr. Speaker:


             The Senate has passed:

SUBSTITUTE HOUSE BILL NO. 1322,

SUBSTITUTE HOUSE BILL NO. 1328,

HOUSE BILL NO. 2615,

SUBSTITUTE HOUSE BILL NO. 2904,

ENGROSSED HOUSE BILL NO. 2968,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


March 11, 2004

Mr. Speaker:


             The Senate has passed HOUSE BILL NO. 2537, and the same is herewith transmitted.

Milt H. Doumit, Secretary


SIGNED BY THE SPEAKER

             The Speaker signed:

SUBSTITUTE HOUSE BILL NO. 1322,

SUBSTITUTE HOUSE BILL NO. 1328,

HOUSE BILL NO. 2537,

HOUSE BILL NO. 2615,

SUBSTITUTE HOUSE BILL NO. 2904,

ENGROSSED HOUSE BILL NO. 2968,


SENATE AMENDMENTS TO HOUSE BILL

March 11, 2004

Mr. Speaker:


             The Senate has passed ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2518, with the following amendment:


              Strike everything after the enacting clause and insert the following:


              "NEW SECTION. Sec. 1. A new section is added to chapter 82.16 RCW to read as follows:

              (1) For the purposes of this section:

              (a) "Chlor-alkali electrolytic processing business" means a person who is engaged in a business that uses more than ten average megawatts of electricity per month in a chlor-alkali electrolytic process to split the electrochemical bonds of sodium chloride and water to make chlorine and sodium hydroxide. A "chlor-alkali electrolytic processing business" does not include direct service industrial customers or their subsidiaries that contract for the purchase of power from the Bonneville power administration as of the effective date of this section.

              (b) "Sodium chlorate electrolytic processing business" means a person who is engaged in a business that uses more than ten average megawatts of electricity per month in a sodium chlorate electrolytic process to split the electrochemical bonds of sodium chloride and water to make sodium chlorate and hydrogen. A "sodium chlorate electrolytic processing business" does not include direct service industrial customers or their subsidiaries that contract for the purchase of power from the Bonneville power administration as of the effective date of this section.

              (2) Effective July 1, 2004, the tax levied under this chapter does not apply to sales of electricity made by a light and power business to a chlor-alkali electrolytic processing business or a sodium chlorate electrolytic processing business for the electrolytic process if the contract for sale of electricity to the business contains the following terms:

              (a) The electricity to be used in the electrolytic process is separately metered from the electricity used for general operations of the business;

              (b) The price charged for the electricity used in the electrolytic process will be reduced by an amount equal to the tax exemption available to the light and power business under this section; and

              (c) Disallowance of all or part of the exemption under this section is a breach of contract and the damages to be paid by the chlor-alkali electrolytic processing business or the sodium chlorate electrolytic processing business are the amount of the tax exemption disallowed.

              (3) The exemption provided for in this section does not apply to amounts received from the remarketing or resale of electricity originally obtained by contract for the electrolytic process.

              (4) In order to claim an exemption under this section, the chlor-alkali electrolytic processing business or the sodium chlorate electrolytic processing business must provide the light and power business with an exemption certificate in a form and manner prescribed by the department.

              (5)(a) This section does not apply to sales of electricity made after December 31, 2010.

              (b) This section expires June 30, 2011.


              NEW SECTION. Sec. 2. A new section is added to chapter 82.32 RCW to read as follows:

              (1) For the purposes of this section, "electrolytic processing business tax exemption" means the exemption and preferential tax rate under section 1 of this act.

              (2) 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 to evaluate whether the stated goals of legislation were achieved.

              (3) The goals of the electrolytic processing business tax exemption are:

              (a) To retain family wage jobs by enabling electrolytic processing businesses to maintain production of chlor-alkali and sodium chlorate at a level that will preserve at least seventy-five percent of the jobs that were on the payroll effective January 1, 2004; and

              (b) To allow the electrolytic processing industries to continue production in this state through 2011 so that the industries will be positioned to preserve and create new jobs when the anticipated reduction of energy costs occur.

              (4)(a) A person who receives the benefit of an electrolytic processing business tax exemption 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 is due by March 31st following any year in which a tax exemption is claimed or used. The report shall not include names of employees. The report shall detail employment by the total number of full-time, part-time, and temporary positions. The report shall indicate the quantity of product produced at the plant during the time period covered by the report. 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 tax exemption. Employment reports shall include data for actual levels of employment and identification of the number of jobs affected by any employment reductions that have been publicly announced at the time of the report. Information in a report under this section 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 by the due date of the report, the department shall declare the amount of taxes exempted for that year to be immediately due and payable. Public utility taxes payable under this subsection are subject to interest but not penalties, 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.

              (5) By December 1, 2007, and by December 1, 2010, 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 the tax incentive under section 1 of this act. The report shall measure the effect of the incentive on job retention for Washington residents, and other factors as the committees select. The report shall also discuss expected trends or changes to electricity prices as they affect the industries that benefit from the incentives."


and the same is herewith transmitted.

Milt H. Doumit, Secretary


             There being no objection, the House concurred in the Senate amendment to ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2518 and advanced the bill, as amended by the Senate, to final passage.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


             Representatives McIntire and Crouse spoke in favor the passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Second Substitute House Bill No. 2518, as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 2518, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 92, Nays - 4, Absent - 0, Excused - 2.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Eickmeyer, Ericksen, Flannigan, Fromhold, Grant, Haigh, Hankins, Hatfield, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Morrell, Morris, Murray, Newhouse, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Rockefeller, Rodne, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, D. Simpson, G. Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 92.

             Voting nay: Representatives Chase, Moeller, Nixon and Tom - 4.

             Excused: Representatives Edwards and Hinkle - 2.

  

             ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2518, as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL

March 11, 2004

Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2459, with the following amendment:


              Strike everything after the enacting clause and insert the following:


"PART I

GENERAL GOVERNMENT


              Sec. 101. 2003 1st sp.s. c 25 s 101 (uncodified) is amended to read as follows:

FOR THE HOUSE OF REPRESENTATIVES

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $28,109,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($28,233,000))

$28,308,000

Department of Retirement Systems Expense Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $45,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($56,387,000))

$56,462,000


              The appropriations in this section are subject to the following conditions and limitations: $25,000 of the general fund--state appropriation is provided for allocation to Project Citizen, a program of the national conference of state legislatures to promote student civic involvement.


              Sec. 102. 2003 1st sp.s. c 25 s 102 (uncodified) is amended to read as follows:

FOR THE SENATE

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,001,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($23,173,000))

$23,248,000

Department of Retirement Systems Expense Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $45,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($45,219,000))

$45,294,000


              The appropriations in this section are subject to the following conditions and limitations: $25,000 of the general fund--state appropriation is provided for allocation to Project Citizen, a program of the national conference of state legislatures to promote student civic involvement.


              Sec. 103. 2003 1st sp.s. c 25 s 103 (uncodified) is amended to read as follows:

FOR THE JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEE

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,627,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,717,000))

$2,242,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,344,000))

$3,869,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $150,000 of the state general fund appropriation for fiscal year 2005 is provided for a performance audit of the policies and practices of the state wildfire suppression program. Annual fire suppression costs averaged $11,000,000 for the ten years ending with fiscal year 2001, yet have increased to an average of $31,000,000 per year for fiscal years 2002, 2003, and 2004. The legislature realizes that overall forest health issues may contribute to some of this increase, but the legislature intends to evaluate the full range of causes for such large increases in fire suppression costs. The performance audit shall include, but not be limited to:

              (a) A review of how current fire suppression practices comply with the policies and intent of chapter 76.04 RCW;

              (b) An examination of the factors that are contributing to the recent increase in the cost of fire suppression. The examination shall include a review of changes in the use of high-cost equipment and services; changes in the level of reimbursement for contractors and employees; changes in the use of permanent agency employees for fire suppression compared to the use of temporary employees, inmate labor, and contractors; and changes in other significant costs. The examination shall include an analysis of how the respective responsibilities of various state agencies, local fire districts, and federal agencies are used to determine cost allocation among the responsible agencies;

              (c) An examination of how the department of natural resources determines the proportion of fire suppression costs charged to private parties and the landowners contingency account; and

              (d) Any findings and recommendations from the state auditor's office related to fire suppression costs.

              A final report of the performance audit shall be provided to the appropriate fiscal and policy committees of the legislature by June 30, 2005.

              (2) $50,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for a study of state and national trends for prevalence of developmental disabilities including autism, mental retardation, cerebral palsy, and other major developmental disabilities. The study shall include but not be limited to a review of:

              (a) Epidemiological studies on the causes of developmental disabilities;

              (b) On-going population-based surveillance being conducted in other states;

              (c) Genetic and environmental factors that may be contributing to an increase in developmental disabilities; and

              (d) Data sources specific to Washington state.

              A report shall be submitted to the appropriate committees of the legislature by December 1, 2004.

              (3) $25,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for a study of the distribution of gambling revenues in Washington and other states. The study shall include, but not necessarily be limited to, a survey of the types of gambling allowed by state, local, and tribal governments; the types of revenues from gambling, such as fees, taxation, and revenue sharing; and the distribution to state, local, and tribal governments of those revenues. The committee shall report the study findings to the appropriate policy and fiscal committees of the legislature no later than December 1, 2004.

              (4) $25,000 of the fiscal year 2005 general fund--state appropriation is provided solely for a study evaluating the state's current rules related to the licensing and testing requirements for heating, ventilation and air conditioning contractors and installers. The study shall develop recommendations for modifications in licensing and testing requirements.

              (5) $100,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the joint legislative audit and review committee and the state auditor's office to conduct a legal and financial review of alternative learning experience programs under WAC 392-121-182. The joint legislative audit and review committee shall be the lead agency in conducting the review. Prior to undertaking this review, the joint legislative audit and review committee and the state auditor's office shall develop a mutually acceptable work plan for conducting the review, detailing the roles and responsibilities of the two agencies and the topics to be covered in the review. The topics should include, but not be limited to: (a) Numbers of students served, variations in program types, and funding patterns for alternative learning experience programs, including digital curriculum and online courses; (b) the adequacy of current rules, regulations, and procedures to safeguard against the misuse of public resources based on any deficiencies identified in the state auditor's audit of alternative learning experience programs due to be completed in May 2004; (c) identification of policy and administrative options to address and correct such identified deficiencies; and (d) the potential fiscal impacts of any proposed options for changes to alternative learning experience programs. The staff of the joint legislative audit and review committee shall work with fiscal staff of the senate, the house of representatives, and the office of financial management in identifying these potential fiscal impacts. The joint legislative audit and review committee shall provide an interim report by February 1, 2005, and a final report by July 1, 2005, of its findings and recommendations to the appropriate policy and fiscal committees of the legislature. School districts are authorized to operate digital learning curriculum and/or online courses of study under current district procedures and practices until June 30, 2005.

              (6) $25,000 of the general fund--state appropriation for fiscal year 2005 is provided solely to study current and potential methods of bidding and purchasing school buses for home-to-school transportation. The purpose of the study is to recommend methods and systems for obtaining competitive prices for state reimbursement purposes and for district purchasing purposes while at the same time allowing local school district control over decisions concerning the management of pupil transportation systems and the make-up of bus fleets. The study shall examine bidding and purchasing methods and procedures used in other states and compare the results of those methods with the results of current and past methods employed by the office of the superintendent of public instruction, purchasing organizations, and school districts in this state. A preliminary report, including recommendations, shall be available by December 2004.

              (7) $150,000 of the general fund--state appropriation for fiscal year 2005 is provided solely to implement Third Engrossed Substitute House Bill No. 1053 (government accountability). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              Sec. 104. 2003 1st sp.s. c 25 s 104 (uncodified) is amended to read as follows:

FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEE

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,656,000))

$1,631,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,799,000))

$1,774,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,455,000))

$3,405,000


              ((The appropriations in this section are subject to the following conditions and limitations: $25,000 of the general fund--state appropriation for fiscal year 2004 and $25,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the legislative evaluation and accountability program committee, in consultation with the economic and revenue forecast council, to establish and maintain a set of economic indicators that could be used for adjusting the statewide salary schedule by a regional cost-of-living index. The economic indicators to be included in this index include but are not limited to the median cost of housing.

              (1) In developing the regional cost-of-living index, the legislative evaluation and accountability program committee shall collect data on the economic activity comprising the cost-of-living indexes for geographic areas of the state coterminous with the boundaries of the nine educational service districts established under RCW 28A.310.010.

              (2) Not later than July 1, 2004, the legislative evaluation and accountability program committee shall submit the regional cost-of-living index to an advisory committee for its review. The advisory committee shall be appointed by the governor and shall consist of one member representing the office of financial management, one member representing the employment security department, one member representing the office of the superintendent of public instruction, and three representatives of the private sector having demonstrated expertise in regional economics. The advisory committee shall not receive compensation for performance of its duties but may be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

              (3) Not later than October 1, 2004, the advisory committee created under this section shall submit to the director of the legislative evaluation and accountability program committee written comment on the proposed regional cost-of-living index. The written comment may include recommendations for revision to the index or its components.))


              Sec. 105. 2003 1st sp.s. c 25 s 109 (uncodified) is amended to read as follows:

FOR THE SUPREME COURT

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($5,462,000))

$5,475,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($5,665,000))

$5,720,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($11,127,000))

$11,195,000


              Sec. 106. 2003 1st sp.s. c 25 s 110 (uncodified) is amended to read as follows:

FOR THE LAW LIBRARY

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,045,000))

$2,049,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,050,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($4,095,000))

$4,099,000


              Sec. 107. 2003 1st sp.s. c 25 s 111 (uncodified) is amended to read as follows:

FOR THE COURT OF APPEALS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($12,510,000))

$12,523,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($12,747,000))

$12,931,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($25,257,000))

$25,454,000


              Sec. 108. 2003 1st sp.s. c 25 s 113 (uncodified) is amended to read as follows:

FOR THE ADMINISTRATOR FOR THE COURTS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($17,295,000))

$17,374,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($17,340,000))

$18,036,000

Public Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($43,389,000))

$43,534,000

Judicial Information Systems Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($27,903,000))

$31,803,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($105,927,000))

$110,747,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The judicial information systems account appropriation shall be used for the operations and maintenance of technology systems that improve services provided by the supreme court, the court of appeals, the office of public defense, and the administrator for the courts.

              (2) $750,000 of the general fund--state appropriation for fiscal year 2004 and $750,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for court-appointed special advocates in dependency matters. The administrator for the courts, after consulting with the association of juvenile court administrators and the association of court-appointed special advocate/guardian ad litem programs, shall distribute the funds to volunteer court-appointed special advocate/guardian ad litem programs. The distribution of funding shall be based on the number of children who need volunteer court-appointed special advocate representation and shall be equally accessible to all volunteer court-appointed special advocate/guardian ad litem programs. The administrator for the courts shall not retain more than six percent of total funding to cover administrative or any other agency costs.

              (3) (($12,572,000)) $16,172,000 of the judicial information systems account--state appropriation is provided solely for improvements and enhancements to the judicial information system. ((This funding shall only be expended after the office of the administrator for the courts certifies to the office of financial management that there will be at least a $1,000,000 ending fund balance in the judicial information systems account at the end of the 2003-05 biennium.)) Of this amount, $1,100,000 is provided solely for disaster recovery planning, equipment, and testing for the judicial information system.

              (4) $3,000,000 of the public safety and education account--state appropriation is provided solely for school district petitions to juvenile court for truant students as provided in RCW 28A.225.030 and 28A.225.035. The office of the administrator for the courts shall develop an interagency agreement with the office of the superintendent of public instruction to allocate the funding provided in this subsection. Allocation of this money to school districts shall be based on the number of petitions filed.

              (5) $13,224,000 of the public safety and education account--state appropriation is provided solely for distribution to county juvenile court administrators to fund the costs of processing truancy, children in need of services, and at-risk youth petitions. The office of the administrator for the courts shall not retain any portion of these funds to cover administrative costs. The office of the administrator for the courts, in conjunction with the juvenile court administrators, shall develop an equitable funding distribution formula. The formula shall neither reward counties with higher than average per-petition processing costs nor shall it penalize counties with lower than average per-petition processing costs.

              (6) The distributions made under subsection (6) of this section and distributions from the county criminal justice assistance account made pursuant to section 801 of this act constitute appropriate reimbursement for costs for any new programs or increased level of service for purposes of RCW 43.135.060.

              (7) Each fiscal year during the 2003-05 fiscal biennium, each county shall report the number of petitions processed and the total actual costs of processing truancy, children in need of services, and at-risk youth petitions. Counties shall submit the reports to the ((department)) administrator for the courts no later than 45 days after the end of the fiscal year. The ((department)) administrator for the courts shall electronically transmit this information to the chairs and ranking minority members of the house of representatives appropriations committee and the senate ways and means committee no later than 60 days after a fiscal year ends. These reports are deemed informational in nature and are not for the purpose of distributing funds.

              (8) $813,000 of the general fund--state appropriation for fiscal year 2004 and $762,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for billing and related costs for the office of the administrator for the courts pursuant to Engrossed Substitute Senate Bill No. 5990 (supervision of offenders).

              (9) $1,800,000 of the public safety and education account appropriation is provided solely for distribution to the county clerks for the collection of legal financial obligations pursuant to Engrossed Substitute Senate Bill No. 5990 (supervision of offenders). The funding shall be distributed by the office of the administrator for the courts to the county clerks in accordance with the funding formula determined by the Washington association of county officials pursuant to Engrossed Substitute Senate Bill No. 5990 (supervision of offenders).


              Sec. 109. 2003 1st sp.s. c 25 s 114 (uncodified) is amended to read as follows:

FOR THE OFFICE OF PUBLIC DEFENSE

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$666,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$884,000

Public Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($12,395,000))

$12,783,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($13,945,000))

$14,333,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $51,000 of the public safety and education account appropriation is provided solely for the office of public defense's costs in implementing chapter 303, Laws of 1999 (court funding).

              (2) Amounts provided from the public safety and education account appropriation in this section include funding for investigative services in death penalty personal restraint petitions.


              Sec. 110. 2003 1st sp.s. c 25 s 115 (uncodified) is amended to read as follows:

FOR THE OFFICE OF THE GOVERNOR

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,773,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($3,776,000))

$4,011,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,140,000

Water Quality Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,854,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($12,543,000))

$12,778,000


              The appropriations in this section are subject to the following conditions and limitations: $3,854,000 of the water quality account appropriation and $1,140,000 of the general fund--federal appropriation are provided solely for the Puget Sound water quality action team to implement the Puget Sound work plan and agency action items PSAT-01 through PSAT-05.


              Sec. 111. 2003 1st sp.s. c 25 s 118 (uncodified) is amended to read as follows:

FOR THE SECRETARY OF STATE

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($24,336,000))

$18,298,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,092,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,967,000

Archives and Records Management Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($8,150,000))

$8,414,000

Department of Personnel Service Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $699,000

Election Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,140,000

Election Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($13,121,000))

$33,121,000

Local Government Archives Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($7,067,000))

$9,010,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($77,432,000))

$96,741,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $2,296,000 of the general fund--state appropriation for fiscal year 2004 is provided solely to reimburse counties for the state's share of primary and general election costs and the costs of conducting mandatory recounts on state measures. Counties shall be reimbursed only for those odd-year election costs that the secretary of state validates as eligible for reimbursement.

              (2) $1,826,000 of the general fund--state appropriation for fiscal year 2004 and $2,686,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the verification of initiative and referendum petitions, maintenance of related voter registration records, and the publication and distribution of the voters and candidates pamphlet.

              (3) $125,000 of the general fund--state appropriation for fiscal year 2004 and $118,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for legal advertising of state measures under RCW 29.27.072.

              (4)(a) $1,944,004 of the general fund--state appropriation for fiscal year 2004 and $1,986,772 of the general fund--state appropriation for fiscal year 2005 are provided solely for contracting with a nonprofit organization to produce gavel-to-gavel television coverage of state government deliberations and other events of statewide significance during the 2003-05 biennium. The funding level for each year of the contract shall be based on the amount provided in this subsection. The nonprofit organization shall be required to raise contributions or commitments to make contributions, in cash or in kind, in an amount equal to forty percent of the state contribution. The office of the secretary of state may make full or partial payment once all criteria in (a) and (b) of this subsection have been satisfactorily documented.

              (b) The legislature finds that the commitment of on-going funding is necessary to ensure continuous, autonomous, and independent coverage of public affairs. For that purpose, the secretary of state shall enter into a four-year contract with the nonprofit organization to provide public affairs coverage through June 30, 2006.

              (c) The nonprofit organization shall prepare an annual independent audit, an annual financial statement, and an annual report, including benchmarks that measure the success of the nonprofit organization in meeting the intent of the program.

              (d) No portion of any amounts disbursed pursuant to this subsection may be used, directly or indirectly, for any of the following purposes:

              (i) Attempting to influence the passage or defeat of any legislation by the legislature of the state of Washington, by any county, city, town, or other political subdivision of the state of Washington, or by the congress, or the adoption or rejection of any rule, standard, rate, or other legislative enactment of any state agency;

              (ii) Making contributions reportable under chapter 42.17 RCW; or

              (iii) Providing any: (A) Gift; (B) honoraria; or (C) travel, lodging, meals, or entertainment to a public officer or employee.

              (5) (($6,038,000 of the general fund--state appropriation for fiscal year 2004 is provided solely to reimburse the counties for the state's share of the cost of conducting the presidential primary.)) $252,000 of the archives and records management account--state appropriation and $1,504,000 of the local government archives account--state appropriation are provided solely for additional facility capital costs, digital archive technology architecture costs, and additional digital archive staff and operational costs, associated with the new eastern regional archives and digital archives facility.

              (6) The entire election account--state appropriation in this section is provided solely as state match funding for federal moneys provided under the Help America Vote act (P.L. 107-252). Of the state match funding provided, the secretary of state may expend only the amount required to match the federal funding received, and any amount that is not necessary to match the federal funding shall lapse. After receipt of the federal moneys, the office of the secretary of state shall notify the appropriations committee of the house of representatives and the ways and means committee of the senate of the amount of federal funding received and the associated required state match.


              Sec. 112. 2003 1st sp.s. c 25 s 121 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER

State Treasurer's Service Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($13,149,000))

$13,463,000


              Sec. 113. 2003 1st sp.s. c 25 s 122 (uncodified) is amended to read as follows:

FOR THE STATE AUDITOR

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$701,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($702,000))

$802,000

State Auditing Services Revolving Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$12,810,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($14,213,000))

$14,313,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Audits of school districts by the division of municipal corporations shall include findings regarding the accuracy of: (a) Student enrollment data; and (b) the experience and education of the district's certified instructional staff, as reported to the superintendent of public instruction for allocation of state funding.

              (2) $701,000 of the general fund--state appropriation for fiscal year 2004 and $702,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for staff and related costs to verify the accuracy of reported school district data submitted for state funding purposes; conduct school district program audits of state funded public school programs; establish the specific amount of state funding adjustments whenever audit exceptions occur and the amount is not firmly established in the course of regular public school audits; and to assist the state special education safety net committee when requested.

              (3) $100,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for a review of emergency fire suppression costs in the department of natural resources. The state auditor's office shall coordinate this study with the joint legislative audit and review committee performance audit of the emergency fire suppression program. The state auditor's review of fire suppression costs shall examine payroll documents and invoices to determine if appropriate controls are in place to ensure that only appropriate emergency fires suppression costs are charged to the emergency fire suppression budget.


              Sec. 114. 2003 1st sp.s. c 25 s 123 (uncodified) is amended to read as follows:

FOR THE CITIZENS' COMMISSION ON SALARIES FOR ELECTED OFFICIALS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($83,000))

$112,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($157,000))

$192,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($240,000))

$304,000


              Sec. 115. 2003 1st sp.s. c 25 s 124 (uncodified) is amended to read as follows:

FOR THE ATTORNEY GENERAL

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($4,057,000))

$4,345,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($4,109,000))

$4,166,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,845,000

Public Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,814,000))

$2,001,000

Tobacco Prevention and Control Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$270,000

New Motor Vehicle Arbitration Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,180,000

Legal Services Revolving Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($165,275,000))

$166,624,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($179,550,000))

$181,431,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The attorney general shall report each fiscal year on actual legal services expenditures and actual attorney staffing levels for each agency receiving legal services. The report shall be submitted to the office of financial management and the fiscal committees of the senate and house of representatives no later than ninety days after the end of each fiscal year.

              (2) Prior to entering into any negotiated settlement of a claim against the state that exceeds five million dollars, the attorney general shall notify the director of financial management and the chairs of the senate committee on ways and means and the house of representatives committee on appropriations.

              (3) $818,000 of the legal services revolving account--state appropriation is provided solely for legal defense costs associated with Pacific Sound Resources v. Burlington Northern Santa Fe Railroad et al.

              (4) $70,000 of the legal services revolving account--state appropriation is provided solely to implement Engrossed Second Substitute Senate Bill No. 6489 (correctional industries). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              Sec. 116. 2003 1st sp.s. c 25 s 125 (uncodified) is amended to read as follows:

FOR THE CASELOAD FORECAST COUNCIL

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($638,000))

$669,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($639,000))

$671,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,277,000))

$1,340,000


              Sec. 117. 2003 1st sp.s. c 25 s 126 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($61,459,000))

$61,805,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($60,801,000))

$66,566,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($213,287,000))

$236,264,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($10,574,000))

$15,075,000

Public Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$10,095,000

Public Works Assistance Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,913,000))

$2,088,000

Building Code Council Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,061,000

Administrative Contingency Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,776,000

Low-Income Weatherization Assistance Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,293,000))

$8,293,000

Violence Reduction and Drug Enforcement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$9,013,000

Manufactured Home Installation Training Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $256,000

Community Economic Development Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,909,000))

$1,581,000

Washington Housing Trust Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$16,740,000

Public Facility Construction Loan Revolving Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$622,000

Lead Paint Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,000

Developmental Disabilities Endowment Trust Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$120,000

Homeless Families Services Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($392,805,000))

$431,511,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $2,838,000 of the general fund--state appropriation for fiscal year 2004 and $2,838,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for a contract with the Washington technology center. For work essential to the mission of the Washington technology center and conducted in partnership with universities, the center shall not pay any increased indirect rate nor increases in other indirect charges above the absolute amount paid during the 1995-97 fiscal biennium.

              (2) $61,000 of the general fund--state appropriation for fiscal year 2004 and $62,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the implementation of the Puget Sound work plan and agency action item OCD-01.

              (3) $10,180,797 of the general fund--federal appropriation is provided solely for the drug control and system improvement formula grant program, to be distributed in state fiscal year 2004 as follows:

              (a) $3,551,972 to local units of government to continue multijurisdictional narcotics task forces;

              (b) $611,177 to the department to continue the drug prosecution assistance program in support of multijurisdictional narcotics task forces;

              (c) $1,343,603 to the Washington state patrol for coordination, investigative, and supervisory support to the multijurisdictional narcotics task forces and for methamphetamine education and response;

              (d) $197,154 to the department for grants to support tribal law enforcement needs;

              (e) $976,897 to the department of social and health services, division of alcohol and substance abuse, for drug courts in eastern and western Washington;

              (f) $298,246 to the department for training and technical assistance of public defenders representing clients with special needs;

              (g) $687,155 to the department to continue domestic violence legal advocacy;

              (h) $890,150 to the department of social and health services, juvenile rehabilitation administration, to continue youth violence prevention and intervention projects;

              (i) $60,000 to the department for community-based advocacy services to victims of violent crime, other than sexual assault and domestic violence;

              (j) $89,705 to the department to continue the governor's council on substance abuse;

              (k) $97,591 to the department to continue evaluation of Byrne formula grant programs;

              (l) $572,919 to the office of financial management for criminal history records improvement; and

              (m) $804,228 to the department for required grant administration, monitoring, and reporting on Byrne formula grant programs.

              These amounts represent the maximum Byrne grant expenditure authority for each program. No program may expend Byrne grant funds in excess of the amounts provided in this subsection. If moneys in excess of those appropriated in this subsection become available, whether from prior or current fiscal year Byrne grant distributions, the department shall hold these moneys in reserve and may not expend them without specific appropriation. These moneys shall be carried forward and applied to the pool of moneys available for appropriation for programs and projects in the succeeding fiscal year. As part of its budget request for the succeeding year, the department shall estimate and request authority to spend any funds remaining in reserve as a result of this subsection.

              (4) $125,000 of the general fund--state appropriation for fiscal year 2004 and $125,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for implementing the industries of the future strategy.

              (5) $200,000 of the general fund--state appropriation for fiscal year 2004 and $200,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for a contract with the Washington manufacturing services.

              (6) $205,000 of the general fund--state appropriation for fiscal year 2004 and $205,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for grants to Washington Columbia River Gorge counties to implement their responsibilities under the national scenic area management plan. Of this amount, $390,000 is provided for Skamania county and $20,000 is provided for Clark county.

              (7) $50,000 of the general fund--state appropriation for fiscal year 2004 and $50,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for a contract with international trade alliance of Spokane.

              (8) $5,085,000 of the general fund--state appropriation for fiscal year 2004, $5,085,000 of the general fund--state appropriation for fiscal year 2005, $4,250,000 of the general fund--federal appropriation, and $6,145,000 of the Washington housing trust account are provided solely for providing housing and shelter for homeless people, including but not limited to grants to operate, repair, and staff shelters; grants to operate transitional housing; partial payments for rental assistance; consolidated emergency assistance; overnight youth shelters; and emergency shelter assistance.

              (9) (($697,000)) $369,000 of the community economic development account appropriation ((is)) and $120,000 of the developmental disabilities endowment trust fund appropriation are provided solely for support of the developmental disabilities endowment governing board and costs of the endowment program. The governing board may use appropriations to implement a sliding-scale fee waiver for families earning below 150 percent of the state median family income.

              (10) $800,000 of the general fund--federal appropriation and $6,000 of the lead paint account--state appropriation are provided solely to implement Engrossed Substitute Senate Bill No. 5586 (lead-based paint). If the bill is not enacted by June 30, 2003, the amounts provided in this subsection shall lapse.

              (11) (($300,000)) $125,000 of the general fund--state appropriation for fiscal year 2004 and (($300,000)) $475,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the business retention and expansion program to fund contracts with locally based development organizations for local business and job retention activities. In administering new and existing funding for the business retention and expansion program, the department shall ensure the existing local programs are funded at levels that meet or exceed the funding provided in the 2001-2003 biennium.

              (12) $200,000 of the general fund--state appropriation for fiscal year 2004 and $200,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the tourism office to market Washington state as a travel destination to northwest states, California, and British Columbia. By December 1, 2004, the department shall report to the relevant legislative policy and fiscal committees on the effectiveness of these expenditures.

              (13) $200,000 of the general fund--state appropriation for fiscal year 2004 and $200,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for business development activities to conduct statewide and/or regional business recruitment and client lead generation services. In administering this funding, the department shall solicit recommendations from a statewide economic development organization representing associate development organizations.

              (14) $60,000 of the general fund--state appropriation for fiscal year 2004 and $60,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the community services block grant program for pass-through to community action agencies.

              (15) $26,862,000 of the general fund--state appropriation for fiscal year 2004 and $26,862,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for providing early childhood education assistance.

              (16) Within the amounts appropriated in this section, funding is provided for Washington state dues for the Pacific northwest economic region.

              (17) $200,000 of the general fund--state appropriation for fiscal year 2004 and $200,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the foreign offices (overseas representatives) to expand local capacity for China, expand operations in Shanghai, Beijing and Hong Kong, and in Mexico to assist Washington exporters in expanding their sales opportunities.

              (18) $600,000 of the public safety and education account appropriation is provided solely for sexual assault prevention and treatment programs.

              (19) $65,000 of the general fund--state appropriation for fiscal year 2004 and $65,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for a contract with a food distribution program for communities in the southwestern portion of the state and for workers impacted by timber and salmon fishing closures and reductions. The department may not charge administrative overhead or expenses to the funds provided in this subsection.

              (20) Repayments of outstanding loans granted under RCW 43.63A.600, the mortgage and rental assistance program, shall be remitted to the department, including any current revolving account balances. The department shall contract with a lender or contract collection agent to act as a collection agent of the state. The lender or contract collection agent shall collect payments on outstanding loans, and deposit them into an interest-bearing account. The funds collected shall be remitted to the department quarterly. Interest earned in the account may be retained by the lender or contract collection agent, and shall be considered a fee for processing payments on behalf of the state. Repayments of loans granted under this chapter shall be made to the lender or contract collection agent as long as the loan is outstanding, notwithstanding the repeal of the chapter.

              (21) Within amounts provided in this section, sufficient funding is provided to implement Engrossed House Bill No. 1090 (trafficking of persons).

              (22) $10,208,818 of the general fund--federal appropriation is provided solely for the drug control and system improvement formula grant program, to be distributed in state fiscal year 2005 as follows:

              (a) $3,533,522 to local units of government to continue multijurisdictional narcotics task forces;

              (b) $608,002 to the department to continue the drug prosecution assistance program in support of multijurisdictional narcotics task forces;

              (c) $1,336,624 to the Washington state patrol for coordination, investigative, and supervisory support to the multijurisdictional narcotics task forces and for methamphetamine education and response;

              (d) $196,130 to the department for grants to support tribal law enforcement needs;

              (e) $971,823 to the department of social and health services, division of alcohol and substance abuse, for drug courts in eastern and western Washington;

              (f) $296,697 to the department for training and technical assistance of public defenders representing clients with special needs;

              (g) $683,586 to the department to continue domestic violence legal advocacy;

              (h) $885,526 to the department of social and health services, juvenile rehabilitation administration, to continue youth violence prevention and intervention projects;

              (i) $59,688 to the department for community-based advocacy services to victims of violent crime, other than sexual assault and domestic violence;

              (j) $89,239 to the department to continue the governor's council on substance abuse;

              (k) $97,084 to the department to continue evaluation of Byrne formula grant programs;

              (l) $650,846 to the office of financial management for criminal history records improvement; and

              (m) $800,051 to the department for required grant administration, monitoring, and reporting on Byrne formula grant programs.

              These amounts represent the maximum Byrne grant expenditure authority for each program. No program may expend Byrne grant funds in excess of the amounts provided in this subsection. If moneys in excess of those appropriated in this subsection become available, whether from prior or current fiscal year Byrne grant distributions, the department shall hold those moneys in reserve and may not expend them without specific appropriation. These moneys shall be carried forward and applied to the pool of moneys available for appropriation for programs and projects in the succeeding fiscal year. As part of its budget request for the succeeding year, the department shall estimate and request authority to spend any funds remaining in reserve as a result of this subsection.

              (23) $100,000 of the general fund--state appropriation for fiscal year 2004 and $400,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the purpose of grants to support the base realignment and closure process. The department shall develop and implement criteria and procedures such as the types of activities that can be funded by the grants and requirements for local matching funds for the issuance of grants to one organization within: Island county, Kitsap county, Pierce county, Snohomish county, and Spokane county. The department shall use a portion of the funding provided to support the related activities of state agencies as identified by the governor.

              (24) $163,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for pass through to community voice mail agencies as identified in this subsection, in order for these agencies to provide people in crisis and transition free and personalized voice mail services:

              (a) The Opportunity Council, Bellingham, $15,000;

              (b) Skagit Community Action, Skagit county, $12,000;

              (c) The Opportunity Council, Island county, $11,000;

              (d) Volunteers of America, Snohomish county, $10,616;

              (e) Fremont Public Association, Seattle, $27,909;

              (f) Metropolitan Development Council, Tacoma, $10,475;

              (g) Community Voice Mail National, Olympia, $18,000;

              (h) Council on Homelessness, Vancouver, $12,500;

              (i) Chelan-Douglas Community Action, north central Washington, $13,000;

              (j) Benton-Franklin Community Action, south central Washington, $17,500; and

              (k) SNAP, Spokane, $15,000.

              (25) $634,000 of the general fund--state appropriation for fiscal year 2004, $634,000 of the general fund--state appropriation for fiscal year 2005, and $1,101,000 of the administrative contingency account appropriation are provided solely for contracting with associate development organizations to maintain existing programs.

              (26) $150,000 of the general fund--state appropriation for fiscal year 2005 is provided solely to the department of community, trade, and economic development for the northwest orthopaedic institute to develop additional organizational infrastructure to assist community-based musculoskeletal health research.

              (27) $300,000 of the general fund--state appropriation for fiscal year 2005 is provided solely to the department of community, trade, and economic development for the youth assessment center in Pierce county for activities dedicated to reducing the rate of incarceration of juvenile offenders.

              (28) $99,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the retired senior volunteer program.

              (29) $2,000,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for increased civil legal services for the indigent. Of this amount, $100,000 shall be allocated to a general farm organization with members in every county of the state to develop and administer an alternative dispute resolution system for disputes between farmers and farm workers.

              (30) $2,000,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for deposit in the homeless families services fund created in section 718 of this act.

              (31) The entire homeless families services fund--state appropriation is provided solely to administer the homeless families fund and program created in section 718 of this act. It is the intent of the legislature that beginning with the 2005-07 biennium, the department choose a qualified contractor to administer the homeless families services fund program.

              (32) $421,000 of the general fund--state appropriation for fiscal year 2004 and $193,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to coordinate the state's efforts in siting the 7E7 final assembly plant.

              (33) $60,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for a study under (a) through (i) of this subsection. Expenditure of this amount is contingent upon a $60,000 match from a county with a population exceeding one million. The department shall conduct a study to:

              (a) Detail the progress in each of the buildable land counties to date in achieving annexation or incorporation of its urban growth area since adoption of the county's county-wide planning policies to the present time by documenting:

              (i) The number of acres annexed;

              (ii) The number of acres incorporated;

              (iii) The number of residents annexed, incorporated, and remaining in urban unincorporated areas; and

              (iv) The characteristic of urban land remaining unincorporated in terms of assessed value, infrastructure deficits, service needs, land use, commercial development, and residential development;

              (b) Determine the characteristics of remaining urban unincorporated areas and current statutes, and estimate when all urban unincorporated areas in each county will be annexed or incorporated, based on the rate of progress to date;

              (c) Survey the counties to identify those obstacles which, in their experience, slow or prohibit annexation;

              (d) Survey the cities in each of the subject counties to identify obstacles, which in their experience, slow or prohibit annexation;

              (e) Survey residents of urban unincorporated areas in each of the subject counties to identify their attitudes towards annexation or incorporation;

              (f) Propose possible changes to city and county taxing authority which will serve to aid the transfer of annexation of remaining urban growth areas in a timely manner;

              (g) Identify and discuss the need for funding of capital improvement projects needed to provide urban levels of service;

              (h) Assess the role and statutory authority of the boundary review board and how altering their role and authority might facilitate annexation; and

              (i) Propose possible changes to growth management or annexation processes which will facilitate annexation.

              The department shall report to the local government committees of the legislature no later than December 1, 2004.

              If a county does not wish to participate in this study, the county administrative officer shall submit those intentions, in writing, to the department no later than July 1, 2004.

              (34) $150,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for deposit in the small business incubator account to implement Engrossed Substitute House Bill No. 2784 (small business incubator program). If this bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (35) $75,000 of the general fund--state appropriation for fiscal year 2004 is provided solely to implement Substitute Senate Bill No. 6488 (agricultural lands study). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              Sec. 118. 2003 1st sp.s. c 25 s 128 (uncodified) is amended to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($12,662,000))

$12,617,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($12,383,000))

$12,860,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($23,500,000))

$23,924,000

Violence Reduction and Drug Enforcement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $242,000

State Auditing Services Revolving Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($48,812,000))

$49,668,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) (($127,000)) $67,000 of the general fund--state appropriation for fiscal year 2004 and (($122,000)) $232,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to implement Second Substitute Senate Bill No. 5694 (integrated permit system) and Second Substitute Senate Bill No. 6217 (regulatory improvement center). ((If the bill is not enacted by June 30, 2003, the amounts provided in this subsection shall lapse.)) If Second Substitute Senate Bill No. 6217 is not enacted by June 30, 2004, $50,000 of the general fund--state appropriation for fiscal year 2005 shall lapse.

              (2) By November 15, 2003, the office of financial management shall report to the house of representatives committees on appropriations, capital budget, and transportation and to the senate committees on ways and means and highways and transportation on the ten general priorities of government upon which the 2005-07 biennial budgets will be structured. Each priority must include a proposed set of cross agency activities with definitions and outcome measures. For historical comparisons, the 2001-03 expenditures and 2003-05 appropriations must be restated in this format and organized by priority, activity, fund source, and agency.

              (3) $40,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the office of financial management to contract for an evaluation of the costs and benefits of additional efforts aimed at encouraging K-12 employee collective bargaining units to elect coverage under public employee benefits board (PEBB) administered health care plans. This evaluation will include, but is not limited to, the following: A review of current processes for the procurement of health benefit coverage by K-12 employees; an assessment of the costs and benefits for the state, local school districts, and K-12 employees of moving to PEBB administered health care plans; and options for creating incentives for K-12 employee collective bargaining units moving to PEBB administered plans. The office of financial management shall report regarding the results of this study to the governor and the fiscal committees of the legislature by December 1, 2004.

              (4)(a) $75,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for a task force on noneconomic damages. On or before October 31, 2005, the task force shall prepare a study and develop, for consideration by the legislature, a proposed plan for implementation of an advisory schedule of noneconomic damages in actions for injuries resulting from health care under chapter 7.70 RCW. Implementation of any proposed plan is contingent upon statutory authorization by the legislature.

              (b) The task force shall develop a proposed plan for use of an advisory schedule of noneconomic damages, as defined in RCW 4.56.250, that will increase the predictability and proportionality of settlements and awards for noneconomic damages in actions for injuries resulting from health care. The task force shall consider:

              (i) The information that can most appropriately be used to provide guidance to the trier of fact regarding noneconomic damage awards, giving consideration to past noneconomic damage awards for similar injuries, considering severity and duration of the injuries, and other factors deemed appropriate by the task force; past noneconomic damage awards for similar claims for damages; and such other information the task force finds appropriate;

              (ii) The most appropriate format in which to present the information to the trier of fact; and

              (iii) When and under what circumstances an advisory schedule should be utilized in alternative dispute resolution settings and presented to the trier of fact at trial.

              (c) A proposed implementation plan shall include, at a minimum:

              (i) The information developed under subsection (b) of this section;

              (ii) Identification of statutory, regulatory, or court rule changes necessary to implement the advisory schedule, as well as forms or other documents necessary to implement the schedule; and

              (iii) Identification of the time required to implement an advisory schedule authorized by the legislature.

              (d) The task force is composed of fourteen members, as follows: (i) One member from each of the two largest caucuses in the senate, to be appointed by the president of the senate, and one member from each of the two largest caucuses in the house of representatives, to be appointed by the speaker of the house of representatives; (ii) one health care ethicist; (iii) one economist; (iv) one actuary; (v) two attorneys with expertise or significant experience in medical malpractice actions, one representing the plaintiff's bar and one representing the insurance defense bar; (vi) two superior court judges; (vii) one representative of a hospital; (viii) one physician; (ix) one representative of a medical malpractice insurer; and (x) two consumers. The governor shall appoint the nonlegislative members of the task force and select a chair.

              (e) Legislative members of the task force shall be reimbursed for travel expenses under RCW 44.04.120. Nonlegislative members of the task force shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

              (f) The office of financial management shall provide support to the task force with the assistance of staff from the administrative office of the courts, the house of representatives office of program research, and senate committee services.

              (5) $252,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the office to study land use and local government finance and make recommendations on the impact that current trends in city and county revenue sources and expenditures may have on land use decisions made by counties and cities and meeting goals of the growth management act. Among the areas to be studied: Local government revenue sources and expenditures over the past decade; the relationship between local government finances and land use decisions including commercial, residential, and industrial development; cooperation or competition of adjoining jurisdictions over land use and annexation; the relationship new development has to existing commercial and residential areas and its affect on a community's infrastructure and quality of life. The study shall include recommendations for state and local government fiscal partnerships that encourage cooperation among jurisdictions to meet the goals of the growth management act, and how the state and local government fiscal structure can better meet the responsibilities of providing services to citizens and meeting the goals of the growth management act.


              Sec. 119. 2003 1st sp.s. c 25 s 129 (uncodified) is amended to read as follows:

FOR THE OFFICE OF ADMINISTRATIVE HEARINGS

Administrative Hearings Revolving Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($24,619,000))

$26,983,000


              Sec. 120. 2003 1st sp.s. c 25 s 130 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF PERSONNEL

Department of Personnel Service Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$16,247,000

Higher Education Personnel Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,612,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,859,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The department is authorized to enter into a financing contract for up to (($32,095,000)) $38,911,000, plus necessary financing expenses and required reserves, pursuant to chapter 39.94 RCW. The contract shall be to purchase, develop, and implement a new statewide payroll system and shall be for a term of not more than twelve years. The legislature recognizes the critical nature of the human resource management system and its relationship to successful implementation of civil service reform, collective bargaining, and the ability to permit contracting out of services to the private sector. Projects of this size and complexity have many risks associated with their successful and timely completion, therefore, to help ensure project success, the department of personnel and the office of financial management shall jointly report to the legislature by January 15, 2004, on progress toward implementing the human resource management system. The report shall include a description of mitigation strategies employed to address the risks related to: Business requirements not fully defined at the project outset; short time frame for system implementation; and delays experienced by other states. The report shall assess the probability of meeting the system implementation schedule and recommend contingency strategies as needed. The report shall establish the timelines, the critical path, and the dependencies for realizing each of the benefits articulated in the system feasibility study.

              (2) The department shall coordinate with the governor's office of Indian affairs on providing one-day government to government training sessions for federal, state, local, and tribal government employees. The training sessions must cover tribal historical perspectives, legal issues, tribal sovereignty, and tribal governments. Costs of the training sessions shall be recouped through a fee charged to the participants of each session.


              Sec. 121. 2003 1st sp.s. c 25 s 137 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF REVENUE

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $82,644,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($81,916,000))

$82,036,000

Timber Tax Distribution Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($5,191,000))

$5,327,000

Waste Education/Recycling/Litter Control--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $101,000

State Toxics Control Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$67,000

Oil Spill Administration Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$14,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($169,933,000))

$170,189,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $120,000 of the general fund--state appropriation for fiscal year 2005 is provided solely to implement Senate Bill No. 5034 (senior citizen property tax exemption). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (2) $136,000 of the timber tax distribution account appropriation is provided solely to implement Engrossed Substitute House Bill No. 2693 (taxation of timber). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              Sec. 122. 2003 1st sp.s. c 25 s 138 (uncodified) is amended to read as follows:

FOR THE BOARD OF TAX APPEALS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,141,000))

$1,186,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($988,000))

$1,033,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,129,000))

$2,219,000


              Sec. 123. 2003 1st sp.s. c 25 s 140 (uncodified) is amended to read as follows:

FOR THE OFFICE OF MINORITY AND WOMEN'S BUSINESS ENTERPRISES

OMWBE Enterprises Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,990,000


              The appropriation in this section is subject to the following conditions and limitations:

              (1) The office's revolving fund charges to state agencies may not exceed (($1,282,000)) $1,534,000.

              (2) During the 2003-05 biennium, the office may receive gifts, grants, or endowments from public or private sources that are made from time to time, in trust or otherwise, for the use and benefit of the purposes of the office and spend gifts, grants, or endowments or income from the public or private sources according to their terms, unless the receipt of the gifts, grants, or endowments violates RCW 42.17.710.

              (3) During ((fiscal year 2004)) the 2003-05 biennium, the office may raise fees in excess of the fiscal growth factor.


              Sec. 124. 2003 1st sp.s. c 25 s 141 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($193,000))

$235,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($275,000))

$233,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,215,000))

$3,865,000

General Administration Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($38,086,000))

$38,856,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($41,769,000))

$43,189,000


              Sec. 125. 2003 1st sp.s. c 25 s 135 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF RETIREMENT SYSTEMS--OPERATIONS

Dependent Care Administrative Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $384,000

Department of Retirement Systems Expense Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . (($44,485,000))

$45,216,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($44,869,000))

$45,600,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $31,000 of the retirement systems expense account appropriation is provided solely to implement House Bill No. 1519, chapter 155, Laws of 2003 (unreduced duty death survivor benefits).

              (2) $1,678,000 of the retirement systems expense account appropriation is provided solely to implement House Bill No. 2197, chapter 92, Laws of 2003 (law enforcement officers' and fire fighters' plan 2 board implementation).

              (3) $2,083,000 of the retirement systems expense account appropriation is provided solely for the support of the information systems project known as the electronic document image management system.

              (4) $124,000 of the department of retirement systems expense account--state appropriation is provided solely to implement Senate Bill No. 5094, chapter 157, Laws of 2003 (substitute employees' retirement credit).

              (5) $77,000 of the department of retirement systems expense account--state appropriation is provided solely to implement Senate Bill No. 5100, chapter 32, Laws of 2003 (fallen hero survivor benefits).

              (6) $21,000 of the department of retirement systems expense account--state appropriation is provided solely to implement House Bill No. 1206, chapter 156, Laws of 2003 (plan 3 contributions).

              (7) $30,000 of the department of retirement systems expense account--state appropriation is provided solely to implement House Bill No. 1207, chapter 402, Laws of 2003 (employee death benefits).

              (8) $324,000 of the department of retirement systems expense account--state appropriation is provided solely to implement Substitute House Bill No. 1829, chapter 412, Laws of 2003 (retire-rehire reform).

              (9) $125,000 of the department of retirement systems expense account--state appropriation is provided solely to implement Substitute House Bill No. 1202, chapter 293, Laws of 2003 (emergency medical technicians' retirement).

              (10) $188,000 of the department of retirement systems expense account--state appropriation is provided solely to implement House Bill No. 2418 (minimum disability benefits). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (11) $7,000 of the department of retirement systems expense account--state appropriation is provided solely to implement House Bill No. 2419 (unreduced line-duty death benefits). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (12) $5,000 of the department of retirement systems expense account--state appropriation is provided solely to implement Senate Bill No. 6254 (state patrol line-duty death benefits). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (13) $128,000 of the department of retirement systems expense account--state appropriation is provided solely to implement House Bill No. 2538 ($1,000 minimum benefit). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (14) $403,000 of the department of retirement systems expense account--state appropriation is provided solely to implement House Bill No. 2537 (public safety employees' retirement system). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              Sec. 126. 2003 1st sp.s. c 25 s 142 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF INFORMATION SERVICES

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,000,000))

$1,650,000

Data Processing Revolving Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,569,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($5,569,000))

$6,219,000


              The appropriations in this section are subject to the following conditions and limitations: (($1,000,000)) $1,650,000 of the general fund--state appropriation for fiscal year 2004 and $1,000,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the digital learning commons to create a demonstration project, in collaboration with schools, which will provide a web-based portal where students, parents, and teachers from around the state will have access to digital curriculum resources, learning tools, and online classes. The intent is to establish a clearinghouse of high quality online courses and curriculum materials that are aligned with the state's essential learning requirements. The clearinghouse shall be designed for ease of use and shall pool the purchasing power of the state so that these resources and courses are affordable and accessible to schools, teachers, students, and parents. These appropriations are subject to the following conditions and limitations:

              (1) The funding provided in this section shall be expended primarily for acquiring online courses and curriculum materials that are aligned with the state "essential learning requirements" and that meet standards of quality. No more than ten percent of the funds provided in this subsection shall be used for administrative expenses of the digital learning commons.

              (2) To the maximum extent possible, funds shall be used on demonstration projects that utilize online course materials and curricula that are already available. The commons may also consider utilizing existing products in establishing the entire digital learning commons.

              (3) By September 1, 2003, the digital learning commons shall begin offering access to and reimbursement for online courses and services.

              (4) In consultation with the department of information services, the office of financial management shall monitor compliance with these conditions and limitations. By February 1, 2004, the digital learning commons shall submit a report to the governor and the appropriate legislative committees detailing the types of courses and services offered and the number of students served through the digital learning commons.


              Sec. 127. 2003 1st sp.s. c 25 s 143 (uncodified) is amended to read as follows:

FOR THE INSURANCE COMMISSIONER

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$631,000

Insurance Commissioners Regulatory Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($32,307,000))

$33,209,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($32,938,000))

$33,840,000


              The appropriations in this section are subject to the following conditions and limitations: $200,000 of the insurance commissioner's regulatory account--state appropriation is provided solely to assess conditions in liability insurance markets in Washington. The commissioner will develop and provide information to Washington businesses, insurance agents, and brokers to assist such businesses in obtaining liability insurance coverage. The commissioner will also assist such businesses in determining which Washington agents and brokers have access to authorized and surplus lines insurers writing such liability coverages. The commissioner shall provide this information in a manner that does not discriminate or favor any agent, broker, or insurer writing business directly. Nothing in this section shall impair the authority of the commissioner to activate a market assistance plan under RCW 48.22.050.


              Sec. 128. 2003 1st sp.s. c 25 s 146 (uncodified) is amended to read as follows:

FOR THE HORSE RACING COMMISSION

Horse Racing Commission Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,609,000


              The appropriation in this section is subject to the following conditions and limitations: During fiscal year 2005, the commission may increase license fees in excess of the fiscal growth factor as provided in RCW 43.135.055.


              Sec. 129. 2003 1st sp.s. c 25 s 147 (uncodified) is amended to read as follows:

FOR THE LIQUOR CONTROL BOARD

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,454,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,455,000

Liquor Control Board Construction and Maintenance Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . .$5,717,000

Liquor Revolving Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($133,842,000))

$135,303,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($142,468,000))

$143,929,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $2,000,000 of the liquor revolving account appropriation is provided solely for the costs associated with ((the completion of)) the merchandising business system, with priority placed on the point-of- sale component of the system. Actual expenditures are limited to the balance of funds remaining from the $4,803,000 appropriation provided for the merchandise business system in the 2001-03 budget.

              (2) $1,309,000 of the liquor revolving account appropriation is provided solely for the costs associated with ((purchasing merchandise business system software and hardware-related items, and hiring system-related staff)) the merchandising business system solution, with priority placed on the point-of-sale component of the system. These costs include hiring system-related staff and procuring system-related hardware and software.

              (3) As required under RCW 66.16.010, the liquor control board shall add an equivalent surcharge of $0.42 per liter on all retail sales of spirits, excluding licensee, military and tribal sales, effective no later than September 1, 2003. The intent of this surcharge is to raise $14,000,000 in additional revenue for the 2003-05 biennium. To the extent that a lesser surcharge is sufficient to raise $14,000,000, the board may reduce the amount of the surcharge. The board shall remove the surcharge once it generates $14,000,000, but no later than June 30, 2005.

              (4) During the 2003-2005 fiscal biennium, the board may increase the fee for the certificate of approval in excess of the fiscal growth factor under RCW 43.135.055 if the increase is necessary to fully fund the costs of administering the certificate of approval program under Substitute Senate Bill No. 6655, as amended. If the bill is not enacted by June 30, 2004, this subsection is null and void.

              (5) $385,000 of the liquor revolving account--state appropriation is provided solely to implement Engrossed Substitute Senate Bill No. 6655 (beer/wine manufacturers). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              Sec. 130. 2003 1st sp.s. c 25 s 148 (uncodified) is amended to read as follows:

FOR THE UTILITIES AND TRANSPORTATION COMMISSION

Public Service Revolving Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($25,872,000))

$26,458,000

Pipeline Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,768,000

Pipeline Safety Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,041,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($29,681,000))

$30,267,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The commission shall report back to the appropriate policy committees of the legislature by July 1st of 2003 and 2004 a list of authorized out-of-state travel for the preceding calendar year.

              (((3))) (2) $135,000 of the public services revolving account appropriation and $15,000 of the pipeline safety account--state appropriation are provided solely for the implementation of the commission's financial systems project. If final approval for the project is not granted by the office of financial management, the amounts provided in this subsection shall lapse.

              (((4) $200,000 of the public services revolving account appropriation is provided solely for an interagency transfer to the joint legislative audit and review committee for the implementation of Substitute House Bill No. 1013 (UTC performance audit). If the bill is not enacted by June 30, 2003, the amount provided in this subsection shall lapse.))


              Sec. 131. 2003 1st sp.s. c 25 s 150 (uncodified) is amended to read as follows:

FOR THE MILITARY DEPARTMENT

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($8,486,000))

$8,578,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($8,223,000))

$8,466,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($72,094,000))

$143,243,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$371,000

Enhanced 911 Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $33,955,000

Disaster Response Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($190,000))

$3,387,000

Disaster Response Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7,857,000

Worker and Community Right to Know Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$290,000

Nisqually Earthquake Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($13,128,000))

$17,869,000

Nisqually Earthquake Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($48,725,000))

$62,103,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($185,462,000))

$286,119,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $190,000 of the disaster response account--state appropriation is provided solely to develop and implement a disaster grant management system. The military department shall also submit a report quarterly to the office of financial management and the legislative fiscal committees detailing information on the disaster response account, including: (a) The amount and type of deposits into the account; (b) the current available fund balance as of the reporting date; and (c) the projected fund balance at the end of the 2003-05 biennium based on current revenue and expenditure patterns.

              (2) (($10,128,000)) $14,869,000 of the Nisqually earthquake account--state appropriation and (($48,725,000)) $62,103,000 of the Nisqually earthquake account--federal appropriation are provided solely for response and recovery costs associated with the February 28, 2001, earthquake. The military department shall submit a report quarterly to the office of financial management and the legislative fiscal committees detailing earthquake recovery costs, including: (a) Estimates of total costs; (b) incremental changes from the previous estimate; (c) actual expenditures; (d) estimates of total remaining costs to be paid; and (e) estimates of future payments by biennium. This information shall be displayed by fund, by type of assistance, and by amount paid on behalf of state agencies or local organizations. The military department shall also submit a report quarterly to the office of financial management and the legislative fiscal committees detailing information on the Nisqually earthquake account, including: (a) The amount and type of deposits into the account; (b) the current available fund balance as of the reporting date; and (c) the projected fund balance at the end of the 2003-05 biennium based on current revenue and expenditure patterns.

              (3) $3,000,000 of the Nisqually earthquake account--state appropriation is provided solely to cover other response and recovery costs associated with the Nisqually earthquake that are not eligible for federal emergency management agency reimbursement. Prior to expending funds provided in this subsection, the military department shall obtain prior approval of the director of financial management. Prior to approving any single project of over $1,000,000, the office of financial management shall notify the fiscal committees of the legislature. The military department is to submit a quarterly report detailing the costs authorized under this subsection to the office of financial management and the legislative fiscal committees.

              (4) $200,000 of the general fund--state appropriation for fiscal year 2004, $200,000 of the general fund--state appropriation for fiscal year 2005, and (($43,555,000)) $105,952,000 of the general fund--federal appropriation are provided solely for homeland security, to be distributed as follows:

              (a) $9,469,000 of the general fund--federal appropriation to units of local government for homeland security purposes. Any communications equipment purchased shall be consistent with standards set by the Washington state interoperability executive committee;

              (b) $200,000 of the general fund--state appropriation for fiscal year 2004, $200,000 of the general fund--state appropriation for fiscal year 2005, and (($200,000)) $2,713,000 of the general fund--federal appropriation to the department to conduct the terrorism consequence management program;

              (c) $100,000 of the general fund--federal appropriation to the department to conduct a critical infrastructure assessment;

              (d) (($500,000)) $674,000 of the general fund--federal appropriation to the office of financial management for the citizen corps and the community emergency response teams;

              (e) $1,384,000 of the general fund--federal appropriation to the department to provide homeland security exercise and training opportunities to state and local governments, and to develop, monitor, coordinate, and manage statewide homeland security programs, including required grant administration, monitoring, and reporting;

              (f) (($29,917,000)) $89,677,000 of the general fund--federal appropriation for other anticipated homeland security needs. This amount shall not be allotted until a spending plan is approved by the governor's domestic security advisory group and the office of financial management;

              (g) The remaining general fund--federal appropriation may be expended according to federal requirements;

              (h) Federal moneys shall be carried forward and applied to the pool of moneys available for appropriation for programs and projects in the succeeding fiscal year. Funding is contingent upon receipt of federal awards. As part of its budget request in each year, the department shall estimate and request authority to spend any federal funds remaining available as a result of this subsection;

              (i) The department shall submit a quarterly report to the office of financial management and the legislative fiscal committees detailing the governor's domestic security advisory group recommendations; homeland security revenues and expenditures, including estimates of total federal funding for Washington state; incremental changes from the previous estimate, planned and actual homeland security expenditures by the state and local governments with this federal funding; and matching or accompanying state or local expenditures.


              Sec. 132. 2003 1st sp.s. c 25 s 151 (uncodified) is amended to read as follows:

FOR THE PUBLIC EMPLOYMENT RELATIONS COMMISSION

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,362,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,436,000))

$2,437,000

Department of Personnel Service Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,542,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($7,340,000))

$7,341,000


              The appropriations in this section are subject to the following conditions and limitations: (($40,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the implementation of Second Substitute Senate Bill No. 5012 (charter schools). If the bill is not enacted by June 30, 2003, the amount provided in this subsection shall lapse.)) $41,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the implementation of Second Substitute House Bill No. 2295 or Second Engrossed Substitute Senate Bill No. 5012 (charter schools). If neither bill is enacted by June 30, 2004, the amount provided in this subsection shall lapse.(End of part)


PART II

HUMAN SERVICES


              Sec. 201. 2003 1st sp.s. c 25 s 201 (uncodified) is amended to read as follows:

              FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES. DEPARTMENT OF SOCIAL AND HEALTH SERVICES (1) Appropriations made in this act to the department of social and health services shall initially be allotted as required by this act. Subsequent allotment modifications shall not include transfers of moneys between sections of this act except as expressly provided in this act, nor shall allotment modifications permit moneys that are provided solely for a specified purpose to be used for other than that purpose.

              (2) The department of social and health services shall not initiate any services that require expenditure of state general fund moneys unless expressly authorized in this act or other law. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation providing appropriation authority, and an equal amount of appropriated state general fund moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.

              (3)(a) The appropriations to the department of social and health services in this act shall be expended for the programs and in the amounts specified in this act. However, after May 1, 2004, unless specifically prohibited by this act, the department may transfer general fund--state appropriations for fiscal year 2004 among programs after approval by the director of financial management. However, the department shall not transfer state moneys that are provided solely for a specified purpose except as expressly provided in subsection (3)(b) of this section.

              (b) To the extent that transfers under subsection (3)(a) of this section are insufficient to fund actual expenditures in excess of fiscal year 2004 caseload forecasts and utilization assumptions in the medical assistance, long-term care, foster care, adoption support, and child support programs, the department may transfer state moneys that are provided solely for a specified purpose after approval by the director of financial management.

              (c) The director of financial management shall notify the appropriate fiscal committees of the senate and house of representatives in writing prior to approving any allotment modifications or transfers under this subsection.

              (4) ((The department)) After consultation and coordination with local elected officials and community groups to assure there will be no degradation in existing services as a result of implementing the Washington medicaid integration project, the department shall report its progress to the appropriate committees of the legislature during the 2004 September committee assembly days and is authorized to develop an integrated health care program designed to slow the progression of illness and disability and better manage Medicaid expenditures for the aged and disabled population. Under this Washington medicaid integration partnership (WMIP) the department may combine and transfer such Medicaid funds appropriated under sections 204, 206, 208, and 209 of this act as may be necessary to finance a unified health care plan for the WMIP program enrollment. The WMIP pilot projects shall not exceed a daily enrollment of 6,000 persons during the 2003-05 biennium. The amount of funding assigned to the pilot projects from each program may not exceed the average per capita cost assumed in this act for individuals covered by that program, actuarially adjusted for the health condition of persons enrolled in the pilot, times the number of clients enrolled in the pilot. In implementing the WMIP pilot projects, the department may: (a) Withhold from calculations of "available resources" as set forth in RCW 71.24.025 a sum equal to the capitated rate for individuals enrolled in the pilots; and (b) employ capitation financing and risk-sharing arrangements in collaboration with health care service contractors licensed by the office of the insurance commissioner and qualified to participate in both the medicaid and medicare programs. The department shall conduct an evaluation of the WMIP, measuring changes in participant health outcomes, changes in patterns of service utilization, participant satisfaction, participant access to services, and the state fiscal impact.


              Sec. 202. 2003 1st sp.s. c 25 s 202 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--CHILDREN AND FAMILY SERVICES PROGRAM

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($231,566,000))

$219,291,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($232,468,000))

$229,924,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($416,043,000))

$422,870,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$400,000

Public Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($23,920,000))

$21,488,000

Violence Reduction and Drug Enforcement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($5,640,000))

$1,488,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($910,037,000))

$895,461,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $2,271,000 of the fiscal year 2004 general fund--state appropriation, $2,271,000 of the fiscal year 2005 general fund--state appropriation, and $1,584,000 of the general fund--federal appropriation are provided solely for the category of services titled "intensive family preservation services."

              (2) $701,000 of the general fund--state fiscal year 2004 appropriation and $701,000 of the general fund--state fiscal year 2005 appropriation are provided to contract for the operation of one pediatric interim care facility. The facility shall provide residential care for up to thirteen children through two years of age. Seventy-five percent of the children served by the facility must be in need of special care as a result of substance abuse by their mothers. The facility shall also provide on-site training to biological, adoptive, or foster parents. The facility shall provide at least three months of consultation and support to parents accepting placement of children from the facility. The facility may recruit new and current foster and adoptive parents for infants served by the facility. The department shall not require case management as a condition of the contract.

              (3) $375,000 of the general fund--state fiscal year 2004 appropriation, $375,000 of the general fund--state fiscal year 2005 appropriation, and $322,000 of the general fund--federal appropriation are provided for up to three nonfacility-based programs for the training, consultation, support, and recruitment of biological, foster, and adoptive parents of children through age three in need of special care as a result of substance abuse by their mothers, except that each program may serve up to three medically fragile nonsubstance-abuse-affected children. In selecting nonfacility-based programs, preference shall be given to programs whose federal or private funding sources have expired or that have successfully performed under the existing pediatric interim care program.

              (4) The providers for the 31 HOPE beds shall be paid a $1,000 base payment per bed per month, and reimbursed for the remainder of the bed cost only when the beds are occupied.

              (5) $125,000 of the general fund--state appropriation for fiscal year 2004 and $125,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for a foster parent retention program. This program is directed at foster parents caring for children who act out sexually.

              (6) Within funding provided for the foster care and adoption support programs, the department shall control reimbursement decisions for foster care and adoption support cases such that the aggregate average cost per case for foster care and for adoption support does not exceed the amounts assumed in the projected caseload expenditures. The department shall adjust adoption support benefits to account for the availability of the new federal adoption support tax credit for special needs children.

              (7) $50,000 of the fiscal year 2004 general fund--state appropriation and $50,000 of the fiscal year 2005 general fund--state appropriation are provided solely for a street youth program in Spokane.

              (8) $2,000,000 of the general fund--state appropriation for fiscal year 2005 is provided solely to increase shelter and other services for victims of domestic violence, including $65,000 for domestic violence shelter operating costs in Shelton.

              (9) $1,773,000 of the general fund--state appropriation for fiscal year 2005 and $531,000 of the general fund--federal appropriation are provided solely to implement Engrossed Substitute Senate Bill No. 6642 (case conferences), CAMIS user interface improvements, and family team decision meetings, as part of the department's program improvement plan implementation.

              (10) The department shall convene regional and local department staff and community-based agency staff to develop recommended policies and protocols concerning collaborative decision making, including contracting, referrals, and resource allocation. The department shall submit these recommendations to the governor and the appropriate committees of the legislature by December 1, 2004.


              Sec. 203. 2003 1st sp.s. c 25 s 203 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--JUVENILE REHABILITATION PROGRAM

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($74,095,000))

$72,362,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($72,697,000))

$70,565,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($12,062,000))

$6,260,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,098,000

Juvenile Accountability Incentive Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($9,139,000))

$7,300,000

Violence Reduction and Drug Enforcement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .(($37,338,000))

$37,699,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($206,429,000))

$195,284,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $695,000 of the violence reduction and drug enforcement account appropriation is provided solely for deposit in the county criminal justice assistance account for costs to the criminal justice system associated with the implementation of chapter 338, Laws of 1997 (juvenile code revisions). The amounts provided in this subsection are intended to provide funding for county adult court costs associated with the implementation of chapter 338, Laws of 1997 and shall be distributed in accordance with RCW 82.14.310.

              (2) $6,065,000 of the violence reduction and drug enforcement account appropriation is provided solely for the implementation of chapter 338, Laws of 1997 (juvenile code revisions). The amounts provided in this subsection are intended to provide funding for county impacts associated with the implementation of chapter 338, Laws of 1997 and shall be distributed to counties as prescribed in the current consolidated juvenile services (CJS) formula.

              (3) $1,204,000 of the general fund--state appropriation for fiscal year 2004, $1,204,000 of the general fund--state appropriation for fiscal year 2005, and $5,262,000 of the violence reduction and drug enforcement account appropriation are provided solely to implement community juvenile accountability grants pursuant to chapter 338, Laws of 1997 (juvenile code revisions). Funds provided in this subsection may be used solely for community juvenile accountability grants, administration of the grants, and evaluations of programs funded by the grants.

              (4) $2,544,000 of the violence reduction and drug enforcement account appropriation is provided solely to implement alcohol and substance abuse treatment programs for locally committed offenders. The juvenile rehabilitation administration shall award these moneys on a competitive basis to counties that submitted a plan for the provision of services approved by the division of alcohol and substance abuse. The juvenile rehabilitation administration shall develop criteria for evaluation of plans submitted and a timeline for awarding funding and shall assist counties in creating and submitting plans for evaluation.

              (5) (($100,000 of the general fund--state appropriation for fiscal year 2004 and $100,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for a contract for expanded services of the teamchild project.

              (6))) $16,000 of the general fund--state appropriation for fiscal year 2004 and $16,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the implementation of chapter 167, Laws of 1999 (firearms on school property). The amounts provided in this subsection are intended to provide funding for county impacts associated with the implementation of chapter 167, Laws of 1999, and shall be distributed to counties as prescribed in the current consolidated juvenile services (CJS) formula.

              (((8))) (6) $16,000 of the violence reduction and drug enforcement account appropriation is provided solely for the evaluation of the juvenile offender co-occurring disorder pilot program ((implemented pursuant to subsection (7) of this section)).

              (((9) $900,000 of the general fund--state appropriation for fiscal year 2004 and $900,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the continued implementation of the juvenile violence prevention grant program established in section 204, chapter 309, Laws of 1999.

              (11))) (7) For the purposes of a pilot project recommended by the family policy council, the juvenile rehabilitation administration shall provide a block grant, rather than categorical funding, for consolidated juvenile services, community juvenile accountability act grants, the chemically dependent disposition alternative, and the special sex offender disposition alternative to the Pierce county juvenile court. To evaluate the effect of decategorizing funding for youth services, the juvenile court shall do the following:

              (a) Develop intermediate client outcomes according to the risk assessment tool (RAT) currently used by juvenile courts and in coordination with the juvenile rehabilitation administration and the family policy council;

              (b) Track the number of youth participating in each type of service, intermediate outcomes, and the incidence of recidivism within twenty-four months of completion of services;

              (c) Track similar data as in (b) of this subsection with an appropriate control group, selected in coordination with the juvenile rehabilitation administration and the family policy council;

              (d) Document the process for managing block grant funds on a quarterly basis, and provide this report to the juvenile rehabilitation administration and the family policy council; and

              (e) Provide an initial process evaluation to the juvenile rehabilitation administration and the family policy council by January 30, 2004, and an intermediate evaluation by December 31, 2004. The court shall develop this evaluation in consultation with the juvenile rehabilitation administration, the family policy council, and the Washington state institute for public policy.

              (((13) $308,000)) (8) $158,000 of the general fund--state appropriation for fiscal year 2004 and (($875,000)) $580,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to reimburse counties for local juvenile disposition alternatives implemented pursuant to Senate Bill No. 5903 (juvenile offender sentencing). The juvenile rehabilitation administration, in consultation with the juvenile court administrators, shall develop an equitable distribution formula for the funding provided in this subsection. The juvenile rehabilitation administration may adjust this funding level in the event that utilization rates of the disposition alternatives are lower than the level anticipated by the total appropriations to the juvenile rehabilitation administration in this section. If the bill is not enacted by June 30, 2003, the amounts provided in this subsection shall lapse.

              (((14))) (9) $1,416,000 of the general fund--state appropriation for fiscal year 2004 and $1,417,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for additional research-based services to the juvenile parole population, including quality control efforts to ensure appropriate implementation of research-based services. The juvenile rehabilitation administration shall consult with the Washington state institute for public policy in deciding which interventions to provide to the parole population and appropriate levels of quality control. Of the total general fund--state appropriation for fiscal year 2004, up to $55,000 may be used for additional suicide precaution training for staff.


              Sec. 204. 2003 1st sp.s. c 25 s 204 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--MENTAL HEALTH PROGRAM

              (1) COMMUNITY SERVICES/REGIONAL SUPPORT NETWORKS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($209,818,000))

$200,251,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($211,317,000))

$214,010,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($384,801,000))

$405,549,000

General Fund--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,970,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($807,906,000))

$821,780,000


              The appropriations in this subsection are subject to the following conditions and limitations:

              (a) Regional support networks shall use portions of the general fund--state appropriation for implementation of working agreements with the vocational rehabilitation program that will maximize the use of federal funding for vocational programs.

              (b) From the general fund--state appropriations in this subsection, the secretary of social and health services shall assure that regional support networks reimburse the aging and disability services administration for the general fund--state cost of medicaid personal care services that enrolled regional support network consumers use because of their psychiatric disability.

              (c) $4,222,000 of the general fund--state appropriation for fiscal year 2004, $4,222,000 of the general fund--state appropriation for fiscal year 2005, and $8,444,000 of the general fund--federal appropriation are provided solely for the continued operation of community residential and support services for persons whose treatment needs constitute substantial barriers to community placement and who no longer require active psychiatric treatment at an inpatient hospital level of care, no longer meet the criteria for inpatient involuntary commitment, and have been discharged from a state psychiatric hospital. Primary responsibility and accountability for provision of appropriate community support for persons placed with these funds shall reside with the mental health program and the regional support networks, with partnership and active support from the alcohol and substance abuse division and from the aging and disability services administration. The department shall continue performance-based incentive contracts to provide appropriate community support services for individuals leaving the state hospitals under this subsection. The department shall first seek to contract with regional support networks before offering a contract to any other party. The funds appropriated in this subsection shall not be considered "available resources" as defined in RCW 71.24.025 and are not subject to the standard allocation formula applied in accordance with RCW 71.24.035(13)(a).

              (d) At least $902,000 of the federal block grant funding appropriated in this subsection shall be used for the continued operation of the mentally ill offender pilot program.

              (((f))) (e) Within funds appropriated in this subsection, the department shall contract with the Clark county regional support network for development and operation of a project demonstrating collaborative methods for providing intensive mental health services in the school setting for severely emotionally disturbed children who are medicaid eligible. Project services are to be delivered by teachers and teaching assistants who qualify as, or who are under the supervision of, mental health professionals meeting the requirements of chapter 275-57 WAC. The department shall increase medicaid payments to the regional support network by the amount necessary to cover the necessary and allowable costs of the demonstration, not to exceed the upper payment limit specified for the regional support network in the department's medicaid waiver agreement with the federal government after meeting all other medicaid spending requirements assumed in this subsection. The regional support network shall provide the department with (i) periodic reports on project service levels, methods, and outcomes; and (ii) an intergovernmental transfer equal to the state share of the increased medicaid payment provided for operation of this project.

              (((g))) (f) The department shall assure that each regional support network increases spending on direct client services in fiscal years 2004 and 2005 by at least the same percentage as the total state, federal, and local funds allocated to the regional support network in those years exceed the amounts allocated to it in fiscal year 2003.


              (2) INSTITUTIONAL SERVICES

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($94,196,000))

$86,607,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($92,964,000))

$87,592,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($134,755,000))

$146,945,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($26,342,000))

$29,063,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($348,257,000))

$350,207,000


              The appropriations in this subsection are subject to the following conditions and limitations:

              (a) The state mental hospitals may use funds appropriated in this subsection to purchase goods and supplies through hospital group purchasing organizations when it is cost-effective to do so.

              (b) The mental health program at Western state hospital shall continue to use labor provided by the Tacoma prerelease program of the department of corrections.

              (c) $124,000 of the general fund--state appropriation for fiscal year 2005, $19,000 of the general fund--private/local appropriation, and $17,000 of the general fund--federal appropriation are provided solely for implementation of Senate Bill No. 6358 (treatment orders). If Senate Bill No. 6358 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (d) During the 2003-05 biennium, the department may not reduce the number of inpatient psychiatric hospital beds in the state hospitals below existing levels of 642 at Western State Hospital and 191 at Eastern State Hospital, until such time as there are available community resources, especially inpatient facilities, at an average cost equal to or less than the respective hospital's daily rate and the reduction receives legislative approval. In addition, residential beds in the program for adaptive living skills at Western State Hospital may be closed only if the department provides sufficient resources for these patients' mental health care to the communities in which they are placed.


              (3) CIVIL COMMITMENT

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($28,695,000))

$29,194,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($32,081,000))

$34,400,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($60,776,000))

$63,594,000


              The appropriations in this subsection are subject to the following conditions and limitations:

              (a) (($1,381,000 of the general fund--state appropriation for fiscal year 2004 and $2,090,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for operational costs associated with a less restrictive step- down placement facility on McNeil Island.

              (b))) $300,000 of the general fund--state appropriation for fiscal year 2004 and $300,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for public safety mitigation funding for jurisdictions affected by the placement of ((less restrictive alternative facilities for persons conditionally released from the special commitment center facility being constructed)) the secure community transition facility on McNeil Island. Of this amount, $45,000 per year shall be provided to the city of Lakewood on September 1, 2003, and September 1, 2004, for police protection ((reimbursement)) services provided by the city at Western State Hospital and adjacent areas((; up to $45,000 per year shall be provided on September 1, 2003, and September 1, 2004, for training police personnel under chapter 12, Laws of 2001, 2nd sp. sess. (3ESSB 6151); up to $125,000 per year shall be provided to Pierce county on September 1, 2003, and September 1, 2004, for reimbursement of additional costs; and the remaining amounts are for other documented costs by jurisdictions directly impacted by the placement of the secure community transition facility on McNeil Island. Pursuant to chapter 12, Laws of 2001, 2nd sp. sess. (3ESSB 6151), the department shall continue to work with local jurisdictions towards reaching agreement for mitigation costs)). Of the remaining $255,000 per year, the department shall reimburse the affected jurisdictions for their documented costs that have been negotiated in an interagency agreement between the department and each jurisdiction, as follows:

              (i) Up to $125,000 per year shall be provided to Pierce county for its additional public safety costs as defined in RCW 71.09.344(2).

              (ii) Up to $45,000 per year shall be provided to affected jurisdictions other than Pierce county for the costs of training their law enforcement and administrative personnel as defined in RCW 71.09.344(2)(a).

              (iii) The remaining amounts are for affected jurisdictions other than Pierce county for reimbursement of their documented public safety costs as defined in RCW 71.09.344(2) (b), (c), and (d).

              (((c) $924,000 of the general fund--state appropriation for fiscal year 2004 and $1,429,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for operational costs associated with a less restrictive step-down placement facility located outside of Pierce county. In selecting a site, the department is encouraged to purchase or lease a site in an industrial area close to employment opportunities and treatment services, in an effort to reduce operating expenditures related to transportation and staff time.))

              (b) $4,000 of the general fund--state appropriation for fiscal year 2004 and $354,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for mitigation costs associated with the development and occupancy of the secure community transition facility in Seattle, as described in the settlement agreement dated February 3, 2004, between the department and the city of Seattle. If City of Seattle v. DSHS, King County Superior Court Cause No. 03-2-37882-SEA is not dismissed with prejudice by July 1, 2004, this appropriation shall lapse. If the proceeding requested by the city under RCW 71.09.342(5) is not withdrawn or dismissed with prejudice by July 1, 2004, this appropriation shall lapse.

              (c) $1,212,000 of the general fund--state appropriation for fiscal year 2004 and $1,260,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for legal fees charged to the special commitment program, including increased hourly rates.


              (4) SPECIAL PROJECTS

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,082,000


              (5) PROGRAM SUPPORT

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,863,000))

$3,124,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,751,000))

$3,208,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($5,011,000))

$5,918,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($10,625,000))

$12,250,000


              The appropriations in this subsection are subject to the following conditions and limitations:

              (a) $113,000 of the general fund--state appropriation for fiscal year 2004, $125,000 of the general fund--state appropriation for fiscal year 2005, and $164,000 of the general fund--federal appropriation are provided solely for the institute for public policy to evaluate the impacts of chapter 214, Laws of 1999 (mentally ill offenders), chapter 297, Laws of 1998 (commitment of mentally ill persons), and chapter 334, Laws of 2001 (mental health performance audit).

              (b) $50,000 of the general fund--state appropriation for fiscal year 2004 and $50,000 of the general fund--federal appropriation are provided solely for a study of the prevalence of mental illness among the state's regional support networks. The study shall examine how reasonable estimates of the prevalence of mental illness relate to the incidence of persons enrolled in medical assistance programs in each regional support network area. In conducting this study, the department shall consult with the joint legislative audit and review committee, regional support networks, community mental health providers, and mental health consumer representatives. The department shall submit a final report on its findings to the fiscal, health care, and human services committees of the legislature by November 1, 2003.

              (c) $53,000 of the general fund--state appropriation and $47,000 of the general fund--federal appropriation for fiscal year 2005 are provided solely for development of a plan for maintaining and increasing the number of beds available for treatment of persons experiencing acute psychiatric emergencies. The plan is to provide an estimate of the number of state hospital and community acute care beds needed in different areas of the state, and to estimate the construction and operating cost of meeting that need under alternative operating arrangements.


              Sec. 205. 2003 1st sp.s. c 25 s 205 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--DEVELOPMENTAL DISABILITIES PROGRAM

              (1) COMMUNITY SERVICES

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($262,458,000))

$250,633,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($268,826,000))

$274,414,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($439,489,000))

$453,434,000

Health Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,038,000))

$971,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($971,811,000))

$979,452,000


              The appropriations in this subsection are subject to the following conditions and limitations:

              (a) Any new funding for family support and high school transition along with a portion of existing funding for these programs shall be provided as supplemental security income (SSI) state supplemental payments for persons with developmental disabilities in families with taxable incomes at or below 150 percent of median family income. Individuals receiving family support or high school transition payments shall not become eligible for medical assistance under RCW 74.09.510 due solely to the receipt of SSI state supplemental payments.

              (b) The health services account appropriation and (($1,038,000)) $971,000 of the general fund--federal appropriation are provided solely for health care benefits for home care workers with family incomes below 200 percent of the federal poverty level who are employed through state contracts for twenty hours per week or more.

              (i) Premium payments for individual provider home care workers shall be made only to the subsidized basic health plan.

              (ii) Home care agencies may obtain coverage either through the basic health plan or through an alternative plan with substantially equivalent benefits. Premium payments made to home care agencies shall be limited to home care workers who are employed at least twenty hours per week to serve state-funded clients. It is the intent of the legislature to fund the purchase of health care benefits for agency home care providers in a more fiscally prudent manner. The legislature encourages agency providers to purchase more cost-effective health care benefits, including increasing participation in the basic health plan or purchasing substantially equivalent benefits with substantially equivalent costs.

              (c) (($510,000)) $562,000 of the general fund--state appropriation for fiscal year 2004, (($784,000)) $1,767,000 of the general fund--state appropriation for fiscal year 2005, and (($1,225,000)) $2,266,000 of the general fund--federal appropriation are provided solely for community residential and support services. Funding in this subsection shall be prioritized for (i) residents of residential habilitation centers who are able to be adequately cared for in community settings and who choose to live in those community settings; ((and)) (ii) clients without residential services who are at immediate risk of institutionalization or in crisis; (iii) children who are aging out of other state services; and (iv) current home and community-based waiver program clients who have been assessed as having an immediate need for increased services. The department shall ensure that the average cost per day for all program services other than start-up costs shall not exceed $300. In order to maximize the number of clients served and ensure the cost-effectiveness of the waiver programs, the department will strive to limit new client placement expenditures to 90 percent of the budgeted daily rate. If this can be accomplished, additional clients may be served with excess funds provided the total projected carry-forward expenditures do not exceed the amounts estimated. The department shall implement the four new waiver programs such that decisions about enrollment levels and the amount, duration, and scope of services maintain expenditures within appropriations. The department shall electronically report to the appropriate committees of the legislature, within 45 days following each fiscal year quarter, the number of residents moving into community settings and the actual expenditures for all community services to support those residents.

              (d) (($511,000)) $563,000 of the general fund--state appropriation for fiscal year 2004, (($616,000)) $1,390,000 of the general fund--state appropriation for fiscal year 2005, and (($1,073,000)) $1,905,000 of the general fund--federal appropriation are provided solely for expanded community services for persons with developmental disabilities who also have community protection issues ((or are diverted or discharged from state psychiatric hospitals)). Funding in this subsection shall be prioritized for (i) clients being diverted or discharged from the state psychiatric hospitals; (ii) clients participating in the dangerous mentally ill offender program; (iii) clients participating in the community protection program; and (iv) mental health crisis diversion outplacements. The department shall ensure that the average cost per day for all program services other than start-up costs shall not exceed $300. In order to maximize the number of clients served and ensure the cost-effectiveness of the waiver programs, the department will strive to limit new client placement expenditures to 90 percent of the budgeted daily rate. If this can be accomplished, additional clients may be served with excess funds provided the total projected carry-forward expenditures do not exceed the amounts estimated. The department shall implement the four new waiver programs such that decisions about enrollment levels and the amount, duration, and scope of services maintain expenditures within appropriations. The department shall electronically report to the appropriate committees of the legislature, within 45 days following each fiscal year quarter, the number of persons served with these additional community services, where they were residing, what kinds of services they were receiving prior to placement, and the actual expenditures for all community services to support these clients.

              (e) The department shall provide a status report on the transition, implementation, and operation of the four home and community-based waivers that will replace the community alternatives program waiver. The department shall electronically report to the appropriate committees of the legislature, within 45 days following each fiscal year quarter for the quarters through December 2004, the following information for each home and community-based waiver: Total projected state and federal fiscal year expenditures, year-to-date actual expenditures compared to projected expenditures, year-to-date unduplicated clients compared to projected clients, actual average per capita costs compared to projected per capita costs, number of transfers between waivers, amount of emergency funds spent to date compared to projected emergency costs, state and federal funds transferred from the medicaid personal care program to the four home and community-based waiver programs, and the year-to-date number of new clients added to a waiver program.

              (f) The department may transfer funding provided in this subsection to meet the purposes of subsection (2) of this section to the extent that fewer residents of residential habilitation centers choose to move to community placements than was assumed in this appropriation.

              (((f) $3,290,000)) (g) $3,202,000 of the general fund--state appropriation for fiscal year 2004, (($4,773,000)) $4,472,000 of the general fund--state appropriation for fiscal year 2005, and (($7,504,000)) $7,633,000 of the general fund--federal appropriation are provided solely for the purpose of providing a wage increase effective October 1, 2003, for individual home care workers providing state-funded services. The amounts in this subsection also include the funds needed for the employer share of unemployment and social security taxes on the amount of the increase.

              (((g) $355,000)) (h) $213,000 of the general fund--state appropriation for fiscal year 2004, (($517,000)) $289,000 of the general fund--state appropriation for fiscal year 2005, and (($848,000)) $500,000 of the general fund--federal appropriation are provided solely to increase payments to agency home care providers from $13.44 per hour to $14.27 per hour effective October 1, 2003. The amounts in this subsection shall be used to increase ((wages)) compensation for direct care workers by 75 cents per hour. The amounts in this subsection also include the funds needed for the employer share of unemployment and social security taxes on the amount of the increase.

              (i) $1,000,000 of the general fund--state appropriation for fiscal year 2005 and $300,000 of the general fund--federal appropriation are provided solely for employment and day services. Priority consideration for this new funding shall be young adults with developmental disabilities living with their family who need employment opportunities and assistance after high school graduation. Services shall be provided proportionately between waiver and nonwaiver clients. Federal funds may be used to enhance this funding only to the extent that a client is already on a home and community-based waiver. This funding shall not be used to add new clients to a home and community-based waiver.

              (j) $312,000 of the general fund--state appropriation for fiscal year 2005 and $290,000 of the general fund--federal appropriation are provided solely to increase payments to agency home care providers from $14.27 per hour to $14.93 per hour, effective October 1, 2004. The amounts in this subsection shall be used to increase compensation for direct care workers by 50 cents per hour. The amounts in this subsection also include the funds needed for the employer share of unemployment and social security taxes on the amount of the increase.


              (2) INSTITUTIONAL SERVICES

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($71,862,000))

$67,708,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($70,926,000))

$70,794,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($144,682,000))

$148,998,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,228,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($298,698,000))

$298,728,000


              The appropriations in this subsection are subject to the following conditions and limitations: The department may transfer funding provided in this subsection to meet the purposes of subsection (1) of this section to the extent that more residents of residential habilitation centers choose to move to community placements than was assumed in this appropriation.


              (3) PROGRAM SUPPORT

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,245,000))

$2,474,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,245,000))

$3,208,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,965,000))

$4,209,000

Telecommunications Devices for the Hearing and

              Speech Impaired Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,782,000))

$891,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($9,237,000))

$10,782,000


              The appropriation in this subsection is subject to the following conditions and limitations: $245,000 of the general fund--state appropriation for fiscal year 2004, $996,000 of the general fund--state appropriation for fiscal year 2005, and $1,258,000 of the general fund--federal appropriation are provided solely for the purpose of developing and implementing a consistent needs assessment instrument for use on all clients with developmental disabilities. In developing the instrument, the department shall develop a process for collecting data on family income for minor children with developmental disabilities who are clients of the department and shall ensure that this information is captured as part of the client assessment process.


              (4) SPECIAL PROJECTS

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($11,993,000))

$13,604,000


              Sec. 206. 2003 1st sp.s. c 25 s 206 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--AGING AND ADULT SERVICES PROGRAM

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($557,645,000))

$523,896,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($570,669,000))

$578,270,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,162,511,000))

$1,187,250,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,644,000

Health Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,888,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,314,357,000))

$2,312,948,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The entire health services account appropriation, $1,476,000 of the general fund--state appropriation for fiscal year 2004, (($1,476,000)) $1,043,000 of the general fund--state appropriation for fiscal year 2005, and (($7,284,000)) $6,851,000 of the general fund--federal appropriation are provided solely for health care benefits for home care workers who are employed through state contracts for at least twenty hours per week.

              (a) Premium payments for individual provider home care workers shall be made only to the subsidized basic health plan, and only for persons with incomes below 200 percent of the federal poverty level.

              (b) Home care agencies may obtain coverage either through the basic health plan or through an alternative plan with substantially equivalent benefits. Premium payments made to home care agencies shall be limited to home care workers who are employed at least twenty hours per week to serve state-funded clients. It is the intent of the legislature to fund the purchase of health care benefits for agency home care providers in a more fiscally prudent manner. The legislature encourages agency providers to purchase more cost-effective health care benefits, including increasing participation in the basic health plan or purchasing substantially equivalent benefits with substantially equivalent costs.

              (2) $1,768,000 of the general fund--state appropriation for fiscal year 2004 and $1,768,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for operation of the volunteer chore services program.

              (3) For purposes of implementing chapter 74.46 RCW, the weighted average nursing facility payment rate shall be no more than (($144.54)) $142.04 for fiscal year 2004, and no more than (($147.43)) $148.11 for fiscal year 2005. For all facilities, the direct care, therapy care, support services, and operations component rates established in accordance with chapter 74.46 RCW shall be adjusted for economic trends and conditions by 3.0 percent effective July 1, 2003, and by an additional 2.4 percent effective July 1, 2004.

              (4) In accordance with chapter 74.46 RCW, the department shall issue certificates of capital authorization that result in up to $32 million of increased asset value completed and ready for occupancy in fiscal year 2004; up to $32 million of increased asset value completed and ready for occupancy in fiscal year 2005; and up to $32 million of increased asset value completed and ready for occupancy in fiscal year 2006.

              (5) Adult day health services shall not be considered a duplication of services for persons receiving care in long-term care settings licensed under chapter 18.20, 72.36, or 70.128 RCW.

              (6) In accordance with chapter 74.39 RCW, the department may implement ((a)) two medicaid waiver programs for persons who do not qualify for such services as categorically needy, subject to federal approval and the following conditions and limitations:

              (a) ((The)) One waiver program shall include coverage of care in community residential facilities. Enrollment in the waiver shall not exceed 600 persons ((by the end of fiscal year 2004, nor 600 persons by the end of fiscal year 2005)) at any time.

              (b) The second waiver program shall include coverage of in-home care. Enrollment in this second waiver shall not exceed 200 persons at any time.

              (c) The department shall identify the number of medically needy nursing home residents, and enrollment and expenditures on each of the two medically needy waivers, on monthly management reports.

              (((c))) (d) The department shall track and electronically report to health care and fiscal committees of the legislature by November 15, 2004, on the types of long-term care support a sample of waiver participants were receiving prior to their enrollment in the waivers, how those services were being paid for, and an assessment of their adequacy.

              (e) If it is necessary to establish a waiting list for either waiver because the budgeted number of enrollment opportunities has been reached, the department shall track how the long-term care needs of applicants assigned to the waiting list are met.

              (7) $118,000 of the general fund--state appropriation for fiscal year 2004, $118,000 of the general fund--state appropriation for fiscal year 2005, and $236,000 of the general fund--federal appropriation are provided solely for the department to assess at least annually each elderly resident residing in residential habilitation centers and state-operated living alternatives to determine if the resident can be more appropriately served in a less restrictive setting.

              (a) The department shall consider the proximity to the resident of the family, friends, and advocates concerned with the resident's well-being in determining whether the resident should be moved from a residential habilitation center to a different facility or program.

              (b) In assessing an elderly resident under this section and to ensure appropriate placement, the department shall identify the special needs of the resident, the types of services that will best meet those needs, and the type of facility that will best provide those services.

              (c) The appropriate interdisciplinary team shall conduct the evaluation.

              (d) If appropriate, the department shall coordinate with the local mental health authority.

              (e) The department may explore whether an enhanced rate is needed to serve this population.

              (8) Within funds appropriated in this section, the department may ((assess nursing facility residents with Alzheimer's disease or related dementias to determine whether such residents can be more appropriately served in licensed boarding home facilities that specialize in caring for such conditions. The department may, based upon the assessments and within existing funds, pay dementia pilot project rates on behalf of)) expand the number of boarding home beds participating in the dementia pilot project by up to 200. These additional beds shall provide persons with Alzheimer's disease or related dementias who ((move from nursing facilities to specialized boarding homes)) might otherwise require nursing home care accommodation in licensed boarding home facilities that specialize in caring for such conditions.

              (9) The department shall establish waiting lists to the extent necessary to assure that annual expenditures on the community options program entry systems (COPES) program do not exceed appropriated levels. In establishing and managing any such waiting list, the department shall assure priority access to persons with the greatest unmet needs, as determined by department assessment processes.

              (10) (($7,102,000)) $6,418,000 of the general fund--state appropriation for fiscal year 2004, (($10,065,000)) $8,620,000 of the general fund--state appropriation for fiscal year 2005, and (($17,029,000)) $15,038,000 of the general fund--federal appropriation are provided solely for the purpose of providing a wage increase effective October 1, 2003, for individual home care workers providing state-funded services. The amounts in this subsection also include the funds needed for the employer share of unemployment and social security taxes on the amount of the increase.

              (11) (($2,219,000)) $2,294,000 of the general fund--state appropriation for fiscal year 2004, (($3,192,000)) $3,266,000 of the general fund--state appropriation for fiscal year 2005, and (($5,263,000)) $5,560,000 of the general fund--federal appropriation are provided solely to increase payments to agency home care providers from $13.44 per hour to $14.27 per hour effective October 1, 2003. The amounts in this subsection shall be used to increase ((wages)) compensation for direct care workers by 75 cents per hour. The amounts in this subsection also include the funds needed for the employer share of unemployment and social security taxes on the amount of the increase.

              (12) $1,952,000 of the general fund--state appropriation for fiscal year 2005 and $1,941,000 of the general fund--federal appropriation are provided solely to increase payments to agency home care providers from $14.27 per hour to $14.93 per hour, effective October 1, 2004. The amounts in this subsection shall be used to increase compensation for direct care workers by 50 cents per hour. The amounts in this subsection also include the funds needed for the employer share of unemployment and social security taxes on the amount of the increase.

              (13) $500,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for area agencies on aging, or entities with which area agencies on aging contract, to provide support services for grandparents and other formal and informal kinship caregivers of children throughout the state.

              (a) Support services shall include but not be limited to assistance in gaining access to those services, counseling, organization of support groups, and respite care.

              (b) In providing support services under the kinship caregivers support program, area agencies on aging shall give priority to kinship caregivers who are at the greatest risk of being unable to maintain the caregiving role.

              (c) In carrying out the kinship caregivers support program, each area agency on aging shall coordinate the activities of the agency, or entities with which the agency contracts, with the activities of other public and private agencies or organizations providing similar services for kinship caregivers.


              Sec. 207. 2003 1st sp.s. c 25 s 207 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--ECONOMIC SERVICES PROGRAM

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($408,184,000))

$445,968,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($407,363,000))

$437,720,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,209,758,000))

$1,208,746,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($33,880,000))

$33,891,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,059,185,000))

$2,126,325,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $273,652,000 of the general fund--state appropriation for fiscal year 2004, $273,695,000 of the general fund--state appropriation for fiscal year 2005, and $1,000,222,000 of the general fund--federal appropriation are provided solely for all components of the WorkFirst program. Within the amounts provided for the WorkFirst program, the department shall:

              (a) Continue to implement WorkFirst program improvements that are designed to achieve progress against outcome measures specified in RCW 74.08A.410. Valid outcome measures of job retention and wage progression shall be developed and reported quarterly to appropriate fiscal and policy committees of the legislature for families who leave assistance, measured after 12 months, 24 months, and 36 months. The department shall also report the percentage of families who have returned to temporary assistance for needy families after 12 months, 24 months, and 36 months;

              (b) Submit a report by October 1, 2003, to the fiscal committees of the legislature containing a spending plan for the WorkFirst program. The plan shall identify how spending levels in the 2003-2005 biennium will be adjusted to stay within available federal grant levels and the appropriated state-fund levels; and

              (((c) Include an urban adjustment factor for child care providers in urban areas of region 1.))

              (2) (($45,639,000)) $57,547,000 of the general fund--state appropriation for fiscal year 2004 and (($39,335,000)) $59,953,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for cash assistance and other services to recipients in the general assistance--unemployable program. Within these amounts, the department may expend funds for services that assist recipients to reduce their dependence on public assistance, provided that expenditures for these services and cash assistance do not exceed the funds provided.

              (3) (($1,436,000)) $936,000 of the general fund--state appropriation for fiscal year 2004 and (($1,436,000)) $936,000 of the general fund--state appropriation for fiscal year 2005 are provided for the department to assist in naturalization efforts for legal aliens whose eligibility for federal supplemental security income has expired. The department shall use funding previously spent on general assistance employment supports for these naturalization services.

              (4) $3,940,000 of the general fund--state appropriation for fiscal year 2004 and $3,940,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the food assistance program for legal immigrants. The level of benefits shall be equivalent to the benefits provided by the federal food stamp program.

              (5) $9,142,000 of the general fund--federal appropriation is provided solely for increased reimbursement of county legal-clerk services for child support enforcement. The department shall ensure this increase in cost does not reduce federal incentive payments.

              (6) In reviewing the budget for the division of child support, the legislature has conducted a review of the Washington state child support schedule, chapter 26.19 RCW, and supporting documentation as required by federal law. The legislature concludes that the application of the support schedule continues to result in the correct amount of child support to be awarded. No further changes will be made to the support schedule or the economic table at this time.

              (7) $1,250,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the department to maintain specialized employment services through the WorkFirst/LEP pathway program for refugees and other limited-English-proficient (LEP) families and individuals that receive temporary assistance for needy families, state family assistance, or refugee cash assistance benefits. These employment services include but are not limited to English as a second language (ESL), job placement assistance, and work support services.

              (8) $96,000 of the general fund--state appropriation for fiscal year 2005, $16,000 of the general fund--federal appropriation, and $11,000 of the general fund--local appropriation are provided solely for the implementation of Engrossed Senate Bill No. 6411 (reducing hunger), including section 2 of the act. If the bill is not enacted by June 30, 2004, the amounts provided in this section shall lapse.

              (9) $500,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for a subsidy rate increase for child care providers in urban areas of region 1.


              Sec. 208. 2003 1st sp.s. c 25 s 208 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--ALCOHOL AND SUBSTANCE ABUSE

PROGRAM

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($40,320,000))

$39,979,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($40,320,000))

$41,201,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($90,632,000))

$94,105,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$630,000

Public Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($7,160,000))

$2,060,000

Criminal Justice Treatment Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$8,950,000

Violence Reduction and Drug Enforcement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .(($44,342,000))

$49,142,000

Problem Gambling Treatment Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$500,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($232,354,000))

$236,567,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $966,197 of the general fund--state appropriation for fiscal year 2004 and $966,197 of the general fund-- state appropriation for fiscal year 2005 are provided solely for the parent child assistance program. The department shall contract with the University of Washington and community-based providers in Spokane and Yakima for the provision of this program. For all contractors, indirect charges for administering the program shall not exceed ten percent of the total contract amount.

              (2) $250,000 of the general fund--state appropriation for fiscal year 2005 is provided for the Washington state mentoring partnership.

              (3) $500,000 of the problem gambling treatment account appropriation is provided solely to implement Second Substitute House Bill No. 2776 (problem gambling). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              Sec. 209. 2003 1st sp.s. c 25 s 209 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--MEDICAL ASSISTANCE PROGRAM

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,184,774,000))

$1,119,073,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,265,423,000))

$1,248,580,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($3,764,258,000))

$3,892,248,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($262,736,000))

$278,296,000

Emergency Medical Services and Trauma Care Systems Trust Account--State Appropriation. . . . . . . . . . . . .(($23,700,000))

$14,004,000

Health Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($756,012,000))

$708,854,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($7,256,903,000))

$7,261,055,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Based on quarterly expenditure reports and caseload forecasts, if the department estimates that expenditures for the medical assistance program will exceed the appropriations, the department shall take steps including but not limited to reduction of rates or elimination of optional services to reduce expenditures so that total program costs do not exceed the annual appropriation authority.

              (2) The department shall continue to extend medicaid eligibility to children through age 18 residing in households with incomes below 200 percent of the federal poverty level.

              (3) In determining financial eligibility for medicaid-funded services, the department is authorized to disregard recoveries by Holocaust survivors of insurance proceeds or other assets, as defined in RCW 48.104.030.

              (4) (($999,000)) $493,000 of the health services account appropriation for fiscal year 2004, (($1,519,000)) $748,000 of the health services account appropriation for fiscal year 2005, and (($2,142,000)) $1,241,000 of the general fund--federal appropriation are provided solely for implementation of a "ticket to work" medicaid buy-in program for working persons with disabilities, operated in accordance with the following conditions:

              (a) To be eligible, a working person with a disability must have total income which is less than 450 percent of poverty;

              (b) Participants shall participate in the cost of the program by paying (i) a monthly enrollment fee equal to fifty percent of any unearned income in excess of the medicaid medically needy standard; and (ii) a monthly premium equal to 5 percent of all unearned income, plus 5 percent of all earned income after disregarding the first sixty-five dollars of monthly earnings, and half the remainder;

              (c) The department shall establish more restrictive eligibility standards than specified in this subsection to the extent necessary to operate the program within appropriated funds; and

              (d) The department may require point-of-service copayments as appropriate, except that copayments shall not be so high as to discourage appropriate service utilization, particularly of prescription drugs needed for the treatment of psychiatric conditions.

              (5) Sufficient funds are appropriated in this section for the department to continue podiatry services for medicaid-eligible adults.

              (6) Sufficient funds are appropriated in this section for the department to provide an adult dental benefit equivalent to approximately 75 percent of the dental benefit provided during the 2001-03 biennium. The department shall establish the scope of services to be provided within the available funds in consultation with dental providers and consumer representatives.

              (7) The legislature reaffirms that it is in the state's interest for Harborview medical center to remain an economically viable component of the state's health care system.

              (8) In accordance with RCW 74.46.625, (($52,057,000)) $35,953,000 of the fiscal year 2004 health services account appropriation, (($35,016,000)) $20,577,000 of the fiscal year 2005 health services account appropriation, and (($87,074,000)) $61,037,000 of the general fund--federal appropriation are provided solely for supplemental payments to nursing homes operated by rural public hospital districts. The payments shall be conditioned upon (a) a contractual commitment by the association of public hospital districts and participating rural public hospital districts to make an intergovernmental transfer to the state treasurer, for deposit into the health services account, equal to at least ((94.5)) 91.9 percent of the supplemental payments; (b) a contractual commitment by the association of public hospital districts to return at least ((5.5)) 8.1 percent of the supplemental payments to the participating rural hospital districts; and (c) a contractual commitment by the participating districts to not allow expenditures covered by the supplemental payments to be used for medicaid nursing home rate setting. A hospital which does not participate in the supplemental payment intergovernmental transfer budgeted for fiscal year 2003 shall not be eligible to participate in the supplemental payments budgeted in this subsection for fiscal year() 2004 ((and 2005)). The participating districts shall retain no more than a total of $9,600,000 for the 2003-05 biennium.

              (9) (($14,616,000)) $12,318,000 of the health services account appropriation for fiscal year 2004, (($12,394,000)) $10,738,000 of the health services account appropriation for fiscal year 2005, and (($27,010,000)) $23,056,000 of the general fund--federal appropriation are provided solely for additional disproportionate share and medicare upper payment limit payments to public hospital districts and to the state's teaching hospitals. The payments shall be conditioned upon a contractual commitment by the participating public hospitals to make an intergovernmental transfer to the health services account equal to at least 91 percent of the additional payments. The state's teaching hospitals shall retain at least 28 percent of the amounts retained by hospitals under these programs, or the maximum allowable under the teaching hospitals' limits as established under federal rule, whichever is less.

              (10) (($3,100,000)) $3,178,000 of the health services account appropriation, (($8,416,000)) $4,208,000 of the general fund--local appropriation, and (($11,516,000)) $7,308,000 of the general fund--federal appropriation are provided solely for grants to rural hospitals. The department shall distribute the funds under a formula that provides a relatively larger share of the available funding to hospitals that (a) serve a disproportionate share of low-income and medically indigent patients and (b) have relatively smaller net financial margins, to the extent allowed by the federal medicaid program.

              (11) (($26,080,000)) $36,002,000 of the health services account appropriation and $26,080,000 of the general fund--federal appropriation are provided solely for grants to nonrural hospitals. The department shall distribute the funds under a formula that provides a relatively larger share of the available funding to hospitals that (a) serve a disproportionate share of low-income and medically indigent patients and (b) have relatively smaller net financial margins, to the extent allowed by the federal medicaid program.

              (((13) $156,000)) (12) $302,000 of the general fund--state appropriation for fiscal year 2004, $1,671,000 of the general fund--state appropriation for fiscal year 2005, and (($1,403,000)) $17,757,000 of the general fund--federal appropriation are provided solely for ((a study to assess alternatives for replacing the existing medicaid management information system. The department shall report to the information services board and to the fiscal committees of the legislature by December 1, 2003, on the anticipated costs and benefits of the major alternative approaches)) development and implementation of a replacement system for the existing medicaid management information system. The medicaid management information system replacement project shall comply with section 902, chapter 25, Laws of 2003 1st sp. sess.

              (((14))) (13) The department shall implement a combination of cost containment and utilization strategies sufficient to reduce general fund--state costs for durable medical equipment and supplies in fiscal year 2005 by approximately 5 percent below the level projected for fiscal year 2005 in the February 2003 forecast. In designing strategies, the primary strategy considered shall be selective or direct contracting with durable medical equipment and supplies vendors or manufacturers.

              (((15))) (14) The department shall, within available resources, design and implement a medical care services care management pilot project for clients receiving general assistance benefits. The pilot project shall be operated in at least two of the counties with the highest concentration of general assistance clients, and may use a full or partial capitation model. In designing the project, the department shall consult with the mental health division and its managed care contractors that include community and migrant health centers in their provider network. The pilot project shall be designed to maximize care coordination, high-risk medical management, and chronic care management to achieve better health outcomes. The pilot project shall begin enrollment on July 1, 2004.

              (((16))) (15) Within available resources and to the extent possible, the department shall evaluate and pilot a nurse consultant services program to assist fee-for-service clients in accessing medical information, with the goal of reducing administrative burdens on physicians and unnecessary emergency room utilization.

              (((17))) (16) The department shall include in any pending medicaid reform section 1115 waiver application, or in any existing section 1115 waiver, a request for authorization to provide optional medicaid services that have been eliminated in this act to American Indian and Alaska Native persons as defined in relevant federal law who are eligible for medicaid only to the extent that such services are provided through the American Indian health system and are financed with one hundred percent federal medicaid matching funds.

              (((18))) (17) The department shall establish managed care rates within available funds((, giving specific consideration to each plan's programmatic and financial performance, and ability to assure access in under-served areas)), in a manner that promotes health plan efficiency, encourages continuity of service, and assures access in underserved areas.

              (((19))) (18) The department of social and health services, the office of the superintendent of public instruction, and the department of health should jointly identify opportunities for early intervention and prevention activities that can help prevent disease and reduce oral health issues among children. Disease prevention among infants at the age of one year and among children entering the K-12 education system provides cost-effective ways to avoid higher health care spending later in life.

              (((20))) (19) The department shall secure a federal waiver, effective no later than September 1, 2003, which will enable it to charge co-premiums for medical and dental coverage of children whose family incomes exceed the federal poverty level.

              (((21))) (20) For purposes of RCW 74.09.800(2), (($9,549,000)) $8,017,000 of the general fund--state appropriation for fiscal year 2004, (($10,779,000)) $8,454,000 of the general fund--state appropriation for fiscal year 2005, and (($37,753,000)) $30,588,000 of the general fund--federal appropriation are provided solely to provide prenatal care services to low-income women who are not eligible to receive such services under the medical assistance program, Title XIX of the federal social security act. If the department is unable to secure federal matching funds under Title XXI of the social security act, the department shall take all actions necessary to manage the program within these appropriated levels.

              (21) $13,588,000 of the health services account appropriation for fiscal year 2004, $11,008,000 of the health services account appropriation for fiscal year 2005, and $24,595,000 of the general fund--federal appropriation are provided solely for additional disproportionate share hospital payments to public hospital districts. The payments shall be conditioned upon a contractual commitment by the participating hospital districts to make an intergovernmental transfer to the health services account equal to at least 86.5 percent of the additional disproportionate share payment. The participating districts shall retain no more than $6,607,000 of the total additional amount paid.

              (22) $10,000,000 of the general fund--federal and $10,000,000 of the general fund--local funds are provided solely to increase payments in the inpatient upper payment limit program for the state's teaching hospitals. Payments shall be made to the extent allowable under federal medicaid rule and law. The department shall work with the teaching hospitals to identify allowable sources of funding for the required match and to assure that the teaching hospitals are responsible for repayment of any disallowed federal matching funds.


              Sec. 210. 2003 1st sp.s. c 25 s 210 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--VOCATIONAL REHABILITATION PROGRAM

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($10,180,000))

$10,172,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($10,202,000))

$10,191,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($85,803,000))

$85,804,000

General Fund--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $440,000

Telecommunications Devices for the Hearing and Speech Impaired Account--State Appropriation. . . . . . . . . . . . . .$891,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($106,625,000))

$107,498,000


              Sec. 211. 2003 1st sp.s. c 25 s 211 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--ADMINISTRATION AND SUPPORTING SERVICES PROGRAM

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($35,926,000))

$37,620,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($25,968,000))

$29,382,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($45,752,000))

$52,580,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$810,000

Public Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,444,000

Violence Reduction and Drug Enforcement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,152,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($108,456,000))

$126,988,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $467,000 of the general fund--state appropriation for fiscal year 2004, $769,000 of the general fund--state appropriation for fiscal year 2005, and $1,236,000 of the general fund--federal appropriation are provided solely for transition costs associated with the downsizing effort at Fircrest school. The department shall organize the downsizing effort so as to minimize disruption to clients, employees, and the developmental disabilities program. The employees responsible for the downsizing effort shall report to the assistant secretary of the aging and disability services administration. Within the funds provided in this subsection, the department shall:

              (a) Determine appropriate ways to maximize federal reimbursement during the downsizing process;

              (b) Meet and confer with representatives of affected employees on how to assist employees who need help to relocate to other state jobs or to transition to private sector positions;

              (c) Review opportunities for state employees to continue caring for clients by assisting them in developing privately operated community residential alternatives. In conducting the review, the department will examine efforts in this area pursued by other states as part of institutional downsizing efforts;

              (d) Keep appropriate committees of the legislature apprised, through regular reports and periodic e-mail updates, of the development of and revisions to the work plan regarding this downsizing effort; and

              (e) Provide a preliminary transition plan to the fiscal and policy committees of the legislature by January 1, 2004. The transition plan shall include recommendations on ways to continue to provide some of the licensed professional services offered at Fircrest school to clients being served in community settings.

              (2) $10,000,000 of the general fund--state appropriation for fiscal year 2004 is provided solely for one-time expenditures needed to meet the federally required level for state supplemental payments (SSP). The department shall transfer appropriate portions of this amount to other programs within the agency to accomplish this purpose. The department shall not initiate new services with this funding that will cause total future SSP expenditures to exceed the required annual maintenance-of-effort level.

              (3) $100,000 of the general fund--state appropriation for fiscal year 2004 and $100,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for a contract for expanded services of the teamchild project.

              (4) $900,000 of the general fund--state appropriation for fiscal year 2004 and $900,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the continued implementation of the juvenile violence prevention grant program established in section 204, chapter 309, Laws of 1999.


              Sec. 212. 2003 1st sp.s. c 25 s 212 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--PAYMENTS TO OTHER AGENCIES PROGRAM

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($42,011,000))

$43,454,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($42,011,000))

$43,493,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($41,994,000))

$43,321,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($126,016,000))

$130,268,000


              Sec. 213. 2003 1st sp.s. c 25 s 213 (uncodified) is amended to read as follows:

FOR THE STATE HEALTH CARE AUTHORITY

State Health Care Authority Administrative Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .(($17,665,000))

$18,942,000

Health Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($415,459,000))

$417,890,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,307,000))

$3,875,000

Medical Aid Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($128,000))

$213,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($436,559,000))

$440,920,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) (($6,000,000 of)) $2,500,000 of the health services account--state appropriation is provided solely to increase funding for health care services provided through local community clinics.

              (2) The health services account--state appropriation ((is provided solely to increase the number of persons not eligible for medicaid receiving dental care from nonprofit community clinics)) contains funding to provide dental care at community clinics for persons who are not current medicaid recipients, and for interpreter services to support dental and medical services for persons for whom interpreters are not available from any other source.

              (((2))) (3) $50,000 of the health services account--state appropriation is provided solely to support the operation of an innovative clinic model for the delivery of health services to uninsured or publicly insured persons that is located in an urban underserved area and operated as a department or subsidiary of a hospital located in that underserved area; has been in operation for fewer than six months as of the effective date of this act; utilizes an innovative service delivery model that relies upon midlevel practitioners, volunteers, and students enrolled in health education programs and offers group visits for common conditions; and has a sliding fee schedule that assumes that every patient of the clinic will make some contribution towards the cost of his or her care.

              (4) In order to maximize the number of enrollees who can be supported within appropriated amounts, the health care authority is directed to make modifications that will reduce the actuarial value of the basic health plan benefit by approximately 18 percent effective January 1, 2004. Modifications may include changes in enrollee premium obligations, enrollee cost-sharing, benefits, and incentives to access preventative services. To the extent that additional actions are needed in order to operate within appropriated funds, new enrollments to the program shall be limited in a manner consistent with the authority's September 6, 2001, administrative policy on basic health plan enrollment management.

              (((3))) (5) Within funds appropriated in this section and sections 205 and 206 of this act, the health care authority shall continue to provide an enhanced basic health plan subsidy for foster parents licensed under chapter 74.15 RCW and workers in state-funded home care programs. Under this enhanced subsidy option, foster parents and home care workers with family incomes below 200 percent of the federal poverty level shall be allowed to enroll in the basic health plan at the minimum premium amount charged to enrollees with incomes below sixty- five percent of the federal poverty level.

              (((4))) (6) The health care authority shall require organizations and individuals which are paid to deliver basic health plan services and which choose to sponsor enrollment in the subsidized basic health plan to pay 133 percent of the premium amount which would otherwise be due from the sponsored enrollees.

              (((5))) (7) The administrator shall take at least the following actions to assure that persons participating in the basic health plan are eligible for the level of assistance they receive: (a) Require submission of (i) income tax returns, and recent pay history, from all applicants, or (ii) other verifiable evidence of earned and unearned income from those persons not required to file income tax returns; (b) check employment security payroll records at least once every twelve months on all enrollees; (c) require enrollees whose income as indicated by payroll records exceeds that upon which their subsidy is based to document their current income as a condition of continued eligibility; (d) require enrollees for whom employment security payroll records cannot be obtained to document their current income at least once every six months; (e) not reduce gross family income for self-employed persons by noncash-flow expenses such as, but not limited to, depreciation, amortization, and home office deductions, as defined by the United States internal revenue service; and (f) pursue repayment and civil penalties from persons who have received excessive subsidies, as provided in RCW 70.47.060(9).

              (((6))) (8) To decrease administrative burdens for providers and plans participating in state purchased health care programs, the administrator, the assistant secretary for the medical assistance administration of the department of social and health services, and the director of the department of labor and industries, in collaboration with health carriers, health care providers, and the office of the insurance commissioner shall, within available resources:

              (a) Improve the timeliness of claims processing and the distribution of medical assistance program fee schedules, and more clearly define the scope of coverage under managed care contracts;

              (b) Improve the capacity for electronic billing and claims submission and provide electronic access to eligibility, benefits, and exclusion information;

              (c) Develop clear audit and data requirements for contracting managed health care plans and improve consistency between claims processing and published fee schedules;

              (d) Conform billing codes with providers and between agencies with national and regional standards wherever possible; and

              (e) Take steps to implement cost-effective measures pursuant to this section by December 2004, and on or before December 1, 2003, provide a progress report to the relevant policy and fiscal committees of the legislature on the feasibility of implementation and any fiscal constraints or regulatory or statutory barriers.


              Sec. 214. 2003 1st sp.s. c 25 s 217 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LABOR AND INDUSTRIES

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,863,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($5,860,000))

$6,145,000

Public Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$22,391,000

Public Safety and Education Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$8,462,000

Asbestos Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($693,000))

$717,000

Electrical License Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($28,966,000))

$29,589,000

Farm Labor Revolving Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$28,000

Worker and Community Right-to-Know Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,544,000))

$2,557,000

Public Works Administration Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,411,000))

$2,477,000

Accident Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($187,843,000))

$188,181,000

Accident Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13,396,000

Medical Aid Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($186,724,000))

$186,408,000

Medical Aid Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,960,000

Plumbing Certificate Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,451,000))

$1,490,000

Pressure Systems Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,807,000))

$2,878,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($472,399,000))

$473,542,000


              The appropriations in this section are subject to the following conditions and limitations:

              (((2))) (1) $90,000 of the electrical license account--state appropriation and $206,000 of the plumbing certificate account--state appropriation are provided solely to implement Engrossed Substitute Senate Bill No. 5713 (electrical contractors). If the bill is not enacted by June 30, 2003, the amounts provided in this subsection shall lapse.

              (((3) $378,000)) (2) $578,000 of the accident account--state appropriation is provided solely for the purpose of contracting with medical laboratories, health care providers, and other appropriate entities to provide cholinesterase medical monitoring of farm workers who handle cholinesterase-inhibiting pesticides, and to collect and analyze data related to such monitoring.

              (3) $453,000 of the accident account--state appropriation is provided solely for the purpose of reimbursing agricultural employers for the costs of training, record-keeping, and travel related to cholinesterase medical monitoring of farm workers who handle cholinesterase-inhibiting pesticides.

              (4) The department shall report to the office of financial management and the appropriate fiscal and policy committees of the legislature detailed information regarding administrative staffing levels and services by October 1, 2004, and prior to implementing phase II of the indirect cost study.

              (5) $399,000 of the accident account--state appropriation and $399,000 of the medical aid account--state appropriation are provided solely for the expansion of workers' compensation fraud investigation activities. The department shall report quarterly to the office of financial management and the appropriate policy and fiscal committees of the legislature regarding the cost effectiveness of fraud activities, including the total dollars expended compared to total dollars recovered.


              Sec. 215. 2003 1st sp.s. c 25 s 219 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF VETERANS AFFAIRS

              (1) HEADQUARTERS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,527,000))

$1,531,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,528,000))

$1,536,000

Charitable, Educational, Penal, and Reformatory Institutions Account--State Appropriation. . . . . . . . . . . . . . . . . . . . $11,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,066,000))

$3,078,000


              (2) FIELD SERVICES

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,579,000))

$2,588,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,579,000))

$2,596,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$309,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,668,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($7,135,000))

$7,161,000


              (3) INSTITUTIONAL SERVICES

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($7,473,000))

$7,380,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($5,890,000))

$6,020,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($27,207,000))

$27,365,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $27,822,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($68,392,000))

$68,587,000


              Sec. 216. 2003 1st sp.s. c 25 s 220 (uncodified) is amended to read as follows:

FOR THE HOME CARE QUALITY AUTHORITY

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($412,000))

$360,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($259,000))

$471,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($671,000))

$831,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) (($150,000)) $98,000 of the general fund--state appropriation for fiscal year 2004 ((is)) and $212,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the design and development of ((the)) a home care provider referral registry ((mandated by Initiative Measure No. 775)) as provided in RCW 74.39A.250. The authority and the department of social and health services shall jointly report to the fiscal committees of the legislature by December 1, 2004, with options for operating the regional and local components of the registry through cooperative agreements with area agencies on aging and/or the department's home and community services offices. The options shall identify the costs and benefits associated with several alternative levels of ongoing operational funding, at least one of which shall be to operate the registry within current levels of state and federal funding for the regional and local offices.

              (2) Pursuant to RCW 74.39A.300(1), the legislature ((rejects)) rejected the collective bargaining agreement entered into by the home care quality authority and the exclusive bargaining representative of individual providers on January 13, 2003, under chapter 74.39A RCW (Initiative Measure No. 775).


              Sec. 217. 2003 1st sp.s. c 25 s 221 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF HEALTH

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($58,143,000))

$57,853,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($60,224,000))

$60,346,000

Health Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($34,289,000))

$36,989,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($348,897,000))

$392,762,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $93,601,000

Hospital Commission Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,490,000

Health Professions Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($40,097,000))

$40,285,000

Emergency Medical Services and Trauma Care Systems Trust Account--State Appropriation. . . . . . . . . . . . . . . $12,558,000

Safe Drinking Water Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,728,000

Drinking Water Assistance Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($13,498,000))

$15,654,000

Waterworks Operator Certification--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($633,000))

$1,053,000

Drinking Water Assistance Administrative Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$326,000

Water Quality Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,359,000

Accident Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $258,000

Medical Aid Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $46,000

State Toxics Control Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,761,000

Medical Test Site Licensure Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,718,000

Youth Tobacco Prevention Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,806,000

Tobacco Prevention and Control Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $52,510,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($729,616,000))

$779,103,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The department or any successor agency is authorized to raise existing fees charged for health care assistants, commercial shellfish paralytic shellfish poisoning, commercial shellfish licenses, ((and)) newborn screening programs, psychiatrically impaired children and youth residential treatment, and in-home services in excess of the fiscal growth factor established by Initiative Measure No. 601, if necessary, to meet the actual costs of conducting business and the appropriation levels in this section.

              (2) $1,337,000 of the general fund--state fiscal year 2004 appropriation and $1,338,000 of the general fund--state fiscal year 2005 appropriation are provided solely for the implementation of the Puget Sound water work plan and agency action items, DOH-01, DOH-02, DOH-03, and DOH-04.

              (3) The department of health shall not initiate any services that will require expenditure of state general fund moneys unless expressly authorized in this act or other law. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation that provides appropriation authority, and an equal amount of appropriated state moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.

              (4) (($21,650,000)) $24,350,000 of the health services account--state appropriation is provided solely for the state's program of universal access to essential childhood vaccines. The department shall utilize all available federal funding before expenditure of these funds.

              (5) $2,984,000 of the general fund--local appropriation is provided solely for development and implementation of an internet-based system for preparing and retrieving death certificates as provided in Substitute Senate Bill No. 5545 (chapter 241, Laws of 2003, web-based vital records).

              (6) The department of social and health services, the office of the superintendent of public instruction, and the department of health should jointly identify opportunities for early intervention and prevention activities that can help prevent disease and reduce oral health issues among children. Disease prevention among infants at the age of one year and among children entering the K-12 education system provides cost-effective ways to avoid higher health care spending later in life.

              (7) $92,000 of the general fund--state appropriation for fiscal year 2004, $19,000 of the general fund--state appropriation for fiscal year 2005, and $987,000 of the general fund--local appropriation are provided solely for implementation of Substitute House Bill No. 1338 (municipal water rights). If Substitute House Bill No. 1338 is not enacted by June 30, 2003, the amounts provided in this subsection shall lapse.

              (8) $188,000 of the health professions account--state appropriation is provided solely to increase the regulation of sales of precursor drugs that are often used to illegally manufacture methamphetamine to implement Senate Bill No. 6478 (ephedrine). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (9) $25,000 of the general fund--state appropriation for fiscal year 2005 is provided solely to develop and implement best practices in preventative health care for children. The department and the kids get care program of public health - Seattle and King county will work in collaboration with local health care agencies to disseminate strategic interventions that are focused on evidence-based best practices for improving health outcomes in children and saving health care costs. A report shall be provided to the appropriate committees of the legislature by June 30, 2005, on the program effectiveness and cost savings. This funding shall be matched by an equal amount of local funding.

              (10) $250,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the department to implement a multiyear pilot project in Yakima county for persons with household income at or below 200 percent of the federal poverty level who are ineligible for family planning services through the medicaid program. Individuals who will be served under the pilot include women who have never been pregnant, are not currently pregnant, or are beyond the family planning extension period allowed for first steps program eligibility. It is anticipated that the pilot project will serve approximately 1,000 women annually. The department will provide a preliminary report to the appropriate committees of the legislature by December 1, 2005.


              Sec. 218. 2003 1st sp.s. c 25 s 222 (uncodified) is amended to read as follows:

              FOR THE DEPARTMENT OF CORRECTIONS.

The appropriations to the department of corrections in this act shall be expended for the programs and in the amounts specified herein. However, after May 1, 2004, after approval by the director of financial management and unless specifically prohibited by this act, the department may transfer general fund--state appropriations for fiscal year 2004 between programs. The director of financial management shall notify the appropriate fiscal committees of the senate and house of representatives in writing prior to approving any deviations from appropriation levels.

              (1) ADMINISTRATION AND SUPPORT SERVICES

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($38,317,000))

$36,534,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($35,473,000))

$38,835,000

Public Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,657,000

Violence Reduction and Drug Enforcement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$26,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($77,473,000))

$79,052,000


              The appropriations in this subsection are subject to the following conditions and limitations: (($3,250,000)) $700,000 of the general fund--state appropriation for fiscal year 2004 ((is)) and $2,550,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the continuation of phase two of the department's offender-based tracking system replacement project. ((This)) These amounts ((is)) are conditioned on the department satisfying the requirements of section 902 of this act.


              (2) CORRECTIONAL OPERATIONS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($441,122,000))

$458,402,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($449,520,000))

$477,061,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($8,746,000))

$4,090,000

Violence Reduction and Drug Enforcement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,008,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($902,396,000))

$942,561,000


              The appropriations in this subsection are subject to the following conditions and limitations:

              (a) The department may expend funds generated by contractual agreements entered into for mitigation of severe overcrowding in local jails. Any funds generated in excess of actual costs shall be deposited in the state general fund. Expenditures shall not exceed revenue generated by such agreements and shall be treated as recovery of costs.

              (b) The department shall provide funding for the pet partnership program at the Washington corrections center for women at a level at least equal to that provided in the 1995-97 biennium.

              (c) The department of corrections shall accomplish personnel reductions with the least possible impact on correctional custody staff, community custody staff, and correctional industries. For the purposes of this subsection, correctional custody staff means employees responsible for the direct supervision of offenders.

              (d) During the 2003-05 biennium, when contracts are established or renewed for offender pay phone and other telephone services provided to inmates, the department shall select the contractor or contractors primarily based on the following factors: (i) The lowest rate charged to both the inmate and the person paying for the telephone call; and (ii) the lowest commission rates paid to the department, while providing reasonable compensation to cover the costs of the department to provide the telephone services to inmates and provide sufficient revenues for the activities funded from the institutional welfare betterment account.

              (e) For the acquisition of properties and facilities, the department of corrections is authorized to enter into financial contracts, paid for from operating resources, for the purposes indicated and in not more than the principal amounts indicated, plus financing expenses and required reserves pursuant to chapter 39.94 RCW. This authority applies to the following: Lease-develop with the option to purchase or lease-purchase approximately 50 work release beds in facilities throughout the state for $3,500,000.


              (3) COMMUNITY SUPERVISION

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($73,952,000))

$87,626,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($74,200,000))

$88,564,000

Public Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$15,492,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($163,644,000))

$191,682,000


              The appropriations in this subsection are subject to the following conditions and limitations:

              (a) The department of corrections shall accomplish personnel reductions with the least possible impact on correctional custody staff, community custody staff, and correctional industries. For the purposes of this subsection, correctional custody staff means employees responsible for the direct supervision of offenders.

              (b) $75,000 of the general fund--state appropriation for fiscal year 2004 and $75,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the department of corrections to contract with the institute for public policy for responsibilities assigned in chapter 196, Laws of 1999 (offender accountability act) and sections 7 through 12 of chapter 197, Laws of 1999 (drug offender sentencing).

              (c) $100,000 of the general fund--state appropriation for fiscal year 2004 is provided solely for a pilot project to test the availability, reliability, and effectiveness of an electronic monitoring system based on passive data logging global positioning system technology for monitoring sex offenders.

              (i) The department of corrections shall work with the Washington association of sheriffs and police chiefs and the department of social and health services to establish the pilot project.

              (ii) The pilot project shall be of sufficient size to test the reliability of the technology in a variety of geographical circumstances including both urban and rural locations.

              (iii) The pilot project shall test the system using sex or kidnapping offenders under the jurisdiction of the department of corrections and persons civilly committed under chapter 71.09 RCW under a variety of supervision circumstances. Offenders included in the pilot project shall be offenders who have been classified as level three offenders by the end of sentence review committee and over whom the department of corrections has authority to establish conditions of supervision or persons who have been ordered to be electronically monitored by the court in a proceeding under chapter 71.09 RCW and who have been classified as level three offenders by the end of sentence review committee.

              (iv) The pilot project shall specifically examine the feasibility of electronic monitoring for level three sex offenders or kidnapping offenders who register as homeless or transient.

              (v) The Washington association of sheriffs and police chiefs shall report to the appropriate committees of the legislature and the governor on the results of the pilot project by January 31, 2004. The report must include, but is not limited to:

              (A) The availability of the technology, including a description of the system used and a discussion of the various types of global positioning system-based monitoring available and appropriate for a sex offender population;

              (B) Any geographic or weather-related limitations posed by the technology;

              (C) The reliability, including the false alarm rate of the technology;

              (D) Any training requirements for department of corrections staff or supervised persons;

              (E) Any distinctions in effectiveness or feasibility for different supervision populations;

              (F) Costs, including equipment costs, monitoring fees, and any changes to department of corrections staffing levels;

              (G) The ability of the subjects of the pilot to pay for daily and/or equipment costs;

              (H) The rate of loss or damage to equipment used by the subjects of the pilot project; and

              (I) Limitations in the pilot project to determining the answers to the items in this subsection (3)(c)(v).

              The association shall make a recommendation in the report about the frequency and timing of monitoring reports, and the need for further study of the issue to determine efficacy and reliability.


              (4) CORRECTIONAL INDUSTRIES

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$626,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$626,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,252,000


              The appropriations in this subsection are subject to the following conditions and limitations: $110,000 of the general fund--state appropriation for fiscal year 2004 and $110,000 of the general fund-- state appropriation for fiscal year 2005 are provided solely for transfer to the jail industries board. The board shall use the amounts provided only for administrative expenses, equipment purchases, and technical assistance associated with advising cities and counties in developing, promoting, and implementing consistent, safe, and efficient offender work programs.


              (5) INTERAGENCY PAYMENTS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($25,099,000))

$26,259,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($25,134,000))

$26,288,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($50,233,000))

$52,547,000


              The appropriations in this subsection are subject to the following conditions and limitations: $70,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the implementation of Engrossed Second Substitute Senate Bill No. 6489 (correctional industries). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              Sec. 219. 2003 1st sp.s. c 25 s 226 (uncodified) is amended to read as follows:

FOR THE EMPLOYMENT SECURITY DEPARTMENT

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $267,586,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30,103,000

Unemployment Compensation Administration Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . (($184,878,000))

$192,366,000

Administrative Contingency Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($14,721,000))

$11,221,000

Employment Service Administrative Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $23,184,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($520,472,000))

$524,460,000


              The appropriations in this subsection are subject to the following conditions and limitations:

              (1) $100,000 of the administrative contingency account appropriation is provided solely to ((establish an advisory partnership on the Washington manufacturing sector as outlined in Substitute House Bill No. 2164 (manufacturing advisory partnership) and recommended in the report entitled manufacturing in Washington state, 1990-2002: trends and implications for the industry and state)) the employment security department for manufacturing economic research and surveys with findings reported to relevant legislative committees, business, and labor.

              (2) $3,988,000 of the unemployment compensation administration account--federal appropriation is provided from funds made available to the state by section 903(d) of the Social Security Act (Reed Act). These funds are provided to replace obsolete information technology infrastructure.

              (3) $3,500,000 of the unemployment compensation administration account--federal appropriation is provided from funds made available to the state by section 903(d) of the Social Security Act (Reed Act). These funds are authorized for employer outreach activities, employment service activities, and to prevent, detect, and collect unemployment insurance benefit overpayments.


              Sec. 220. 2003 1st sp.s. c 25 s 216 (uncodified) is amended to read as follows:

FOR THE CRIMINAL JUSTICE TRAINING COMMISSION

Municipal Criminal Justice Assistance Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $460,000

Death Investigations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$148,000

Public Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($18,078,000))

$18,153,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($18,686,000))

$18,761,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $124,000 of the public safety and education account appropriation is provided solely to allow the Washington association of sheriffs and police chiefs to increase the technical and training support provided to the local criminal justice agencies on the new incident-based reporting system and the national incident-based reporting system.

              (2) $136,000 of the public safety and education account appropriation is provided solely to allow the Washington association of prosecuting attorneys to enhance the training provided to criminal justice personnel.

              (3) $65,000 of the public safety and education account appropriation is provided solely for regionalized training programs for school district and local law enforcement officials on school safety issues.

              (4) $250,000 of the public safety and education account appropriation is provided solely to the Washington association of sheriffs and police chiefs for staffing and support of a web site to provide information about sex offenders.

              (5) $25,000 of the public safety and education account appropriation is provided solely for allocation to the Washington association of sheriffs and police chiefs to coordinate jail and prison capacity and population projects with local governments, the sentencing guidelines commission, and the department of corrections. The association shall build on its existing work and that of the commission on regional jails and capacity issues, and may:

              (a) Pursue options for regional jails where the cost is the same or lower than existing state and local corrections costs;

              (b) Pursue options for the state to rent or purchase bed or facility space from local governments;

              (c) Pursue options to manage population overcapacity and special populations; and

              (d) Pursue options to develop better communication and information sharing processes between state and local correctional facilities.

              The association shall provide an interim progress report to the appropriate fiscal and policy committees of the legislature no later than December 1, 2004.

              (6) $50,000 of the public safety and education account appropriation is provided solely for the implementation of Engrossed Substitute House Bill No. 2556 (criminal background checks). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              Sec. 221. 2003 1st sp.s. c 25 s 225 (uncodified) is amended to read as follows:

FOR THE SENTENCING GUIDELINES COMMISSION

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$737,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$741,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,478,000


              The appropriations in this section are subject to the following conditions and limitations: The sentencing guidelines commission shall review the use, effectiveness, and cost effectiveness of sex offender sentencing, including the special sex offender sentencing alternative as follows:

              (1) The review and evaluation shall include an analysis of whether current sex offense sentencing ranges and standards, as well as existing mandatory minimum sentences, existing sentence enhancements, and the special sex offender sentencing alternative, are consistent with the purposes of the sentencing reform act, as set out in RCW 9.94A.010, and the community protection act. The review in this area may summarize findings of the sentencing study required by chapter 7, Laws of 2001, and the work of the Washington state institute for public policy, and shall not be duplicative.

              (2) In conducting the review and evaluation, the commission shall consult with the superior court judges' association, the Washington association of prosecuting attorneys, the Washington defenders' association, the Washington association of criminal defense lawyers, the Washington association of sheriffs and police chiefs, the Washington state institute for public policy, treatment providers, organizations representing crime victims, and other organizations and individuals with expertise and interest in sex offender sentencing policy and treatment. To the extent possible within available appropriations, the commission shall conduct open public hearings to obtain input from the victims, families, advocates, and others. Comments from the public shall be included in the report to the legislature.

              (3) Not later than December 1, 2004, the commission shall present to the appropriate standing committees of the legislature the findings of its review and evaluation, together with any recommendations for revisions and modifications to sex offender sentencing and supervision policy, including sentencing ranges and standards, mandatory minimum sentences, sentencing alternatives, and sentence enhancements. If implementation of the recommendations of the commission would result in exceeding the capacity of local or state correctional facilities, the commission shall also present the fiscal impact of proposed changes.

              (4) If Engrossed Substitute House Bill No. 2400 (sex crimes against minors) is enacted, the commission shall ensure that the study required by the bill is coordinated with the study required by this act.(End of part)


PART III

NATURAL RESOURCES


              Sec. 301. 2003 1st sp.s. c 25 s 302 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($33,464,000))

$35,828,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($33,263,000))

$35,911,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $57,143,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,696,000

Special Grass Seed Burning Research Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$14,000

Reclamation Revolving Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,760,000

Flood Control Assistance Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,019,000))

$2,159,000

State Emergency Water Projects Revolving Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($552,000))

$725,000

Waste Reduction/Recycling/Litter Control Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13,714,000

State Drought Preparedness Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,708,000))

$1,858,000

State and Local Improvements Revolving Account (Water Supply Facilities)--State Appropriation. . . . . . . . . . . . . $593,000

Site Closure Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $629,000

Water Quality Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,252,000

Wood Stove Education and Enforcement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $356,000

Worker and Community Right-to-Know Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,348,000

State Toxics Control Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($59,268,000))

$59,427,000

State Toxics Control Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$353,000

Local Toxics Control Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,878,000

Water Quality Permit Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($25,205,000))

$25,741,000

Underground Storage Tank Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,710,000

Environmental Excellence Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$504,000

Biosolids Permit Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$784,000

Hazardous Waste Assistance Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($4,185,000))

$4,535,000

Air Pollution Control Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,654,000

Oil Spill Prevention Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($7,745,000))

$7,889,000

Air Operating Permit Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,693,000

Freshwater Aquatic Weeds Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,503,000

Oil Spill Response Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7,078,000

Metals Mining Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,000

Water Pollution Control Revolving Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($380,000))

$387,000

Water Pollution Control Revolving Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,867,000))

$1,901,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($301,337,000))

$308,042,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $2,757,696 of the general fund--state appropriation for fiscal year 2004, $2,757,696 of the general fund--state appropriation for fiscal year 2005, $394,000 of the general fund--federal appropriation, $2,581,000 of the state toxics account--state appropriation, $217,830 of the water quality account--state appropriation, $322,976 of the state drought preparedness account--state appropriation, $3,748,220 of the water quality permit account--state appropriation, and $704,942 of the oil spill prevention account are provided solely for the implementation of the Puget Sound work plan and agency action items DOE-01, DOE-02, DOE-04, DOE-05, DOE-06, DOE-07, DOE-08, and DOE-09.

              (2) $4,059,000 of the state toxics control account appropriation is provided solely for methamphetamine lab clean-up activities.

              (3) $170,000 of the oil spill prevention account appropriation is provided solely for implementation of the Puget Sound work plan action item UW-02 through a contract with the University of Washington's sea grant program to develop an educational program targeted to small spills from commercial fishing vessels, ferries, cruise ships, ports, and marinas.

              (4) (($1,000,000)) $730,000 of the general fund--state appropriation for fiscal year 2004 and (($1,000,000)) $1,270,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for shoreline grants to local governments to implement Substitute Senate Bill No. 6012 (shoreline management), chapter 262, Laws of 2003.

              (5) Fees approved by the department of ecology in the 2003-05 biennium are authorized to exceed the fiscal growth factor under RCW 43.135.055.

              (6) $200,000 of the water quality account--state appropriation is provided solely for the department to contract with Washington State University cooperative extension program to provide statewide coordination and support for coordinated resource management.

              (7) $100,000 of the state toxics control account--state appropriation is provided solely to implement Engrossed Substitute House Bill No. 1002 (mercury), chapter 260, Laws of 2003. If the bill is not enacted by June 30, 2003, the amount provided in this subsection shall lapse.

              (8) The department of ecology is authorized to take one of the following actions related to the grant awarded in the 2001-03 biennium to Lincoln county for the Negro Creek flood control project, flood control assistance account program grant G0200049: (a) Carry forward to the 2003-05 biennium any unspent portion of the grant, or (b) extend the time of performance for the grant contract to the end of the 2003-2005 biennium.

              (9) $144,000 of the oil spill prevention account--state appropriation is provided solely to implement the provisions of Substitute Senate Bill No. 6641 (oil spills). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (10) $536,000 of the water quality permit account--state appropriation is provided solely to implement the provisions of Engrossed Substitute Senate Bill No. 6415 (storm water discharge permits). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (11) $218,000 of the general fund--state appropriation for fiscal year 2005 is provided solely to implement the provisions of Engrossed Second Substitute Senate Bill No. 5957 (water quality data). If the bill is not enacted by June 30, 2004, the amounts provided in this subsection shall lapse.

              (12) $100,000 of the general fund--state appropriation for fiscal year 2005 is provided solely to support the initial phase of the federal United States Geological Survey study of the Spokane Valley-Rathdrum Prairie aquifer.

              (13) $65,000 of the general fund--state appropriation for fiscal year 2005 is provided solely to implement Engrossed Substitute House Bill No. 2488 (electronic products). If the bill is not enacted by June 30, 2004, the amounts provided in this subsection shall lapse.

              (14) $1,043,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for (a) establishing instream flows by rule for main stem rivers and their key tributaries. In watersheds where planning is not being conducted pursuant to chapter 90.82 RCW, the department shall follow the procedures and applicable requirements of chapters 90.22 and 90.54 RCW, and shall create a process of public involvement similar to that of a watershed planning unit under the provisions of chapter 90.82 RCW, in order to ensure that citizens are informed and afforded the opportunity to participate in the development of instream flow recommendations in collaboration with the department; (b) working with counties that have existing geographic information systems to map existing water rights and document current ownership and evaluating alternative administrative systems for determining existing water rights; and (c) assigning one water master to a basin that has been adjudicated.

              (15) $2,500,000 of the general fund--state appropriation for fiscal year 2004 is provided solely for a one-time payment to settle all claims in a suit against the state in the Envirotest v. Department of Ecology, Thurston Co. Sup. Ct. Case No. 02-2-00255-0.

              (16) $350,000 of the hazardous waste assistance account appropriation is provided solely for rulemaking to require closure plans, liability coverage, and financial assurances for hazardous waste management facilities.

              (17) $300,000 of the general fund--state appropriation for fiscal year 2005 is provided solely to assist in watershed planning efforts. Of this amount, $200,000 is provided solely for mediation efforts with the Lummi nation to pursue resolution of federal and tribal rights to water in Washington state consistent with comprehensive state water resources planning under chapter 90.54 RCW and $100,000 is provided solely for coordination and staff support for the Nisqually river council watershed initiative program.

              (18)(a) $166,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for rulemaking and development of chemical action plans for persistent bioaccumulative toxins. Of this amount:

              (i) $83,000 is provided solely for the development of a chemical action plan for the chemical compounds known as PBDE (polybrominated diphenyl ethers); and

              (ii) $83,000 is provided solely for rulemaking to develop specific criteria by which chemicals may be included on a persistent bioaccumulative toxins list, develop a specific list of persistent bioaccumulative toxins and establish criteria for selecting chemicals for chemical action plans. The department shall develop the criteria and list consistent with the administrative procedure act provided under chapter 34.05 RCW and shall not adopt the rule prior to the adjournment of the 2005 legislative session. The department shall make recommendations to the legislature by December 31, 2004, regarding future funding alternatives to address persistent bioaccumulative toxins.

              (b) $159,000 of the state toxics control account appropriation is provided solely to implement the mercury chemical action plan. Of this amount: (i) $84,000 is provided for development of a memorandum of understanding with the Washington state hospital association and the auto recyclers of Washington to ensure the safe removal and disposal of products containing mercury; and (ii) $75,000 is provided for ongoing fluorescent lamp recycling. Any pesticide with a valid registration on or after the effective date of this act issued by the environmental protection agency under the federal insecticide, fungicide and rodenticide act, 7 U.S.C. 136 et seq., or any fertilizer regulated under the Washington fertilizer act, chapter 15.54 RCW, shall not be included in a persistent bioaccumulative toxin rulemaking process, list, or chemical action plan undertaken by the department of ecology.

              (19) $120,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for a wetland mitigation banking pilot project. The department shall work with representatives from involved state agencies, the army corps of engineers, business, mitigation banking organizations, and environmental organizations to develop and implement a wetland banking rule. The department shall report to the appropriate committees of the legislature on the progress of the rule by December 2004.

              (20) Within the amounts appropriated in this section the department shall convene and provide staff support for a water resources administration and funding task force. The task force shall develop proposals for and recommend several options for funding the state's water resource programs, including both operating programs and capital costs for water program implementation. The task force must report its findings and recommendations to the governor and the appropriate committees of the legislature by December 15, 2004. The task force shall include representatives of each of the following interests, selected by the associations representing those interests:

              (i) One representative from each of the following interests: Agriculture, industry, environmental, fisheries, water utilities, and power utilities;

              (ii) One representative of cities and one representative of counties;

              (iii) Two representatives of Indian tribes, one from eastern Washington and one from western Washington;

              (iv) Three representatives of the executive branch of state government; and

              (v) The department of ecology shall invite a representative of the United States bureau of reclamation to participate as a member of the task force.


              Sec. 302. 2003 1st sp.s. c 25 s 303 (uncodified) is amended to read as follows:

FOR THE STATE PARKS AND RECREATION COMMISSION

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($29,986,000))

$30,015,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($29,976,000))

$30,034,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,666,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$63,000

Winter Recreation Program Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,079,000

Off Road Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$285,000

Snowmobile Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,790,000

Aquatic Lands Enhancement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$332,000

Public Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $47,000

Parks Renewal and Stewardship Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $300,000

Parks Renewal and Stewardship Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($33,769,000))

$34,431,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($102,993,000))

$104,042,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Fees approved by the state parks and recreation commission in the 2003-05 biennium are authorized to exceed the fiscal growth factor under RCW 43.135.055.

              (2) $79,000 of the general fund--state appropriation for fiscal year 2004, $79,000 of the general fund--state appropriation for fiscal year 2005, and $8,000 of the winter recreation program account--state appropriation are provided solely for a grant for the operation of the Northwest avalanche center.

              (3) $191,000 of the aquatic lands enhancement account appropriation is provided solely for the implementation of the Puget Sound work plan and agency action item P+RC-02.

              (4) At each state park at which a parking fee is collected, the state parks and recreation commission shall provide notice that the revenue collected from the parking fee shall be used to fund expenditures to maintain and improve the state park system.

              (5) $72,000 of the parks renewal and stewardship account--state appropriation is provided solely for one-time and ongoing computer system improvements and technical support.


              Sec. 303. 2003 1st sp.s. c 25 s 304 (uncodified) is amended to read as follows:

FOR THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,246,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,256,000))

$1,381,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,983,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$125,000

Firearms Range Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,000

Recreation Resources Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,608,000

NOVA Program Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $691,000

Water Quality Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$200,000

Aquatic Lands Enhancement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$254,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($24,260,000))

$24,510,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $16,000,000 of the general fund--federal appropriation is provided solely for implementation of the forest and fish agreement rules. These funds will be passed through to the department of natural resources and the department of fish and wildlife.

              (2) $41,000 of the general fund--state appropriation for fiscal year 2004 and $41,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the operation and maintenance of the natural resources data portal.

              (3) $812,000 of the general fund--state appropriation for fiscal year 2004, $813,000 of the general fund--state appropriation for fiscal year 2005, and $1,625,000 of the general fund--federal appropriation are provided to the salmon recovery funding board for distribution to lead entities. The board may establish policies to require coordination of funding requests from lead entities and regional recovery boards to ensure that recovery efforts are synchronized. At the discretion of the board, funding shall be concentrated in watersheds within the highest priority salmon recovery regions as defined by the statewide strategy to recover salmon. The board shall also coordinate funding decisions with the northwest power planning council to ensure maximum efficiency and investment return.

              (4) $234,000 of the general fund--state appropriation for fiscal year 2004 and $234,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to implement priority recommendations developed by the monitoring oversight committee as directed by RCW 77.85.210. Within these funds, activity shall be directed to improve monitoring oversight within watersheds, enhance data coordination and access among recovery partners, and produce a state watershed health report card.

              (5) $125,000 of the general fund--state appropriation for fiscal year 2005 and $125,000 of the general fund--private/local appropriation are provided solely for implementation of a statewide biodiversity conservation strategy.


              Sec. 304. 2003 1st sp.s. c 25 s 305 (uncodified) is amended to read as follows:

FOR THE ENVIRONMENTAL HEARINGS OFFICE

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($923,000))

$934,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($960,000))

$998,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,883,000))

$1,932,000


              The appropriations in this section are subject to the following conditions and limitations: $30,000 of the general fund--state appropriation for fiscal year 2004 and $20,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to implement Engrossed Substitute Senate Bill No. 5776 (review of permit decisions), chapter 393, Laws of 2003.


              Sec. 305. 2003 1st sp.s. c 25 s 306 (uncodified) is amended to read as follows:

FOR THE CONSERVATION COMMISSION

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,234,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,245,000

Water Quality Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,162,000))

$2,412,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($6,641,000))

$6,891,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $247,000 of the general fund--state appropriation for fiscal year 2004 and $247,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the implementation of the Puget Sound work plan and agency action item CC-01.

              (2) $118,000 of the general fund--state appropriation for fiscal year 2004 and $121,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to implement Engrossed Second Substitute House Bill No. 1418 (drainage infrastructure), chapter 391, Laws of 2003.

              (3) $250,000 of the water quality account--state appropriation is provided solely for grants to conservation districts. Grants shall provide for education, outreach, and technical assistance programs to assist owners and operators of concentrated animal feeding operations with compliance issues related to federal concentrated animal feeding operations requirements and the department of agriculture's livestock nutrient management program.


              Sec. 306. 2003 1st sp.s. c 25 s 307 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($41,453,000))

$41,600,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($40,179,000))

$40,584,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($31,632,000))

$40,316,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($24,300,000))

$29,420,000

Off Road Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$501,000

Aquatic Lands Enhancement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,620,000

Public Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $562,000

Recreational Fisheries Enhancement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,392,000))

$3,467,000

Warm Water Game Fish Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,568,000

Eastern Washington Pheasant Enhancement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$750,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($57,138,000))

$58,922,000

Wildlife Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($38,216,000))

$29,532,000

Wildlife Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($15,158,000))

$10,038,000

((Game)) Special Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,949,000))

$2,068,000

((Game)) Special Wildlife Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($9,598,000))

$8,720,000

((Game)) Special Wildlife Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($350,000))

$450,000

Environmental Excellence Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$15,000

Regional Fisheries Salmonid Recovery Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,750,000

Oil Spill Prevention Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $981,000

Oyster Reserve Land Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($137,000))

$411,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($276,249,000))

$278,275,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $1,355,714 of the general fund--state appropriation for fiscal year 2004, $1,355,713 of the general fund--state appropriation for fiscal year 2005, and $402,000 of the wildlife account--state appropriation are provided solely for the implementation of the Puget Sound work plan and agency action items DFW-01 through DFW-06.

              (2) $225,000 of the general fund--state appropriation for fiscal year 2004, $225,000 of the general fund--state appropriation for fiscal year 2005, and $550,000 of the wildlife account--state appropriation are provided solely for the implementation of hatchery reform recommendations defined by the hatchery scientific review group.

              (3) (($850,000)) $1,016,000 of the wildlife account--state appropriation is provided solely for stewardship and maintenance needs on agency-owned lands and water access sites.

              (4) $900,000 of the wildlife fund--state appropriation is provided solely for wetland restoration activities for migratory waterfowl by providing landowner incentives to create or maintain waterfowl habitat and management activities.

              (5) $2,000,000 of the aquatic lands enhancement account appropriation is provided for cooperative volunteer projects.

              (6) The department shall support the activities of the aquatic nuisance species coordination committee to foster state, federal, tribal, and private cooperation on aquatic nuisance species issues. The committee shall strive to prevent the introduction of nonnative aquatic species and to minimize the spread of species that are introduced.

              (7) The department shall develop and implement an activity-based costing system. The system shall be operational no later than January 1, 2004.

              (8) $400,000 of the wildlife account--state appropriation is provided solely to implement the department's information systems strategic plan to include continued implementation of a personal computer leasing plan, an upgrade of computer back-up systems, systems architecture assessment, and network security analysis.

              (9) Within funds provided, the department shall make available enforcement and biological staff to respond and take appropriate action to ensure public safety in response to public complaints regarding bear and cougar.

              (10) $43,000 of the general fund--state appropriation for fiscal year 2004 and $42,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for staffing and operation of the Tennant Lake interpretive center.

              (11) $80,000 of the general fund--state appropriation for fiscal year 2004 and $77,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to implement Second Substitute House Bill No. 1095 (small forest landowners), chapter 311, Laws of 2003.

              (12) $25,000 of the general fund--state appropriation for fiscal year 2004 and $25,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to implement Engrossed Second Substitute House Bill No. 1338 (municipal water rights). If the bill is not enacted by June 30, 2003, the amounts provided in this subsection shall lapse.

              (13) $110,000 of the general fund--state appropriation for fiscal year 2004 and $110,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for economic adjustment assistance to fishermen pursuant to the 1999 Pacific salmon treaty agreement.

              (14) The department shall emphasize enforcement of laws related to protection of fish habitat and the illegal harvest of salmon and steelhead. Within the amount provided for the agency, the department shall provide support to the department of health to enforce state shellfish harvest laws.

              (15) $75,000 of the recreational fisheries enhancement account and $75,000 of the state wildlife account--state appropriation are provided solely to implement additional selective recreational fisheries to include one additional fishery each in eastern and western Washington. The department shall determine the eastern Washington fishery, and the western Washington fishery shall be for Lake Washington sockeye.

              (16) $16,000 of the wildlife account--state appropriation is provided solely for implementation of Substitute House Bill No. 2621 (razor clam license). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (17) $417,000 of the wildlife account--state appropriation is provided solely to implement Substitute House Bill No. 2431 (Dungeness crab card). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (18) $112,000 of the general fund--state appropriation for fiscal year 2005 is provided solely to buy back purse seine fishing licenses.

              (19) $180,000 of the wildlife account--state appropriation is provided solely to test deer and elk for chronic wasting disease and to document the extent of swan lead poisoning. Of this amount, $65,000 is provided solely to document the extent of swan lead poisoning and to begin environmental cleanup.

              (20) $122,000 of the wildlife account--state appropriation is provided solely to reimburse the department of natural resources for fire suppression costs incurred on department of fish and wildlife lands.

              (21) $150,000 of the general fund--state appropriation for fiscal year 2005 and $150,000 of the wildlife account--state appropriation are provided solely to complete phase II of the contract management system (CAPS). The CAPS system phase II shall be operational no later than June 30, 2005.

              (22) From within existing funding, the department shall provide a report to the appropriate committees of the legislature identifying options for reducing future allocations for the harvest of salmon in the event that a group's actual catch exceeds a current allocation. The report shall identify any statutory changes that would be required to implement such an accountability system.

              (23) $50,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for lease payments for the Vancouver hatchery staff residence and for the development of plans for an educational facility in cooperation with the Columbia Springs environmental education center.


              Sec. 307. 2003 1st sp.s. c 25 s 308 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($30,307,000))

$54,189,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($34,233,000))

$36,554,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,809,000))

$5,116,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,482,000

Forest Development Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($52,060,000))

$52,075,000

Off Road Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($4,028,000))

$4,029,000

Surveys and Maps Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,760,000))

$2,761,000

Aquatic Lands Enhancement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($6,884,000))

$8,925,000

Resources Management Cost Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($70,391,000))

$70,418,000

Surface Mining Reclamation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,293,000

Disaster Response Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7,200,000

State Toxic Control Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $750,000

Water Quality Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,479,000

Aquatic Land Dredged Material Disposal Site Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,311,000

Natural Resource Conservation Areas Stewardship Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $83,000

Air Pollution Control Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $526,000

Agricultural College Trust Management Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,868,000

Derelict Vessel Removal Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,130,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($223,844,000))

$254,189,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $18,000 of the general fund--state appropriation for fiscal year 2004, $18,000 of the general fund--state appropriation for fiscal year 2005, and $1,006,950 of the aquatic lands enhancement account appropriation are provided solely for the implementation of the Puget Sound work plan and agency action items DNR-01, DNR-02, and DNR-04.

              (2) $908,000 of the general fund--state appropriation for fiscal year 2004 and $910,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for deposit into the agricultural college trust management account and are provided solely to manage approximately 70,700 acres of Washington State University's agricultural college trust lands.

              (3) (($1,158,000)) $24,674,000 of the general fund--state appropriation for fiscal year 2004, $8,358,000 of the general fund--state appropriation for fiscal year 2005, and $7,200,000 of the disaster response account--state appropriation are provided solely for emergency fire suppression. These funds shall not be allocated to cover any portion of agency indirect and administrative expenses. The legislature finds that general fund and disaster response account support for emergency fire suppression is a significant and direct subsidy of the costs to administer and manage various trust lands. It would be an unintended additional subsidy if a portion of the general fund and disaster response account amounts provided in this subsection were used to fund agency indirect and administrative expenses. To avoid this unintended additional subsidy, agency indirect and administrative costs shall be allocated among the agency's remaining accounts and appropriations.

              (4) $582,000 of the aquatic lands enhancement account appropriation is provided solely for spartina control.

              (5) Fees approved by the board of natural resources in the 2003-05 biennium are authorized to exceed the fiscal growth factor under RCW 43.135.055.

              (6) The department shall prepare a report of actual and planned expenditures by task and activity from all fund sources for all aspects of the forest and fish program for the 2001-03 and 2003-05 biennia. The report shall be submitted to the director of financial management and the legislative fiscal committees by August 31, 2003.

              (7) Authority to expend funding for acquisition of technology equipment and software associated with development of a new revenue management system is conditioned on compliance with section 902 of this act.

              (8) $1,000,000 of the aquatic lands enhancement account--state appropriation is provided solely for the department to meet its obligations with the U.S. environmental protection agency for the clean-up of Commencement Bay.

              (9) ((For the 2003-05 fiscal biennium, the department has revised the methodology by which administrative costs of the department are allocated among the state general fund and the various dedicated funds and accounts from which the department receives appropriations. The legislature recognizes that the revised methodology represents a fair and equitable allocation of costs under state law and accounting rules. The legislature further finds that retroactive application of the revised methodology is neither practical nor desirable.

              (10))) The department of natural resources shall provide a report to the appropriate committees of the legislature, the office of financial management, and the board of natural resources concerning the costs and effectiveness of the contract harvesting program as authorized by Second Substitute Senate Bill No. 5074 (contract harvesting), chapter 313, Laws of 2003. The report shall be submitted by December 31, 2006, and shall include the following information:

              (a) Number of sales conducted through contract harvesting;

              (b) For each sale conducted, the (i) number of board feet sold; (ii) stumpage and pond prices; (iii) difference in revenues received compared to revenues that would have accrued through noncontract harvest sales, and the distribution of revenues to the contract harvesting revolving account, and to applicable management and trust accounts; and (iv) total cost to conduct the contract harvest, by fund and object of expenditure; and

              (c) Other costs and benefits attributable to contract harvesting.

              (((11))) (10) $208,000 of the general fund--state appropriation of fiscal year 2004 and $70,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to implement Second Substitute House Bill No. 1095 (small forest landowners), chapter 311, Laws of 2003.

              (((12))) (11) The department of natural resources shall not close Sahara Creek facility, campground, or trailhead. The appropriations in this section are deemed sufficient to provide service for these recreational opportunities.

              (((13))) (12) $4,000 of the general fund--state appropriation for fiscal year 2004 and $4,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to compensate the forest board trust for a portion of the lease to the Crescent television improvement district consistent with RCW 79.12.055.

              (((14))) (13) $2,700,000 of the general fund--state appropriation for fiscal year 2004 is provided solely to the department of natural resources to acquire approximately 232 acres of land and timber in Klickitat county from the SDS lumber company. Expenditure of the moneys provided in this subsection shall not be made until the SDS lumber company accepts the land and timber acquisition as full and complete settlement of the current litigation brought by the SDS lumber company against the state and the litigation is dismissed, with prejudice. The land and timber acquired with the funding in this subsection shall be managed for the benefit of the common schools. By June 30, 2004, if the department has not recovered through trust asset management the state's capital investment from the land acquisition provided in this subsection, the department shall seek reimbursement from the federal government.

              (((15))) (14) $265,000 of the aquatic lands enhancement account appropriation is provided solely for developing a pilot project to study the feasibility of geoduck aquaculture on both intertidal and subtidal lands in the state of Washington.

              (15) $60,000 of the general fund--state appropriation for fiscal year 2004 is provided solely for habitat restoration work in the Loomis natural resource area.

              (16) $200,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for providing public access to camp sites and trails maintained by the department. This additional funding, along with existing funding from the off road vehicle account is intended to fully fund current access to camp sites and trails. If additional funding is required to avoid closures to camp sites and trails during the 2003-05 biennium, the department shall reduce expenditures for agency administration by five percent and redeploy those general fund resources to the recreation program prior to closing any camp sites or trails.

              (17) $40,000 of the aquatic lands enhancement account appropriation is provided solely for the department to (a) calculate the rent for DNR-leased marinas based on a percentage of a marina's income and (b) recommend an appropriate formula to the 2005 legislature.

              (18)(a) $2,000,000 of the general fund--state appropriation for fiscal year 2005, $750,000 of the state toxics control account--state appropriation, and $2,000,000 of the aquatic lands enhancement account--state appropriation are provided solely for the purpose of settling Pacific Sound Resources v. Burlington Northern Santa Fe Railroad, et al. In the event: (i) A final settlement agreement is not signed by the port of Seattle, Pacific Sound Resources, and the department of natural resources by March 25, 2004; or (ii) the U.S. environmental protection agency, or the department of justice if necessary, fail to settle with the state and the department and provide a covenant not to sue and contribution protection with no additional consideration required, then $550,000 of the general fund--state appropriation for fiscal year 2005 shall be available to use to fund the existing PSR litigation and the remainder of the amounts provided in this subsection (a) shall lapse.

              (b) $300,000 of the general fund--state appropriation for fiscal year 2004 is provided solely for legal defense costs in Pacific Sound Resources v. Burlington Northern Santa Fe Railroad et al.


              Sec. 308. 2003 1st sp.s. c 25 s 309 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF AGRICULTURE

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($7,444,000))

$7,636,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($7,244,000))

$10,941,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,068,000

General fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,110,000

Aquatic Lands Enhancement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,942,000))

$2,027,000

Water Quality Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$692,000

State Toxics Control Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,580,000))

$2,780,000

Water Quality Permit Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$165,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($31,245,000))

$35,419,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $37,000 of the general fund--state appropriation for fiscal year 2004 and $37,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for implementation of the Puget Sound work plan and agency action item WSDA-01.

              (2) Fees and assessments approved by the department in the 2003-05 biennium are authorized to exceed the fiscal growth factor under RCW 43.135.055.

              (3) $165,000 of the water quality permit account--state appropriation and $692,000 of the water quality account--state appropriation are provided solely to implement Engrossed Substitute Senate Bill No. 5889 (animal feeding operations), chapter 325, Laws of 2003.

              (4) $53,000 of the general fund--state appropriation for fiscal year 2004 and $15,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to implement Engrossed Substitute House Bill No. 1754 (chickens), chapter 397, Laws of 2003.

              (5) $42,000 of the general fund--state appropriation for fiscal year 2004 and $287,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for animal identification, food safety, and commercial feed inspection programs.

              (6) $150,000 of the general fund--state appropriation for fiscal year 2004 is provided solely for response costs to the discovery of bovine spongiform encephalopathy in a Washington dairy cow.

              (7) $630,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the "from the heart of Washington" campaign, southeast Asia/China trade representatives, domestic marketing/economic development, food and agriculture industry security, and for the small farm and direct marketing program.

              (8) $85,000 of the aquatic lands enhancement account appropriation is provided solely for spartina eradication efforts in Willapa Bay and Grays Harbor.

              (9) $330,000 of the general fund--state appropriation for fiscal year 2005 is provided solely to contract with Washington State University for research and development activities related to asparagus harvesting and automation technology.

              (10) $1,500,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the purchase of agricultural products packing equipment. The department shall negotiate an appropriate agreement with the agricultural industry for the use of the equipment.(End of part)


PART IV

TRANSPORTATION


              Sec. 401. 2003 1st sp.s. c 25 s 401 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($4,986,000))

$5,141,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($4,988,000))

$5,225,000

Architects' License Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($696,000))

$706,000

Cemetery Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($235,000))

$249,000

Professional Engineers' Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,025,000))

$2,938,000

Real Estate Commission Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($7,111,000))

$7,048,000

Master License Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($9,110,000))

$8,920,000

Uniform Commercial Code Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,987,000))

$2,837,000

Real Estate Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($277,000))

$275,000

Real Estate Appraisers Commission Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($927,000))

$946,000

Geologist's Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($7,000))

$21,000

Funeral Directors and Embalmers Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($521,000))

$532,000

Washington Real Estate Research Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($308,000))

$302,000

Data Processing Revolving Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $29,000

Derelict Vessel Removal Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$31,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($35,207,000))

$35,200,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) In accordance with RCW 43.24.086, it is the policy of the state of Washington that the cost of each professional, occupational, or business licensing program be fully borne by the members of that profession, occupation, or business. For each licensing program covered by RCW 43.24.086, the department shall set fees at levels sufficient to fully cover the cost of administering the licensing program, including any costs associated with policy enhancements funded in the 2003-05 fiscal biennium. Pursuant to RCW 43.135.055, during the 2003-05 fiscal biennium, the department may increase fees in excess of the fiscal growth factor if the increases are necessary to fully fund the costs of the licensing programs.

              (2) $56,000 of the general fund--state appropriation for fiscal year 2004 and $262,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to implement Substitute Senate Bill No. 6341 (cosmetologists). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              Sec. 402. 2003 1st sp.s. c 25 s 402 (uncodified) is amended to read as follows:

FOR THE STATE PATROL

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,005,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,855,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,240,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$378,000

Death Investigations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,489,000

Public Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($20,852,000))

$21,969,000

Enhanced 911 Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$612,000

County Criminal Justice Assistance Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,649,000

Municipal Criminal Justice Assistance Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,087,000

Fire Service Trust Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$125,000

Fire Service Training Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,374,000

State Toxics Control Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$436,000

Violence Reduction and Drug Enforcement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $286,000

Fingerprint Identification Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($4,405,000))

$5,393,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($85,793,000))

$87,898,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $750,000 of the fire service training account--state appropriation is provided solely for the implementation of Senate Bill No. 5176 (fire fighting training). If the bill is not enacted by June 30, 2003, the amount provided in this subsection shall lapse.

              (2) $200,000 of the fire service training account--state appropriation is provided solely for two FTE's in the office of state fire marshal to exclusively review K-12 construction documents for fire and life safety in accordance with the state building code. It is the intent of this appropriation to provide these services only to those districts that are located in counties without qualified review capabilities.

              (3) $376,000 of the public safety and education account--state appropriation is provided solely for additional DNA testing kits.

              (4) $276,000 of the fingerprint identification account--state appropriation is provided solely for the implementation of Substitute House Bill No. 2532 (modifying commercial driver's license provisions). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.(End of part)


PART V

EDUCATION


              Sec. 501. 2003 1st sp.s. c 25 s 501 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION

              (1) STATE AGENCY OPERATIONS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($11,772,000))

$11,615,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($11,761,000))

$11,846,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($15,921,000))

$26,968,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($39,454,000))

$50,429,000


              The appropriations in this section are subject to the following conditions and limitations:

              (a) $10,771,000 of the general fund--state appropriation for fiscal year 2004 and $10,768,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the operation and expenses of the office of the superintendent of public instruction. Within the amounts provided in this subsection, the superintendent shall recognize the extraordinary accomplishments of four students who have demonstrated a strong understanding of the civics essential learning requirements to receive the Daniel J. Evans civic education award. The students selected for the award must demonstrate understanding through completion of at least one of the classroom-based civics assessment models developed by the superintendent of public instruction, and through leadership in the civic life of their communities. The superintendent shall select two students from eastern Washington and two students from western Washington to receive the award, and shall notify the governor and legislature of the names of the recipients.

              (b) $428,000 of the general fund--state appropriation for fiscal year 2004 and $428,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the operation and expenses of the state board of education, including basic education assistance activities.

              (c) $416,000 of the general fund--state appropriation for fiscal year 2004 and (($416,000)) $476,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the operation and expenses of the Washington professional educator standards board. Within the amounts provided, the Washington professional educator standards board (WPESB) shall submit a report regarding specific implementation strategies to strengthen mathematics initiatives by improving teacher knowledge and skill development including: (i) Teacher preparation program approval standard changes; (ii) teacher certification requirement changes and the development of new expertise credentials; (iii) state-established standards to guide the approval of professional development providers and offerings related to mathematics; and (iv) other related recommendations. The WPESB shall base the recommendations on determinations of the status of teacher preparation and professional development opportunities and work with appropriate parties. The WPESB shall submit the report to the governor, superintendent of public instruction, state board of education, and the education and fiscal committees of the legislature by November 1, 2004.

              (d) (($157,000 of the general fund--state appropriation for fiscal year 2004 and $149,000)) $130,000 of the general fund--state appropriation for fiscal year 2005 ((are)) is provided solely for the implementation of Second Engrossed Substitute Senate Bill No. 5012 or Second Substitute House Bill No. 2295 (charter schools). If ((the)) neither bill is ((not)) enacted by June 30, ((2003)) 2004, the amount() provided in this subsection shall lapse.

              (e) The department of social and health services, the office of the superintendent of public instruction, and the department of health should work together to identify opportunities for early intervention and prevention activities that can help prevent disease and reduce oral health issues among children. Disease prevention among infants at the age of one year and among children entering the K-12 education system provide cost-effective ways to avoid higher health spending later in life.

              (f) $44,000 of the general fund--state appropriation for fiscal year 2005 is provided solely to implement Substitute Senate Bill No. 6171 (complaints against school employees) or Second Substitute Senate Bill No. 5533 (disclosure of misconduct). If neither bill is enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              (2) STATEWIDE PROGRAMS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($8,966,000))

$8,676,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($9,345,000))

$9,885,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($66,405,000))

$61,656,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($84,716,000))

$80,217,000


              The appropriations in this subsection are provided solely for the statewide programs specified in this subsection and are subject to the following conditions and limitations:

              (a) HEALTH AND SAFETY

              (i) A maximum of $2,541,000 of the general fund--state appropriation for fiscal year 2004 and a maximum of $2,541,000 of the general fund--state appropriation for fiscal year 2005 are provided for a corps of nurses located at educational service districts, as determined by the superintendent of public instruction, to be dispatched to the most needy schools to provide direct care to students, health education, and training for school staff.

              (ii) A maximum of $96,000 of the general fund--state appropriation for fiscal year 2004 and a maximum of $96,000 of the general fund--state appropriation for fiscal year 2005 are provided for the school safety center in the office of the superintendent of public instruction subject to the following conditions and limitations:

              (A) The safety center shall: Disseminate successful models of school safety plans and cooperative efforts; provide assistance to schools to establish a comprehensive safe school plan; select models of cooperative efforts that have been proven successful; act as an information dissemination and resource center when an incident occurs in a school district either in Washington or in another state; coordinate activities relating to school safety; review and approve manuals and curricula used for school safety models and training; and develop and maintain a school safety information web site.

              (B) The superintendent of public instruction shall participate in a school safety center advisory committee that includes representatives of educators, classified staff, principals, superintendents, administrators, the American society for industrial security, the state criminal justice training commission, and others deemed appropriate and approved by the school safety center advisory committee. Members of the committee shall be chosen by the groups they represent. In addition, the Washington association of sheriffs and police chiefs shall appoint representatives of law enforcement to participate on the school safety center advisory committee. The advisory committee shall select a chair.

              (C) The school safety center advisory committee shall develop a training program, using the best practices in school safety, for all school safety personnel.

              (iii) A maximum of $100,000 of the general fund--state appropriation for fiscal year 2004 and a maximum of $100,000 of the general fund--state appropriation for fiscal year 2005 are provided for a school safety training program provided by the criminal justice training commission subject to the following conditions and limitations:

              (A) The criminal justice training commission with assistance of the school safety center advisory committee established in section 2(b)(iii) of this section shall develop manuals and curricula for a training program for all school safety personnel.

              (B) The Washington state criminal justice training commission, in collaboration with the advisory committee, shall provide the school safety training for all school administrators and school safety personnel, including school safety personnel hired after the effective date of this section.

              (((v))) (iv) (($13,663,000)) $12,917,000 of the general fund--federal appropriation is provided for safe and drug free schools and communities grants for drug and violence prevention activities and strategies.

              (((vi))) (v) A maximum of $146,000 of the general fund--state appropriation for fiscal year 2004 and a maximum of $146,000 of the general fund--state appropriation for fiscal year 2005 are provided for a nonviolence and leadership training program provided by the institute for community leadership. The program shall provide the following:

              (A) Statewide nonviolence leadership coaches training program for certification of educational employees and community members in nonviolence leadership workshops;

              (B) Statewide leadership nonviolence student exchanges, training, and speaking opportunities for student workshop participants; and

              (C) A request for proposal process, with up to 80 percent funding, for nonviolence leadership workshops serving at least 12 school districts with direct programming in 36 elementary, middle, and high schools throughout Washington state.

              (b) TECHNOLOGY

              A maximum of $1,939,000 of the general fund--state appropriation for fiscal year 2004 and a maximum of $1,939,000 of the general fund--state appropriation for fiscal year 2005 are provided for K-20 telecommunications network technical support in the K-12 sector to prevent system failures and avoid interruptions in school utilization of the data processing and video-conferencing capabilities of the network. These funds may be used to purchase engineering and advanced technical support for the network.

              (c) GRANTS AND ALLOCATIONS

              (i) (($306,000)) $16,000 of the fiscal year 2004 appropriation and $689,000 of the fiscal year 2005 appropriation are provided solely for the special services pilot projects provided by Second Substitute House Bill No. 2012 (special services pilot program). The office of the superintendent of public instruction shall allocate these funds to the district or districts participating in the pilot program according to the provisions of section 2 subsection (4) of Second Substitute House Bill No. 2012, chapter 33, Laws of 2003.

              (ii) A maximum of $761,000 of the general fund--state appropriation for fiscal year 2004 and a maximum of (($757,000)) $1,097,000 of the general fund--state appropriation for fiscal year 2005 are provided for alternative certification routes. Funds may be used by the professional educator standards board to continue existing alternative-route grant programs and to create new alternative-route programs in regions of the state with service shortages.

              (iii) A maximum of $31,000 of the general fund--state appropriation for fiscal year 2004 and a maximum of $31,000 of the general fund--state appropriation for fiscal year 2005 are provided for operation of the Cispus environmental learning center.

              (iv) A maximum of $1,224,000 of the general fund--state appropriation for fiscal year 2004 and a maximum of $1,224,000 of the general fund--state appropriation for fiscal year 2005 are provided for in-service training and educational programs conducted by the Pacific Science Center.

              (v) A maximum of $1,079,000 of the general fund--state appropriation for fiscal year 2004 and a maximum of $1,079,000 of the general fund--state appropriation for fiscal year 2005 are provided for the Washington state leadership assistance for science education reform (LASER) regional partnership coordinated at the Pacific Science Center.

              (vi) A maximum of $97,000 of the general fund--state appropriation for fiscal year 2004 and a maximum of $97,000 of the general fund--state appropriation for fiscal year 2005 are provided to support vocational student leadership organizations.

              (vii) A maximum of $146,000 of the general fund--state appropriation for fiscal year 2004 and a maximum of $146,000 of the general fund--state appropriation for fiscal year 2005 are provided for the Washington civil liberties education program.

              (viii) $500,000 of the general fund--state appropriation for fiscal year 2004 and $500,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the Washington state achievers scholarship program. The funds shall be used to support community involvement officers that recruit, train, and match community volunteer mentors with students selected as achievers scholars.

              (ix) (($1,433,000)) $25,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the school safety center advisory committee to identify instructional materials and resources for students, parents, and teachers that are designed to prevent the abduction of children.

              (x) $75,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for deposit in the natural science, wildlife, and environmental partnership account--state for the grant program established in chapter 22, Laws of 2003 (ESHB 1466).

              (xi) $100,000 of the general fund--state appropriation for fiscal year 2005 is provided solely as one-time funding for the Washington virtual classroom consortium administered by the Quillayute valley school district.

              (xii) $1,650,000 of the general fund--federal appropriation is provided for the advanced placement fee program to increase opportunities for low-income students and under-represented populations to participate in advanced placement courses and to increase the capacity of schools to provide advanced placement courses to students.

              (((x) $9,510,000)) (xiii) $9,953,000 of the general fund--federal appropriation is provided for comprehensive school reform demonstration projects to provide grants to low-income schools for improving student achievement through adoption and implementation of research-based curricula and instructional programs.

              (((xi) $12,977,000)) (xiv) $12,941,000 of the general fund--federal appropriation is provided for 21st century learning center grants, providing after-school and inter-session activities for students.


              Sec. 502. 2003 1st sp.s. c 25 s 502 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR GENERAL APPORTIONMENT

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($3,969,407,000))

$3,976,507,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($3,977,209,000))

$3,988,649,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($7,946,616,000))

$7,965,156,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Each general fund fiscal year appropriation includes such funds as are necessary to complete the school year ending in the fiscal year and for prior fiscal year adjustments.

              (2) Allocations for certificated staff salaries for the 2003-04 and 2004-05 school years shall be determined using formula-generated staff units calculated pursuant to this subsection. Staff allocations for small school enrollments in (d) through (f) of this subsection shall be reduced for vocational full-time equivalent enrollments. Staff allocations for small school enrollments in grades K-6 shall be the greater of that generated under (a) of this subsection, or under (d) and (e) of this subsection. Certificated staffing allocations shall be as follows:

              (a) On the basis of each 1,000 average annual full-time equivalent enrollments, excluding full-time equivalent enrollment otherwise recognized for certificated staff unit allocations under (c) through (f) of this subsection:

              (i) Four certificated administrative staff units per thousand full-time equivalent students in grades K-12;

              (ii) 49 certificated instructional staff units per thousand full-time equivalent students in grades K-3;

              (iii) Forty-six certificated instructional staff units per thousand full-time equivalent students in grades 4-12; and

              (iv) An additional 4.2 certificated instructional staff units for grades K-3 and an additional 7.2 certificated instructional staff units for grade 4. Any funds allocated for the additional certificated units provided in this subsection (iv) shall not be considered as basic education funding;

              (v) For class size reduction and expanded learning opportunities under the better schools program, an additional 0.8 certificated instructional staff units for the 2003-04 school year for grades K-4 per thousand full-time equivalent students. Funds allocated for these additional certificated units shall not be considered as basic education funding. The allocation may be used for reducing class sizes in grades K-4 or to provide additional classroom contact hours for kindergarten, before-and-after-school programs, weekend school programs, summer school programs, and intercession opportunities to assist elementary school students in meeting the essential academic learning requirements and student assessment performance standards. For purposes of this subsection, additional classroom contact hours provided by teachers beyond the normal school day under a supplemental contract shall be converted to a certificated full-time equivalent by dividing the classroom contact hours by 900.

              (A) Funds provided under this subsection (2)(a)(iv) and (v) in excess of the amount required to maintain the statutory minimum ratio established under RCW 28A.150.260(2)(b) shall be allocated only if the district documents an actual ratio in grades K-4 equal to or greater than 54.0 certificated instructional staff per thousand full-time equivalent students in the 2003-04 school year and 53.2 certificated instructional staff per thousand full-time equivalent students in the 2004-05 school year. For any school district documenting a lower certificated instructional staff ratio, the allocation shall be based on the district's actual grades K-4 certificated instructional staff ratio achieved in that school year, or the statutory minimum ratio established under RCW 28A.150.260(2)(b), if greater;

              (B) Districts at or above 51.0 certificated instructional staff per one thousand full-time equivalent students in grades K-4 may dedicate up to 1.3 of the 54.0 funding ratio in the 2003-04 school year, and up to 1.3 of the 53.2 funding ratio in the 2004-05 school year, to employ additional classified instructional assistants assigned to basic education classrooms in grades K-4. For purposes of documenting a district's staff ratio under this section, funds used by the district to employ additional classified instructional assistants shall be converted to a certificated staff equivalent and added to the district's actual certificated instructional staff ratio. Additional classified instructional assistants, for the purposes of this subsection, shall be determined using the 1989-90 school year as the base year;

              (C) Any district maintaining a ratio in grades K-4 equal to or greater than 54.0 certificated instructional staff per thousand full-time equivalent students in the 2003-04 school year and 53.2 certificated instructional staff per thousand full-time equivalent students in the 2004-05 school year may use allocations generated under this subsection (2)(a)(iv) and (v) in excess of that required to maintain the minimum ratio established under RCW 28A.150.260(2)(b) to employ additional basic education certificated instructional staff or classified instructional assistants in grades 5-6. Funds allocated under this subsection (2)(a)(iv) and (v) shall only be expended to reduce class size in grades K-6. No more than 1.3 of the certificated instructional funding ratio amount may be expended for provision of classified instructional assistants;

              (b) For school districts with a minimum enrollment of 250 full-time equivalent students whose full-time equivalent student enrollment count in a given month exceeds the first of the month full-time equivalent enrollment count by 5 percent, an additional state allocation of 110 percent of the share that such increased enrollment would have generated had such additional full-time equivalent students been included in the normal enrollment count for that particular month;

              (c)(i) On the basis of full-time equivalent enrollment in:

              (A) Vocational education programs approved by the superintendent of public instruction, a maximum of 0.92 certificated instructional staff units and 0.08 certificated administrative staff units for each 19.5 full-time equivalent vocational students; and

              (B) Skills center programs meeting the standards for skills center funding established in January 1999 by the superintendent of public instruction, 0.92 certificated instructional staff units and 0.08 certificated administrative units for each 16.67 full-time equivalent vocational students;

              (ii) Vocational full-time equivalent enrollment shall be reported on the same monthly basis as the enrollment for students eligible for basic support, and payments shall be adjusted for reported vocational enrollments on the same monthly basis as those adjustments for enrollment for students eligible for basic support; and

              (iii) Indirect cost charges by a school district to vocational-secondary programs shall not exceed 15 percent of the combined basic education and vocational enhancement allocations of state funds;

              (d) For districts enrolling not more than twenty-five average annual full-time equivalent students in grades K-8, and for small school plants within any school district which have been judged to be remote and necessary by the state board of education and enroll not more than twenty-five average annual full-time equivalent students in grades K-8:

              (i) For those enrolling no students in grades 7 and 8, 1.76 certificated instructional staff units and 0.24 certificated administrative staff units for enrollment of not more than five students, plus one-twentieth of a certificated instructional staff unit for each additional student enrolled; and

              (ii) For those enrolling students in grades 7 or 8, 1.68 certificated instructional staff units and 0.32 certificated administrative staff units for enrollment of not more than five students, plus one-tenth of a certificated instructional staff unit for each additional student enrolled;

              (e) For specified enrollments in districts enrolling more than twenty-five but not more than one hundred average annual full-time equivalent students in grades K-8, and for small school plants within any school district which enroll more than twenty-five average annual full-time equivalent students in grades K-8 and have been judged to be remote and necessary by the state board of education:

              (i) For enrollment of up to sixty annual average full-time equivalent students in grades K-6, 2.76 certificated instructional staff units and 0.24 certificated administrative staff units; and

              (ii) For enrollment of up to twenty annual average full-time equivalent students in grades 7 and 8, 0.92 certificated instructional staff units and 0.08 certificated administrative staff units;

              (f) For districts operating no more than two high schools with enrollments of less than three hundred average annual full-time equivalent students, for enrollment in grades 9-12 in each such school, other than alternative schools:

              (i) For remote and necessary schools enrolling students in any grades 9-12 but no more than twenty-five average annual full-time equivalent students in grades K-12, four and one-half certificated instructional staff units and one-quarter of a certificated administrative staff unit;

              (ii) For all other small high schools under this subsection, nine certificated instructional staff units and one-half of a certificated administrative staff unit for the first sixty average annual full time equivalent students, and additional staff units based on a ratio of 0.8732 certificated instructional staff units and 0.1268 certificated administrative staff units per each additional forty-three and one-half average annual full time equivalent students.

              Units calculated under (f)(ii) of this subsection shall be reduced by certificated staff units at the rate of forty-six certificated instructional staff units and four certificated administrative staff units per thousand vocational full-time equivalent students;

              (g) For each nonhigh school district having an enrollment of more than seventy annual average full-time equivalent students and less than one hundred eighty students, operating a grades K-8 program or a grades 1-8 program, an additional one-half of a certificated instructional staff unit; and

              (h) For each nonhigh school district having an enrollment of more than fifty annual average full-time equivalent students and less than one hundred eighty students, operating a grades K-6 program or a grades 1-6 program, an additional one-half of a certificated instructional staff unit.

              (3) Allocations for classified salaries for the 2003-04 and 2004-05 school years shall be calculated using formula-generated classified staff units determined as follows:

              (a) For enrollments generating certificated staff unit allocations under subsection (2)(d) through (h) of this section, one classified staff unit for each three certificated staff units allocated under such subsections;

              (b) For all other enrollment in grades K-12, including vocational full-time equivalent enrollments, one classified staff unit for each sixty average annual full-time equivalent students; and

              (c) For each nonhigh school district with an enrollment of more than fifty annual average full-time equivalent students and less than one hundred eighty students, an additional one-half of a classified staff unit.

              (4) Fringe benefit allocations shall be calculated at a rate of 9.68 percent in the 2003-04 school year and ((9.68)) 9.69 percent in the 2004-05 school year for certificated salary allocations provided under subsection (2) of this section, and a rate of 12.25 percent in the 2003-04 school year and 12.25 percent in the 2004-05 school year for classified salary allocations provided under subsection (3) of this section.

              (5) Insurance benefit allocations shall be calculated at the maintenance rate specified in section 504(2) of this act, based on the number of benefit units determined as follows:

              (a) The number of certificated staff units determined in subsection (2) of this section; and

              (b) The number of classified staff units determined in subsection (3) of this section multiplied by 1.152. This factor is intended to adjust allocations so that, for the purposes of distributing insurance benefits, full-time equivalent classified employees may be calculated on the basis of 1440 hours of work per year, with no individual employee counted as more than one full-time equivalent.

              (6)(a) For nonemployee-related costs associated with each certificated staff unit allocated under subsection (2)(a), (b), and (d) through (h) of this section, there shall be provided a maximum of $8,785 per certificated staff unit in the 2003-04 school year and a maximum of (($8,952)) $8,855 per certificated staff unit in the 2004-05 school year.

              (b) For nonemployee-related costs associated with each vocational certificated staff unit allocated under subsection (2)(c)(i)(A) of this section, there shall be provided a maximum of $21,573 per certificated staff unit in the 2003-04 school year and a maximum of (($21,983)) $21,746 per certificated staff unit in the 2004-05 school year.

              (c) For nonemployee-related costs associated with each vocational certificated staff unit allocated under subsection (2)(c)(i)(B) of this section, there shall be provided a maximum of $16,739 per certificated staff unit in the 2003-04 school year and a maximum of (($17,057)) $16,873 per certificated staff unit in the 2004-05 school year.

              (7) Allocations for substitute costs for classroom teachers shall be distributed at a maintenance rate of $531.09 for the 2003-04 and 2004-05 school years per allocated classroom teachers exclusive of salary increase amounts provided in section 504 of this act. Solely for the purposes of this subsection, allocated classroom teachers shall be equal to the number of certificated instructional staff units allocated under subsection (2) of this section, multiplied by the ratio between the number of actual basic education certificated teachers and the number of actual basic education certificated instructional staff reported statewide for the prior school year.

              (8) Any school district board of directors may petition the superintendent of public instruction by submission of a resolution adopted in a public meeting to reduce or delay any portion of its basic education allocation for any school year. The superintendent of public instruction shall approve such reduction or delay if it does not impair the district's financial condition. Any delay shall not be for more than two school years. Any reduction or delay shall have no impact on levy authority pursuant to RCW 84.52.0531 and local effort assistance pursuant to chapter 28A.500 RCW.

              (9) The superintendent may distribute a maximum of (($6,392,000)) $6,385,000 outside the basic education formula during fiscal years 2004 and 2005 as follows:

              (a) For fire protection for school districts located in a fire protection district as now or hereafter established pursuant to chapter 52.04 RCW, a maximum of $495,000 may be expended in fiscal year 2004 and a maximum of (($504,000)) $499,000 may be expended in fiscal year 2005;

              (b) For summer vocational programs at skills centers, a maximum of $2,035,000 may be expended for the 2004 fiscal year and a maximum of $2,035,000 for the 2005 fiscal year;

              (c) A maximum of (($353,000)) $351,000 may be expended for school district emergencies; and

              (d) A maximum of $485,000 each fiscal year may be expended for programs providing skills training for secondary students who are enrolled in extended day school-to-work programs, as approved by the superintendent of public instruction. The funds shall be allocated at a rate not to exceed $500 per full-time equivalent student enrolled in those programs.

              (10) For purposes of RCW 84.52.0531, the increase per full-time equivalent student is 3.4 percent from the 2002-03 school year to the 2003-04 school year and 2.5 percent from the 2003-04 school year to the 2004-05 school year.

              (11) If two or more school districts consolidate and each district was receiving additional basic education formula staff units pursuant to subsection (2)(b) through (h) of this section, the following shall apply:

              (a) For three school years following consolidation, the number of basic education formula staff units shall not be less than the number of basic education formula staff units received by the districts in the school year prior to the consolidation; and

              (b) For the fourth through eighth school years following consolidation, the difference between the basic education formula staff units received by the districts for the school year prior to consolidation and the basic education formula staff units after consolidation pursuant to subsection (2)(a) through (h) of this section shall be reduced in increments of twenty percent per year.

              (12) (($159,000)) $401,000 of the general fund--state appropriation for fiscal year ((2004 and $1,181,000 of the general fund--state appropriation for fiscal year 2005 are)) 2005 is provided solely for the implementation of Second Engrossed Substitute Senate Bill No. 5012 or Second Substitute House Bill No. 2295 (charter schools). If ((the)) neither bill is ((not)) enacted by June 30, ((2003)) 2004, the amount() provided in this subsection shall lapse.


              Sec. 503. 2003 1st sp.s. c 25 s 503 (uncodified) is amended to read as follows:

              FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--BASIC EDUCATION EMPLOYEE COMPENSATION.

(1) The following calculations determine the salaries used in the general fund allocations for certificated instructional, certificated administrative, and classified staff units under section 502 of this act:

              (a) Salary allocations for certificated instructional staff units shall be determined for each district by multiplying the district's certificated instructional total base salary shown on LEAP Document 12E by the district's average staff mix factor for certificated instructional staff in that school year, computed using LEAP Document 1Sa for the 2003-04 school year and LEAP Document 1Sb for the 2004-05 school year; and

              (b) Salary allocations for certificated administrative staff units and classified staff units for each district shall be based on the district's certificated administrative and classified salary allocation amounts shown on LEAP Document 12E.

              (2) For the purposes of this section:

              (a) "LEAP Document 1Sa" means the computerized tabulation establishing staff mix factors for certificated instructional staff for the 2003-04 school year according to education and years of experience, as developed by the legislative evaluation and accountability program committee on March 31, 2003, at 09:06 hours;

              (b) "LEAP Document 1Sb" means the computerized tabulation establishing staff mix factors for certificated instructional staff for the 2004-05 school year according to education and years of experience, as developed by the legislative evaluation and accountability program committee on March 31, 2003, at 09:06 hours; and

              (c) "LEAP Document 12E" means the computerized tabulation of 2003-04 and 2004-05 school year salary allocations for certificated administrative staff and classified staff and derived and total base salaries for certificated instructional staff as developed by the legislative evaluation and accountability program committee on March 31, 2003, at 09:06 hours.

              (3) Incremental fringe benefit factors shall be applied to salary adjustments at a rate of 9.04 percent for school year 2003-04 and ((9.04)) 9.05 percent for school year 2004-05 for certificated staff and for classified staff 8.75 percent for school year 2003-04 and 8.75 percent for the 2004-05 school year.

              (4)(a) Pursuant to RCW 28A.150.410, the following state-wide salary allocation schedules for certificated instructional staff are established for basic education salary allocations:


K-12 Salary Allocation Schedule For Certificated Instructional Staff

2003-04 School Year

Years of

 

 

 

 

 

 

 

 

 

MA+90

Service

 

BA

BA+15

BA+30

BA+45

BA+90

BA+135

MA

MA+45

or PHD

 

 

 

 

 

 

 

 

 

 

 

0

 

29,149

29,936

30,752

31,568

34,192

35,881

34,947

37,570

39,262

1

 

29,540

30,339

31,165

32,019

34,669

36,350

35,335

37,985

39,665

2

 

30,060

30,870

31,709

32,633

35,289

36,995

35,901

38,556

40,262

3

 

30,747

31,574

32,429

33,392

36,069

37,833

36,630

39,306

41,071

4

 

31,285

32,151

33,017

34,018

36,724

38,510

37,208

39,914

41,701

5

 

31,840

32,716

33,594

34,655

37,365

39,196

37,798

40,509

42,340

6

 

32,251

33,108

34,016

35,131

37,827

39,667

38,213

40,910

42,750

7

 

33,139

34,012

34,937

36,118

38,868

40,769

39,185

41,934

43,836

8

 

34,202

35,122

36,069

37,348

40,135

42,106

40,414

43,202

45,172

9

 

 

36,272

37,266

38,591

41,443

43,481

41,656

44,510

46,548

10

 

 

 

38,477

39,898

42,788

44,894

42,964

45,855

47,960

11

 

 

 

 

41,243

44,196

46,344

44,309

47,263

49,410

12

 

 

 

 

42,545

45,642

47,854

45,707

48,708

50,921

13

 

 

 

 

 

47,123

49,401

47,154

50,189

52,467

14

 

 

 

 

 

48,611

51,006

48,644

51,775

54,073

15

 

 

 

 

 

49,876

52,333

49,908

53,121

55,479

16 or More

 

 

 

50,873

53,379

50,906

54,183

56,588


K-12 Salary Allocation Schedule For Certificated Instructional Staff

2004-05 School Year

Years of

 

 

 

 

 

 

 

 

 

MA+90

Service

 

BA

BA+15

BA+30

BA+45

BA+90

BA+135

MA

MA+45

or PHD

 

 

 

 

 

 

 

 

 

 

 

0

 

30,023

30,834

31,674

32,516

35,218

36,958

35,995

38,697

40,439

1

 

30,427

31,249

32,100

32,979

35,709

37,440

36,395

39,125

40,855

2

 

30,812

31,642

32,502

33,449

36,171

37,920

36,798

39,520

41,269

3

 

31,209

32,047

32,916

33,893

36,610

38,401

37,180

39,895

41,687

4

 

31,598

32,473

33,347

34,358

37,091

38,895

37,580

40,313

42,118

5

 

32,000

32,879

33,762

34,829

37,552

39,392

37,987

40,711

42,551

6

 

32,413

33,273

34,186

35,306

38,016

39,866

38,404

41,114

42,963

7

 

33,139

34,012

34,937

36,118

38,868

40,769

39,185

41,934

43,836

8

 

34,202

35,122

36,069

37,348

40,135

42,106

40,414

43,202

45,172

9

 

 

36,272

37,266

38,591

41,443

43,481

41,656

44,510

46,548

10

 

 

 

38,477

39,898

42,788

44,894

42,964

45,855

47,960

11

 

 

 

 

41,243

44,196

46,344

44,309

47,263

49,410

12

 

 

 

 

42,545

45,642

47,854

45,707

48,708

50,921

13

 

 

 

 

 

47,123

49,401

47,154

50,189

52,467

14

 

 

 

 

 

48,611

51,006

48,644

51,775

54,073

15

 

 

 

 

 

49,876

52,333

49,908

53,121

55,479

16 or More

 

 

 

50,873

53,379

50,906

54,183

56,588


              (b) As used in this subsection, the column headings "BA+(N)" refer to the number of credits earned since receiving the baccalaureate degree.

              (c) For credits earned after the baccalaureate degree but before the masters degree, any credits in excess of forty-five credits may be counted after the masters degree. Thus, as used in this subsection, the column headings "MA+(N)" refer to the total of:

              (i) Credits earned since receiving the masters degree; and

              (ii) Any credits in excess of forty-five credits that were earned after the baccalaureate degree but before the masters degree.

              (5) For the purposes of this section:

              (a) "BA" means a baccalaureate degree.

              (b) "MA" means a masters degree.

              (c) "PHD" means a doctorate degree.

              (d) "Years of service" shall be calculated under the same rules adopted by the superintendent of public instruction.

              (e) "Credits" means college quarter hour credits and equivalent in-service credits computed in accordance with RCW 28A.415.020 and 28A.415.023.

              (6) No more than ninety college quarter-hour credits received by any employee after the baccalaureate degree may be used to determine compensation allocations under the state salary allocation schedule and LEAP documents referenced in this act, or any replacement schedules and documents, unless:

              (a) The employee has a masters degree; or

              (b) The credits were used in generating state salary allocations before January 1, 1992.

              (7) The certificated instructional staff base salary specified for each district in LEAP Document 12E and the salary schedules in subsection (4)(a) of this section include two learning improvement days. A school district is eligible for the learning improvement day funds only if the learning improvement days have been added to the 180-day contract year. If fewer days are added, the additional learning improvement allocation shall be adjusted accordingly. The additional days shall be for activities related to improving student learning consistent with education reform implementation, and shall not be considered part of basic education. The length of a learning improvement day shall not be less than the length of a full day under the base contract. The superintendent of public instruction shall ensure that school districts adhere to the intent and purposes of this subsection.

              (8) The salary allocation schedules established in this section are for allocation purposes only except as provided in RCW 28A.400.200(2), subsection (7) of this section, and section 504(1) of this act.


              Sec. 504. 2003 1st sp.s. c 25 s 504 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR SCHOOL EMPLOYEE COMPENSATION ADJUSTMENTS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($28,511,000))

$28,604,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($116,670,000))

$132,202,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($559,000))

$663,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($145,740,000))

$161,469,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) (($8,913,000)) $8,944,000 of the general fund--state appropriation for fiscal year 2004 and (($20,238,000)) $20,339,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to provide a salary adjustment for state formula certificated instructional staff units in their first seven years of service. Consistent with the statewide certificated instructional staff salary allocation schedule in section 503 of this act, sufficient funding is provided to increase the salary of certificated instructional staff units in the 2003-04 school year and the 2004-05 school year by the following percentages: Three percent for certificated instructional staff in their first and second years of service; two and one-half percent for certificated instructional staff in their third year of service; one and one-half percent for certificated instructional staff in their fourth year of service; one percent for certificated instructional staff in their fifth year of service; and one-half of a percent for certificated instructional staff in their sixth and seventh years of service. These increases will take effect September 1, 2003 and September 1, 2004.

              (a) In order to receive funding provided in this subsection, school districts shall certify to the office of superintendent of public instruction that they will provide the percentage increases in the amounts specified in this subsection. In cases where a school district providing the increases in the amounts specified in this subsection would cause that school district to be out of compliance with RCW 28A.400.200, they may provide salary increases in different amounts but only to the extent necessary to come into compliance with RCW 28A.400.200. Funds provided in this subsection shall be used exclusively for providing the percentage increases specified in this subsection to the certificated staff units in their first seven years of service and shall not be used to supplant any other state or local funding for compensation for these staff.

              (b) The appropriations include associated incremental fringe benefit allocations at rates of 9.04 percent for school year 2003-04 and ((9.04)) 9.05 percent for school year 2004-05 for certificated staff. Increases for general apportionment (basic education) are based on the salary allocation schedules and methodology in sections 502 and 503 of this act. Increases for special education result from increases in each district's basic education allocation per student. Increases for educational service districts and institutional education programs are determined by the superintendent of public instruction using the methodology for general apportionment salaries and benefits in sections 502 and 503 of this act.

              (2) $5,452,000 of the general fund--state appropriation is provided solely to provide a salary adjustment for state formula classified units of one percent effective September 1, 2004, and $126,598,000 is provided solely for adjustments to insurance benefit allocations.

              (a)(i) In order to receive funding provided in this subsection for salary adjustments for state formula classified units, school districts shall certify to the office of superintendent of public instruction that they will provide the percentage increases in the amounts specified in this subsection. Funds provided in this subsection for this purpose shall be used exclusively for providing the percentage increases specified in this subsection to classified staff units and shall not be used to supplant any other state or local funding for compensation for these staff.

              (ii) The appropriations include associated incremental fringe benefit allocations at rates of 8.75 percent for the 2004-05 school year for classified staff. The appropriations in this section include the increased portion of salaries and incremental fringe benefits for all relevant state-funded school programs in this part V of this act. Increases for general apportionment (basic education) are based on the salary allocation schedules and methodology in sections 502 and 503 of this act. Increases for special education result from increases in each district's basic education allocation per student. Increases for educational service districts and institutional education programs are determined by the superintendent of public instruction using the methodology for general apportionment salaries and benefits in sections 502 and 503 of this act.

              (b) The maintenance rate for insurance benefit allocations is $457.07 per month for the 2003-04 and 2004-05 school years. The appropriations in this section provide for a rate increase to $481.31 per month for the 2003-04 school year and $582.47 per month for the 2004-05 school year.

              (3) The appropriations in this section provide salary adjustments and incremental fringe benefit allocations based on formula adjustments as follows:


 

School Year

 

2003-04

2004-05

Pupil Transportation (per weighted pupil mile)

$0.00

 

$0.22

 

Highly Capable (per formula student)

$0.93

 

$1.89

 

Transitional Bilingual Education (per eligible bilingual student)

$2.45

 

$4.97

 

Learning Assistance (per entitlement unit)

$0.69

 

(($1.40))

$2.94


              (((3) $116,483,000 is provided for adjustments to insurance benefit allocations. The maintenance rate for insurance benefit allocations is $457.07 per month for the 2003-04 and 2004-05 school years. The appropriations in this section provide for a rate increase to $481.31 per month for the 2003-04 school year and $570.74 per month for the 2004-05 school year at the following rates:))

              (4) The adjustments to insurance benefit allocations are at the following rates:


 

School Year

 

2003-04

2004-05

Pupil Transportation (per weighted pupil mile)

$0.22

 

(($1.03))

$1.14

Highly Capable (per formula student)

$1.52

 

(($7.00))

$7.72

Transitional Bilingual Education (per eligible bilingual student)

$3.92

 

(($18.40))

$20.30

Learning Assistance (per entitlement unit)

$3.08

 

(($14.46))

$15.95


              (((4))) (5) The rates specified in this section are subject to revision each year by the legislature.


              Sec. 505. 2003 1st sp.s. c 25 s 505 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR PUPIL TRANSPORTATION

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($201,638,000))

$215,454,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($210,279,000))

$219,899,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($411,917,000))

$435,353,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Each general fund fiscal year appropriation includes such funds as are necessary to complete the school year ending in the fiscal year and for prior fiscal year adjustments.

              (2) A maximum of $768,000 of this fiscal year 2004 appropriation and a maximum of (($782,000)) $774,000 of the fiscal year 2005 appropriation may be expended for regional transportation coordinators and related activities. The transportation coordinators shall ensure that data submitted by school districts for state transportation funding shall, to the greatest extent practical, reflect the actual transportation activity of each district.

              (3) $5,000 of the fiscal year 2004 appropriation and $5,000 of the fiscal year 2005 appropriation are provided solely for the transportation of students enrolled in "choice" programs. Transportation shall be limited to low-income students who are transferring to "choice" programs solely for educational reasons.

              (4) Allocations for transportation of students shall be based on reimbursement rates of $39.21 per weighted mile in the 2003-04 school year and (($39.43)) $39.30 per weighted mile in the 2004-05 school year exclusive of salary and benefit adjustments provided in section 504 of this act. Allocations for transportation of students transported more than one radius mile shall be based on weighted miles as determined by superintendent of public instruction multiplied by the per mile reimbursement rates for the school year pursuant to the formulas adopted by the superintendent of public instruction. Allocations for transportation of students living within one radius mile shall be based on the number of enrolled students in grades kindergarten through five living within one radius mile of their assigned school multiplied by the per mile reimbursement rate for the school year multiplied by 1.29.

              (5) ((Beginning with)) For busses purchased ((on or after)) between July 1, 2003, and June 30, 2004, the office of superintendent of public instruction shall provide reimbursement funding to a school district only after the superintendent of public instruction determines that the school bus was purchased from the list established pursuant to RCW 28A.160.195(2) or a comparable competitive bid process based on the lowest price quote based on similar bus categories to those used to establish the list pursuant to RCW 28A.160.195. The competitive specifications shall meet federal motor vehicle safety standards, minimum state specifications as established by rule by the superintendent, and supported options as determined by the superintendent in consultation with the regional transportation coordinators of the educational service districts.


              Sec. 506. 2003 1st sp.s. c 25 s 506 (uncodified) is amended to read as follows:

 FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR SCHOOL FOOD SERVICE PROGRAMS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,100,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,100,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($272,069,000))

$252,128,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($278,269,000))

$258,328,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $3,000,000 of the general fund--state appropriation for fiscal year 2004 and $3,000,000 of the general fund--state appropriation for fiscal year 2005 are provided for state matching money for federal child nutrition programs.

              (2) $100,000 of the general fund--state appropriation for fiscal year 2004 and $100,000 of the 2005 fiscal year appropriation are provided for summer food programs for children in low-income areas.


              Sec. 507. 2003 1st sp.s. c 25 s 507 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR SPECIAL EDUCATION PROGRAMS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($433,984,000))

$435,061,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($427,214,000))

$426,802,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($409,637,000))

$426,450,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,270,835,000))

$1,288,313,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Funding for special education programs is provided on an excess cost basis, pursuant to RCW 28A.150.390. School districts shall ensure that special education students as a class receive their full share of the general apportionment allocation accruing through sections 502 and 504 of this act. To the extent a school district cannot provide an appropriate education for special education students under chapter 28A.155 RCW through the general apportionment allocation, it shall provide services through the special education excess cost allocation funded in this section.

              (2)(a) The superintendent of public instruction shall use the excess cost methodology developed and implemented for the 2001-02 school year using the S-275 personnel reporting system and all related accounting requirements to ensure that:

              (i) Special education students are basic education students first;

              (ii) As a class, special education students are entitled to the full basic education allocation; and

              (iii) Special education students are basic education students for the entire school day.

              (b) The S-275 and accounting changes in effect since the 2001-02 school year shall supercede any prior excess cost methodologies and shall be required of all school districts.

              (3) Each fiscal year appropriation includes such funds as are necessary to complete the school year ending in the fiscal year and for prior fiscal year adjustments.

              (4) The superintendent of public instruction shall distribute state and federal funds to school districts based on two categories: The optional birth through age two program for special education eligible developmentally delayed infants and toddlers, and the mandatory special education program for special education eligible students ages three to twenty-one. A "special education eligible student" means a student receiving specially designed instruction in accordance with a properly formulated individualized education program.

              (5)(a) For the 2003-04 and 2004-05 school years, the superintendent shall make allocations to each district based on the sum of:

              (i) A district's annual average headcount enrollment of developmentally delayed infants and toddlers ages birth through two, multiplied by the district's average basic education allocation per full-time equivalent student, multiplied by 1.15; and

              (ii) A district's annual average full-time equivalent basic education enrollment multiplied by the funded enrollment percent determined pursuant to subsection (6)(b) of this section, multiplied by the district's average basic education allocation per full-time equivalent student multiplied by 0.9309.

              (b) For purposes of this subsection, "average basic education allocation per full-time equivalent student" for a district shall be based on the staffing ratios required by RCW 28A.150.260 and shall not include enhancements, secondary vocational education, or small schools.

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

              (a) "Annual average full-time equivalent basic education enrollment" means the resident enrollment including students enrolled through choice (RCW 28A.225.225) and students from nonhigh districts (RCW 28A.225.210) and excluding students residing in another district enrolled as part of an interdistrict cooperative program (RCW 28A.225.250).

              (b) "Enrollment percent" means the district's resident special education annual average enrollment, excluding the birth through age two enrollment, as a percent of the district's annual average full-time equivalent basic education enrollment.

              Each district's general fund--state funded special education enrollment shall be the lesser of the district's actual enrollment percent or 12.7 percent. Increases in enrollment percent from 12.7 percent to 13.0 percent shall be funded from the general fund--federal appropriation.

              (7) At the request of any interdistrict cooperative of at least 15 districts in which all excess cost services for special education students of the districts are provided by the cooperative, the maximum enrollment percent shall be calculated in accordance with subsection (6)(b) of this section, and shall be calculated in the aggregate rather than individual district units. For purposes of this subsection, the average basic education allocation per full-time equivalent student shall be calculated in the aggregate rather than individual district units.

              (8) To the extent necessary, $25,746,000 of the general fund--federal appropriation is provided for safety net awards for districts with demonstrated needs for state special education funding beyond the amounts provided in subsection (5) of this section. If safety net awards exceed the amount appropriated in this subsection (8), the superintendent shall expend all available federal discretionary funds necessary to meet this need. Safety net funds shall be awarded by the state safety net oversight committee subject to the following conditions and limitations:

              (a) The committee shall consider unmet needs for districts that can convincingly demonstrate that all legitimate expenditures for special education exceed all available revenues from state funding formulas. In the determination of need, the committee shall also consider additional available revenues from federal and local sources. Differences in program costs attributable to district philosophy, service delivery choice, or accounting practices are not a legitimate basis for safety net awards.

              (b) The committee shall then consider the extraordinary high cost needs of one or more individual special education students. Differences in costs attributable to district philosophy, service delivery choice, or accounting practices are not a legitimate basis for safety net awards.

              (c) The maximum allowable indirect cost for calculating safety net eligibility may not exceed the federal restricted indirect cost rate for the district plus one percent.

              (d) Safety net awards shall be adjusted based on the percent of potential medicaid eligible students billed as calculated by the superintendent in accordance with chapter 318, Laws of 1999.

              (e) Safety net awards must be adjusted for any audit findings or exceptions related to special education funding.

              (9) The superintendent of public instruction may adopt such rules and procedures as are necessary to administer the special education funding and safety net award process. Prior to revising any standards, procedures, or rules, the superintendent shall consult with the office of financial management and the fiscal committees of the legislature.

              (10) The safety net oversight committee appointed by the superintendent of public instruction shall consist of:

              (a) One staff from the office of superintendent of public instruction;

              (b) Staff of the office of the state auditor; and

              (c) One or more representatives from school districts or educational service districts knowledgeable of special education programs and funding.

              (11) A maximum of $678,000 may be expended from the general fund--state appropriations to fund 5.43 full-time equivalent teachers and 2.1 full-time equivalent aides at children's orthopedic hospital and medical center. This amount is in lieu of money provided through the home and hospital allocation and the special education program.

              (12) $1,000,000 of the general fund--federal appropriation is provided for projects to provide special education students with appropriate job and independent living skills, including work experience where possible, to facilitate their successful transition out of the public school system. The funds provided by this subsection shall be from federal discretionary grants.

              (13) The superintendent shall maintain the percentage of federal flow-through to school districts at 85 percent. In addition to other purposes, school districts may use increased federal funds for high-cost students, for purchasing regional special education services from educational service districts, and for staff development activities particularly relating to inclusion issues.

              (14) A maximum of $1,200,000 of the general fund--federal appropriation may be expended by the superintendent for projects related to use of inclusion strategies by school districts for provision of special education services. The superintendent shall prepare an information database on laws, best practices, examples of programs, and recommended resources. The information may be disseminated in a variety of ways, including workshops and other staff development activities.

              (15) A school district may carry over from one year to the next year up to 10 percent of the general fund--state funds allocated under this program; however, carry over funds shall be expended in the special education program.


              Sec. 508. 2003 1st sp.s. c 25 s 508 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR EDUCATIONAL SERVICE DISTRICTS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,538,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($3,537,000))

$3,538,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($7,075,000))

$7,076,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The educational service districts shall continue to furnish financial services required by the superintendent of public instruction and RCW 28A.310.190 (3) and (4).

              (2) The educational service districts, at the request of the state board of education pursuant to RCW 28A.310.010 and 28A.310.340, may receive and screen applications for school accreditation, conduct school accreditation site visits pursuant to state board of education rules, and submit to the state board of education post-site visit recommendations for school accreditation. The educational service districts may assess a cooperative service fee to recover actual plus reasonable indirect costs for the purposes of this subsection.


              Sec. 509. 2003 1st sp.s. c 25 s 509 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR LOCAL EFFORT ASSISTANCE

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($162,236,000))

$163,049,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($167,073,000))

$165,578,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($329,309,000))

$328,627,000


              Sec. 510. 2003 1st sp.s. c 25 s 510 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR INSTITUTIONAL EDUCATION PROGRAMS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($18,596,000))

$18,207,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($19,092,000))

$18,176,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($37,688,000))

$36,383,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Each general fund--state fiscal year appropriation includes such funds as are necessary to complete the school year ending in the fiscal year and for prior fiscal year adjustments.

              (2) State funding provided under this section is based on salaries and other expenditures for a 220-day school year. The superintendent of public instruction shall monitor school district expenditure plans for institutional education programs to ensure that districts plan for a full-time summer program.

              (3) State funding for each institutional education program shall be based on the institution's annual average full-time equivalent student enrollment. Staffing ratios for each category of institution shall remain the same as those funded in the 1995-97 biennium.

              (4) The funded staffing ratios for education programs for juveniles age 18 or less in department of corrections facilities shall be the same as those provided in the 1997-99 biennium.

              (5) (($279,000)) $190,000 of the general fund--state appropriation for fiscal year 2004 and (($286,000)) $142,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to maintain at least one certificated instructional staff and related support services at an institution whenever the K-12 enrollment is not sufficient to support one full-time equivalent certificated instructional staff to furnish the educational program. The following types of institutions are included: Residential programs under the department of social and health services for developmentally disabled juveniles, programs for juveniles under the department of corrections, and programs for juveniles under the juvenile rehabilitation administration.

              (6) Ten percent of the funds allocated for each institution may be carried over from one year to the next.


              Sec. 511. 2003 1st sp.s. c 25 s 511 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR PROGRAMS FOR HIGHLY CAPABLE STUDENTS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($6,597,000))

$6,620,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($6,614,000))

$6,632,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($13,211,000))

$13,252,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Each general fund fiscal year appropriation includes such funds as are necessary to complete the school year ending in the fiscal year and for prior fiscal year adjustments.

              (2) Allocations for school district programs for highly capable students shall be distributed at a maximum rate of $334.89 per funded student for the 2003-04 school year and (($334.89)) $334.91 per funded student for the 2004-05 school year, exclusive of salary and benefit adjustments pursuant to section 504 of this act. The number of funded students shall be a maximum of two percent of each district's full-time equivalent basic education enrollment.

              (3) $170,000 of the fiscal year 2004 appropriation and $170,000 of the fiscal year 2005 appropriation are provided for the centrum program at Fort Worden state park.

              (4) $90,000 of the fiscal year 2004 appropriation and $90,000 of the fiscal year 2005 appropriation are provided for the Washington destination imagination network and future problem-solving programs.


              Sec. 512. 2003 1st sp.s. c 25 s 512 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR MISCELLANEOUS PURPOSES UNDER THE ELEMENTARY AND SECONDARY SCHOOL IMPROVEMENT ACT AND THE NO CHILD LEFT BEHIND ACT

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($46,198,000))

$42,817,000


              Sec. 513. 2003 1st sp.s. c 25 s 513 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--EDUCATION REFORM PROGRAMS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($39,107,000))

$38,417,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($36,501,000))

$37,709,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($128,402,000))

$164,087,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($204,010,000))

$240,213,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $310,000 of the general fund--state appropriation for fiscal year 2004 and $310,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the academic achievement and accountability commission.

              (2) (($16,050,000)) $15,486,000 of the general fund--state appropriation for fiscal year 2004, (($12,511,000)) $13,103,000 of the general fund--state appropriation for fiscal year 2005, and (($15,455,000)) $12,310,000 of the general fund--federal appropriation are provided solely for development and implementation of the Washington assessments of student learning((. Of the general fund--state amounts provided:

              (a) $222,000 in fiscal year 2004 and $244,000 in fiscal year 2005 are for providing high school students who are not successful in one or more content areas of the Washington assessment of student learning the opportunity to retake the test and $75,000 of the fiscal year 2004 appropriation is provided for developing alternative assessments as provided in Engrossed Substitute House Bill No. 2195 (state academic standards). If Engrossed Substitute House Bill No. 2195 is not enacted by June 30, 2003, the amounts in this subsection (a) shall lapse.

              (b) $300,000 in fiscal year 2004 is for independent research on the alignment and technical review of the reading, writing, and science content areas of the Washington assessment of student learning, as provided by Engrossed Substitute House Bill No. 2195 (state academic standards). If Engrossed Substitute House Bill No. 2195 is not enacted by June 30, 2003, the amount in this subsection (b) shall lapse)) (WASL), including development and implementation of retake assessments for high school students who are not successful in one or more content areas of the WASL, development of alternative assessments or appeals procedures to implement the certificate of academic achievement, and independent research on the alignment and technical review of reading, writing, and science.

              (3) $548,000 of the fiscal year 2004 general fund--state appropriation and $548,000 of the fiscal year 2005 general fund--state appropriation are provided solely for training of paraprofessional classroom assistants and certificated staff who work with classroom assistants as provided in RCW 28A.415.310.

              (4) $2,348,000 of the general fund--state appropriation for fiscal year 2004 and $2,348,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for mentor teacher assistance, including state support activities, under RCW 28A.415.250 and 28A.415.260, and for a mentor academy. Up to $200,000 of the amount in this subsection may be used each fiscal year to operate a mentor academy to help districts provide effective training for peer mentors. Funds for the teacher assistance program shall be allocated to school districts based on the number of first year beginning teachers.

              (a) A teacher assistance program is a program that provides to a first year beginning teacher peer mentor services that include but are not limited to:

              (i) An orientation process and individualized assistance to help beginning teachers who have been hired prior to the start of the school year prepare for the start of a school year;

              (ii) The assignment of a peer mentor whose responsibilities to the beginning teacher include but are not limited to constructive feedback, the modeling of instructional strategies, and frequent meetings and other forms of contact;

              (iii) The provision by peer mentors of strategies, training, and guidance in critical areas such as classroom management, student discipline, curriculum management, instructional skill, assessment, communication skills, and professional conduct. A district may provide these components through a variety of means including one-on-one contact and workshops offered by peer mentors to groups, including cohort groups, of beginning teachers;

              (iv) The provision of release time, substitutes, mentor training in observation techniques, and other measures for both peer mentors and beginning teachers, to allow each an adequate amount of time to observe the other and to provide the classroom experience that each needs to work together effectively;

              (v) Assistance in the incorporation of the essential academic learning requirements into instructional plans and in the development of complex teaching strategies, including strategies to raise the achievement of students with diverse learning styles and backgrounds; and

              (vi) Guidance and assistance in the development and implementation of a professional growth plan. The plan shall include a professional self-evaluation component and one or more informal performance assessments. A peer mentor may not be involved in any evaluation under RCW 28A.405.100 of a beginning teacher whom the peer mentor has assisted through this program.

              (b) In addition to the services provided in (a) of this subsection, an eligible peer mentor program shall include but is not limited to the following components:

              (i) Strong collaboration among the peer mentor, the beginning teacher's principal, and the beginning teacher;

              (ii) Stipends for peer mentors and, at the option of a district, for beginning teachers. The stipends shall not be deemed compensation for the purposes of salary lid compliance under RCW 28A.400.200 and are not subject to the continuing contract provisions of Title 28A RCW; and

              (iii) To the extent that resources are available for this purpose and that assistance to beginning teachers is not adversely impacted, the program may serve second year and more experienced teachers who request the assistance of peer mentors.

              (5) $1,959,000 of the general fund--state appropriation for fiscal year 2004 and $1,959,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for improving technology infrastructure, monitoring and reporting on school district technology development, promoting standards for school district technology, promoting statewide coordination and planning for technology development, and providing regional educational technology support centers, including state support activities, under chapter 28A.650 RCW. The superintendent of public instruction shall coordinate a process to facilitate the evaluation and provision of online curriculum courses to school districts which includes the following: Creation of a general listing of the types of available online curriculum courses; a survey conducted by each regional educational technology support center of school districts in its region regarding the types of online curriculum courses desired by school districts; a process to evaluate and recommend to school districts the best online courses in terms of curriculum, student performance, and cost; and assistance to school districts in procuring and providing the courses to students.

              (6) $3,594,000 of the general fund--state appropriation for fiscal year 2004 and $3,594,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for grants to school districts to provide a continuum of care for children and families to help children become ready to learn. Grant proposals from school districts shall contain local plans designed collaboratively with community service providers. If a continuum of care program exists in the area in which the school district is located, the local plan shall provide for coordination with existing programs to the greatest extent possible. Grant funds shall be allocated pursuant to RCW 70.190.040.

              (7) $2,500,000 of the general fund--state appropriation for fiscal year 2004 and $2,500,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the meals for kids program under RCW 28A.235.145 through 28A.235.155.

              (8) $705,000 of the general fund--state appropriation for fiscal year 2004 and $705,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the leadership internship program for superintendents, principals, and program administrators.

              (9) A maximum of $250,000 of the general fund--state appropriation for fiscal year 2004 and a maximum of $250,000 of the general fund--state appropriation for fiscal year 2005 are provided for summer accountability institutes offered by the superintendent of public instruction and the academic achievement and accountability commission. The institutes shall provide school district staff with training in the analysis of student assessment data, information regarding successful district and school teaching models, research on curriculum and instruction, and planning tools for districts to improve instruction in reading, mathematics, language arts, social studies, including civics, and guidance and counseling.

              (10) $3,713,000 of the general fund--state appropriation for fiscal year 2004 and $3,713,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the Washington reading corps subject to the following conditions and limitations:

              (a) Grants shall be allocated to schools and school districts to implement proven, research-based mentoring and tutoring programs in reading that may include research-based reading skills development software for low-performing students in grades K-6. If the grant is made to a school district, the principals of schools enrolling targeted students shall be consulted concerning design and implementation of the program.

              (b) The programs may be implemented before, after, or during the regular school day, or on Saturdays, summer, intercessions, or other vacation periods.

              (c) Two or more schools may combine their Washington reading corps programs.

              (d) A program is eligible for a grant if it meets the following conditions:

              (i) The program employs methods of teaching and student learning based on reliable reading/literacy research and effective practices;

              (ii) The program design is comprehensive and includes instruction, on-going student assessment, professional development, parental/community involvement, and program management aligned with the school's reading curriculum;

              (iii) It provides quality professional development and training for teachers, staff, and volunteer mentors and tutors;

              (iv) It has measurable goals for student reading aligned with the essential academic learning requirements;

              (v) It contains an evaluation component to determine the effectiveness of the program; and

              (vi) The program may include a software-based solution to increase the student/tutor ratio to a minimum of 5:1. The selected software program shall be scientifically researched-based.

              (e) Funding priority shall be given to low-performing schools.

              (f) Beginning and end-of-program testing data shall be available to determine the effectiveness of funded programs and practices. Common evaluative criteria across programs, such as grade-level improvements shall be available for each reading corps program. The superintendent of public instruction shall provide program evaluations to the governor and the appropriate committees of the legislature. Administrative and evaluation costs may be assessed from the annual appropriation for the program.

              (g) Grants provided under this section may be used by schools and school districts for expenditures from September 2003 through August 31, 2005.

              (11) (($1,564,000)) $1,313,000 of the general fund--state appropriation for fiscal year 2004 and (($2,497,000)) $2,473,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for salary bonuses for teachers who attain certification by the national board for professional teaching standards, subject to the following conditions and limitations:

              (a) Teachers who hold a valid certificate from the national board during the 2003-04 or 2004-05 school years shall receive an annual bonus not to exceed $3,500 in each of these school years in which they hold a national board certificate.

              (b) The annual bonus shall be paid in a lump sum amount and shall not be included in the definition of "earnable compensation" under RCW 41.32.010(10).

              (12) $313,000 of the general fund--state appropriation for fiscal year 2004 and $313,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for a principal support program. The office of the superintendent of public instruction may contract with an independent organization to administer the program. The program shall include: (a) Development of an individualized professional growth plan for a new principal or principal candidate; and (b) participation of a mentor principal who works over a period of between one and three years with the new principal or principal candidate to help him or her build the skills identified as critical to the success of the professional growth plan.

              (13) $126,000 of the general fund--state appropriation for fiscal year 2004 and $126,000 of the general fund--state appropriation for fiscal year 2005 are provided for the development and posting of web-based instructional tools, assessment data, and other information that assists schools and teachers implementing higher academic standards.

              (14) $3,046,000 of the general fund--state appropriation for fiscal year 2004 and $3,046,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to the office of the superintendent of public instruction for focused assistance. The office of the superintendent of public instruction shall conduct educational audits of low-performing schools and enter into performance agreements between school districts and the office to implement the recommendations of the audit and the community. Each educational audit shall include recommendations for best practices and ways to address identified needs and shall be presented to the community in a public meeting to seek input on ways to implement the audit and its recommendations.

              (15) $1,764,000 of the general fund--state appropriation for fiscal year 2004 and $1,764,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the mathematics helping corps subject to the following conditions and limitations:

              (a) In order to increase the availability and quality of technical mathematics assistance statewide, the superintendent of public instruction shall employ mathematics school improvement specialists to provide assistance to schools and districts. The specialists shall be hired by and work under the direction of a statewide school improvement coordinator. The mathematics improvement specialists shall not be permanent employees of the superintendent of public instruction.

              (b) The school improvement specialists shall provide the following:

              (i) Assistance to schools to disaggregate student performance data and develop improvement plans based on those data;

              (ii) Consultation with schools and districts concerning their performance on the Washington assessment of student learning and other assessments emphasizing the performance on the mathematics assessments;

              (iii) Consultation concerning curricula that aligns with the essential academic learning requirements emphasizing the academic learning requirements for mathematics, the Washington assessment of student learning, and meets the needs of diverse learners;

              (iv) Assistance in the identification and implementation of research-based instructional practices in mathematics;

              (v) Staff training that emphasizes effective instructional strategies and classroom-based assessment for mathematics;

              (vi) Assistance in developing and implementing family and community involvement programs emphasizing mathematics; and

              (vii) Other assistance to schools and school districts intended to improve student mathematics learning.

              (16) (($87,901,000)) $125,000 of the general fund--state appropriation for fiscal year 2004 and $125,000 of the general fund--state appropriation for fiscal year 2005 are provided for the Tukwila school district and the Selah school district for a two-year project designed to improve the districts' performance in reading and math and to close the achievement gap within the district, subject to the following conditions and limitations:

              (a) Funds shall be allocated to all schools within the Tukwila school district and Selah school district to implement proven, research-based reading and math intervention software for low-performing students in grades K-12.

              (b) The programs may be implemented before, during, or after the regular school day, on Saturdays, or summer intercessions.

              (c) A program is eligible for funding if it meets the following conditions:

              (i) The program employs methods of teaching and student learning based on reliable research and best practices;

              (ii) The program design is comprehensive and includes instruction, ongoing student assessment, professional development, and program management aligned with the district's reading and math curriculum;

              (iii) The program provides quality professional development and training for teachers, staff, and volunteer mentors or tutors;

              (iv) The program contains an evaluation component to determine the effectiveness of the program, which will be reported to the legislature and the superintendent of public instruction on an annual basis for the duration of the project.

              (d) Beginning and end-of-program testing data shall be available to determine the effectiveness of funded programs and practices. Common evaluative criteria across programs, such as grade-level improvements, shall be available for each program.

              (e) All materials related to the project shall be retained by the district at the end of the two-year term.

              (17) $515,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the math initiative. The office of the superintendent of public instruction shall evaluate textbooks and other instructional materials for math to determine the extent to which they are aligned with the state standards. A scorecard of the analysis shall be made available to school districts. The superintendent shall also develop and disseminate information on essential components of comprehensive, school-based math programs and shall work with mentor teachers from around the state to develop guidelines for eligibility, training, and professional development for mentor math teachers.

              (18) $125,822,000 of the general fund--federal appropriation is provided for preparing, training, and recruiting high quality teachers and principals under Title II of the no child left behind act. Of this amount, $50,000 of the general fund--federal appropriation for state administration under Title II is provided solely for the joint legislative audit and review committee to conduct a study of state and school district expenditures of Title II monies. The office of superintendent of public instruction shall establish an interagency agreement with the joint legislative audit and review committee to carry out this study.

              (((17) $25,046,000)) (19) $25,955,000 of the general fund--federal appropriation is provided for the reading first program under Title I of the no child left behind act.


              Sec. 514. 2003 1st sp.s. c 25 s 514 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR TRANSITIONAL BILINGUAL PROGRAMS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($49,791,000))

$50,678,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($52,062,000))

$54,050,000

General Fund--Federal Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($46,309,000))

$44,544,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($148,162,000))

$149,272,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Each general fund fiscal year appropriation includes such funds as are necessary to complete the school year ending in the fiscal year and for prior fiscal year adjustments.

              (2) The superintendent shall distribute a maximum of $725.11 per eligible bilingual student in the 2003-04 school year and (($725.11)) $725.17 in the 2004-05 school year, exclusive of salary and benefit adjustments provided in section 504 of this act.

              (3) The superintendent may withhold up to $700,000 in school year 2003-04 and up to $700,000 in school year 2004-05, and adjust the per eligible pupil rates in subsection (2) of this section accordingly, for the central provision of assessments as provided in RCW 28A.180.090 (1) and (2).

              (4) $70,000 of the amounts appropriated in this section are provided solely to develop a system for the tracking of current and former transitional bilingual program students.

              (5) The general fund--federal appropriation in this section is provided for migrant education under Title I Part C and English language acquisition, and language enhancement grants under Title III of the elementary and secondary education act.


              Sec. 515. 2003 1st sp.s. c 25 s 515 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR THE LEARNING ASSISTANCE PROGRAM

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($65,385,000))

$64,366,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($64,051,000))

$62,929,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($307,178,000))

$301,322,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($436,614,000))

$428,617,000


              (1) The general fund--state appropriations in this section are subject to the following conditions and limitations:

              (a) Each general fund--state fiscal year appropriation includes such funds as are necessary to complete the school year ending in the fiscal year and for prior fiscal year adjustments.

              (b) Funding for school district learning assistance programs shall be allocated at maximum rates of $432.15 per funded unit for the 2003-04 school year and (($433.03)) $432.53 per funded unit for the 2004-05 school year exclusive of salary and benefit adjustments provided under section 504 of this act.

              (c) For purposes of this section, "test results" refers to the district results from the norm-referenced test administered in the specified grade level. The norm-referenced test results used for the third and sixth grade calculations shall be consistent with the third and sixth grade tests required under RCW 28A.230.190 and 28A.230.193.

              (d) A school district's general fund--state funded units shall be the sum of the following:

              (i) The district's full-time equivalent enrollment in grades K-6, multiplied by the 5-year average 4th grade lowest quartile test results as adjusted for funding purposes in the school years prior to 1999-2000, multiplied by 0.82. As the 3rd grade test becomes available, it shall be phased into the 5-year average on a 1-year lag;

              (ii) The district's full-time equivalent enrollment in grades 7-9, multiplied by the 5-year average 8th grade lowest quartile test results as adjusted for funding purposes in the school years prior to 1999-2000, multiplied by 0.82. As the 6th grade test becomes available, it shall be phased into the 5-year average for these grades on a 1-year lag;

              (iii) The district's full-time equivalent enrollment in grades 10-11 multiplied by the 5-year average 11th grade lowest quartile test results, multiplied by 0.82. As the 9th grade test becomes available, it shall be phased into the 5-year average for these grades on a 1-year lag;

              (iv) If, in the prior school year, the district's percentage of October headcount enrollment in grades K-12 eligible for free and reduced price lunch exceeded the state average, subtract the state average percentage of students eligible for free and reduced price lunch from the district's percentage and multiply the result by the district's K-12 annual average full-time equivalent enrollment for the current school year multiplied by 22.3 percent; and

              (v) In addition to amounts allocated under (d) of this subsection, for school districts in which the effective Title I Part A (basic program) increase is insufficient to cover the formula change in the multiplier from .92 to .82, a state allocation shall be provided that, when combined with the effective increase in federal Title I Part A (basic program) funds from the 2001-02 school year, is sufficient to cover this amount. The effective Title I Part A (basic program) increase is the current school year federal Title I Part A (basic program) allocation minus the 2001-02 school year federal Title I Part A (basic program) allocation, after the 2001-02 Title I Part A allocation has been inflated by three percent.

              (2) The general fund--federal appropriation in this section is provided for Title I Part A allocations of the no child left behind act of 2001.

              (3) A school district may carry over from one year to the next up to 10 percent of the general fund--state funds allocated under this program; however, carryover funds shall be expended for the learning assistance program.


              Sec. 516. 2003 1st sp.s. c 25 s 516 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION--FOR STUDENT ACHIEVEMENT PROGRAM

Student Achievement Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($203,123,000))

$214,107,000

Student Achievement Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($195,080,000))

$195,535,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($398,203,000))

$409,642,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Funding for school district student achievement programs shall be allocated at a maximum rate of (($211.67)) $219.32 per FTE student for the 2003-04 school year and $254.00 per FTE student for the 2004-05 school year. For the purposes of this section and in accordance with RCW 84.52.068, FTE student refers to the annual average full-time equivalent enrollment of the school district in grades kindergarten through twelve for the prior school year.

              (2) The appropriation is allocated for the following uses as specified in RCW 28A.505.210:

              (a) To reduce class size by hiring certificated elementary classroom teachers in grades K-4 and paying nonemployee-related costs associated with those new teachers;

              (b) To make selected reductions in class size in grades 5-12, such as small high school writing classes;

              (c) To provide extended learning opportunities to improve student academic achievement in grades K-12, including, but not limited to, extended school year, extended school day, before-and-after-school programs, special tutoring programs, weekend school programs, summer school, and all-day kindergarten;

              (d) To provide additional professional development for educators including additional paid time for curriculum and lesson redesign and alignment, training to ensure that instruction is aligned with state standards and student needs, reimbursement for higher education costs related to enhancing teaching skills and knowledge, and mentoring programs to match teachers with skilled, master teachers. The funding shall not be used for salary increases or additional compensation for existing teaching duties, but may be used for extended year and extended day teaching contracts;

              (e) To provide early assistance for children who need prekindergarten support in order to be successful in school; or

              (f) To provide improvements or additions to school building facilities which are directly related to the class size reductions and extended learning opportunities under (a) through (c) of this subsection (2).

              (3) For the 2003-04 school year, the office of the superintendent of public instruction shall distribute ten percent of the school year allocation to districts each month for the months of September through June. For the 2004-05 school year, the superintendent of public instruction shall distribute the school year allocation according to the monthly apportionment schedule defined in RCW 28A.510.250.


              Sec. 517. 2003 1st sp.s. c 25 s 517 (uncodified) is amended to read as follows:

              K-12 CARRYFORWARD AND PRIOR SCHOOL YEAR ADJUSTMENTS.

State general fund and state student achievement fund appropriations provided to the superintendent of public instruction for state entitlement programs in the public schools in this part V of this act may be expended as needed by the superintendent for adjustments to apportionment for prior fiscal periods. Recoveries of state general fund moneys from school districts and educational service districts for a prior fiscal period shall be made as reductions in apportionment payments for the current fiscal period and shall be shown as prior year adjustments on apportionment reports for the current period. Such recoveries shall not be treated as revenues to the state, but as a reduction in the amount expended against the appropriation for the current fiscal period.(End of part)


PART VI

HIGHER EDUCATION


              Sec. 601. 2003 1st sp.s. c 25 s 602 (uncodified) is amended to read as follows:

              (1) The appropriations in sections 603 through 610 of this act provide state general fund support for full-time equivalent student enrollments at each institution of higher education. Listed below are the annual full-time equivalent student enrollments by institutions assumed in this act.


 

2003-04

Annual

Average

 

2004-05

Annual

Average

 

University of Washington

 

 

 

 

 

 

 

 

 

Main campus

((32,427))

32,458

((32,427))

32,796

Bothell branch

1,235

 

1,235

 

Tacoma branch

((1,484))

1,494

((1,484))

1,494

 

 

 

 

 

Washington State University

 

 

 

 

 

 

 

 

 

Main campus

((17,348))

17,479

((17,364))

17,670

Spokane branch

((593))

616

((593))

616

Tri-Cities branch

((616))

633

((616))

633

Vancouver branch

((1,153))

1,162

((1,153))

1,162

 

 

 

 

 

Central Washington University

((7,666))

7,809

((7,666))

7,934

Eastern Washington University

((8,017))

8,150

((8,017))

8,228

The Evergreen State College

((3,837))

3,871

((3,837))

3,908

Western Washington University

((11,126))

11,242

((11,126))

11,350

State Board for Community and Technical Colleges

((126,070))

127,189

((126,070))

128,412

Higher Education Coordinating Board

((246))

0

((500))

603


              (2)(a) In addition to the annual full-time equivalent student enrollments enumerated in this section, funding is provided in (i) section 603 of this act for additional community or technical college full-time equivalent student enrollments in high-demand fields of study and (ii) section 722 of this act (special appropriations to the governor) for additional full-time equivalent transfer student enrollments with junior-class standing.

              (b) For the state universities, the number of full-time equivalent student enrollments enumerated in this section for the branch campuses are the minimum required enrollment levels for those campuses. At the start of an academic year, the governing board of a state university may transfer full-time equivalent student enrollments from the main campus to one or more branch campus. Intent notice shall be provided to the office of financial management and reassignment of funded enrollment is contingent upon satisfying data needs of the forecast division who is responsible to track and monitor state-supported college enrollment.

              (3) It is the intent of the legislature that baccalaureate higher education institutions manage actual full-time equivalent student enrollments to be within a band of two percent of budgeted enrollments, over a period of three years.


              Sec. 602. 2003 1st sp.s. c 25 s 603 (uncodified) is amended to read as follows:

FOR THE STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($507,960,000))

$509,539,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($517,854,000))

$526,108,000

Administrative Contingency Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,200,000))

$6,700,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,029,014,000))

$1,042,347,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The technical colleges may increase tuition and fees in excess of the fiscal growth factor to conform with the percentage increase in community college operating fees.

              (2) $1,250,000 of the general fund--state appropriation for fiscal year 2004 and $1,250,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to increase salaries and related benefits for part-time faculty. The board shall report by January 30, 2004, to the office of financial management and legislative fiscal and higher education committees on (a) the distribution of state funds; and (b) wage adjustments for part-time faculty.

              (3) $1,250,000 of the general fund--state appropriation for fiscal year 2004 and $1,250,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for faculty salary increments and associated benefits and may be used in combination with salary and benefit savings from faculty turnover to provide salary increments and associated benefits.

              (4) $1,000,000 of the general fund--state appropriation for fiscal year 2004 and $1,000,000 of the general fund--state appropriation for fiscal year 2005 are provided for a program to fund the start-up of new community and technical college programs in rural counties as defined under RCW 43.160.020(12) and in communities impacted by business closures and job reductions. Successful proposals must respond to local economic development strategies and must include a plan to continue programs developed with this funding.

              (5) $675,000 of the general fund--state appropriation for fiscal year 2004 and $675,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for allocation to Clark Community College and Lower Columbia Community College to prepare a total of 168 full-time equivalent students for transfer to the engineering and science institute at the Vancouver branch campus of Washington State University. The appropriations in this section are intended to supplement, not supplant, general enrollment allocations by the board to districts named in this subsection.

              (6) $640,000 of the general fund--state appropriation for fiscal year 2004 and $640,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for allocation to twelve college districts identified in (a) through (l) of this subsection to prepare students for transfer to the state technology institute at the Tacoma branch campus of the University of Washington. The appropriations in this section are intended to supplement, not supplant, general enrollment allocations by the board to the districts under (a) through (l) of this subsection:

              (a) Bates Technical College;

              (b) Bellevue Community College;

              (c) Centralia Community College;

              (d) Clover Park Community College;

              (e) Grays Harbor Community College;

              (f) Green River Community College;

              (g) Highline Community College;

              (h) Tacoma Community College;

              (i) Olympic Community College;

              (j) Pierce District;

              (k) Seattle District; and

              (l) South Puget Sound Community College.

              (7) $28,761,000 of the general fund--state appropriation for fiscal year 2004 ((and $28,761,000)), $25,261,000 of the general fund--state appropriation for fiscal year 2005, and $3,500,000 of the administrative contingency account--state appropriation are provided solely as special funds for training and related support services, including financial aid, as specified in chapter 226, Laws of 1993 (employment and training for unemployed workers). Funding is provided to support up to ((6,200)) 7,219 full-time equivalent students in each fiscal year.

              (8) $1,000,000 of the general fund--state appropriation for fiscal year 2004 and $1,000,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for tuition support for students enrolled in work-based learning programs.

              (9) $2,950,000 of the administrative contingency account--state appropriation is provided solely for administration and customized training contracts through the job skills program, which shall be made available broadly and not to the exclusion of private nonprofit baccalaureate degree granting institutions or vocational arts career schools operating in Washington state who partner with a firm, hospital, group, or industry association concerned with commerce, trade, manufacturing, or the provision of services to train current or prospective employees. The state board shall make an annual report by January 1 of each fiscal year to the governor and appropriate policy and fiscal committees of the legislature regarding the implementation of this section listing the scope of grant awards, the distribution of funds by educational sector and region of the state, as well as successful partnerships being supported by these state funds.

              (10) $250,000 of the administrative contingency account--state appropriation is provided solely and on a one-time basis to start up a college district consortium organized under the name "alliance for corporate education." Financial operations shall be self-sustaining by no later than June 30, 2005, after which time any amount remaining unexpended from this amount shall lapse.

              (11) $50,000 of the general fund--state appropriation for fiscal year 2004 and $50,000 of the general fund--state appropriation for fiscal year 2005 are solely for higher education student child care matching grants under chapter 28B.135 RCW.

              (12) $212,000 of the general fund--state appropriation for fiscal year 2004 and $212,000 of the general fund--state appropriation for fiscal year 2005 are provided for allocation to Olympic college. The college shall contract with accredited baccalaureate institution to bring a program of upper-division courses to Bremerton. The state board for community and technical colleges shall report to the office of financial management and the fiscal and higher education committees of the legislature on the implementation of this subsection by December 1st of each fiscal year.

              (13) $6,304,000 of the general fund--state appropriation for fiscal year 2004 and (($6,305,000)) $9,868,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to expand enrollment in high-demand fields.

              (a) High-demand fields means (i) health services, (ii) applied science and engineering, (iii) viticulture and enology, ((and)) (iv) information technology, and (v) expansion of worker retraining programs. The state board shall allocate resources among the four areas specified in this subsection and shall manage a competitive process for awarding resources for health services, viticulture, enology, and applied science and engineering programs.

              (b) The state board shall provide information on the number of additional headcount and full-time equivalent students enrolled in high-demand fields ((by November 1 of each fiscal year)) at the conclusion of each academic year, as soon as final enrollment data becomes available, to the office of financial management and the fiscal and higher education committees of the legislature.

              (14) $111,000 of the general fund--state appropriation for fiscal year 2004 and $86,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to support the development of a comprehensive viticulture (grape growing) and enology (wine making) higher education program in Washington state. From these sums, the state board shall allocate:

              (a) $75,000 a year to Walla Walla community college for its associate science and associate arts degree programs for the purpose of vineyard and wine-making equipment purchases, student labor, instructional supplies, field work, and travel expenses;

              (b) $25,000 on a one-time basis to Wenatchee community college for the purpose of adapting its orchard employee educational program; and

              (c) $22,000 on a one-time basis to Yakima Valley community college for the purpose of vineyard and wine-making equipment and supply purchases.

              The college districts named in this subsection are encouraged to seek a portion of the high-demand student enrollment funding made available on a competitive basis through the state board to address their respective need for additional instructors and professional staff.

              (15) $300,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the transition math project to address the need to reduce remedial math courses taken at institutions of higher education.

              (a) The project will bring together representatives from the K-12 system, the two-year college system, and the public four-year institutions of higher education to: (i) Align standards and expectations for mathematics so that high school graduates will be well prepared to enter college-level math courses; (ii) increase student success in completing math requirements in high school and college through careful attention to improved instruction and assessment; and (iii) communicate math expectations to students through clear and consistent messages and focused educational advising. The state board for community and technical colleges will serve as fiscal agent for the project.

              (b) By December 1, 2004, the state board, in coordination with the K-12 system and the public four-year institutions of higher education, shall provide a progress report on the transition math project to the office of financial management and the fiscal and higher education committees of the legislature. A final report will be submitted by December 1, 2005 and shall identify specific strategies implemented to reduce remedial math courses taken at higher education institutions, as well as a long-term plan to achieve measurable and specific improvements each academic year for substantial progress towards the achievement of this goal.


              Sec. 603. 2003 1st sp.s. c 25 s 604 (uncodified) is amended to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $311,628,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($319,584,000))

$325,668,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$300,000

Death Investigations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$261,000

Accident Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,937,000

Medical Aid Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,960,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($643,670,000))

$649,754,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $1,875,000 of the general fund--state appropriation for fiscal year 2004 and $1,875,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to create a state resource for technology education in the form of an institute located at the University of Washington, Tacoma. The university will continue to provide undergraduate and graduate degree programs meeting regional technology needs including, but not limited to, computing and software systems. As a condition of these appropriations:

              (a) The university will work with the state board for community and technical colleges, or individual colleges where necessary, to establish articulation agreements in addition to the existing associate of arts and associate of science transfer degrees. Such agreements shall improve the transferability of students and in particular, students with substantial applied information technology credits.

              (b) The university will establish performance measures for recruiting, retaining and graduating students, including nontraditional students, and report back to the governor and legislature by September 2004 as to its progress and future steps.

              (2) $150,000 of the general fund--state appropriation for fiscal year 2004 and $150,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for research faculty clusters in the advanced technology initiative program.

              (3) The entire death investigations account appropriation is provided for the forensic pathologist fellowship program.

              (4) $150,000 of the general fund--state appropriation for fiscal year 2004 and $150,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the implementation of the Puget Sound work plan and agency action item UW-01.

              (5) $75,000 of the general fund--state appropriation for fiscal year 2004 and $75,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the Olympic natural resources center.

              (6) $1,526,000 of the general fund--state appropriation for fiscal year 2004 and $3,096,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for competitively offered recruitment and retention salary adjustments for instructional and research faculty, exempt professional staff, academic administrators, academic librarians, counselors, teaching and research assistants, as classified by the office of financial management, and all other nonclassified staff, but not including employees under RCW 28B.16.015. Tuition revenues may be expended in addition to those required by this section to further provide recruitment and retention salary adjustments.

              (7) $1,250,000 of the general fund--state appropriation for fiscal year 2004 and $1,250,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for state match to attract or retain federal research grants in high demand and technologically advanced fields.

              (8) $300,000 of the general fund--private/local appropriation is provided solely for shellfish biotoxin monitoring as specified in Chapter 263, Laws of 2003 (SSB 6073, shellfish license fee).

              (9) $2,275,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for a proteomics center and an autism center. Of the amount provided in this subsection, $1,600,000 is provided solely for the University of Washington school of medicine for recruitment of biosciences research faculty to establish a proteomics center and $675,000 is provided solely as one-time funding to establish an autism center at the University of Washington Tacoma campus. The amount provided for the proteomics center is contingent on receipt of $6,000,000 in one-time, nonstate matching funds. If the nonstate matching funds are not received by June 30, 2005, $1,600,000 of the amount provided in this subsection shall lapse.

              (10) $1,897,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the training and support of primary care physicians and primary care providers through the network of family practice residency programs. All of the funding provided in this section shall be distributed directly to the family practice residency programs to assist with cost increases experienced by the programs, including the cost of medical malpractice premiums.

              (11) The University of Washington shall present a preliminary report to the fiscal committees of the legislature detailing the use of state research funds by November 1, 2004, and shall present a final report by November 1, 2005. For each research project supported by the state general fund in the 2003-05 biennium, including projects funded in the university's base budget, the report shall include: (a) A brief description of the research project; (b) the amount of state and institutional funds contributed to the project; (c) the level of federal or other sources of match received for the state's investment; and (d) any other information deemed pertinent by the institution.

              (12) By December 15, 2004, the University of Washington Bothell shall submit to the higher education and fiscal committees of the legislature a plan to phase in lower-division courses at the campus. At a minimum, the following issues should be addressed in the plan:

              (a) An enrollment plan that provides adequate capacity for community college transfer students;

              (b) Appropriate levels of state general fund support and tuition and fees for the campus, commensurate with a role and mission similar to a comprehensive university;

              (c) Identification of any start-up costs to implement the phase-in of lower division courses; and

              (d) Other issues deemed pertinent by the institution.


              Sec. 604. 2003 1st sp.s. c 25 s 605 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE UNIVERSITY

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $185,265,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($189,954,000))

$191,047,000

Washington State University Building Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($375,369,000))

$376,462,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $507,000 of the general fund--state appropriation for fiscal year 2004 and $1,014,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to expand the entering class of veterinary medicine students by 16 full-time equivalent residents each academic year during the 2003-05 biennium.

              (2) $657,000 of the general fund--state appropriation for fiscal year 2004, $180,000 of the general fund--state appropriation for fiscal year 2005, and the entire Washington state university building account appropriation are provided solely to support the development of a comprehensive viticulture (grape growing) and enology (wine making) higher education program in Washington state. In consideration of these appropriations, the legislature intends to provide ongoing support of not less than $180,000 a year for extension field personnel and services. The balance of the amount provided from the fiscal year 2004 appropriation is provided on a one-year basis to enable the university to appoint jointly shared faculty between the Pullman main campus and its branch campus in the TriCities. The legislature expects the university to meet ongoing faculty, staff, and related expenses to support the delivery of baccalaureate degree programs in viticulture and enology by making a successful bid for a portion of high-demand enrollment funding that will be distributed on a competitive basis by the state higher education coordinating board for student instruction pursuant to section 610(3) of this act.

              (3) $675,000 of the general fund--state appropriation for fiscal year 2004 and $675,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for allocation in full to the branch campus in Vancouver to create and operate a state institute for engineering and science in partnership with Clark and Lower Columbia community colleges and regional industry leaders in southwest Washington. As a condition of this appropriation, the university shall develop and provide to the satisfaction of the office of financial management a business plan for the new institute. The university, together with its two-year college and industry partners, shall provide the governor, legislature, and state higher education coordinating board with an annual summary of its progress to produce more graduates trained in applied science technologies and engineering. Annual reports to inform and advise policymakers of the partners' success, emerging issues, and resource needs if any shall occur by no later than November 15 during the 2003-05 biennium.

              (4) $150,000 of the general fund--state appropriation for fiscal year 2004 and $150,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for research faculty clusters in the advanced technology initiative program.

              (5) $165,000 of the general fund--state appropriation for fiscal year 2004 and $166,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the implementation of the Puget Sound work plan and agency action item WSU-01.

              (6) $949,000 of the general fund--state appropriation for fiscal year 2004 and $1,927,000 of general fund--state appropriation for fiscal year 2005 are provided solely for competitively offered recruitment and retention salary adjustments for instructional and research faculty, exempt professional staff, academic administrators, academic librarians, counselors, teaching and research assistants, as classified by the office of financial management, and all other nonclassified staff, but not including employees under RCW 28B.16.015. Tuition revenues may be expended in addition to those required by this section to further provide recruitment and retention salary adjustments.

              (7) $50,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for research to develop alternative control mechanisms for burrowing shrimp.

              (8) Washington State University shall present a preliminary report to the fiscal committees of the legislature detailing the use of state research funds by November 1, 2004, and shall present a final report by November 1, 2005. For each research project supported by the state general fund in the 2003-05 biennium, including projects funded in the university's base budget, the report shall include: (a) A brief description of the research project; (b) the amount of state and institutional funds contributed to the project; (c) the level of federal or other sources of match received for the state's investment; and (d) any other information deemed pertinent by the institution.

              (9)(a) By December 15, 2004, Washington State University Vancouver shall submit to the higher education and fiscal committees of the legislature a plan to phase in lower-division courses at the campus. At a minimum, the following issues should be addressed in the plan:

              (i) An enrollment plan that provides adequate capacity for community college transfer students;

              (ii) Appropriate levels of state general fund support and tuition and fees for the campus, commensurate with a role and mission that includes an innovative combination of instruction and research suitable for meeting the region's needs for access as well as supporting the expansion of the region's economic viability;

              (iii) Capital needs;

              (iv) Identification of any start-up costs to implement the phase-in of lower-division courses; and

              (v) Other issues deemed pertinent by the institution.

              (b) In developing its plan, Washington State University Vancouver shall solicit input from students, local community and technical colleges, the main campus, and community stakeholders such as economic development councils and business and labor leaders.


              Sec. 605. 2003 1st sp.s. c 25 s 606 (uncodified) is amended to read as follows:

FOR EASTERN WASHINGTON UNIVERSITY

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,861,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($42,183,000))

$42,620,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($83,044,000))

$83,481,000


              The appropriations in this section are subject to the following conditions and limitations: $248,000 of the general fund--state appropriation for fiscal year 2004 and $503,000 of general fund--state appropriation for fiscal year 2005 are provided solely for competitively offered recruitment and retention salary adjustments for instructional and research faculty, exempt professional staff, academic administrators, academic librarians, counselors, teaching and research assistants, as classified by the office of financial management, and all other nonclassified staff, but not including employees under RCW 28B.16.015. Tuition revenues may be expended in addition to those required by this section to further provide recruitment and retention salary adjustments.


              Sec. 606. 2003 1st sp.s. c 25 s 607 (uncodified) is amended to read as follows:

FOR CENTRAL WASHINGTON UNIVERSITY

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $39,765,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($41,391,000))

$42,291,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($81,156,000))

$82,056,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $1,050,000 of the general fund--state appropriation for fiscal year 2004 and $1,050,000 of the general fund--state appropriation for fiscal year 2005 are provided to expand university enrollment by 196 full-time equivalent students.

              (2) $206,000 of the general fund--state appropriation for fiscal year 2004 and $418,000 of general fund--state appropriation for fiscal year 2005 are provided solely for competitively offered recruitment and retention salary adjustments for instructional and research faculty, exempt professional staff, academic administrators, academic librarians, counselors, teaching and research assistants, as classified by the office of financial management, and all other nonclassified staff, but not including employees under RCW 28B.16.015. Tuition revenues may be expended in addition to those required by this section to further provide recruitment and retention salary adjustments.


              Sec. 607. 2003 1st sp.s. c 25 s 608 (uncodified) is amended to read as follows:

FOR THE EVERGREEN STATE COLLEGE

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($22,881,000))

$22,856,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($23,618,000))

$24,035,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($46,499,000))

$46,891,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $124,000 of the general fund--state appropriation for fiscal year 2004 and $252,000 of general fund--state appropriation for fiscal year 2005 are provided solely for competitively offered recruitment and retention salary adjustments for instructional and research faculty, exempt professional staff, academic administrators, academic librarians, counselors, teaching and research assistants, as classified by the office of financial management, and all other nonclassified staff, but not including employees under RCW 28B.16.015. Tuition revenues may be expended in addition to those required by this section to further provide recruitment and retention salary adjustments.

              (2) The Washington state institute for public policy shall research the following issues and provide reports to the legislature as directed. The institute board shall prioritize and schedule all studies based on staff capacity.

              (a) $110,000 of the general fund--state appropriation for fiscal year 2004 is provided solely for the Washington state institute for public policy to review research assessing the effectiveness of prevention and early intervention programs concerning children and youth, including but not limited to, programs designed to reduce the at-risk behaviors for children and youth identified in RCW 70.190.010(4).

              Using this research, the institute shall identify specific research-proven programs that produce a positive return on the dollar compared to the costs of the program. The institute shall also develop criteria designed to ensure quality implementation and program fidelity of research-proven programs in the state. The criteria shall include measures for ongoing monitoring and continual improvement of treatment delivery, and shall be feasible for inclusion in a contract for services. The institute shall develop recommendations for potential state legislation that encourages local government investment in research-proven prevention and early intervention programs by reimbursing local governments for a portion of the savings that accrue to the state as the result of local investments in such programs. The institute shall present a preliminary report of its findings to the appropriate committees of the legislature by December 1, 2003, and shall present a final report by ((March)) July 1, 2004.

              (b) $26,000 of the general fund--state appropriation for fiscal year 2004 is provided solely for the Washington state institute for public policy to develop adherence and outcome standards for measuring the effectiveness of treatment programs referred to in Chapter 378, Laws of 2003 (ESSB 5903). The standards shall be developed and presented to the governor and legislature by no later than January 1, 2004.

              (c) $100,000 of the general fund--state appropriation for fiscal year 2004 is provided solely for the Washington state institute for public policy to study the relationship between prison overcrowding and construction, and the current state criminal sentencing structure.

              (i) The institute shall determine whether any changes could be made to the current state sentencing structure to address prison overcrowding and the need for new prison construction, giving great weight to the primary purposes of the criminal justice system. These purposes include: Protecting community safety; making frugal use of state and local government resources by concentrating resources on violent offenders and sex offenders who pose the greatest risk to our communities; achieving proportionality in sentencing; and reducing the risk of reoffending by offenders in the community.

              (ii) In developing its research plan, the institute may consult with the sentencing guidelines commission, the caseload forecast council, and interested stakeholders.

              (iii) The institute for public policy shall present a preliminary report of its findings to the governor and to the appropriate standing committees of the legislature by December 15, 2003, and shall present a final report regarding its findings and recommendations by March 15, 2004.

              (d) $12,000 of the general fund--state appropriation for fiscal year 2004 and $12,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the Washington state institute for public policy to examine the results of the changes in earned release under Chapter 379, Laws of 2003 (ESSB 5990). The study shall determine whether the changes in earned release affect the rate of recidivism or the type of offenses committed by persons whose release dates were affected by the changes under the bill. The institute shall report its findings to the governor and appropriate committees of the legislature by no later than December 1, 2008.

              (e) (($25,000 of the general fund--state appropriation for fiscal year 2004 and $25,000)) $65,000 of the general fund--state appropriation for fiscal year 2005 ((are)) is provided solely for the Washington state institute for public policy to conduct the evaluation outlined in Second Engrossed Substitute Senate Bill No. 5012 or Second Substitute House Bill No. 2295 (charter schools). If ((the)) neither bill is ((not)) enacted by June 30, ((2003)) 2004, the amount() provided in this subsection shall lapse.

              (f) $150,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the Washington state institute for public policy to implement the study in Engrossed Substitute House Bill No. 2400 (sex crimes against minors). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse. The institute shall conduct the study required by the bill in a manner that does not duplicate the study required by the sentencing guidelines commission in this act.

              (g) $25,000 of the general fund--state appropriation for fiscal year 2005 is provided solely for the Washington state institute for public policy to examine issues related to the state's transitional bilingual education program. The examination shall include, but is not limited to, a review of the following issues: Trends in enrollment and average length of stay in the transitional bilingual program; the different types of programs and delivery methods that exist in Washington state and other states; the academic and language acquisition effectiveness of different types of programs and service delivery methods; the cost benefits of these different types of programs and service delivery methods; and potential changes that would result in more effective program delivery and cost-effectiveness. The office of superintendent of public instruction shall provide technical assistance and needed data to assist in the institute's examination. The institute shall provide a report of its findings to the governor and appropriate committees of the legislature by December 1, 2004.


              Sec. 608. 2003 1st sp.s. c 25 s 609 (uncodified) is amended to read as follows:

FOR WESTERN WASHINGTON UNIVERSITY

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $53,645,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($55,537,000))

$56,127,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($109,182,000))

$109,772,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $980,400 of the general fund--state appropriation for fiscal year 2004 and $980,400 of the general fund--state appropriation for fiscal year 2005 are provided solely for the operations of the North Snohomish, Island, Skagit (NSIS) higher education consortium.

              (2) $248,000 of the general fund--state appropriation for fiscal year 2004 and $503,000 of general fund--state appropriation for fiscal year 2005 are provided solely for competitively offered recruitment and retention salary adjustments for instructional and research faculty, exempt professional staff, academic administrators, academic librarians, counselors, teaching and research assistants, as classified by the office of financial management, and all other nonclassified staff, but not including employees under RCW 28B.16.015. Tuition revenues may be expended in addition to those required by this section to further provide recruitment and retention salary adjustments.


              Sec. 609. 2003 1st sp.s. c 25 s 610 (uncodified) is amended to read as follows:

              FOR THE HIGHER EDUCATION COORDINATING BOARD--POLICY COORDINATION AND ADMINISTRATION

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($4,952,000))

$4,988,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($7,716,000))

$11,584,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($642,000))

$649,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($13,310,000))

$17,221,000


              The appropriations in this section are provided to carry out the policy coordination, planning, studies and administrative functions of the board and are subject to the following conditions and limitations:

              (1) Within the appropriations provided in this section, funds are provided to continue the teacher training pilot program pursuant to chapter 28B.80 RCW until standing authority for this program expires as scheduled on January 1, 2005.

              (2) $175,000 of the general fund--state appropriation for fiscal year 2004 and $175,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to continue a demonstration project to improve rural access to post-secondary education by bringing distance learning technologies into Jefferson county.

              (3) (($2,755,000)) $2,740,000 of the general fund--state appropriation for fiscal year 2004 and (($5,520,000)) $9,098,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to contract for ((246)) 247 full-time equivalent students in high demand fields in fiscal year 2004 and an additional ((254)) 603 full-time equivalent students in high demand fields in fiscal year 2005. High-demand fields are programs where enrollment access is limited and employers are experiencing difficulty finding qualified graduates to fill job openings. Of the amounts provided, up to $70,000 may be used for management of the competitive process for awarding high-demand student FTEs during the 2003-05 biennium.

              (a) The board will manage a competitive process for awarding high-demand student FTEs. Public baccalaureate institutions and independent four-year institutions are eligible to apply for funding and may submit proposals ((that include cooperative partnerships with private independent institutions)). Independent four-year institutions must comply with standards and reporting requirements established by the board to ensure accountability. Any funding provided to an independent four-year institution is solely for the biennial budget period.

              (b) Among coequals, the board shall make it a priority to fund proposals that prepare students for careers in (i) nursing and other health services; (ii) applied science and engineering; (iii) teaching and speech pathology; (iv) computing and information technology; and (v) viticulture and enology, but not to the exclusion of compelling proposals that document specific regional student and employer demand in fields not listed in this subsection. Proposals and grant awards will separately identify one-time, nonrecurring costs and ongoing costs.

              (c) The board will establish a proposal review committee that will include, but not be limited to, representatives from the board, the office of financial management, and economic development and labor market analysts. The board will develop the request for proposals, including the criteria for awarding grants, in consultation with the proposal review committee.

              (d) Baccalaureate institutions that receive grants shall provide the board and the forecast division of the office of financial management with data specified by the board or the office of financial management that shows the impact of this subsection, particularly the degree of improved access to high-demand programs for students and successful job placements for graduates. The board will report on the implementation of this subsection by November 1 of each fiscal year to the office of financial management and the fiscal and higher education committees of the legislature.

              (4) $205,000 of the general fund--state appropriation in fiscal year 2005 is provided solely for a comprehensive and ongoing assessment system as outlined in Substitute House Bill No. 3103 (higher education). If the bill is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (5) $30,000 of the general fund--state appropriation for fiscal year 2004 and $70,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to evaluate the policy alternatives described in this subsection.

              (a) By December 15, 2004, the board shall provide a report of the evaluation to the governor and the fiscal and higher education committees of the legislature. This evaluation, where appropriate, shall incorporate the analysis and recommendations that are contained in (i) the final strategic master plan for higher education adopted by the board in June 2004 and (ii) the public agenda for higher education as presented and refined by the national collaborative for postsecondary education.

              (b) For each policy alternative, the board shall identify:

              (i) The implementation costs in the 2005-07, 2007-09, and 2009-11 biennia from both the state general fund and tuition revenue;

              (ii) The distribution of enrollments by specific institution, location, and type of program;

              (iii) The allocation to high demand and general enrollments;

              (iv) The methods of delivery;

              (v) The capital facility needs to ensure the physical and quality capacity of the institutions; and

              (vi) The funding needs for financial aid and the implications for students depending on whether these needs are met.

              (c) The policy alternatives to be evaluated shall include, but are not limited to:

              (i) Current participation and distribution of enrollments by institution and sector are maintained; general fund subsidy and total funding increase at the rate of the consumer price index; no capital funding is provided to increase capacity; and the state need grant policies are maintained;

              (ii) Graduation rates and participation rates are in the top quarter of all states, overall and within each sector, such as community colleges, comprehensive universities, and research universities; enrollments are distributed to sectors and locations based upon population demand, and include evaluation of demand in Puget Sound and southwest Washington; the state general fund subsidy increases to pay for new enrollments at peer averages; total funding increases to peer averages, capital funding increases to meet growth, and current state need grant practices are maintained;

              (iii) Graduation rates and participation rates are in the top quarter of all states, overall and within each sector; enrollments are distributed to sectors and locations based upon population demand, and include evaluation of demand in Puget Sound and southwest Washington; state general fund increases pay for estimated increases in financial need; total funding increases to peer averages, capital funding increases to meet growth, and current state need grant practices are maintained, plus state funding to meet increased need;

              (iv) The tuition levels necessary to achieve total funding per student to average level in other states;

              (v) Financial aid increases so that half of all students are able to graduate debt free based on information provided to the institutions of higher education, and, for those who have loan repayment obligations, the obligations do not exceed 10 percent of graduates' average annual post-graduation income; and

              (vi) Engaging private independent colleges by replacing the state general fund subsidy for public institutions with vouchers, which students may use at any accredited higher education institution.

              (d) In evaluating these policy alternatives, the board shall construct a simulation model of the impacts and costs. The purpose of the model is to assist the legislature and governor in evaluating various investment alternatives. The board shall consult with the office of financial management, staff of the legislative fiscal and higher education committees, and public and private higher education institutions to refine the policy alternatives and delineate the content of the model. The public institutions, the office of financial management, and the legislative evaluation and accountability program committee shall cooperate with the board in providing information to construct the model. The model shall be operational by December 15, 2004.

              (e) The governor's office, with assistance from the higher education coordinating board, may create a prototype of a research university performance contract.

              (i) The prototype performance contract shall, at a minimum: (A) Reflect statewide goals and priorities of the legislature; (B) contain goals and commitments from both the institutions and the state; (C) include quantifiable performance measures and benchmarks; (D) identify specific resources needed to implement the contract; (E) and include any other information deemed pertinent by the governor.

              (ii) By December 1, 2004, the governor shall submit to the higher education and fiscal committees of the legislature the prototype performance contract, including any implementing legislation.


              Sec. 610. 2003 1st sp.s. c 25 s 611 (uncodified) is amended to read as follows:

FOR THE HIGHER EDUCATION COORDINATING BOARD--FINANCIAL AID AND GRANT PROGRAMS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($145,217,000))

$145,228,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($154,412,000))

$163,345,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($7,530,000))

$7,537,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($307,159,000))

$316,110,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $259,000 of the general fund--state appropriation for fiscal year 2004 and $273,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the western interstate commission for higher education.

              (2) $1,100,000 of the general fund--state appropriation for fiscal year 2004 and (($1,100,000)) $3,100,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the health professional conditional scholarship and loan program under chapter 28B.115 RCW. This amount shall be deposited to the health professional loan repayment and scholarship trust fund to carry out the purposes of the program.

              (3) $75,000 of the general fund--state appropriation for fiscal year 2004 and $75,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for higher education student child care matching grants under chapter 28B.135 RCW.

              (4) $25,000 of the general fund--state appropriation for fiscal year 2004 and $25,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the benefit of students who participate in college assistance migrant programs (CAMP) operating in Washington state. To ensure timely state aid, the board may establish a date after which no additional grants would be available for the 2003-04 and 2004-05 academic years. The board shall disperse grants in equal amounts to eligible post-secondary institutions so that state money in all cases supplements federal CAMP awards.

              (5) $111,628,000 of the general fund--state appropriation for fiscal year 2004 and (($120,420,000)) $124,901,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the state need grant program. After April 1 of each fiscal year, up to one percent of the annual appropriation for the state need grant program may be transferred to the state work study program.

              (6) $17,048,000 of the general fund--state appropriation for fiscal year 2004 and $17,048,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the state work study program. After April 1 of each fiscal year, up to one percent of the annual appropriation for the state work study program may be transferred to the state need grant program. In addition to the administrative allowance in subsection (12) of this section, four percent of the general fund--state amount in this subsection may be expended for state work study program administration.

              (7) $2,867,000 of the general fund--state appropriation for fiscal year 2004 and $2,867,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for educational opportunity grants pursuant to Chapter 233, Laws of 2003 (ESB 5676). The board may deposit sufficient funds from its appropriation into the state education trust fund as established in RCW 28B.10.821 to provide a one-year renewal of the grant for each new recipient of the educational opportunity grant award.

              (8) $1,919,000 of the general fund--state appropriation for fiscal year 2004 and $2,155,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to implement the Washington scholars program. Any Washington scholars program moneys not awarded by April 1st of each year may be transferred by the board to the Washington award for vocational excellence.

              (9) $794,000 of the general fund--state appropriation for fiscal year 2004 and $845,000 of the general fund--state appropriation for fiscal year 2005 are provided solely to implement Washington award for vocational excellence program. Any Washington award for vocational program moneys not awarded by April 1st of each year may be transferred by the board to the Washington scholars program.

              (10) $246,000 of the general fund--state appropriation for fiscal year 2004 and $246,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for community scholarship matching grants of $2,000 each. To be eligible for the matching grant, a nonprofit community organization organized under section 501(c)(3) of the internal revenue code must demonstrate that it has raised $2,000 in new moneys for college scholarships after the effective date of this act. An organization may receive more than one $2,000 matching grant and preference shall be given to organizations affiliated with the citizens' scholarship foundation.

              (11) Subject to state need grant service requirements pursuant to chapter 28B.119 RCW, $6,050,000 of the general fund--state appropriation for fiscal year 2004 and (($6,050,000)) $8,390,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the Washington promise scholarship program. For fiscal year 2005, the income eligibility for the graduating high school class of 2004 shall not exceed one hundred twenty percent of the state median family income adjusted for family size. The income eligibility for the graduating high school class of 2003 shall be retained at one hundred thirty-five percent of the state median family income adjusted for family size.

              (12) (($2,667,000)) $2,678,000 of the general fund--state appropriation for fiscal year 2004 and (($2,768,000)) $2,820,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for financial aid administration, in addition to the four percent cost allowance provision for state work study under subsection (6) of this section. These funds are provided to administer all the financial aid and grant programs assigned to the board by the legislature and administered by the agency. To the extent the executive director finds the agency will not require the full sum provided in this subsection, a portion may be transferred to supplement financial grants-in-aid to eligible clients after notifying the board and the office of financial management of the intended transfer.

              (13) $539,000 of the general fund--state appropriation for fiscal year 2004 and $540,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for the displaced homemakers program.(End of part)


PART VII

SPECIAL APPROPRIATIONS


              Sec. 701. 2003 1st sp.s. c 25 s 701 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR DEBT SUBJECT TO THE DEBT LIMIT

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($570,186,000))

$655,886,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($626,814,000))

$528,766,000

Debt-Limit General Fund Bond Retirement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .(($10,000,000))

$17,300,000

State Building Construction Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($7,014,000))

$8,922,000

Debt-Limit Reimbursable Bond Retirement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,587,000

State Taxable Building Construction Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($322,000))

$465,000

Gardner-Evans Higher Education Construction Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,087,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,216,923,000))

$1,216,013,000


              The appropriations in this section are subject to the following conditions and limitations: The general fund appropriations are for deposit into the debt-limit general fund bond retirement account. The appropriation for fiscal year 2004 shall be deposited in the debt-limit general fund bond retirement account by June 30, 2004.


              Sec. 702. 2003 1st sp.s. c 25 s 703 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR GENERAL OBLIGATION DEBT TO BE REIMBURSED AS PRESCRIBED BY STATUTE

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $26,394,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,805,000

Capitol Historic District Construction Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($299,000))

$323,000

Higher Education Construction Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$238,000

State Vehicle Parking Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$102,000

Nondebt-Limit Reimbursable Bond Retirement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . $128,375,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($180,213,000))

$180,237,000


              The appropriations in this section are subject to the following conditions and limitations: The general fund appropriation is for deposit into the nondebt-limit general fund bond retirement account.


              Sec. 703. 2003 1st sp.s. c 25 s 704 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$526,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$526,000

Higher Education Construction Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$35,000

State Building Construction Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,032,000))

$2,083,000

State Vehicle Parking Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$17,000

Capitol Historic District Construction Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$45,000

State Taxable Building Construction Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($50,000))

$60,000

Gardner-Evans Higher Education Construction Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $180,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,231,000))

$3,472,000


              Sec. 704. 2003 1st sp.s. c 25 s 709 (uncodified) is amended to read as follows:

FOR THE GOVERNOR--COMPENSATION--INSURANCE BENEFITS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,243,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($38,879,000))

$33,909,000

Dedicated Funds and Accounts Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($41,232,000))

$38,822,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($88,354,000))

$80,974,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The appropriation from dedicated funds and accounts shall be made in the amounts specified and from the dedicated funds and accounts specified in (a) LEAP document 2003-38, a computerized tabulation developed by the legislative evaluation and accountability program committee on June 2, 2003, and (b) LEAP document 2004-38 dated March 10, 2004, which ((is)) are hereby incorporated by reference. The office of financial management shall allocate the moneys appropriated in this section in the amounts specified and to the state agencies specified in LEAP document 2003-38 and LEAP document 2004-38, and adjust appropriation schedules accordingly.

              (2)(a) The monthly employer funding rate for insurance benefit premiums, public employees' benefits board administration, and the uniform medical plan, shall not exceed $504.89 per eligible employee for fiscal year 2004, and (($592.30)) $584.58 for fiscal year 2005.

              (b) Within the rates in (a) of this subsection, $4.13 per eligible employee shall be included in the employer funding rate for fiscal year 2004, and $2.11 per eligible employee shall be included in the employer funding rate for fiscal year 2005, solely to increase life insurance coverage in accordance with a court approved settlement in Burbage et al. v. State of Washington (Thurston county superior court cause no. 94-2-02560-8).

              (c) In order to achieve the level of funding provided for health benefits, the public employees' benefits board shall require any or all of the following: Employee premium copayments, increases in point-of- service cost sharing, the implementation of managed competition, or make other changes to benefits consistent with RCW 41.05.065.

              (d) The health care authority shall deposit any moneys received on behalf of the uniform medical plan as a result of rebates on prescription drugs, audits of hospitals, subrogation payments, or any other moneys recovered as a result of prior uniform medical plan claims payments, into the public employees' and retirees' insurance account to be used for insurance benefits. Such receipts shall not be used for administrative expenditures.

              (3) The health care authority, subject to the approval of the public employees' benefits board, shall provide subsidies for health benefit premiums to eligible retired or disabled public employees and school district employees who are eligible for parts A and B of medicare, pursuant to RCW 41.05.085. From January 1, 2004, through December 31, 2004, the subsidy shall be $102.35. Starting January 1, 2005, the subsidy shall be $116.19 per month.

              (4) Technical colleges, school districts, and educational service districts shall remit to the health care authority for deposit into the public employees' and retirees' insurance account established in RCW 41.05.120 the following amounts:

              (a) For each full-time employee, $42.76 per month beginning September 1, 2003, and (($49.14)) $45.50 beginning September 1, 2004;

              (b) For each part-time employee who, at the time of the remittance, is employed in an eligible position as defined in RCW 41.32.010 or 41.40.010 and is eligible for employer fringe benefit contributions for basic benefits, $42.76 each month beginning September 1, 2003, and (($49.14)) $45.50 beginning September 1, 2004, prorated by the proportion of employer fringe benefit contributions for a full-time employee that the part-time employee receives.

              The remittance requirements specified in this subsection shall not apply to employees of a technical college, school district, or educational service district who purchase insurance benefits through contracts with the health care authority.

              (5) The appropriations in this section include amounts sufficient to fund health benefits for ferry workers at the premium levels specified in subsection (2) of this section, consistent with the 2003-2005 transportation appropriations act.


              Sec. 705. 2003 1st sp.s. c 25 s 712 (uncodified) is amended to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--EDUCATION TECHNOLOGY REVOLVING ACCOUNT

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,468,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($10,468,000))

$9,264,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($20,936,000))

$19,732,000


              The appropriations in this section are subject to the following conditions and limitations: The appropriation in this section is for appropriation to the education technology revolving account for the purpose of covering operational and transport costs incurred by the K-20 educational network program in providing telecommunication services to network participants.


              Sec. 706. 2003 1st sp.s. c 25 s 715 (uncodified) is amended to read as follows:

              INCREASED FEDERAL ASSISTANCE.

              (1) If the department of social and health services or the department of veterans affairs receives federal funding to enhance the federal medical assistance percentage for the 2001-2003 ((or 2003-2005 fiscal biennia)) biennium as a result of the jobs and growth tax relief reconciliation act of 2003 (P.L. 108-27), the moneys shall be expended as an unanticipated receipt under RCW 43.79.270 and 43.79.280, subject to the following conditions and limitations:

              (a) The moneys shall be expended in the manner required by the federal act;

              (b) The federal moneys shall be expended in a manner that will maximize the conservation of state moneys, which shall be placed in reserve status and remain unexpended; and

              (c) The director of financial management shall notify the appropriate legislative fiscal committees of proposed allotment modifications prior to expenditure of the federal moneys.

              (2) If the state receives federal funding for the 2001-2003 or 2003-2005 fiscal biennia as a result of the jobs and growth tax relief reconciliation act of 2003 (P.L. 108-27) in addition to the funding described in subsection (1) of this section, the moneys may be expended as an unanticipated receipt under RCW 43.79.270 and 43.79.280, subject to the following conditions and limitations:

              (a) The moneys shall be expended in the manner required by the federal act;

              (b) The federal moneys shall be expended for necessary state services and in a manner that will maximize the conservation of state moneys, which shall be placed in reserve status and remain unexpended; and

              (c) The director of financial management shall notify the appropriate legislative fiscal committees of proposed allotment modifications prior to expenditure of the federal moneys.


              Sec. 707. 2003 1st sp.s. c 25 s 718 (uncodified) is amended to read as follows:

AGENCY EXPENDITURES FOR TORT LIABILITY.

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .($10,638,000)

Dedicated Funds and Accounts Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ($4,317,000)

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .($14,955,000)


              The appropriations in this section are subject to the following conditions and limitations: The office of financial management shall ((reduce allotments for all agencies by $10,638,000 from 2003-05 biennial general fund appropriations in this act)) update agency appropriation schedules to reflect the reduction in contributions to the liability account((. The general fund allotment reduction shall be placed in unallotted status and remain unexpended)) as identified by agency and account in LEAP document 2004-05 dated February 21, 2004, which is hereby incorporated by reference.


              NEW SECTION. Sec. 708. A new section is added to 2003 1st sp.s. c 25 (uncodified) to read as follows:

              AGENCY EXPENDITURES FOR TORT LIABILITY. The office of financial management shall reduce allotments for all agencies by $1,203,000 from fiscal year 2005 general fund--state appropriations in this act to reflect the reduction in state tort expenses. The general fund allotment reduction shall be placed in unallotted status and remain unexpended.


              Sec. 709. 2003 1st sp.s. c 25 s 723 (uncodified) is amended to read as follows:

              FOR SUNDRY CLAIMS. The following sums, or so much thereof as may be necessary, are appropriated from the general fund, unless otherwise indicated, for relief of various individuals, firms, and corporations for sundry claims. These appropriations are to be disbursed on vouchers approved by the director of ((general administration)) the office of financial management, except as otherwise provided, as follows:

              (1) Reimbursement of criminal defendants acquitted on the basis of self-defense, pursuant to RCW 9A.16.110:

              (a) Kelly C. Schwartz, claim number SCJ 03-10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,250

              (b) Clinton Johnston, claim number SCJ 04-02. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,225

              (c) Johnny Riley, claim number SCJ 04-05. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,500

              (d) Gregory Nichols, claim number SCJ 04-06. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,995

              (e) William Poll, claim number SCJ 04-07. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$31,106

              (f) John Obert, claim number SCJ 04-09. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,957

              (g) David McCown, claim number SCJ 04-10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,900

              (2) Payment from the state wildlife account for damage to crops by wildlife, pursuant to RCW 77.36.050:

              (a) Circle S Landscape Supplies, claim number

SCG 03-05 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$49,380

              (b) Marilyn Lund Farms, claim number SCG 03-08. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,175

              (c) Paul Gibbons, claim number SCG 03-09. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,414

              (d) Bud Hamilton, claim number SCG 03-10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$15,591

              (e) Richard Anderson, claim number SCG 03-11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$75,933

              (f) Neil Ice, claim number SCG 03-12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $73,474

              (g) Carl Anderson, claim number SCG 03-13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $120,943

              (h) Lafe Wilson, claim number SCG 04-02. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$626

              (i) Richard Anderson, claim number SCG 04-04. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$28,998


              NEW SECTION. Sec. 710. A new section is added to 2003 1st sp.s. c 25 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--HELP AMERICA VOTE ACT

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,140,000


              The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for deposit in the state election account.


              NEW SECTION. Sec. 711. A new section is added to 2003 1st sp.s. c 25 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--CONTRIBUTIONS TO RETIREMENT SYSTEMS

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$150,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$25,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,000

Special Account Retirement Contribution Increase Revolving Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . .$100,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$278,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The appropriations in this section are provided solely to increase agency and institution appropriations to reflect a 0.01 percent increase in employer pension contributions to the public employees' retirement system and the teachers' retirement system required to implement House Bill No. 2538 ($1000 minimum benefit). If the bill is not enacted by June 30, 2004, the appropriations provided in this section shall lapse.

              (2) The appropriations from dedicated funds and accounts shall be made in the amounts specified and from the dedicated funds and accounts specified in LEAP document 2004-39, a computerized tabulation developed by the legislative evaluation and accountability program committee on March 8, 2004, which is hereby incorporated by reference. The office of financial management shall allocate the moneys appropriated in this section in the amounts specified and to the state agencies specified in LEAP document 2004-39, and adjust appropriation schedules accordingly.


              NEW SECTION. Sec. 712. A new section is added to 2003 1st sp.s. c 25 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--MADER LAWSUIT SETTLEMENT

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,000,000


              The appropriation in this section is provided solely for the purposes of settling all claims in Mader et al. v. Health Care Authority and State of Washington (cause number 98-2-30850-8SEA). The expenditure of this appropriation is contingent on the release of all claims in the case, and total settlement costs shall not exceed the appropriation in this section.

              If settlement is not executed by June 30, 2004, the appropriation in this section shall lapse.


              NEW SECTION. Sec. 713. A new section is added to 2003 1st sp.s. c 25 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--EXTRAORDINARY CRIMINAL JUSTICE COSTS

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$954,000


              The appropriation in this section is subject to the following conditions and limitations: The director of financial management shall distribute the appropriation to the following counties in the amounts designated for extraordinary criminal justice costs:

              King. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$807,000

              Pacific. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $147,000


              NEW SECTION. Sec. 714. A new section is added to 2003 1st sp.s. c 25 (uncodified) to read as follows:

FOR THE OFFICE OF THE GOVERNOR--JOINT TASK FORCE ON MENTAL HEALTH

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$50,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$30,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$80,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The appropriations are provided solely for a joint legislative and executive task force on mental health services delivery and financing. The joint task force shall consist of eight members, as follows: The secretary of the department of social and health services or his or her designee; the president of the Washington state association of counties or his or her designee; a representative from the governor's office; two members of the senate appointed by the president of the senate, one of whom shall be a member of the majority caucus and one of whom shall be a member of the minority caucus; two members of the house of representatives appointed by the speaker of the house of representatives, one of whom shall be a member of the majority caucus and one of whom shall be a member of the minority caucus; and the chair of the joint legislative audit and review committee or his or her designee. Staff support for the joint task force shall be provided by the office of financial management, the house of representatives office of program research, and senate committee services.

              (2) The joint task force may create advisory committees to assist the joint task force in its work.

              (3) Joint task force members may be reimbursed for travel expenses as authorized under RCW 43.03.050 and 43.03.060 and chapter 44.04 RCW, as appropriate. Advisory committee members, if appointed, shall not receive compensation or reimbursement for travel or expenses.

              (4) The joint task force shall assess and make recommendations related to:

              (a) Progress made by the department of social and health services and the regional support networks (i) towards implementation of a performance-based measurement system that focuses on outcomes for consumers served by the mental health system, and (ii) to reduce duplicative and burdensome administrative and oversight requirements;

              (b) The funding requirements for mental health services for nonmedicaid consumers for the priority populations under chapter 71.24 RCW;

              (c) The extent to which the current funding distribution methodology achieves equity in funding and access to services for mental health services consumers;

              (d) The administrative structure of the community mental health system as it relates to effectively meeting the goals established in statute;

              (e) The most effective and efficient mental health funding and payment models (including capitated managed care), in light of requirements of the federal balanced budget act of 1997 related to state medicaid managed care contracting; and

              (f) The types, numbers, and locations of inpatient psychiatric hospital and community residential beds in both the private and public sector.

              (5) The joint task force shall report its initial findings and recommendations to the governor and appropriate committees of the legislature by January 1, 2005, and its final findings and recommendations by June 30, 2005.


              Sec. 715. 2003 1st sp.s. c 25 s 710 (uncodified) is amended to read as follows:

              FOR THE DEPARTMENT OF RETIREMENT SYSTEMS--CONTRIBUTIONS TO RETIREMENT SYSTEMS.

The appropriations in this section are subject to the following conditions and limitations: The appropriations for the law enforcement officers' and firefighters' retirement system shall be made on a monthly basis beginning July 1, 2003, consistent with chapter 41.45 RCW, and the appropriations for the judges and judicial retirement systems shall be made on a quarterly basis consistent with chapters 2.10 and 2.12 RCW.


              (1) There is appropriated for state contributions to the law enforcement officers' and fire fighters' retirement system:

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($21,256,000))

$20,256,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($20,914,000))

$21,414,000


              (2) There is appropriated for contributions to the judicial retirement system:

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($6,000,000))

$5,995,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($6,000,000))

$5,995,000


              (3) There is appropriated for contributions to the judges retirement system:

General Fund--State Appropriation (FY 2004). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$500,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$500,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($55,170,000))

$54,660,000


              Sec. 716. 2003 1st sp.s. c 25 s 720 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT--COUNTY ASSISTANCE

General Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,000,000

General Fund--State Appropriation (FY 2005). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,000,000


              The appropriations in this section are subject to the following conditions and limitations: The director of community, trade, and economic development shall distribute the appropriations in this section to the following counties in the amounts designated:


 

FY 2004

FY 2005

Adams

$334,400

$267,520

Asotin

$361,900

$289,520

Columbia

$679,700

$543,760

Douglas

$264,000

$211,200

Ferry

$283,600

$226,880

Garfield

$759,800

$607,840

Island

$66,400

$53,120

Lincoln

$297,700

$238,160

Mason

$298,000

$238,400

Okanogan

$280,000

$224,000

Pacific

$89,700

$71,760

Pend Oreille

$181,600

$145,280

Skamania

$88,000

$70,400

Stevens

$418,000

$334,400

Wahkiakum

$452,900

$362,320

Walla Walla

$144,300

$115,440

TOTAL APPROPRIATIONS


$5,000,000


$4,000,000


              NEW SECTION. Sec. 717. A new section is added to 2003 1st sp.s. c 25 (uncodified) to read as follows:

              AGENCY EXPENDITURES FOR TRAVEL, EQUIPMENT, AND CONTRACTS.

The office of financial management shall reduce allotments for all agencies for personal service contracts, equipment, and travel by $11,400,000 from fiscal year 2005 general fund--state appropriations in this act to reflect the elimination of expenditures identified in LEAP document 2004-32, a computerized tabulation developed by the legislative evaluation and accountability program committee on January 23, 2004. The general fund allotment reduction shall be placed in unallotted status and remain unexpended.


              NEW SECTION. Sec. 718. A new section is added to chapter 43.330 RCW to read as follows:

              HOMELESS FAMILIES SERVICES FUND.

              (1)(a) There is created in the custody of the state treasurer an account to be known as the homeless families services fund. Revenues to the fund consist of a one-time appropriation by the legislature, private contributions, and all other sources deposited in the fund.

              (b) Expenditures from the fund may only be used for the purposes of the program established in this section, including administrative expenses. Only the director of the department of community, trade, and economic development, or the director's designee, may authorize expenditures.

              (c) Expenditures from the fund are exempt from appropriations and the allotment provisions of chapter 43.88 RCW. However, money used for program administration by the department is subject to the allotment and budgetary controls of chapter 43.88 RCW, and an appropriation is required for these expenditures.

              (2) The department may expend moneys from the fund to provide state matching funds for housing-based supportive services for homeless families over a period of at least ten years.

              (3) Activities eligible for funding through the fund include, but are not limited to, the following:

              (a) Case management;

              (b) Counseling;

              (c) Referrals to employment support and job training services and direct employment support and job training services;

              (d) Domestic violence services and programs;

              (e) Mental health treatment, services, and programs;

              (f) Substance abuse treatment, services, and programs;

              (g) Parenting skills education and training;

              (h) Transportation assistance;

              (i) Child care; and

              (j) Other supportive services identified by the department to be an important link for housing stability.

              (4) Organizations that may receive funds from the fund include local housing authorities, nonprofit community or neighborhood-based organizations, public development authorities, federally recognized Indian tribes in the state, and regional or statewide nonprofit housing assistance organizations.(End of part)


PART VIII

OTHER TRANSFERS AND APPROPRIATIONS


              Sec. 821. 2003 1st sp.s. c 25 s 801 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--STATE REVENUES FOR DISTRIBUTION

General Fund Appropriation for fire insurance premium distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($4,711,500))

$5,344,000

General Fund Appropriation for public utility district excise tax distributions. . . . . . . . . . . . . . . . . . . . . . . . . .(($39,273,684))

$40,012,876

General Fund Appropriation for prosecuting attorney distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,441,197))

$3,671,015

General Fund Appropriation for boating safety and education distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($4,074,300))

$4,147,426

General Fund Appropriation for other tax distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$34,750

Death Investigations Account Appropriation for distribution to counties for publicly funded autopsies. . . . . . . . . $2,123,723

Aquatic Lands Enhancement Account Appropriation for harbor improvement revenue distribution. . . . . . . . . . . . . .$187,068

Timber Tax Distribution Account Appropriation for distribution to "timber" counties. . . . . . . . . . . . . . . . . . . . . .$51,192,170

County Criminal Justice Assistance Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($52,131,000))

$53,130,820

Municipal Criminal Justice Assistance Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($21,069,000))

$21,069,120

Liquor Excise Tax Account Appropriation for liquor excise tax distribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $32,624,831

Liquor Revolving Account Appropriation for liquor profits distribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($57,511,693))

$57,369,693

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($268,374,916))

$270,907,492


              The total expenditures from the state treasury under the appropriations in this section shall not exceed the funds available under statutory distributions for the stated purposes.


              Sec. 802. 2003 1st sp.s. c 25 s 805 (uncodified) is amended to read as follows:

              FOR THE STATE TREASURER--TRANSFERS.

 For transfers in this section to the state general fund, pursuant to RCW 43.135.035(5), the state expenditure limit shall be increased by the amount of the transfer. The increase shall occur in the fiscal year in which the transfer occurs.


State Convention and Trade Center Account:

              For transfer to the state general fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$10,000,000

County Sale/Use Tax Equalization Account:

              For transfer to the state general fund for fiscal year 2004. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $74,000

Financial Services Regulation Fund:

              For transfer to the state general fund at the beginning of fiscal year 2005. . . . . . . . . . . . . . . . . . . . . . .(($1,632,000))

$7,285,000

Municipal Sale/Use Tax Equalization Account:

              For transfer to the state general fund for fiscal year 2004. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $374,000

Asbestos Account:

              For transfer to the state general fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $200,000

Electrical License Account:

              For transfer to the state general fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7,000,000

Local Toxics Control Account:

              For transfer to the state toxics control account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,059,000

Pressure Systems Safety Account:

              For transfer to the state general fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,000,000

Health Services Account:

              For transfer to the water quality account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$8,182,000

State Treasurer's Service Account:

              For transfer to the general fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($10,000,000))

$14,000,000

Public Works Assistance Account:

              For transfer to the drinking water assistance account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$8,387,000

Tobacco Settlement Account:

              For transfer to the health services account, in an amount not to exceed the actual balance

              of the tobacco settlement account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($185,000,000))

$181,000,000

Health Service Account:

              For transfer to the violence reduction and drug enforcement account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,789,000

Nisqually Earthquake Account:

              For transfer to the disaster response account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,200,000

Industrial Insurance Premium Refund Account:

              For transfer to the state general fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $577,000

Public Service Revolving Account:

              For transfer to the state general fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,600,000

State Forest Nursery Revolving Account:

              For transfer to the state general fund, $250,000 for fiscal year 2004 and $250,000 for fiscal year 2005. . . .$500,000

Flood Control Assistance Account:

              For transfer to the state general fund, $1,350,000 for fiscal year 2004 and $1,350,000 for fiscal

              year 2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,700,000

Water Quality Account:

              For transfer to the water pollution control account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($10,500,000))

$14,034,513

General Fund:

              For transfer to the water quality account, $3,870,000 for fiscal year 2004 and

              $4,557,000 for fiscal year 2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,427,000

Insurance Commissioner's Regulatory Account:

              For transfer to the state general fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,500,000))

$2,500,000

Health Services Account:

              For transfer to the tobacco prevention and control account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($24,216,000))

$23,796,000

From the Emergency Reserve Fund:

              For transfer to the state general fund, not to exceed the actual balance of the emergency reserve fund.

              This transfer is intended to liquidate the emergency reserve fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . (($59,350,000))

$58,100,000

Department of Retirement Systems Expense Account:

              For transfer to the state general fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,500,000))

$5,500,000

Woodstove Education and Enforcement Account:

              For transfer to the air pollution control account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$600,000

Multimodal Transportation Account:

              For transfer to the air pollution control account for fiscal year 2004. The amount transferred

              shall be deposited into the segregated subaccount of the air pollution control

              account created in Engrossed Substitute Senate Bill No. 6072, chapter 264, Laws of

              2003. The state treasurer shall perform the transfer from the multimodal transportation

              account to the air pollution control subaccount on a quarterly basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,170,726

Multimodal Transportation Account:

              For transfer to the vessel response account for fiscal year 2004. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,213,704

Resource Management Cost Account:

              For transfer to the contract harvesting revolving account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250,000

Forest Development Account:

              For transfer to the contract harvesting revolving account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250,000

Site Closure Account:

              For transfer to the state general fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$13,800,000

Health Services Account:

              For transfer to the general fund--state for fiscal year 2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,250,000))

$46,250,000

K-20 Technology Account:

              For transfer to the state general fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,281

Gambling Revolving Fund, Nontribal Sources:

              For transfer to the state general fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,500,000

State Building Construction Account:

              For transfer to the conservation assistance revolving account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$500,000

Wildlife Account:

              For transfer to the special wildlife account, $250,000 in fiscal year 2004

              and $250,000 in fiscal year 2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000

Education Technology Revolving Account:

              For transfer to the data processing revolving account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $296,000

Digital Government Revolving Account:

              For transfer to the data processing revolving account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $154,000

Gambling Revolving Fund:

              For transfer to the problem gambling treatment account. If Second Substitute House Bill No. 2776

              is not enacted by June 30, 2004, this amount shall be transferred to the general fund. . . . . . . . . . . . . . . . . . $500,000


              Sec. 803. 2003 1st sp.s. c 25 s 806 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF RETIREMENT SYSTEMS--TRANSFERS

General Fund--State Appropriation:

              For transfer to the department of retirement systems expense account: For the administrative

              expenses of the judicial retirement system. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($21,901))

$12,000

PART IX

MISCELLANEOUS


              NEW SECTION. Sec. 901. A new section is added to 2003 1st sp.s. c 25 (uncodified) to read as follows:

              FUND BALANCE TRANSFER.

              At the end of fiscal year 2004, the office of financial management shall transfer to the general fund-state fund balance the unspent federal fiscal relief grant moneys received as a result of P.L. 108-27 (federal jobs and growth tax relief reconciliation act of 2003). Pursuant to RCW 43.135.035(5), the state expenditure limit shall be increased by the amount of the transfer.


              NEW SECTION. Sec. 902. A new section is added to 2003 1st sp.s. c 25 (uncodified) to read as follows:

              AGENCY EXPENDITURES FOR MOTOR VEHICLES.

              The use of hybrid motor vehicles reduces air contaminants, greenhouse gas emissions and reliance on imported sources of petroleum. To foster the use of hybrid motor vehicles, beginning July 1, 2004, before the purchase or lease of a motor vehicle, state agencies should first consider the feasibility of hybrid motor vehicles. State agencies should strive to purchase or lease a hybrid motor vehicle when the use of such vehicle is consistent with and can accomplish the agency's mission and when the purchase is financially reasonable. The financial assessment should include savings accruing from reduced fuel purchases over the life of the vehicle. Agencies shall report on their purchases of hybrid vehicles in their biennial sustainability plans as required under executive order 02-03.


              Sec. 903. RCW 9.46.100 and 2002 c 371 s 901 are each amended to read as follows:

              There is hereby created the gambling revolving fund which shall consist of all moneys receivable for licensing, penalties, forfeitures, and all other moneys, income, or revenue received by the commission. The state treasurer shall be custodian of the fund. All moneys received by the commission or any employee thereof, except for change funds and an amount of petty cash as fixed by rule or regulation of the commission, shall be deposited each day in a depository approved by the state treasurer and transferred to the state treasurer to be credited to the gambling revolving fund. Disbursements from the revolving fund shall be on authorization of the commission or a duly authorized representative thereof. In order to maintain an effective expenditure and revenue control the gambling revolving fund shall be subject in all respects to chapter 43.88 RCW but no appropriation shall be required to permit expenditures and payment of obligations from such fund. All expenses relative to commission business, including but not limited to salaries and expenses of the director and other commission employees shall be paid from the gambling revolving fund.

              During the ((2001-))2003-2005 fiscal biennium, the legislature may transfer from the gambling revolving fund to the problem gambling treatment account, contingent on enactment of chapter ..., Laws of 2004 (Second Substitute House Bill No. 2776, problem gambling treatment). Also during the 2003-2005 fiscal biennium, the legislature may transfer from the gambling revolving fund to the state general fund such amounts as reflect the excess nontribal fund balance of the fund ((and reductions made by the 2002 supplemental appropriations act for administrative efficiencies and savings)). The commission shall not increase fees during the 2003-2005 fiscal biennium for the purpose of restoring the excess fund balance transferred under this section.


              Sec. 904. RCW 28A.160.195 and 1995 1st sp.s. c 10 s 1 are each amended to read as follows:

              (1) The superintendent of public instruction, in consultation with the regional transportation coordinators of the educational service districts, shall establish a minimum number of school bus categories considering the capacity and type of vehicles required by school districts in Washington. The superintendent, in consultation with the regional transportation coordinators of the educational service districts, shall establish competitive specifications for each category of school bus. The categories shall be developed to produce minimum long-range operating costs, including costs of equipment and all costs in operating the vehicles. The categories, for purposes of comparative studies, will be at a minimum the same as those in the beginning of the 1994-95 school year. The competitive specifications shall meet federal motor vehicle safety standards, minimum state specifications as established by rule by the superintendent, and supported options as determined by the superintendent in consultation with the regional transportation coordinators of the educational service districts. In fiscal year 2005, the superintendent may solicit and accept price quotes for a rear-engine category school bus that shall be reimbursed at the price of the corresponding front engine category.

              (2) After establishing school bus categories and competitive specifications, the superintendent of public instruction shall solicit competitive price quotes from school bus dealers to be in effect for one year and shall (a) except in fiscal year 2005, establish a list of the lowest competitive price quotes obtained under this subsection, and (b) in fiscal year 2005, establish a list of all accepted price quotes in each category obtained under this subsection.

              (3) The superintendent shall base the level of reimbursement to school districts and educational service districts for school buses on the lowest quote in each category.

              (4) Notwithstanding RCW 28A.335.190, school districts and educational service districts may purchase at the quoted price directly from the dealer who is providing the lowest competitive price quote on the list established under subsection (2) of this section and in fiscal year 2005 from any dealer on the list established under subsection (2)(b) of this section. School districts and educational service districts may make their own selections for school buses, but shall be reimbursed at the rates determined under ((this section)) subsection (3) of this section and RCW 28A.160.200. District-selected options shall not be reimbursed by the state. For the 2003-05 fiscal biennium, school districts and educational service districts shall be reimbursed for buses purchased only through a lowest-price competitive bid process conducted pursuant to RCW 28A.335.190 or through the state bid process established by this section.

              (5) This section does not prohibit school districts or educational service districts from conducting their own competitive bid process.

              (6) The superintendent of public instruction may adopt rules under chapter 34.05 RCW to implement this section.


              Sec. 905. RCW 28B.102.040 and 1987 c 437 s 4 are each amended to read as follows:

              The higher education coordinating board shall establish a planning committee to develop criteria for the screening and selection of recipients of the conditional scholarships. These criteria shall emphasize factors demonstrating excellence including but not limited to superior scholastic achievement, leadership ability, community contributions, and an ability to act as a role model for targeted ethnic minority students. These criteria also may include, for approximately half of the recipients, requirements that those recipients meet the definition of "needy student" under RCW 28B.10.802.

              Subject to enactment of chapter . . ., Laws of 2004 (SHB 2708), for fiscal year 2005, additional priority shall be given to such individuals who are also bilingual. It is the intent of the legislature to develop a pool of dual-language teachers in order to meet the challenge of educating students who are dominant in languages other than English.


              Sec. 906. RCW 28B.119.010 and 2003 c 233 s 5 are each amended to read as follows:

              The higher education coordinating board shall design the Washington promise scholarship program based on the following parameters:

              (1) Scholarships shall be awarded to students graduating from public and approved private high schools under chapter 28A.195 RCW, students participating in home-based instruction as provided in chapter 28A.200 RCW, and persons twenty-one years of age or younger receiving a GED certificate, who meet both an academic and a financial eligibility criteria.

              (a) Academic eligibility criteria shall be defined as follows:

              (i) Beginning with the graduating class of 2002, students graduating from public and approved private high schools under chapter 28A.195 RCW must be in the top fifteen percent of their graduating class, as identified by each respective high school at the completion of the first term of the student's senior year; or

              (ii) Students graduating from public high schools, approved private high schools under chapter 28A.195 RCW, students participating in home-based instruction as provided in chapter 28A.200 RCW, and persons twenty-one years of age or younger receiving a GED certificate, must equal or exceed a cumulative scholastic assessment test I score of twelve hundred on their first attempt or must equal or exceed a composite American college test score of twenty-seven on their first attempt.

              (b) To meet the financial eligibility criteria, a student's family income shall not exceed one hundred thirty-five percent of the state median family income adjusted for family size, as determined by the higher education coordinating board for each graduating class. Students not meeting the eligibility requirements for the first year of scholarship benefits may reapply for the second year of benefits, but must still meet the income standard set by the board for the student's graduating class. Beginning with the graduating class of 2004, a student's family income shall not exceed one hundred twenty percent of the state median family income adjusted for family size, as determined by the higher education coordinating board.

              (2) Promise scholarships are not intended to supplant any grant, scholarship, or tax program related to postsecondary education. If the board finds that promise scholarships supplant or reduce any grant, scholarship, or tax program for categories of students, then the board shall adjust the financial eligibility criteria or the amount of scholarship to the level necessary to avoid supplanting.

              (3) Within available funds, each qualifying student shall receive two consecutive annual awards, the value of each not to exceed the full-time annual resident tuition rates charged by Washington's community colleges. The higher education coordinating board shall award scholarships to as many students as possible from among those qualifying under this section.

              (4) By October 15th of each year, the board shall determine the award amount of the scholarships, after taking into consideration the availability of funds.

              (5) The scholarships may only be used for undergraduate coursework at accredited institutions of higher education in the state of Washington.

              (6) The scholarships may be used for undergraduate coursework at Oregon institutions of higher education that are part of the border county higher education opportunity project in RCW 28B.80.806 when those institutions offer programs not available at accredited institutions of higher education in Washington state.

              (7) The scholarships may be used for college-related expenses, including but not limited to, tuition, room and board, books, and materials.

              (8) The scholarships may not be awarded to any student who is pursuing a degree in theology.

              (9) The higher education coordinating board may establish satisfactory progress standards for the continued receipt of the promise scholarship.

              (10) The higher education coordinating board shall establish the time frame within which the student must use the scholarship.


              Sec. 907. RCW 43.83.020 and 1991 sp.s. c 13 s 46 are each amended to read as follows:

              (1) The proceeds from the sale of the bonds authorized herein shall be deposited in the state building construction account which is hereby established in the state treasury and shall be used exclusively for the purposes of carrying out the provisions of the capital appropriation acts, and for payment of the expense incurred in the printing, issuance, and sale of such bonds.

              (2) During the 2003-2005 biennium, the legislature may transfer moneys from the state building construction account to the conservation assistance revolving account such amounts as reflect the excess fund balance of the account.


              Sec. 908. RCW 43.88.030 and 2002 c 371 s 911 are each amended to read as follows:

              (1) The director of financial management shall provide all agencies with a complete set of instructions for submitting biennial budget requests to the director at least three months before agency budget documents are due into the office of financial management. The director shall provide agencies and committees that are required under RCW 44.40.070 to develop comprehensive six-year program and financial plans with a complete set of instructions for submitting these program and financial plans at the same time that instructions for submitting other budget requests are provided. The budget document or documents shall consist of the governor's budget message which shall be explanatory of the budget and shall contain an outline of the proposed financial policies of the state for the ensuing fiscal period, as well as an outline of the proposed six-year financial policies where applicable, and shall describe in connection therewith the important features of the budget. The message shall set forth the reasons for salient changes from the previous fiscal period in expenditure and revenue items and shall explain any major changes in financial policy. Attached to the budget message shall be such supporting schedules, exhibits and other explanatory material in respect to both current operations and capital improvements as the governor shall deem to be useful to the legislature. The budget document or documents shall set forth a proposal for expenditures in the ensuing fiscal period, or six-year period where applicable, based upon the estimated revenues and caseloads as approved by the economic and revenue forecast council and caseload forecast council or upon the estimated revenues and caseloads of the office of financial management for those funds, accounts, sources, and programs for which the forecast councils do not prepare an official forecast, including those revenues anticipated to support the six-year programs and financial plans under RCW 44.40.070. In estimating revenues to support financial plans under RCW 44.40.070, the office of financial management shall rely on information and advice from the transportation revenue forecast council. Revenues shall be estimated for such fiscal period from the source and at the rates existing by law at the time of submission of the budget document, including the supplemental budgets submitted in the even-numbered years of a biennium. However, the estimated revenues and caseloads for use in the governor's budget document may be adjusted to reflect budgetary revenue transfers and revenue and caseload estimates dependent upon budgetary assumptions of enrollments, workloads, and caseloads. All adjustments to the approved estimated revenues and caseloads must be set forth in the budget document. The governor may additionally submit, as an appendix to each supplemental, biennial, or six-year agency budget or to the budget document or documents, a proposal for expenditures in the ensuing fiscal period from revenue sources derived from proposed changes in existing statutes.

              Supplemental and biennial documents shall reflect a six-year expenditure plan consistent with estimated revenues from existing sources and at existing rates for those agencies required to submit six-year program and financial plans under RCW 44.40.070. Any additional revenue resulting from proposed changes to existing statutes shall be separately identified within the document as well as related expenditures for the six-year period.

              The budget document or documents shall also contain:

              (a) Revenues classified by fund and source for the immediately past fiscal period, those received or anticipated for the current fiscal period, those anticipated for the ensuing biennium, and those anticipated for the ensuing six-year period to support the six-year programs and financial plans required under RCW 44.40.070;

              (b) The undesignated fund balance or deficit, by fund;

              (c) Such additional information dealing with expenditures, revenues, workload, performance, and personnel as the legislature may direct by law or concurrent resolution;

              (d) Such additional information dealing with revenues and expenditures as the governor shall deem pertinent and useful to the legislature;

              (e) Tabulations showing expenditures classified by fund, function, activity, and agency. However, documents submitted for the ((2003-05)) 2005-07 biennial budget request need not show expenditures by activity;

              (f) A delineation of each agency's activities, including those activities funded from nonbudgeted, nonappropriated sources, including funds maintained outside the state treasury;

              (g) Identification of all proposed direct expenditures to implement the Puget Sound water quality plan under chapter 90.71 RCW, shown by agency and in total; and

              (h) Tabulations showing each postretirement adjustment by retirement system established after fiscal year 1991, to include, but not be limited to, estimated total payments made to the end of the previous biennial period, estimated payments for the present biennium, and estimated payments for the ensuing biennium.

              (2) The budget document or documents shall include detailed estimates of all anticipated revenues applicable to proposed operating or capital expenditures and shall also include all proposed operating or capital expenditures. The total of beginning undesignated fund balance and estimated revenues less working capital and other reserves shall equal or exceed the total of proposed applicable expenditures. The budget document or documents shall further include:

              (a) Interest, amortization and redemption charges on the state debt;

              (b) Payments of all reliefs, judgments, and claims;

              (c) Other statutory expenditures;

              (d) Expenditures incident to the operation for each agency;

              (e) Revenues derived from agency operations;

              (f) Expenditures and revenues shall be given in comparative form showing those incurred or received for the immediately past fiscal period and those anticipated for the current biennium and next ensuing biennium, as well as those required to support the six-year programs and financial plans required under RCW 44.40.070;

              (g) A showing and explanation of amounts of general fund and other funds obligations for debt service and any transfers of moneys that otherwise would have been available for appropriation;

              (h) Common school expenditures on a fiscal-year basis;

              (i) A showing, by agency, of the value and purpose of financing contracts for the lease/purchase or acquisition of personal or real property for the current and ensuing fiscal periods; and

              (j) A showing and explanation of anticipated amounts of general fund and other funds required to amortize the unfunded actuarial accrued liability of the retirement system specified under chapter 41.45 RCW, and the contributions to meet such amortization, stated in total dollars and as a level percentage of total compensation.

              (3) A separate capital budget document or schedule shall be submitted that will contain the following:

              (a) A statement setting forth a long-range facilities plan for the state that identifies and includes the highest priority needs within affordable spending levels;

              (b) A capital program consisting of proposed capital projects for the next biennium and the two biennia succeeding the next biennium consistent with the long-range facilities plan. Insomuch as is practical, and recognizing emergent needs, the capital program shall reflect the priorities, projects, and spending levels proposed in previously submitted capital budget documents in order to provide a reliable long-range planning tool for the legislature and state agencies;

              (c) A capital plan consisting of proposed capital spending for at least four biennia succeeding the next biennium;

              (d) A strategic plan for reducing backlogs of maintenance and repair projects. The plan shall include a prioritized list of specific facility deficiencies and capital projects to address the deficiencies for each agency, cost estimates for each project, a schedule for completing projects over a reasonable period of time, and identification of normal maintenance activities to reduce future backlogs;

              (e) A statement of the reason or purpose for a project;

              (f) Verification that a project is consistent with the provisions set forth in chapter 36.70A RCW;

              (g) A statement about the proposed site, size, and estimated life of the project, if applicable;

              (h) Estimated total project cost;

              (i) For major projects valued over five million dollars, estimated costs for the following project components: Acquisition, consultant services, construction, equipment, project management, and other costs included as part of the project. Project component costs shall be displayed in a standard format defined by the office of financial management to allow comparisons between projects;

              (j) Estimated total project cost for each phase of the project as defined by the office of financial management;

              (k) Estimated ensuing biennium costs;

              (l) Estimated costs beyond the ensuing biennium;

              (m) Estimated construction start and completion dates;

              (n) Source and type of funds proposed;

              (o) Estimated ongoing operating budget costs or savings resulting from the project, including staffing and maintenance costs;

              (p) For any capital appropriation requested for a state agency for the acquisition of land or the capital improvement of land in which the primary purpose of the acquisition or improvement is recreation or wildlife habitat conservation, the capital budget document, or an omnibus list of recreation and habitat acquisitions provided with the governor's budget document, shall identify the projected costs of operation and maintenance for at least the two biennia succeeding the next biennium. Omnibus lists of habitat and recreation land acquisitions shall include individual project cost estimates for operation and maintenance as well as a total for all state projects included in the list. The document shall identify the source of funds from which the operation and maintenance costs are proposed to be funded;

              (q) Such other information bearing upon capital projects as the governor deems to be useful;

              (r) Standard terms, including a standard and uniform definition of normal maintenance, for all capital projects;

               Such other information as the legislature may direct by law or concurrent resolution.

              For purposes of this subsection (3), the term "capital project" shall be defined subsequent to the analysis, findings, and recommendations of a joint committee comprised of representatives from the house capital appropriations committee, senate ways and means committee, legislative transportation committee, legislative evaluation and accountability program committee, and office of financial management.

              (4) No change affecting the comparability of agency or program information relating to expenditures, revenues, workload, performance and personnel shall be made in the format of any budget document or report presented to the legislature under this section or RCW 43.88.160(1) relative to the format of the budget document or report which was presented to the previous regular session of the legislature during an odd-numbered year without prior legislative concurrence. Prior legislative concurrence shall consist of (a) a favorable majority vote on the proposal by the standing committees on ways and means of both houses if the legislature is in session or (b) a favorable majority vote on the proposal by members of the legislative evaluation and accountability program committee if the legislature is not in session.


              Sec. 909. RCW 43.105.830 and 1999 c 285 s 9 are each amended to read as follows:

              (1) The K-20 technology account is hereby created in the state treasury. The department of information services shall deposit into the account moneys received from legislative appropriations, gifts, grants, and endowments for the buildout and installation of the K-20 telecommunication system. The account shall be subject to appropriation and may be expended solely for the K-20 telecommunication system. Disbursements from the account shall be on authorization of the director of the department of information services with approval of the board.

              (2) During the 2003-2005 biennium, the legislature may transfer moneys from the K-20 technology account to the state general fund such amounts as reflect the excess fund balance of the account.


              Sec. 910. RCW 43.105.835 and 1999 c 285 s 10 are each amended to read as follows:

              (1) The education technology revolving fund is created in the custody of the state treasurer. All receipts from billings under subsection (2) of this section must be deposited in the revolving fund. Only the director of the department of information services or the director's designee may authorize expenditures from the fund. The revolving fund shall be used to pay for network operations, transport, equipment, software, supplies, and services, maintenance and depreciation of on-site data, and shared infrastructure, and other costs incidental to the development, operation, and administration of shared educational information technology services, telecommunications, and systems. The revolving fund shall not be used for the acquisition, maintenance, or operations of local telecommunications infrastructure or the maintenance or depreciation of on-premises video equipment specific to a particular institution or group of institutions.

              (2) The revolving fund and all disbursements from the revolving fund are subject to the allotment procedure under chapter 43.88 RCW, but an appropriation is not required for expenditures. The department of information services shall, in consultation with entities connected to the network under RCW 43.105.820 and subject to the review and approval of the office of financial management, establish and implement a billing structure for network services identified in subsection (1) of this section.

              (3) The department shall charge those public entities connected to the K-20 telecommunications [telecommunication system] under RCW 43.105.820 an annual copayment per unit of transport connection as determined by the legislature after consideration of the K-20 board's recommendations. This copayment shall be deposited into the revolving fund to be used for the purposes in subsection (1) of this section. It is the intent of the legislature to appropriate to the revolving fund such moneys as necessary to cover the costs for transport, maintenance, and depreciation of data equipment located at the individual public institutions, maintenance and depreciation of the network backbone, and services provided to the network under RCW 43.105.815.

              (4) During the 2003-05 biennium, the legislature may transfer moneys from the education technology revolving fund to the state general fund and the data processing revolving fund such amounts as reflect the excess fund balance of the account.


              Sec. 911. RCW 49.70.170 and 2001 2nd sp.s. c 7 s 913 are each amended to read as follows:

              (1) The worker and community right to know fund is hereby established in the custody of the state treasurer. The department shall deposit all moneys received under this chapter in the fund. Moneys in the fund may be spent only for the purposes of this chapter following legislative appropriation. Disbursements from the fund shall be on authorization of the director or the director's designee. During the ((2001-))2003-2005 fiscal biennium, moneys in the fund may also be used by the military department for the purpose of assisting the state emergency response commission and coordinating local emergency planning activities. The fund is subject to the allotment procedure provided under chapter 43.88 RCW.

              (2) The department shall assess each employer who reported ten thousand four hundred or more worker hours in the prior calendar year an annual fee to provide for the implementation of this chapter. The department shall promulgate rules establishing a fee schedule for all employers who reported ten thousand four hundred or more worker hours in the prior calendar year and are engaged in business operations having a standard industrial classification, as designated in the standard industrial classification manual prepared by the federal office of management and budget, within major group numbers 01 through 08 (agriculture and forestry industries), numbers 10 through 14 (mining industries), numbers 15 through 17 (construction industries), numbers 20 through 39 (manufacturing industries), numbers 41, 42, and 44 through 49 (transportation, communications, electric, gas, and sanitary services), number 75 (automotive repair, services, and garages), number 76 (miscellaneous repair services), number 80 (health services), and number 82 (educational services). The department shall establish the annual fee for each employer who reported ten thousand four hundred or more worker hours in the prior calendar year in industries identified by this section, provided that fees assessed shall not be more than two dollars and fifty cents per full time equivalent employee. The annual fee shall not exceed fifty thousand dollars. The fees shall be collected solely from employers whose industries have been identified by rule under this chapter. The department shall promulgate rules allowing employers who do not have hazardous substances at their workplace to request an exemption from the assessment and shall establish penalties for fraudulent exemption requests. All fees collected by the department pursuant to this section shall be collected in a cost-efficient manner and shall be deposited in the fund.

              (3) Records required by this chapter shall at all times be open to the inspection of the director, or his designee including, the traveling auditors, agents or assistants of the department provided for in RCW 51.16.070 and 51.48.040. The information obtained from employer records under the provisions of this section shall be subject to the same confidentiality requirements as set forth in RCW 51.16.070.

              (4) An employer may appeal the assessment of the fee or penalties pursuant to the procedures set forth in Title 51 RCW and accompanying rules except that the employer shall not have the right of appeal to superior court as provided in Title 51 RCW. The employer from whom the fee or penalty is demanded or enforced, may however, within thirty days of the board of industrial insurance appeal's final order, pay the fee or penalty under written protest setting forth all the grounds upon which such fee or penalty is claimed to be unlawful, excessive or otherwise improper and thereafter bring an action in superior court against the department to recover such fee or penalty or any portion of the fee or penalty which was paid under protest.

              (5) Repayment shall be made to the general fund of any moneys appropriated by law in order to implement this chapter.


              Sec. 912. RCW 69.50.520 and 2003 1st sp.s. c 25 s 930 are each amended to read as follows:

              The violence reduction and drug enforcement account is created in the state treasury. All designated receipts from RCW 9.41.110(8), 66.24.210(4), 66.24.290(2), 69.50.505(((i)(1))) (9)(a), 82.08.150(5), 82.24.020(2), 82.64.020, and section 420, chapter 271, Laws of 1989 shall be deposited into the account. Expenditures from the account may be used only for funding services and programs under chapter 271, Laws of 1989 and chapter 7, Laws of 1994 sp. sess., including state incarceration costs. Funds from the account may also be appropriated to reimburse local governments for costs associated with implementing criminal justice legislation including chapter 338, Laws of 1997. During the 2003-2005 biennium, funds from the account may also be used for costs associated with providing grants to local governments in accordance with chapter 338, Laws of 1997, funding drug offender treatment services in accordance with RCW 70.96A.350, maintenance and operating costs of the Washington association of sheriffs and police chiefs jail reporting system, maintenance and operating costs of the juvenile rehabilitation administration's client activity tracking system, civil indigent legal representation, multijurisdictional narcotics task forces, and grants to community networks under chapter 70.190 RCW by the family policy council.


              Sec. 913. RCW 74.46.431 and 2001 1st sp.s. c 8 s 5 are each amended to read as follows:

              (1) Effective July 1, 1999, nursing facility medicaid payment rate allocations shall be facility-specific and shall have seven components: Direct care, therapy care, support services, operations, property, financing allowance, and variable return. The department shall establish and adjust each of these components, as provided in this section and elsewhere in this chapter, for each medicaid nursing facility in this state.

              (2) All component rate allocations for essential community providers as defined in this chapter shall be based upon a minimum facility occupancy of eighty-five percent of licensed beds, regardless of how many beds are set up or in use. For all facilities other than essential community providers, effective July 1, 2001, component rate allocations in direct care, therapy care, support services, variable return, operations, property, and financing allowance shall continue to be based upon a minimum facility occupancy of eighty-five percent of licensed beds. For all facilities other than essential community providers, effective July 1, 2002, the component rate allocations in operations, property, and financing allowance shall be based upon a minimum facility occupancy of ninety percent of licensed beds, regardless of how many beds are set up or in use.

              (3) Information and data sources used in determining medicaid payment rate allocations, including formulas, procedures, cost report periods, resident assessment instrument formats, resident assessment methodologies, and resident classification and case mix weighting methodologies, may be substituted or altered from time to time as determined by the department.

              (4)(a) Direct care component rate allocations shall be established using adjusted cost report data covering at least six months. Adjusted cost report data from 1996 will be used for October 1, 1998, through June 30, 2001, direct care component rate allocations; adjusted cost report data from 1999 will be used for July 1, 2001, through June 30, ((2004)) 2005, direct care component rate allocations.

              (b) Direct care component rate allocations based on 1996 cost report data shall be adjusted annually for economic trends and conditions by a factor or factors defined in the biennial appropriations act. A different economic trends and conditions adjustment factor or factors may be defined in the biennial appropriations act for facilities whose direct care component rate is set equal to their adjusted June 30, 1998, rate, as provided in RCW 74.46.506(5)(i).

              (c) Direct care component rate allocations based on 1999 cost report data shall be adjusted annually for economic trends and conditions by a factor or factors defined in the biennial appropriations act. A different economic trends and conditions adjustment factor or factors may be defined in the biennial appropriations act for facilities whose direct care component rate is set equal to their adjusted June 30, 1998, rate, as provided in RCW 74.46.506(5)(i).

              (5)(a) Therapy care component rate allocations shall be established using adjusted cost report data covering at least six months. Adjusted cost report data from 1996 will be used for October 1, 1998, through June 30, 2001, therapy care component rate allocations; adjusted cost report data from 1999 will be used for July 1, 2001, through June 30, ((2004)) (2005), therapy care component rate allocations.

              (b) Therapy care component rate allocations shall be adjusted annually for economic trends and conditions by a factor or factors defined in the biennial appropriations act.

              (6)(a) Support services component rate allocations shall be established using adjusted cost report data covering at least six months. Adjusted cost report data from 1996 shall be used for October 1, 1998, through June 30, 2001, support services component rate allocations; adjusted cost report data from 1999 shall be used for July 1, 2001, through June 30, ((2004)) 2005, support services component rate allocations.

              (b) Support services component rate allocations shall be adjusted annually for economic trends and conditions by a factor or factors defined in the biennial appropriations act.

              (7)(a) Operations component rate allocations shall be established using adjusted cost report data covering at least six months. Adjusted cost report data from 1996 shall be used for October 1, 1998, through June 30, 2001, operations component rate allocations; adjusted cost report data from 1999 shall be used for July 1, 2001, through June 30, ((2004)) 2005, operations component rate allocations.

              (b) Operations component rate allocations shall be adjusted annually for economic trends and conditions by a factor or factors defined in the biennial appropriations act.

              (8) For July 1, 1998, through September 30, 1998, a facility's property and return on investment component rates shall be the facility's June 30, 1998, property and return on investment component rates, without increase. For October 1, 1998, through June 30, 1999, a facility's property and return on investment component rates shall be rebased utilizing 1997 adjusted cost report data covering at least six months of data.

              (9) Total payment rates under the nursing facility medicaid payment system shall not exceed facility rates charged to the general public for comparable services.

              (10) Medicaid contractors shall pay to all facility staff a minimum wage of the greater of the state minimum wage or the federal minimum wage.

              (11) The department shall establish in rule procedures, principles, and conditions for determining component rate allocations for facilities in circumstances not directly addressed by this chapter, including but not limited to: The need to prorate inflation for partial-period cost report data, newly constructed facilities, existing facilities entering the medicaid program for the first time or after a period of absence from the program, existing facilities with expanded new bed capacity, existing medicaid facilities following a change of ownership of the nursing facility business, facilities banking beds or converting beds back into service, facilities temporarily reducing the number of set-up beds during a remodel, facilities having less than six months of either resident assessment, cost report data, or both, under the current contractor prior to rate setting, and other circumstances.

              (12) The department shall establish in rule procedures, principles, and conditions, including necessary threshold costs, for adjusting rates to reflect capital improvements or new requirements imposed by the department or the federal government. Any such rate adjustments are subject to the provisions of RCW 74.46.421.

              (13) Effective July 1, 2001, medicaid rates shall continue to be revised downward in all components, in accordance with department rules, for facilities converting banked beds to active service under chapter 70.38 RCW, by using the facility's increased licensed bed capacity to recalculate minimum occupancy for rate setting. However, for facilities other than essential community providers which bank beds under chapter 70.38 RCW, after May 25, 2001, medicaid rates shall be revised upward, in accordance with department rules, in direct care, therapy care, support services, and variable return components only, by using the facility's decreased licensed bed capacity to recalculate minimum occupancy for rate setting, but no upward revision shall be made to operations, property, or financing allowance component rates.

              (14) Facilities obtaining a certificate of need or a certificate of need exemption under chapter 70.38 RCW after June 30, 2001, must have a certificate of capital authorization in order for (a) the depreciation resulting from the capitalized addition to be included in calculation of the facility's property component rate allocation; and (b) the net invested funds associated with the capitalized addition to be included in calculation of the facility's financing allowance rate allocation.


              Sec. 914. RCW 79.90.245 and 2002 c 371 s 923 are each amended to read as follows:

              After deduction for management costs as provided in RCW 79.64.040 and payments to towns under RCW 79.92.110(2), all moneys received by the state from the sale or lease of state-owned aquatic lands and from the sale of valuable material from state-owned aquatic lands shall be deposited in the aquatic lands enhancement account which is hereby created in the state treasury. After appropriation, these funds shall be used solely for aquatic lands enhancement projects; for the purchase, improvement, or protection of aquatic lands for public purposes; for providing and improving access to such lands; and for volunteer cooperative fish and game projects.

              In providing grants for aquatic lands enhancement projects, the department shall require grant recipients to incorporate the environmental benefits of the project into their grant applications, and the department shall utilize the statement of environmental benefits in its prioritization and selection process. The department shall also develop appropriate outcome-focused performance measures to be used both for management and performance assessment of the grants. To the extent possible, the department should coordinate its performance measure system with other natural resource-related agencies as defined in RCW 43.41.270. The department shall consult with affected interest groups in implementing this section.

              During the fiscal biennium ending June 30, ((2003)) 2005, the funds may be appropriated for boating safety, settlement costs for aquatic lands cleanup, and shellfish management, enforcement, and enhancement.


              NEW SECTION. Sec. 915. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.


              NEW SECTION. Sec. 916. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.


              On page 1, line 1 of the title, after "matters;" strike the remainder of the title and insert "amending RCW 9.46.100, 28A.160.195, 28B.102.040, 28B.119.010, 43.83.020, 43.88.030, 43.105.830, 43.105.835, 49.70.170, 69.50.520, 74.46.431, and 79.90.245; amending 2003 1st sp.s. c 25 ss 101, 102, 103, 104, 109, 110, 111, 113, 114, 115, 118, 121, 122, 123, 124, 125, 126, 128, 129, 137, 138, 140, 141, 135, 142, 143, 146, 147, 148, 150, 151, 201, 202, 203, 204, 205, 206, 207, 208, 209, 210, 211, 212, 213, 217, 219, 220, 221, 222, 226, 216, 225, 302, 303, 304, 305, 306, 307, 308, 309, 401, 402, 501, 502, 503, 504, 505, 506, 507, 508, 509, 510, 511, 512, 513, 514, 515, 516, 517, 602, 603, 604, 605, 606, 607, 608, 609, 610, 611, 701, 703, 704, 709, 712, 715, 718, 723, 710, 720, 801, 805, and 806 (uncodified); adding a new section to chapter 43.330 RCW; adding new sections to 2003 1st sp.s. c 25 (uncodified); making appropriations; and declaring an emergency."


and the same is herewith transmitted.

Milt H. Doumit, Secretary


             There being no objection, the House concurred in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2459 and advanced the bill, as amended by the Senate, to final passage.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


             Representatives Sommers, Sehlin, Kagi, Clements, Kenney, Mastin, Kessler, Carrell, Flannigan and Schual-Berke spoke in favor the passage of the bill.


             The Speaker (Representative Lovick presiding) stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2459, as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2459, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 84, Nays - 12, Absent - 0, Excused - 2.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Eickmeyer, Ericksen, Flannigan, Fromhold, Grant, Haigh, Hatfield, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McIntire, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Rockefeller, Rodne, Romero, Ruderman, Santos, Schoesler, Schual-Berke, Sehlin, Shabro, D. Simpson, G. Simpson, Sommers, Sullivan, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 84.

             Voting nay: Representatives Chandler, Chase, Crouse, Hankins, Holmquist, McMahan, McMorris, Newhouse, Nixon, Schindler, Skinner and Sump - 12.

             Excused: Representatives Edwards and Hinkle - 2.

  

             ENGROSSED SUBSTITUTE HOUSE BILL NO. 2459, as amended by the Senate, having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             I intended to vote YEA on ENGROSSED SUBSTITUTE HOUSE BILL NO. 2459.

SHIRLEY HANKINS, 8th District


POINT OF PERSONAL PRIVILEGE


             Representative Sommers acknowledged and thanked the staff of the Appropriations Committee for their hard work in developing the operating budget. She asked the chamber to acknowledge the staff members as well.


POINT OF PERSONAL PRIVILEGE


             Representative Sehlin joined Representative Sommers in acknowledging and thanking the staff of the Appropriations Committee for their hard work in developing the operating budget. He asked the chamber to acknowledge the staff members.


SECOND READING


             ENGROSSED SENATE BILL NO. 6290, By Senators Stevens, Hargrove, Winsley and Rasmussen; by request of Office of Financial Management


             Revising provisions relating to the use of risk assessments in the supervision of offenders who committed misdemeanors and gross misdemeanors.


             The bill was read the second time.


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


             Representatives O'Brien, Sehlin and Kagi spoke in favor of passage of the bill.


             Representatives Carrell, Schindler and Ahern spoke against the passage of the bill.


             There being no objection, the House deferred action on ENGROSSED SENATE BILL NO. 6290, and the bill held its place on the third reading calendar.


MESSAGES FROM THE SENATE

March 11, 2004

Mr. Speaker:


             The Senate concurred in the House amendment to ENGROSSED SENATE BILL NO. 6737,

and passed the bill as amended by the House, and the same is herewith transmitted.

Milt H. Doumit, Secretary


March 11, 2004

Mr. Speaker:


             The Senate has passed:

HOUSE BILL NO. 2663,

SUBSTITUTE HOUSE BILL NO. 2788,

SUBSTITUTE HOUSE JOINT MEMORIAL NO. 4028,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


March 11, 2004

Mr. Speaker:


             The Senate has passed:

SUBSTITUTE HOUSE BILL NO. 2366,

SUBSTITUTE HOUSE BILL NO. 2618,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


March 11, 2004

Mr. Speaker:


             The Senate has receded from its amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2381, and passed the bill without said amendment, and the same is herewith transmitted.

Milt H. Doumit, Secretary


SIGNED BY THE SPEAKER


             The Speaker signed:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2381,


GOVERNOR GARY LOCKE


             The Sergeant at Arms announced that Governor Gary Locke was at the doors of the Chamber. The Speaker requested that the Sergeant at Arms escort Governor Locke to the Rostrum. The Governor addressed the body.


             Governor Locke: "Thank you, Mr. Speaker and to the members of the House. It is a pleasure to be here. Emily and Dylan have been kind of floating around the last several days. Emily has just turned seven years old on Tuesday and Dylan turns five on Saturday. It's hard to believe that they have grown so much and so fast in just these few years. It's hard to believe that Emily was born just about five weeks after we took office in 1997. This is, of course unless you go into special session or there is some extraordinary circumstance between now and January, our last legislative session as the governor of the State of Washington. I want to tell you that it has been an incredible honor and privilege serving as governor of this incredible, wonderful, beautiful state.

             It has been a pleasure being here in Olympia. I can't quite say where I would be sitting within these new chambers but I remember very well, very vividly the seat that I sat in for some 12 years in the House of Representatives in the Capitol Building. I have great memories of my days in Olympia as a legislator and now as governor.

             We have done a lot of good stuff. You should be very proud of the incredible progress that we have been able to make in our state. I have watched over TVW and the access channels to some of the debate and proceedings. I know there are major philosophical difference on a lot of issues but in the end, you are able to compromise, you are able to come together and make progress on some tough issues. When you go across the country, and I think as you have learned from some of your ALEC or NCSL and some of the other associations that you work in and work with, Washington is highly acclaimed in some many different areas. So many of our state agencies are ranked number one in the country. State Patrol, the premiere law enforcement agency in the year 2002. The Washington State Printing Office – deemed the most efficient most productive printing operation in all of America even compared to the private sector against major Fortune 500 companies. And the list goes on and on – Retirement Systems, Department of Information Services, so many of the things that the public gets can now be done over the Internet from the ease of their homes or businesses. And we've advanced Washington's reputation around the world with trade missions to Asia, to Mexico and to Europe. You have all been part of that.

             I know that several of you will not be returning next year due to retirements. Representative Sehlin for one, Representative McMorris who is running for Congress and many others will be going on to other ventures. And quite frankly, given the political season, not everyone will come back given the nature of politics. But you can be proud of what you have done for the people of the State of Washington. I am very proud of you, of our legislative system and my work with all of you.

             I wanted to come by and say thank you. I know there has been a lot of tough negotiating and compromising these last several days and especially today on a whole host of issues. I know that people are very anxious to get home. I wanted to say thank you for the great job that you do. I wish you all the very best."


SENATE AMENDMENTS TO HOUSE BILL

March 11, 2004

Mr. Speaker:


             The Senate receded from the amendments to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2573. Under suspension of the rules Engrossed Substitute House Bill No. 2573 was returned to second reading for purpose of amendment. The Senate adopted the following amendments and passed the bill as amended by the Senate:


              Strike everything after the enacting clause and insert the following:


              "NEW SECTION. Sec. 1. A supplemental capital budget is hereby adopted making changes to existing appropriations and making new appropriations which, subject to the provisions set forth in this act, the several dollar amounts hereinafter specified, or so much thereof as shall be necessary to accomplish the purposes designated, are hereby appropriated and authorized to be incurred for capital purposes for the biennium ending June 30, 2005, out of the several funds specified in this act.


PART 1

ADJUSTMENTS/CORRECTIONS TO 2003-2005 CAPITAL BUDGET


              Sec. 101. 2003 1st sp.s. c 26 s 101 (uncodified) is amended to read as follows:

FOR THE JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEE

              Capital Budget Studies (04-1-950)


              (1) The ((appropriations)) appropriation in this section ((are)) is provided solely for capital studies, projects, and tasks pursuant to sections 923 and 924 of this act.

              (2) The reappropriation in this section is from 2001 2nd sp.s. c 8 s 149 for the office of financial management.


Reappropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $164,000


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $664,000


              Sec. 102. 2003 1st sp.s. c 26 s 104 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

              Rural Washington Loan Fund (88-2-002)


Reappropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $558,000

              ((Rural Washington Loan Account--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,739,295

                            Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,297,295))

Appropriation:

              Rural Washington Loan Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,542,969


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,353,072))

$2,549,398

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7,650,367


              Sec. 103. 2003 1st sp.s. c 26 s 105 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT              Rural Washington Loan Fund (RWLF) (04-4-009)


Appropriation:

              General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,900,000

              Rural Washington Loan Account--((Federal)) State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,581,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,481,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,132,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$27,613,000


              Sec. 104. 2003 1st sp.s. c 26 s 107 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT              Building for the Arts (04-4-007)


              The appropriation in this section is subject to the following conditions and limitations: The appropriation is subject to the provisions of RCW 43.63A.750. The following projects are eligible for funding:


Projects

Location

Recommendation

Artspace (Tashiro Kaplan)

Seattle

$300,000

Broadway center

Tacoma

$400,000

Children's museum

Everett

$200,000

Columbia city gallery

Seattle

$110,000

Cornish College

Seattle

$700,000

Friends of Gladish

Pullman

$37,000

Historic cooper school

Seattle

$32,000

Lincoln theatre

Mt. Vernon

$110,000

Olympic theatre arts

Sequim

$265,000

Orcas sculpture park

Eastsound

$15,000

Pacific Northwest ballet

Bellevue

$268,000

Pratt fine arts center

Seattle

$700,000

Richland players theatre

Richland

$51,000

S'Klallam longhouse

Kingston

$200,000

Seattle art museum

Seattle

$700,000

Squaxin Island museum

Shelton

$100,000

Vashon allied arts

Vashon

$80,000

Velocity dance center

Seattle

$35,000

Western Washington center for the arts

Port Orchard

$165,000

((World kite museum

Long Beach

$32,000))

TOTAL

 

(($4,500,000))

$4,468,000

Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($4,500,000))

$4,468,000

              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16,000,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($20,500,000))

$20,468,000


              Sec. 105. 2003 1st sp.s. c 26 s 110 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT              Community Economic Revitalization Board (CERB) (04-4-008)


              The appropriation in this section is subject to the following conditions and limitations: ((The)) A maximum of twenty-five percent of the appropriation in this section ((is provided solely for loans to local governments)) may be used for grants.


Appropriation:

              Public Facility Construction Loan Revolving Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,491,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $36,718,769

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$48,209,769


              NEW SECTION. Sec. 106. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT              Drinking Water Assistance Program (00-2-007)


              The reappropriation in this section is subject to the following conditions and limitations: Funding from the state public works trust fund shall be matched with new federal sources to improve the quality of drinking water in the state, and shall be used solely for projects that achieve the goals of the federal safe drinking water act.


Reappropriation:

              Drinking Water Assistance Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,983,356


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,716,644

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7,700,000


              Sec. 107. 2003 1st sp.s. c 26 s 161 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

Reappropriation:

              Capitol Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $976,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,559,774

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($0))

$1,600,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($16,035,774))

$17,135,774


              Sec. 108. 2003 1st sp.s. c 26 s 159 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

              Transportation Building Preservation (((98-1-008))) (02-1-008)


Reappropriation:

              Thurston County Capital Facilities Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,001,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,964,065

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,090,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$22,055,065


              Sec. 109. 2003 1st sp.s. c 26 s 173 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

              Legislative Building Security (04-2-950)


              The appropriation in this section is subject to the following conditions and limitations: The department shall lease metal detectors for the legislative building for a term that expires no later than June 30, 2005. The department shall not renew the lease for metal detectors beyond June 30, 2005, unless specifically authorized to do so by the legislature.


Appropriation:

              Thurston County Capital Facilities Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,179,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,179,000


              Sec. 110. 2003 1st sp.s. c 26 s 169 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

              Engineering and Architectural Services (04-2-014)


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The appropriation in this section shall be used to provide project management services to state agencies as required by RCW 43.19.450 that are essential and mandated activities defined as core services and are included in the engineering and architectural services' responsibilities and task list for general public works projects of normal complexity. The general public works projects included are all those financed by the state capital budget for the biennium ending June 30, 2005, with individual total project values up to $20 million.

              (2) The department may negotiate agreements with agencies for additional fees to manage projects financed by financial contracts, other alternative financing, projects with a total value greater than $20 million, or for the nonstate funded portion of projects with mixed funding sources.

              (3) The department shall review each community and technical college request and the requests of other client agencies for funding any project over $2.5 million for inclusion in the 2004 supplemental capital budget and the 2005-07 capital budget to ensure that the amount requested by the agency is appropriate for predesign, design, and construction, depending on the phase of the project being requested. The department shall pay particular attention: (a) That the budgeted amount requested is at an appropriate level for the various components that make up the cost of the project such as project management; and (b) that standard measurements such as cost per square foot are reasonable. The department shall also assist the office of financial management with review of other agency projects as requested.


Appropriation:

              Charitable, Educational, Penal, and Reformatory Institutions Account--State. . . . . . . . . . . . . . . . . . . . . . . . . $140,000

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($6,009,000))

$6,996,000

              Thurston County Capital Facilities Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($3,437,000))

$937,000

              Community and Technical College Capital Projects Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,513,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$9,586,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$9,586,000


              NEW SECTION. Sec. 111. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES

              Eastern State Hospital: Legal Offender Unit (98-2-002)


Reappropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,330,537

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$15,580,537


              Sec. 112. 2003 1st sp.s. c 26 s 250 (uncodified) is amended to read as follows:

              FOR THE DEPARTMENT OF CORRECTIONS

              Monroe Corrections Center: 100 Bed Management and Segregation Unit (00-2-008)


              ((The appropriations in this section are subject to the following conditions and limitations:

              (1) It is the intent of the legislature to explore the concept of an anaerobic digester to treat dairy waste in Snohomish county, with the Monroe honor farm being one possible site for such a project.

              (2) The department shall not sell, lease, or otherwise dispose of the Monroe honor farm site prior to December 1, 2004.))


Reappropriation:

              General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,964,679

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$8,575,906

                            Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,540,585


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$18,674,031


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,223,416

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$39,438,032


              Sec. 113. 2003 1st sp.s. c 26 s 234 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF HEALTH

              Drinking Water Assistance Program (04-4-003)


              The appropriation in this section is subject to the following conditions and limitations: This appropriation is provided solely for an interagency agreement with the department of community, trade, and economic development to make, in cooperation with the public works board, loans to local governments and public water systems for projects and activities to protect and improve the state's drinking water facilities and resources.


Appropriation:

              Drinking Water Assistance Account--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($28,122,000))

$46,222,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($28,122,000))

$46,222,000


              Sec. 114. 2003 1st sp.s. c 26 s 313 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

              Centennial Clean Water Program (04-4-007)


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Up to $7,547,044 of the water quality account appropriation is provided for the extended grant payment to Metro/King county.

              (2) Up to $10,000,000 of the state building construction account--state appropriation is provided for the extended grant payment to Spokane for the Spokane-Rathdrum Prairie aquifer.

              (3) $2,000,000 of the state building construction account--state appropriation is provided solely for water quality facility grants for communities with a population of less than 5,000. The department shall give priority consideration to: (a) Communities subject to a regulatory order from the department of ecology for noncompliance with water quality regulations; (b) projects for which design work has been completed; and (c) projects with a local match from reasonable water quality rates and charges.

              (4) (($1,500,000 of the state building construction--state appropriation is provided solely for water conveyance facilities to implement the 1996 memorandum of agreement regarding utilization of Skagit river basin water resources for in-stream and out-of-stream purposes.

              (5))) $4,000,000 of the state building construction account--state appropriation is provided solely for a grant to the city of Duvall for construction of a sewage treatment plant.

              (((6))) (5) $1,000,000 of the state building construction account--state appropriation is provided solely for the Klickitat wastewater treatment project.

              (6) $1,100,000 of the state building construction account--state appropriation is provided solely for the comprehensive irrigation district management program.

              (7) $150,000 of the water quality account--state appropriation is to contract with a regional salmon enhancement organization for planning activities related to improving water quality in the Hood Canal, particularly research, preservation, and restoration of molluscan ecosystem including bivalves and other important filtering organisms in Hood Canal.

              (8) $1,000,000 of the water quality account--state appropriation is to assist the city of Enumclaw with wastewater treatment upgrades to address phosphorus loading in the White river.

              (9) The remaining appropriation in this section is provided for statewide water quality implementation and planning grants and loans. The department shall give priority consideration to projects located in basins with critical or depressed salmonid stocks.

              (((8))) (10) In addition to the annual project progress reporting requirement of RCW 43.88.160(3), the department shall file quarterly project progress reports with the office of financial management.


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($30,452,000))

$28,952,000

              Water Quality Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($15,948,000))

$17,098,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($46,400,000))

$46,050,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $200,000,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($246,400,000))

$246,050,000


              Sec. 115. 2003 1st sp.s. c 26 s 312 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

              Centennial Clean Water Fund (02-4-007) and (86-2-007)


              The reappropriation in this section is subject to the following conditions and limitations:

              (1) The reappropriation is subject to the conditions and limitations of section 315, chapter 8, Laws of 2001 2nd sp. sess.

              (2) The reappropriation for project number 86-2-007 is $793,214 for the public works assistance account and $4,600,505 for the water quality account. The remainder, $13,702,946 for the water quality account, is for project number 02-4-007.


Reappropriation:

              Public Works Assistance Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$793,214

              Water Quality Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($20,210,510))

$18,303,451

                            Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,096,665


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($115,983,563))

$117,890,622

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($136,194,073))

$136,987,287


              Sec. 116. 2003 1st sp.s. c 26 s 317 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

              Padilla Bay Expansion (02-2-006)


Reappropriation:

              General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,472,891))

$1,374,553

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($693,353))

$651,208

                            Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,166,244))

$2,025,761


Appropriation:

              General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,417,196))

$2,562,128

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $568,804

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,986,000))

$3,130,932


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($527,756))

$668,239

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($5,680,000))

$5,824,932


              Sec. 117. 2003 1st sp.s. c 26 s 309 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

              Water Rights Purchase/Lease (04-1-005)


              (1) The appropriation in this section is subject to the following conditions and limitations: The appropriation is provided for the purchase or lease of water rights. It is also provided for the purpose of improving stream and river flows in fish critical basins under the trust water rights program under chapters 90.42 and 90.38 RCW.

              (2) The appropriation in this section is subject to the policies and requirements of chapter . . . (Engrossed Substitute House Bill No. 1317), Laws of 2004.


Appropriation:

              General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,500,000

              State Drought Preparedness--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,500,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,000,000


              NEW SECTION. Sec. 118. If chapter . . . (Engrossed Substitute House Bill No. 1317), Laws of 2004, is not enacted by April 15, 2004, section 117 of this act is null and void.


              Sec. 119. 2003 1st sp.s. c 26 s 340 (uncodified) is amended to read as follows:

FOR THE STATE PARKS AND RECREATION COMMISSION

              Iron Horse Trail (04-2-016)


              ((The appropriation in this section is subject to the following conditions and limitations:

              (1) In addition to the annual project progress reporting requirement of RCW 43.88.160(3), the commission shall file quarterly project progress reports with the office of financial management.

              (2) The commission shall submit a study of potential user fees that could support maintenance, operation, and capital renewal costs of the agency's three cross-state trails. This study must be submitted to the office of financial management by June 30, 2004.))

              The appropriation in this section is subject to the following conditions and limitations: The commission shall submit a study of potential user fees that could support maintenance, operation, and capital renewal costs of the commission's three cross-state trails. This study must be submitted to the office of financial management by June 30, 2004.


Appropriation:

              ((State Building Construction Account--State))

                            Parks Renewal and Stewardship Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$262,500


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $262,500


              Sec. 120. 2003 1st sp.s. c 26 s 367 (uncodified) is amended to read as follows:

FOR THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION

              Salmon Recovery (00-2-001)


              The reappropriation in this section is subject to the following conditions and limitations:

              (1) The agency shall report to the legislature by December 1, 2003, on the reason for funds in this section not being expended.

              (2) $974,000 of this 2004 amendment is for a fund balance adjustment.


Reappropriation:

              General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $35,263,219

              Salmon Recovery Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($11,076,017))

$8,457,819

                            Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($46,339,236))

$43,721,038


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($53,566,576))

$55,210,774

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($101,569,389))

$98,931,812


              Sec. 121. 2003 1st sp.s. c 26 s 369 (uncodified) is amended to read as follows:

FOR THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION

              Salmon Recovery Fund Board Programs (SRFB) (04-4-001)


              The appropriations in this section are subject to the following conditions and limitations:

              (((1) $23,187,500 of the appropriation is provided for grants for restoration projects.

              (2) The remainder of)) The appropriation is provided solely for grants for other salmon recovery efforts. These grants shall include a grant to any regional recovery board established in the Revised Code of Washington and may include grants for additional restoration projects.

              (((3) By December 1, 2003, the salmon recovery funding board shall provide a report to the house of representatives capital budget committee and the senate ways and means committee that enumerates board expenditures for salmon recovery projects and activities. The report shall include a list of each project that has been approved for funding by the board, and each project that was submitted on a lead entity habitat project schedule and not funded by the board. Each list shall include the project, project description, project sponsor, status of the project including expenditures to date and completion date, and matching funds that were available for the project. The report shall also include a list and description of all other activities funded by the board including consulting contracts, lead entity and regional recovery board contracts, a description of each of these activities, and the timeline for their completion.))


Appropriation:

              General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $34,375,000

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$12,000,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$46,375,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$46,375,000


              Sec. 122. 2003 1st sp.s. c 26 s 354 (uncodified) is amended to read as follows:

FOR THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION

              Washington Wildlife and Recreation Program (WWRP) (04-4-002)


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The appropriation is provided for the approved list of projects in LEAP capital document No. 2003-45, as developed on June 4, 2003, and LEAP capital document No. 2004-17, as developed on February 25, 2004. In addition to the annual project progress reporting requirement of RCW 43.88.160(3), the committee shall file quarterly project progress reports with the office of financial management.

              (2) It is the intent of the legislature that any moneys remaining unexpended shall be reappropriated in the 2005-07 biennium, but no reappropriations shall be made in subsequent biennia.

              (3) The department of natural resources shall manage lands acquired through project No. 02-1090, "Bone river and Niawiakum river natural area preserves," as natural resources conservation areas under chapter 79.71 RCW.

              (4) Up to $95,000 of the outdoor recreation account--state and up to $95,000 of the habitat conservation account--state appropriations are provided to implement chapter ... (Substitute Senate Bill No. 6242), Laws of 2004. If this bill is not enacted by April 15, 2004, this subsection (4) shall lapse.

              (5) The committee shall develop or revise project evaluation criteria based on the provisions of chapter ... (Engrossed Substitute House Bill No. 2275 or Second Substitute Senate Bill No. 6082), Laws of 2004, as it prepares its project recommendations for the next budget cycle.


Appropriation:

              Outdoor Recreation Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,500,000

              Habitat Conservation Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,500,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$45,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $120,000,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$165,000,000


              Sec. 123. 2003 1st sp.s. c 26 s 394 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE FISH AND WILDLIFE

              Job Creation and Infrastructure Projects (03-1-001)


              The reappropriation in this section is subject to the following conditions and limitations:

              (1) The reappropriation shall support the projects as listed in section 212, chapter 238, Laws of 2002.

              (2) The legislature does not intend to reappropriate amounts not expended by June 30, 2005.


Reappropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($970,000))

$1,285,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,070,000))

$1,755,000

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,040,000


              Sec. 124. 2003 1st sp.s. c 26 s 398 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE

              Hatchery Reform, Retrofits, and Condition Improvement (04-1-001)


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $400,000 of the state building construction account--state appropriation is provided solely for Naselle hatchery. A portion of this amount may be used for maintenance and minor projects at fish hatcheries other than Naselle to the extent such use results in corresponding savings in the operating budget that shall be transferred to support of Naselle operations.

              (2) $1,300,000 of the state building construction account--state appropriation is provided solely for the Tokul creek hatchery.

              (3) The wildlife account--state appropriation is provided solely for design of capture and acclimation ponds at Grandy creek.


Appropriation:

              General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,500,000

              General Fund--Private/Local. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,500,000

              Wildlife Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$200,000

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7,700,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$13,900,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$13,900,000


              Sec. 125. 2003 1st sp.s. c 26 s 406 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

              Minor Works (02-2-001) and (00-2-011)


Reappropriation:

              Forest Development Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $256,230

              Resources Management Cost Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $482,466

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $455,575

              Agricultural College Trust Management Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$68,950

                            Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,263,221


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,006,779

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7,270,000


              Sec. 126. 2003 1st sp.s. c 26 s 408 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

              Minor Works--Facility Preservation (04-1-002)


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The department shall report to the office of financial management by September 1, 2004, all minor works expenditures over $100,000 for fiscal year 2004 using funds appropriated under this section.

              (2) By December 1, 2004, the office of financial management shall report to the capital budget related committees of the legislature all expenditures under subsection (1) of this section that were not on a minor works list approved by the office of financial management at the time of the expenditure.


Appropriation:

              Forest Development Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $224,900

              Resources Management Cost Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $389,700

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000

              Agricultural College Trust Management Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$49,200

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $813,800


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $813,800


              Sec. 127. 2003 1st sp.s. c 26 s 501 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE PATROL

              Seattle Toxicology Lab (((00-2-009))) (00-2-008)


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $800,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,059,864

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,655,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$14,514,864


              Sec. 128. 2003 1st sp.s. c 26 s 604 (uncodified) is amended to read as follows:

FOR THE STATE BOARD OF EDUCATION

              Resource Efficiency Pilot Project (04-4-851)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) $1,350,000 of this appropriation is provided solely for costs directly associated with the design and construction of five public K-12 schools that meet or exceed comprehensive design standards for high performance and sustainable school building standards, including up to five percent of the amount in this subsection for costs associated with administering the five pilot projects.

              (2) Up to $150,000 of this appropriation shall be used to:

              (a) Develop a technical manual to facilitate the use of high performance and sustainable school building standards by K-12 schools;

              (b) Develop incentives for school districts participating in this program to construct buildings that achieve a significant life-cycle savings over current practices;

              (c) Integrate the technical manual with other applicable K-12 construction manuals, rules, and policies;

              (d) Report to the appropriate standing committees of the legislature on the potential for sustainable building practices to reduce expenditures for school construction.

              The board may contract with one or more entities to fulfill the requirements of subsection (2) of this section and may require match funding of up to one hundred percent for participating nongovernmental entities.


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,500,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,500,000


              Sec. 129. 2003 1st sp.s. c 26 s 615 (uncodified) is amended to read as follows:

FOR THE STATE SCHOOL FOR THE BLIND

              Kennedy, Dry, and Irwin Buildings Preservation (04-1-002)


              The appropriation in this section is subject to the following conditions and limitations: Up to $1,700,000 may be used for a predesign and design of a replacement for the Kennedy facility. Before design funds may be released, the office of financial management, after consultation with the legislature, must agree with the findings of the predesign.


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,279,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,279,000


              Sec. 130. 2003 1st sp.s. c 26 s 743 (uncodified) is amended to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              South Puget Sound Community College: Humanities/General Education Complex (00-2-679)


Reappropriation:

              ((Education Construction Account--State))

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,092,690

Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$17,350,248


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$812,310

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$19,255,248


              NEW SECTION. Sec. 131. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE STATE PARKS AND RECREATION COMMISSION

              Leadbetter Acquisition/Restoration (05-1-850)


Reappropriation:

              General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$107,933


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$886,067

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $994,000


              Sec. 132. 2003 1st sp.s. c 26 s 380 (uncodified) is amended to read as follows:

FOR THE STATE CONSERVATION COMMISSION

              Dairy Nutrient Management Grants Program (02-4-002)


              The appropriations in this section are subject to the following conditions and limitations: The appropriations may be used for all animal waste management programs.


Reappropriation:

              Water Quality Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $350,000

Appropriation:

              Water Quality Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,600,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,950,000


              Sec. 133. 2003 1st sp.s. c 26 s 738 (uncodified) is amended to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Highline Community College: Higher Ed Center/Childcare (00-2-678)


              The appropriations in this section are subject to the following conditions and limitations: Up to $550,000 may be used to develop additional parking needed to support this project.


Reappropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $985,949

Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($14,654,000))

$12,242,000

              Community and Technical College Capital Projects Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,898,000))

$6,860,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($18,552,000))

$19,102,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,359,051

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($20,897,000))

$21,447,000


              Sec. 134. 2003 1st sp.s. c 26 s 805 (uncodified) is amended to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Minor Works - Program (Minor Improvements) (04-2-130)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) The state board for community and technical colleges shall report to the office of financial management by September 1, 2004, all minor works expenditures over $100,000 for fiscal year 2004 using funds appropriated under this section.

              (2) By December 1, 2004, the office of financial management shall report to the capital budget related committees of the legislature all expenditures under subsection (1) of this section that were not on a minor works list approved by the office of financial management at the time of the expenditure.


Appropriation:

              Community and Technical College Capital Projects Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . (($14,979,217))

$13,466,217

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,513,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$14,979,217


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,000,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$54,979,217


              Sec. 135. 2003 1st sp.s. c 26 s 782 (uncodified) is amended to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Job Creation and Infrastructure Projects (03-1-001)


              The reappropriation and appropriation in this section ((is)) are subject to the following conditions and limitations:

              (1) The reappropriation in this section shall support the projects as listed in section 224, chapter 238, Laws of 2002.

              (2) With the following exception, the legislature does not intend to reappropriate amounts not expended by June 30, 2005: CWU/Wenatchee higher education center, also known as Van Tassel center addition or the Wenatchee Valley College portable replacement project, (04-1-201).


Reappropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $865,437

              Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,209,178

                            Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,074,615


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,525,560

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$26,600,175


              Sec. 136. 2003 1st sp.s. c 26 s 816 (uncodified) is amended to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Seattle Central: Replacement North Plaza Building (04-1-275)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) The appropriation is solely for the design, construction, and equipment for information technology space. As presented to the legislature, the space for this program is created by adding a floor to another structure.

              (2) The state board for community and technical colleges shall submit major project reports on this project to the office of financial management with copies to the legislative fiscal committees in accordance with the established procedures for major project reports.

              (3) Following occupancy of the project, the state board for community and technical colleges, with the assistance of the department of general administration and the community college, shall submit a final budget reconciliation by fund source for all costs of the project, including equipment and furnishings.


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,976,200


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,976,200


              Sec. 137. 2003 1st sp.s. c 26 s 821 (uncodified) is amended to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Tacoma Community College: Renovation - Building 7 (04-1-313)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) The appropriation is solely for the design, construction, and equipment for an extensive renovation of an instructional building and its systems.

              (2) The state board for community and technical colleges shall submit major project reports on this project to the office of financial management with copies to the legislative fiscal committees in accordance with the established procedures for major project reports.

              (3) Following occupancy of the project, the state board for community and technical colleges, with the assistance of the department of general administration and the community college, shall submit a final budget reconciliation by fund source for all costs of the project, including equipment and furnishings.


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,988,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,988,000


PART 2

CAPITAL PROJECTS/PROGRAMS/ENHANCEMENTS


              Sec. 201. 2003 1st sp.s. c 26 s 130 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

              Drinking Water Assistance Account (04-4-002)


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Expenditures of the appropriation shall comply with RCW 70.119A.170.

              (2)(a) The state building construction account appropriation is provided solely to provide assistance to counties, cities, and special purpose districts to identify, acquire, and rehabilitate public water systems that have water quality problems or have been allowed to deteriorate to a point where public health is an issue. Eligibility is confined to applicants that already own at least one group A public water system and that demonstrate a track record of sound drinking water utility management. Funds may be used for: Planning, design, and other preconstruction activities; system acquisition; and capital construction costs.

              (b) The state building construction account appropriation must be jointly administered by the department of health, the public works board, and the department of community, trade, and economic development using the drinking water state revolving fund loan program as an administrative model. In order to expedite the use of these funds and minimize administration costs, this appropriation must be administered by guidance, rather than rule. Projects must generally be prioritized using the drinking water state revolving fund loan program criteria. All financing provided through this program must be in the form of grants that must partially cover project costs. The maximum grant to any eligible entity may not exceed twenty-five percent of the funds allocated to this appropriation.


Appropriation:

              Drinking Water Assistance Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($8,500,000))

$12,700,000

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,000,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($12,500,000))

$16,700,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $32,400,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($44,900,000))

$49,100,000


              Sec. 202. 2003 1st sp.s. c 26 s 134 (uncodified) is amended to read as follows:

              FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT              Housing Assistance, Weatherization, and Affordable Housing (04-4-003)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) At least $9,000,000 of the appropriation is provided solely for weatherization administered through the energy matchmakers program.

              (2) $5,000,000 of the appropriation is provided solely to promote development of safe and affordable housing units for persons eligible for services from the division of developmental disabilities within the department of social and health services.

              (3) $2,000,000 of the appropriation is provided solely for grants to nonprofit organizations and public housing authorities for revolving loan, self-help housing programs for low and moderate income families.

              (4) $1,000,000 of the appropriation is provided solely for shelters, transitional housing, or other housing facilities for victims of domestic violence.

              (5) $8,000,000 of the appropriation is provided solely for facilities housing low-income migrant, seasonal, or temporary farmworkers. It is the intent of the legislature that operation of the facilities built under this section be in compliance with 8 U.S.C. Sec. 1342. The department shall minimize the amount of these funds that are utilized for staff and administrative purposes or other operational expenses. The department shall work with the farmworker housing advisory committee to prioritize funding of projects to the areas of highest need. Funding may also be provided, to the extent qualified projects are submitted, for health and safety projects.

              (6) $5,000,000 of the appropriation is provided solely for the development of emergency shelters and transitional housing opportunities for homeless families with children. The department shall minimize the amount of funds that are utilized for staff and administrative purposes or other operational expenses.

              (7) Up to $1,000,000 of the appropriation is provided solely to help capitalize a self-insurance risk pool for nonprofit corporations in Washington that develop housing units for low-income persons and families after the pool is approved by the state risk manager. The department shall develop a plan to create this self-insurance risk pool for submission to the office of the risk manager no later than December 1, 2004. The department shall establish an advisory committee of interested stakeholders to assist the department in developing the plan required under this subsection. The plan shall provide that the self-insurance risk pool shall repay to the state the appropriation under this section whenever the capitalization exceeds the minimum requirements established by the office of the risk manager.


Appropriation:

              State Taxable Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($80,000,000))

$81,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $200,000,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($280,000,000))

$281,000,000


              NEW SECTION. Sec. 203. If chapter . . . (Second Substitute House Bill No. 1840), Laws of 2004 is not enacted by April 15, 2004, section 202 of this act is null and void.


              Sec. 204. 2003 1st sp.s. c 26 s 151 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

              Local/Community Projects (04-4-011)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) The projects must comply with RCW 43.63A.125(2)(c) and other standard requirements for community projects administered by the department, except that the Highline historical society project is land acquisition.

              (2) The appropriation is provided for the following list of projects:


Local Community Project List

Location

Amount

Art Crate field

Bethel

$500,000

Asia Pacific cultural center

Tacoma

$100,000

Asotin aquatic center

Clarkston

$500,000

Auburn YMCA

Auburn

$250,000

Boys and girls clubs of Snohomish county

Lake Stevens

$350,000

Burke museum

Seattle

$500,000

Capital arts theater and sculpture garden

Olympia

$250,000

Capitol theater

Yakima

$500,000

Chinese reconciliation project

Tacoma

$300,000

Clark lake park

Kent

$400,000

Colman school

Seattle

$300,000

Crossroads community center

Bellevue

$500,000

Eastside heritage center

Bellevue

$200,000

Eatonville city projects

Eatonville

$150,000

Edgewood sewer

Edgewood

$100,000

Edmonds center for the arts

Edmonds

$500,000

El Centro de la Raza

Seattle

$117,000

Farmers market and maritime park

Bellingham

$500,000

Firstenburg community center

Vancouver

$500,000

Former capitol historical marker

Olympia

$2,000

Fort Vancouver national historic reserve

Vancouver

$250,000

Friends of the falls/Great Gorge park

Spokane

$250,000

Frontier park

Pierce county

$165,000

GAR cemetery

Seattle

$5,000

Graham fire district emergency services center

Graham

$150,000

Grandmother's hill

Tukwila

$300,000

Highline historical society

Highline

$300,000

Historical cabins project

Federal Way

$106,000

Hugs foundation

Raymond

$21,500

Northwest kidney centers

Bellevue

$300,000

Museum of flight - WWI and WWII

Seattle

$500,000

Naval museum

Bremerton

$500,000

New Phoebe house

Tacoma

$25,000

Northwest orthopaedic institute

Tacoma

$200,000

Paramount theater

Seattle

$250,000

Rainier historical museum/Community center

Rainier

$20,000

Ritzville public development authority

Ritzville

$50,000

Seahurst ELC

Burien

$100,000

South Hill community park

Pierce county

$250,000

South Lake Union park

Seattle

$100,000

South Wenatchee family services center

Wenatchee

$400,000

Stonerose interpretive center

Republic

$8,000

Sweetwater creek restoration

Hood Canal

$500,000

Tacoma seawall

Tacoma

$250,000

Thyme patch park

Seattle

$5,000

ToscoSports complex

Ferndale

$500,000

Ustalady beach acquisition

Island county

$135,000

Veterans memorial museum

Chehalis

$255,000

West Hylebos state park

Federal Way

$250,000

White Center apprenticeship

White Center

$250,000

Woodway wildlife reserve

Woodway

$300,000

Youth development center

Federal Way

$100,000

 

 

 

TOTAL

 

(($12,197,500))

$13,314,500


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($12,197,500))

$13,314,500


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($12,197,500))

$13,314,500


              Sec. 205. 2003 1st sp.s. c 26 s 135 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

              Lewis and Clark Confluence Project (04-2-954)


              The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section shall meet the requirements of section 151(1) of this act.


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,000,000))

$5,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,000,000))

$5,000,000


              NEW SECTION. Sec. 206. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

              Port of Walla Walla Land Acquisition (04-4-961)


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,000,000


              NEW SECTION. Sec. 207. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT OFFICE OF FINANCIAL MANAGEMENT

              Capital Budget and Facilities Management Enhancement (05-2-850)


              The appropriation in this section is subject to the following conditions and limitations: The purpose of this appropriation is to implement the recommendations of the higher education facilities preservation study and other related budget and financial management system improvements. These improvements should also be applicable to nonhigher education institutions.


Appropriation:

              Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$150,000

              Charitable, Educational, Reformatory, and Penal Institutions Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . $15,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $165,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $165,000


              NEW SECTION. Sec. 208. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

              Cherberg Building: Rehabilitation (02-1-005)


              The appropriation in this section is subject to the following conditions and limitations: The appropriation is for the purpose of furthering the John A. Cherberg building rehabilitation project, including but not limited to the following: Project final design and initial phase of reconstruction; purchase and remodel of the two modular buildings currently owned by the Legislative building rehabilitation project; and remodel of a portion of the Joel M. Pritchard building for use as swing space during reconstruction.


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$695,000

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,429,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$21,124,000


              Sec. 209. 2003 1st sp.s. c 26 s 162 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

              Legislative Building: Rehabilitation and Capital Addition (01-1-008)


              The appropriations in this section are subject to the following conditions and limitations: The reappropriation in this section is subject to the conditions and limitations of section 109, chapter 238, Laws of 2002 and section 904, chapter 10, Laws of 2003.


Reappropriation:

              Capital Historic District Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $68,450,000

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,000,000

                            Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $74,450,000

Appropriation:

              Thurston County Capital Facilities Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,300,000))

$4,800,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $26,031,000

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($102,781,000))

$105,281,000


              NEW SECTION. Sec. 210. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

              Legislative Building Technology Infrastructure (05-4-850)


              The appropriation in this section is subject to the following conditions and limitations: The appropriation is for the joint legislative system committee's costs of equipping the legislative building for technology infrastructure, including computer wiring closets, audio and video communications, and wireless computer capabilities.


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,400,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,400,000


              NEW SECTION. Sec. 211. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE CRIMINAL JUSTICE TRAINING CENTER

              Minor Works - Facility Preservation (05-1-850)


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50,000


              Sec. 212. 2003 1st sp.s. c 26 s 267 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

              Minor Works - Health, Safety, and Code (04-1-021)


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($4,000,000))

$3,750,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($4,000,000))

3,750,000


              NEW SECTION. Sec. 213. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

              FOR THE DEPARTMENT OF CORRECTIONS

              Washington Corrections Center for Women: Sewer Connection Fee (05-2-002)


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $140,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $140,000


              Sec. 214. 2003 1st sp.s. c 26 s 273 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

              Master Planning (04-4-950)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) The appropriation is provided solely for the department to contract for master planning services.

              (2) The department shall incorporate the integration of operating and capital in the scope of work and master planning effort to include a minimum six-year planning horizon.

              (3) The master plan shall include an analysis of forecasted offender population growth, gender, custody level, population and medical needs, infrastructure needs, and a system-wide view of facility needs. Alternatives should be generated that include the management of excess capacity, such as rental beds, regional jails, and other options to add capacity to the existing system at the same or a lower cost than new construction of prison beds and eventual operating costs. These alternatives shall include an exploration of using other state facilities that are currently being reviewed as part of a master planning process.

              (4) The plan shall consider strategies to integrate capital and operating planning and improve efficiencies in both areas.

              (((6))) (5) The department shall not deduct any portion of this amount for administrative costs related to new staffing.


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000


              NEW SECTION. Sec. 215. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

              FOR THE DEPARTMENT OF CORRECTIONS

              Statewide: Water System Plans (05-1-003)


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $110,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $110,000


              Sec. 216. 2003 1st sp.s. c 26 s 304 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

              Local Toxics Grants to Locals for Cleanup and Prevention (04-4-008)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) $8,000,000 of the appropriation is provided solely for a grant to the port of Ridgefield to continue clean-up actions on port-owned property.

              (2) $1,800,000, or as much thereof as may be necessary, of the appropriation is provided solely for a grant to Klickitat county for removal and disposal or recycling of vehicle tires. The grant shall include conditions that require Klickitat county to contract for the vehicle tire removal following a competitive bidding process. No funds from the grant may be expended for any remediation activities other than vehicle tire removal, disposal, and recycling.


Appropriation:

              Local Toxics Control Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($45,000,000))

$47,050,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($45,000,000))

$47,050,000


              NEW SECTION. Sec. 217. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

              Water Conveyance Infrastructure Projects (05-2-850)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) $1,500,000 of the state building construction account--state appropriation is provided solely for water conveyance facilities to implement the 1996 memorandum of agreement regarding utilization of Skagit river basin water resources for in-stream and out-of-stream purposes.

              (2) $300,000 of the state and local improvements revolving account--state appropriation is provided solely for the Bertrand watershed improvement district to address unpermitted water use and environmental compliance and fund early action planning, feasibility studies, and construction of early action projects.

              (3) $1,600,000 of the state building construction account--state appropriation is provided solely for the Middle Fork Nooksack river water diversion system.

              (4) First priority from the remaining appropriation, $1,475,000 from the state and local improvements account--state appropriation, $350,000 from the state building construction account--state appropriation, and the water quality account--state appropriation, shall be the following projects: Piping in the upper Yakima river; piping for Bull canal; piping for the Lowden number 2 ditch; diversion reconstruction and piping in Beaver creek; conjunctive use of surface and ground water in the Chewuch river; replacing surface diversions with wells and consolidation of diversions in the Entiat river; replacing a check dam with a siphon on Little Naneum creek; consolidate diversions on Simcoe creek; and ground water recharge of reclaimed water on Kitsap peninsula. The purpose of this funding is to develop projects and take other water management actions that benefit streamflows and enhance water supply to resolve conflicts among water needs for municipal water supply, agricultural water supply, and fish restoration. The streamflow or other public benefits secured from these projects should be commensurate with the investment of state funds.

              (5) $50,000 of the state building construction account--state is provided solely for Ahtanum creek watershed restoration and Pine Hollow reservoir.


Appropriation:

              State and Local Improvements Revolving Account (Water Supply Facilities)--State. . . . . . . . . . . . . . . . . . $1,775,000

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,500,000

              Water Quality Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $525,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,800,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,800,000


              NEW SECTION. Sec. 218. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

              Sunnyside Valley Irrigation District Water Conservation (05-2-851)


Appropriation:

              State and Local Improvements Revolving Account (Water Supply Facilities)--State. . . . . . . . . . . . . . . . . . . .$525,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,705,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$9,230,000


              Sec. 219. 2003 1st sp.s. c 26 s 310 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

              Water Irrigation Efficiencies (01-H-010)


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The appropriation and reappropriation are provided solely to provide grants to conservation districts to assist the agricultural community to implement water conservation measures and irrigation efficiencies in the 16 critical basins. A conservation district receiving funds shall manage each grant to ensure that a portion of the water saved by the water conservation measure or irrigation efficiency will be placed as a purchase or a lease in the trust water rights program to enhance instream flows. The proportion of saved water placed in the trust water rights program must be equal to the percentage of the public investment in the conservation measure or irrigation efficiency. The percentage of the public investment may not exceed 85 percent of the total cost of the conservation measure or irrigation efficiency. In awarding grants, a conservation district shall give first priority to family farms.

              (2) By February 1, ((2003)) 2004, the state conservation commission shall submit a progress report to the appropriate standing committees of the legislature on: (a) The amount of public funds expended from this section; and (b) the location and amount of water placed in the trust water rights program pursuant to this section.

              (3) $344,000 of the water quality account reappropriation is provided for water leases or projects in the Yakima river basin for aquifer recharge necessary to allow the use of drought wells to meet essential irrigation needs. Essential irrigation needs is defined as eighty percent of the water a farmer would ordinarily receive from the irrigation district, less the water that is actually delivered and regardless of crops grown.

              (4) $85,000 of the state building construction account--state appropriation is for the purchase of pipe to protect fish during the noxious weed control board of Grant county's yellow nutsedge eradication efforts.


Reappropriation:

              State and Local Improvements Revolving Account (Water Supply Facilities)--State. . . . . . . . . . . . . . . . . . $2,650,000

              Water Quality Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,117,000))

$2,148,708

                            Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($5,767,000))

$4,798,708


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,000,000

              State and Local Improvements Revolving Account (Water Supply Facilities)--State. . . . . . . . . . . . . . . . . . $1,500,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,500,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,233,000

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($10,000,000))

$10,531,708


              NEW SECTION. Sec. 220. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

              Quad City Water Right Mitigation (05-2-852)


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,200,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,200,000


              Sec. 221. 2003 1st sp.s. c 26 s 315 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

              Water Pollution Control Program (04-4-002)


Appropriation:

              Water Pollution Control Revolving Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($66,663,333))

$81,054,333

              Water Pollution Control Revolving Account--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$44,466,666

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($111,129,999))

$125,520,999


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $462,000,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($573,129,999))

$587,520,999


              Sec. 222. 2003 1st sp.s. c 26 s 333 (uncodified) is amended to read as follows:

FOR THE STATE PARKS AND RECREATION COMMISSION

              Major Park Renovation - Cama Beach (02-1-022)


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The reappropriation in this section is provided to complete electrical power, water, and sewer utilities, and for other park development and renovation.

              (2) The state building construction account--state appropriation shall not be allotted until a project request report has been reviewed and approved by the office of financial management.


Reappropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,500,000

Appropriation:

              Parks Renewal and Stewardship Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$200,000

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,000,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,200,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,500,000

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($4,200,000))

$6,200,000


              NEW SECTION. Sec. 223. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE STATE PARKS AND RECREATION COMMISSION

              Unforeseen Needs - Special Federal and Local Projects (04-2-024)


Appropriation:

              General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$250,000

              General Fund--Local. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,000,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,500,000


              Sec. 224. 2003 1st sp.s. c 26 s 356 (uncodified) is amended to read as follows:

FOR THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION

              Firearms and Archery Range Recreation Program (FARR) (04-4-006)


Appropriation:

              Firearms Range Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($150,000))

$250,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($150,000))

$250,000


              Sec. 225. 2003 1st sp.s. c 26 s 366 (uncodified) is amended to read as follows:

FOR THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION

              Nonhighway and Off-Road Vehicle Activities Program (NOVA) (04-4-004)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) $450,000 of the appropriation is provided solely to maintain and operate existing ORV and other recreation facilities, including ORV campgrounds, on lands managed by the department of natural resources for the fiscal year ending June 30, 2004.

              (2) $325,000 of the appropriation is provided solely to the state parks and recreation commission to construct and upgrade trails and trail-related facilities for both motorized and nonmotorized uses within state parks.


Appropriation:

              Nonhighway and Off-Road Vehicle Activities Program Account--State. . . . . . . . . . . . . . . . . . . . . . . . . (($6,226,310))

$6,926,310


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($6,226,310))

$6,926,310


              NEW SECTION. Sec. 226. If chapter . . . (Substitute House Bill No. 2919), Laws of 2004, is not enacted by April 15, 2004, section 225 of this act is null and void.


              Sec. 227. 2003 1st sp.s. c 26 s 379 (uncodified) is amended to read as follows:

FOR THE STATE CONSERVATION COMMISSION

              Conservation Reserve Enhancement Program (00-2-004 and 04-4-004)


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The reappropriation in this section is for project number 00-2-004. The appropriation is for project number 04-4-004.

              (2) The total cumulative dollar value of state conservation reserve enhancement program grant obligations incurred by the conservation commission and conservation districts shall not exceed $20,000,000, as provided in the conservation reserve enhancement program agreement between the United States department of agriculture, commodity credit corporation, and the state of Washington executed on October 19, 1998, and subsequent amendments.


Reappropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,000,000

Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,000,000))

$6,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($0))

$4,500,000

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($0))

$8,500,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($4,000,000))

$20,000,000


              NEW SECTION. Sec. 228. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE STATE CONSERVATION COMMISSION

              Conservation Reserve Enhancement Program - Loans (05-4-003)


              The appropriation in this section is subject to the following conditions and limitations: The conservation assistance revolving account appropriation is provided solely for loans under the conservation reserve enhancement program.


Appropriation:

              Conservation Assistance Revolving Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000


              Sec. 229. 2003 1st sp.s. c 26 s 399 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE

              Internal and External Partnership Improvements (04-1-007)


              The appropriations in this section are subject to the following conditions and limitations: Expenditures of the appropriation in this section for fencing shall comply with chapter 16.60 RCW.


Appropriation:

              General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($4,000,000))

$14,800,000

              General Fund--Private/Local. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,000,000

              Game Special Wildlife Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50,000

              Game Special Wildlife Account--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $400,000

              Game Special Wildlife Account--Private/Local. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$50,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($6,500,000))

$17,300,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($6,500,000))

$17,300,000


              Sec. 230. 2003 1st sp.s. c 26 s 397 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE

              Fish and Wildlife Population and Habitat Protection (04-1-002)


              The appropriations in this section are subject to the following conditions and limitations:

              (((1))) $400,000 of the wildlife account--state appropriation is provided solely for upland wildlife habitat.

              (((2) $500,000 of the wildlife account--state appropriation is provided solely to maintain existing mitigation agreements in the Snake river region for upland habitat and additional agreements with landowners.))


Appropriation:

              General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,830,000

              General Fund--Private/Local. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,500,000

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,400,000

              Wildlife Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,700,000))

$1,200,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($10,430,000))

$9,930,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($10,430,000))

$9,930,000


              Sec. 231. 2003 1st sp.s. c 26 s 389 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE

              Facility, Infrastructure, Lands, and Access Condition Improvement (04-1-003)


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $301,000 of the state building construction account appropriation is provided solely for improvements at the Centralia game farm, to include: (1) $175,000 for a brooder barn to replace numerous houses; (2) $50,000 to replace flight pens; and (3) $76,000 to replace to the roofs on several buildings.

              (2) The state wildlife account appropriation is provided for the department to conduct a study of functions and operations in locations in Thurston county in an effort to identify efficiencies that would allow a reduction in the number of sites occupied. The study shall identify all operations and functions in Thurston county locations outside the natural resources building. Decisions about alternative uses for the warehouse and annex near the port of Olympia shall not be made until a report is presented to the legislature on efficiencies that will reduce the need for facility space outside the natural resources building.

              (3) $100,000 of the state building construction account--state appropriation is provided solely for fishing and hunting access improvements in Snohomish county, preferably the Snohomish county diking district number 6. The department is directed to take all appropriate and necessary steps to rename a portion of Snohomish county diking district number 6 as "William E. O'Neil Jr. wildlife area." The department shall consult with the interagency committee for outdoor recreation to determine the feasibility of universal access for hunting at this site or at other locations in Snohomish county. These funds are to be used solely for fishing and hunting access purposes, including signage, permanent structures, and improvements to existing access features. The department is directed to work with interested parties to accomplish the foregoing objectives, and to provide a report to the legislature by December 31, 2004, regarding these provisions.


Appropriation:

              General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$600,000

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,875,000

              Wildlife Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$100,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($4,475,000))

$4,575,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($4,475,000))

$4,575,000


              Sec. 232. 2003 1st sp.s. c 26 s 390 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE

              Fish and Wildlife Opportunity Improvements (04-2-006)


              The appropriations in this section are subject to the following conditions and limitations: $90,000 of the wildlife account--state appropriation is provided solely for the department of fish and wildlife to identify reforms in environmental permitting programs that implement the alternative mitigation principles embodied in its 2003 wind power guidelines and the work of the transportation permit efficiency and accountability committee. The department shall work cooperatively with the department of ecology to determine how these principles can be applied more broadly to other project types, and how new mitigation opportunities can be applied to implementing instream flow and other habitat programs. The department shall report back to the governor and appropriate committees of the legislature by December 31, 2004.


Appropriation:

              Aquatic Lands Enhancement Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$300,000

              Warm Water Game Fish Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $550,000

              Wildlife Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,500,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,050,000))

$2,350,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,050,000))

$2,350,000


              NEW SECTION. Sec. 233. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

              Grazing Study (05-2-851)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) The appropriation is for the department to contract with the joint legislative audit and review committee for an assessment of the benefits and costs associated with grazing leases or related agreements on lands managed by the department of natural resources. This assessment shall include considerations of the following elements:

              (a) The total annual dollar revenues the department of natural resources receives from grazing leases;

              (b) The total annual dollars the trust beneficiaries receive from the total revenues from such leases;

              (c) A review of any other benefits the department of natural resources estimates as accruing from these grazing leases;

              (d) An estimate of the costs associated with these grazing leases; and

              (e) A review of the department's expenditures for management of grazing lands.

              (2) The joint legislative audit and review committee shall also review the legal requirements that apply to the management of these grazing lands and the department's management policies and practices for these lands.

              (3) The department of natural resources shall provide the joint legislative audit and review committee with necessary data and information for this assessment on a timely basis. A report of this assessment must be provided to the appropriate legislative fiscal and policy committees by June 30, 2005.


Appropriation:

              Resource Management Cost Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50,000


              Sec. 234. 2003 1st sp.s. c 26 s 412 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

              Community and Technical College Trust Land Acquisition (04-2-014)


Appropriation:

              Community and Technical College Forest Reserve Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($96,000))

$365,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($96,000))

$365,000


              Sec. 235. 2003 1st sp.s. c 26 s 426 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

              Small Timber Landowner Program (04-2-003)


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,000,000))

$4,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,000,000))

$4,000,000


              Sec. 236. 2003 1st sp.s. c 26 s 606 (uncodified) is amended to read as follows:

FOR THE STATE BOARD OF EDUCATION

              School Construction Assistance Grants (04-4-001)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) For state assistance grants for purposes of calculating square foot eligibility, kindergarten student headcount shall not be reduced by fifty percent.

              (2) $2,000,000 from this appropriation is provided for skills centers capital improvements. Skills centers shall submit a budget plan to the state board of education and the appropriate fiscal committees of the legislature for proposed expenditures and the proposed expenditures shall conform with state board of education rules and procedures for reimbursement of capital items. Funds not expended by June 30, 2005, shall lapse.

              (3) $32,868,105 of this appropriation is provided solely to increase the area cost allowance by $15.00 per square foot for grades K-12 for fiscal year 2004 and an additional $4.49 per square foot for grades K-12 for fiscal year 2005.

              (4) The appropriation in this section includes the amounts deposited in the common school construction account under section 603 of this act.

              (5) $2,500,000 of this appropriation is provided solely for design and construction of additional space at the new market vocational skills center.

              (6) Beginning in their 2005-07 capital budget submittal to the governor, the state board of education, in consultation with the Washington state skills centers, shall develop and submit a prioritized list of capital preservation, equipment with long life-cycles, and space expansion and improvement projects. The list shall be developed based on, but not limited to, the following factors: Projected enrollment growth; local school district participation and financial support; changes in the business and industry needs in the state; and efficiency in program delivery and operations.


Appropriation:

              Common School Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($399,768,513))

$402,268,513


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,258,456,614))

$1,858,456,614

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,258,225,127))

$2,260,725,127


              NEW SECTION. Sec. 237. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE STATE BOARD OF EDUCATION

              Apple Award Construction Achievement Grants (05-4-850)


              The appropriation in this section is subject to the following conditions and limitations: Grants of $25,000 each are provided to four public elementary schools that have the greatest combined average increase in the percentage of students meeting the fourth grade reading, mathematics, and writing standards on the Washington assessment of student learning from 2002-03 to 2003-04. The grants shall be used for capital construction purposes as determined by students in the schools. The funds may be used for capital construction projects on school property or on other public property in the community, city, or county in which the school is located.


Appropriation:

              Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$100,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000


              NEW SECTION. Sec. 238. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

              UW Bothell/Cascadia CC - SR 522 Off Ramp (02-2-014)


Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,750,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$110,000

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,860,000


              NEW SECTION. Sec. 239. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

              Infectious Disease Laboratory Facilities (05-2-850)


              The appropriation in this section is subject to the following conditions and limitations: Allotment for this appropriation is contingent on the commitment of at least four million dollars in matching federal funds for this facility.


Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,000,000


              Sec. 240. 2003 1st sp.s. c 26 s 628 (uncodified) is amended to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

              UW Emergency Power Expansion - Phase II (04-1-024)


((Reappropriation:

              University of Washington Building Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $700,000))

Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,500,000

              University of Washington Building Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,448,000))

$3,148,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($5,948,000))

$6,648,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($7,813,164))

$0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($14,161,164))

$6,648,000


              Sec. 241. 2003 1st sp.s. c 26 s 633 (uncodified) is amended to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

              UW Campus Communications Infrastructure (04-1-011)


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,000,000

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,000,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($20,000,000))

$18,000,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$25,000,000


              NEW SECTION. Sec. 242. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

              Classroom Improvements (05-1-850)


Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,000,000


              NEW SECTION. Sec. 243. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

              Guthrie Hall Psychology Facilities Renovation (05-2-851)


              The appropriation in this section is subject to the following conditions and limitations: Allotment for this appropriation is contingent on the commitment of at least three million dollars in matching federal funds for this facility.


Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,000,000


              NEW SECTION. Sec. 244. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR WASHINGTON STATE UNIVERSITY

              WSU Spokane Riverpoint - Academic Center Building: New Facility (00-2-906)


              The appropriation in this section is subject to the following conditions and limitations: It is the intent of the legislature that the project funded in this section shall constitute the university's highest capital project priority through the 2005-07 biennium.


Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$31,600,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,250,000

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$33,850,000


              NEW SECTION. Sec. 245. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR WASHINGTON STATE UNIVERSITY 

              WSU Pullman - Wastewater Reclamation Project: Infrastructure (05-2-850)


              The appropriation in this section is subject to the following conditions and limitations: By June 30, 2004, Washington State University and the city of Pullman shall submit a report to the office of financial management and standing capital budget committees of the house of representatives and the senate that: (a) Summarizes the strategy for completion of future phases of this project and identifies all other state, federal, local, and private funding sources including grants and loans; (b) summarizes the phasing and costs for this project and future phases; and (c) identifies water conservation measures to be enacted by Washington State University and the city of Pullman.


Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,400,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,063,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$10,463,000


              Sec. 246. 2003 1st sp.s. c 26 s 659 (uncodified) is amended to read as follows:

FOR EASTERN WASHINGTON UNIVERSITY

              EWU Senior Hall Renovation (00-1-003)


Reappropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($730,000))

$681,116

Appropriation:

              ((State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,000,000))

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$14,120,012


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($581,000))

$629,884

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($8,480,315))

$0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($15,791,315))

$15,431,012


              Sec. 247. 2003 1st sp.s. c 26 s 678 (uncodified) is amended to read as follows:

FOR CENTRAL WASHINGTON UNIVERSITY

              CWU/Des Moines Higher Education Center (02-2-101)


Reappropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,500,000

Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,438,000

              ((Community and Technical College Capital Projects Account--State)) Gardner-Evans Higher Education

                            Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,962,000))

$4,962,000

              Central Washington University Capital Projects Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,600,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($8,000,000))

$10,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$75,000

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($10,575,000))

$12,575,000


              NEW SECTION. Sec. 248. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR CENTRAL WASHINGTON UNIVERSITY

              Minor Works - Health, Safety, and Code Requirements (05-1-850)


Appropriation:

              Central Washington University Capital Projects Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $450,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0


                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $450,000


              NEW SECTION. Sec. 249. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR CENTRAL WASHINGTON UNIVERSITY 

              Minor Works - Infrastructure (05-1-851)


Appropriation:

              Central Washington University Capital Projects Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $713,500


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0


                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $713,500


              NEW SECTION. Sec. 250. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR CENTRAL WASHINGTON UNIVERSITY

              CWU/Wenatchee Higher Education Center (05-2-850)


              The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is to fund Central Washington University's portion of a shared center and student service addition to Van Tassell center on the Wenatchee Valley Community College campus that replaces the space currently leased by Central Washington University.


Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,500,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0


                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,500,000


              Sec. 251. 2003 1st sp.s. c 26 s 695 (uncodified) is amended to read as follows:

FOR THE EVERGREEN STATE COLLEGE

              Lab II 3rd Floor - Chemistry Labs Remodel (04-2-007)


Appropriation:

              The Evergreen State College Capital Projects Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,000,000))

$1,400,000

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,600,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,000,000


              NEW SECTION. Sec. 252. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE SPOKANE INTERCOLLEGIATE RESEARCH AND TECHNOLOGY INSTITUTE (SIRTI)

              Emergency Repairs (05-1-850)


              The appropriation in this section is subject to the following conditions and limitations: The appropriation is provided solely to make concrete repairs and to repair or replace affected floor coverings.


Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $337,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $337,000


              NEW SECTION. Sec. 253. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR WESTERN WASHINGTON UNIVERSITY

              Bond Hall Renovation/Asbestos Abatement (04-1-080)


Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,900,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,900,000


              Sec. 254. 2003 1st sp.s. c 26 s 702 (uncodified) is amended to read as follows:

FOR WESTERN WASHINGTON UNIVERSITY

              Communications Facility (98-2-053)


              The appropriations in this section are subject to the following conditions and limitations: The appropriations in this section shall not be used for vehicles, laptop computers, small printers, disposable items, or other items with a useful life of less than one year.


Reappropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($22,500,000))

$13,888,908

Appropriation:

              Western Washington University Capital Projects Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,920,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($13,973,400))

$18,584,492

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($40,393,400))

$36,393,400


              NEW SECTION. Sec. 255. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE EASTERN WASHINGTON STATE HISTORICAL SOCIETY

              Cheney Cowles Museum: Addition and Remodel (98-2-001)


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,200,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,200,000


              NEW SECTION. Sec. 256. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Cascadia Community College/University of Washington Bothell Phase 2B Off Ramp (02-2-999)


Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,750,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$110,000

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,860,000


              Sec. 257. 2003 1st sp.s. c 26 s 784 (uncodified) is amended to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Peninsula College: Replacement Science and Technology Building (04-1-208)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) The purpose of this appropriation is to conduct a predesign study of alternatives and design for a potential replacement of existing science lab facilities.

              (2) The predesign shall be consistent with the college's adopted strategic and master plans and additionally address projected enrollment demands, operating budget impacts, reuse or disposition of existing facilities, and options for reduction of parking needs.

              (3) Prior to allotment for design, the state board for community and technical colleges shall submit a predesign document to the office of financial management and legislative fiscal committees identifying and outlining the project or projects, scope, schedule, and preliminary cost estimates for the project.


Appropriation:

              Community and Technical College Capital Projects Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $82,800

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,134,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,216,800


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($10,752,500))

$9,618,500

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$10,835,300


              Sec. 258. 2003 1st sp.s. c 26 s 786 (uncodified) is amended to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Bellingham Technical College: Welding/Auto Collision Replacement (04-1-213)


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,481,000

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$14,357,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$16,838,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($14,357,000))

$0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$16,838,000


              Sec. 259. 2003 1st sp.s. c 26 s 798 (uncodified) is amended to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Everett Community College: ((Renovation)) Replacement - Monte Cristo Hall (04-1-305)


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7,352,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7,352,000


              Sec. 260. 2003 1st sp.s. c 26 s 801 (uncodified) is amended to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Grays Harbor College: Replacement - Instructional Building (04-1-204)


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,263,300

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$19,471,749

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$20,735,049


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($16,371,700))

$0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($17,635,000))

$20,735,049


              Sec. 261. 2003 1st sp.s. c 26 s 787 (uncodified) is amended to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Lower Columbia College: Instructional/Fine Arts Building Replacement (04-1-214)


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The appropriation is solely for the land acquisition for and design of a multiple use fine arts building.

              (2) The state board for community and technical colleges shall submit major project reports to the office of financial management with copies to the legislative fiscal committees in accordance with the established procedures for major project reports.


Appropriation:

              State Building Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,827,799

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,500,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,327,799


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16,645,515

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($18,473,314))

$20,973,314


              NEW SECTION. Sec. 262. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              South Seattle: Training Facility (05-1-854)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) The appropriation is solely for the design of a single shop and classroom training facility to replace eight wood frame structures.

              (2) Prior to allotment for design, the state board for community and technical colleges shall submit a predesign document to the office of financial management and legislative fiscal committees identifying and outlining the project or projects, scope, schedule, and preliminary cost estimates for capital projects related to the replacement of the portables.


Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $722,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,342,480

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$8,064,480


              NEW SECTION. Sec. 263. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Spokane Falls: Business and Social Science Building (05-1-853)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) The appropriation is solely for the design of a two-story building housing social science and business divisions to replace buildings 3, 4, and 14 which are not cost effective to renovate.

              (2) Prior to allotment for design, the state board for community and technical colleges shall submit a predesign document to the office of financial management and legislative fiscal committees identifying and outlining the project or projects, scope, schedule, and preliminary cost estimates for capital projects related to the replacement of the existing buildings.


Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,800,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,781,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$21,581,000


              NEW SECTION. Sec. 264. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Columbia Basin College: Health Sciences Center (05-2-851)


              The appropriation in this section is subject to the following conditions and limitations: The appropriation is provided solely to establish the nursing program portion of this project on the Richland campus of Columbia Basin College. The appropriation is contingent upon receipt of nonstate matching funds of $2,000,000 by June 30, 2004, and submittal and approval of a predesign document to the office of financial management and legislative fiscal committees identifying and outlining the project, scope, schedule, and preliminary cost estimates for the project.


Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000,000

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,000,000


              NEW SECTION. Sec. 265. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Wenatchee Valley College: Anderson Hall and Portable Replacement (05-1-852)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) The appropriation is solely for the design of a building to house allied health programs, replacing Anderson hall, and consolidating programs and staff from other locations. The appropriation does not include the design, renovation, or demolition of related space to be vacated.

              (2) Prior to allotment for design, the state board for community and technical colleges shall submit a predesign document to the office of financial management and legislative fiscal committees identifying and outlining the project or projects, scope, schedule, and preliminary cost estimates for capital projects related to the replacement of Anderson hall.


Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,618,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,249,855

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$26,867,855


              NEW SECTION. Sec. 266. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Employability Colocation Study (05-4-850)


              The appropriation in this section is subject to the following conditions and limitations: The appropriation is provided solely for the state board for community and technical colleges to conduct a study, with input from an advisory committee, on the feasibility and benefits of establishing a one-stop satellite office colocating the employment security department and the department of social and health services on community college campuses. Essential elements of the study include a strategic evaluation of services to be colocated, the appropriate location on campuses, and how to better integrate employment security department and department of social and health services programs with basic skills, workforce, and academic programs of community and technical colleges to provide more opportunities for skill improvements and employability. The advisory committee shall include representation of the state board for community and technical colleges, the employment security department, and the department of social and health services. The study shall be at North Seattle community college. The board shall provide its findings and recommendations to the governor and appropriate committees of the legislature by December 20, 2004.


Appropriation:

              Community and Technical College Capital Projects Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50,000


              NEW SECTION. Sec. 267. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR THE EMPLOYMENT SECURITY DEPARTMENT

              Employment Resource Center (05-2-001)


              The appropriation in this section is subject to the following conditions and limitations: The appropriation is to purchase and install state of the art equipment for a 40,000 square foot facility supporting work force development programs using funds available to the state in section 903(d) of the social security act (Reed act).


Appropriation:

              Unemployment Compensation Administration Account--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,000,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,000,000


PART 3

OTHER ADJUSTMENTS/CLARIFICATIONS


              Sec. 301. 2003 1st sp.s. c 26 s 601 (uncodified) is amended to read as follows:

FOR THE STATE BOARD OF EDUCATION

              Common School Construction Account Deposits


              The appropriations in this section are subject to the following conditions and limitations:

              (1) (($13,500,000)) $27,000,000 in fiscal year 2004 and $13,500,000 in fiscal year 2005 of the education savings account appropriation shall be deposited in the common school construction account.

              (2) $67,415,000 of the education construction account appropriation shall be deposited in the common school construction account.


Appropriation:

              Education Savings Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($27,000,000))

$40,500,000

              Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $67,415,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($94,415,000))

$107,915,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($94,415,000))

$107,915,000


              Sec. 302. 2003 1st sp.s. c 26 s 603 (uncodified) is amended to read as follows:

FOR THE STATE BOARD OF EDUCATION

              State Bonds for Common School Construction (04-4-950)


              The appropriation in this section is subject to the following conditions and limitations: The appropriation is provided solely for deposit in the common school construction account.


Appropriation:

              State Building ((and)) Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($118,050,000))

$107,050,000


              Sec. 303. 2003 1st sp.s. c 26 s 629 (uncodified) is amended to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

              Preventive Facility Maintenance and Building System Repairs (04-1-950)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) Pursuant to definitions and provisions in section 925 of this act, the appropriation is provided solely to maintain facilities housing educational and general programs and to maintain its major building systems and campus infrastructure. Building maintenance, mechanical adjustments, repairs, and minor works for the facility or its major building systems and campus infrastructure must extend the remaining useful life of the facility or keep it safe and functioning normally.

              (2) With this appropriation and that provided in section 630 of this act, the legislature intends to improve the average condition of state facilities as compared to the baseline conditions documented in report 03-1 of the joint legislative audit and review committee. Preventive facility maintenance project funds shall be allocated at local discretion to achieve the above stated performance goal, with particular attention given to buildings currently rated in superior to adequate condition so as to maximize useful life given both the passage of time and intensity with which the space is used.

              (3) Section 915 of this act does not apply to this appropriation.

              (4) The legislature does not intend to reappropriate amounts not expended by June 30, 2005.


Appropriation:

              Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,108,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$20,108,000


              Sec. 304. 2003 1st sp.s. c 26 s 650 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE UNIVERSITY

              Preventive Facility Maintenance and Building System Repairs (04-1-950)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) Pursuant to definitions and provisions in section 925 of this act, the appropriation is provided solely to maintain facilities housing educational and general programs and to maintain its major building systems and campus infrastructure. Building maintenance, mechanical adjustments, repairs, and minor works for the facility or its major building systems and campus infrastructure must extend the remaining useful life of the facility or keep it safe and functioning normally.

              (2) With this appropriation and that provided in section 651 of this act, the legislature intends to improve the average condition of state facilities as compared to the baseline conditions documented in report 03-1 of the joint legislative audit and review committee. Preventive facility maintenance project funds shall be allocated at local discretion to achieve the above stated performance goal, with particular attention given to buildings currently rated in superior to adequate condition so as to maximize useful life given both the passage of time and intensity with which the space is used.

              (3) Section 915 of this act does not apply to this appropriation.

              (4) The legislature does not intend to reappropriate amounts not expended by June 30, 2005.


Appropriation:

              Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,876,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7,876,000


              Sec. 305. 2003 1st sp.s. c 26 s 672 (uncodified) is amended to read as follows:

FOR EASTERN WASHINGTON UNIVERSITY

              Preventive Facility Maintenance and Building System Repairs (04-1-950)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) Pursuant to definitions and provisions in section 925 of this act, the appropriation is provided solely to maintain facilities housing educational and general programs and to maintain its major building systems and campus infrastructure. Building maintenance, mechanical adjustments, repairs, and minor works for the facility or its major building systems and campus infrastructure must extend the remaining useful life of the facility or keep it safe and functioning normally.

              (2) With this appropriation and that provided in section 673 of this act, the legislature intends to improve the average condition of state facilities as compared to the baseline conditions documented in report 03-1 of the joint legislative audit and review committee. Preventive facility maintenance project funds shall be allocated at local discretion to achieve the above stated performance goal, with particular attention given to buildings currently rated in superior to adequate condition so as to maximize useful life given both the passage of time and intensity with which the space is used.

              (3) Section 915 of this act does not apply to this appropriation.

              (4) The legislature does not intend to reappropriate amounts not expended by June 30, 2005.


Appropriation:

              Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,726,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,726,000


              Sec. 306. 2003 1st sp.s. c 26 s 685 (uncodified) is amended to read as follows:

FOR CENTRAL WASHINGTON UNIVERSITY

              Preventive Facility Maintenance and Building System Repairs (04-1-950)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) Pursuant to definitions and provisions in section 925 of this act, the appropriation is provided solely to maintain facilities housing educational and general programs and to maintain its major building systems and campus infrastructure. Building maintenance, mechanical adjustments, repairs, and minor works for the facility or its major building systems and campus infrastructure must extend the remaining useful life of the facility or keep it safe and functioning normally.

              (2) With this appropriation and that provided in section 686 of this act, the legislature intends to improve the average condition of state facilities as compared to the baseline conditions documented in report 03-1 of the joint legislative audit and review committee. Preventive facility maintenance project funds shall be allocated at local discretion to achieve the above stated performance goal, with particular attention given to buildings currently rated in superior to adequate condition so as to maximize useful life given both the passage of time and intensity with which the space is used.

              (3) Section 915 of this act does not apply to this appropriation.

              (4) The legislature does not intend to reappropriate amounts not expended by June 30, 2005.


Appropriation:

              Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,886,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,886,000


              Sec. 307. 2003 1st sp.s. c 26 s 697 (uncodified) is amended to read as follows:

FOR THE EVERGREEN STATE COLLEGE

              Preventive Facility Maintenance and Building System Repairs (04-1-950)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) Pursuant to definitions and provisions in section 925 of this act, the appropriation is provided solely to maintain facilities housing educational and general programs and to maintain its major building systems and campus infrastructure. Building maintenance, mechanical adjustments, repairs, and minor works for the facility or its major building systems and campus infrastructure must extend the remaining useful life of the facility or keep it safe and functioning normally.

              (2) With this appropriation and that provided in section 698 of this act, the legislature intends to improve the average condition of state facilities as compared to the baseline conditions documented in report 03-1 of the joint legislative audit and review committee. Preventive facility maintenance project funds shall be allocated at local discretion to achieve the above stated performance goal, with particular attention given to buildings currently rated in superior to adequate condition so as to maximize useful life given both the passage of time and intensity with which the space is used.

              (3) Section 915 of this act does not apply to this appropriation.

              (4) The legislature does not intend to reappropriate amounts not expended by June 30, 2005.


Appropriation:

              The Evergreen State College Capital Projects Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000

              Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$584,000

                            Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $734,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $734,000


              Sec. 308. 2003 1st sp.s. c 26 s 708 (uncodified) is amended to read as follows:

FOR WESTERN WASHINGTON UNIVERSITY

              Preventive Facility Maintenance and Building System Repairs (04-1-951)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) Pursuant to definitions and provisions in section 925 of this act, the appropriation is provided solely to maintain facilities housing educational and general programs and to maintain its major building systems and campus infrastructure. Building maintenance, mechanical adjustments, repairs, and minor works for the facility or its major building systems and campus infrastructure must extend the remaining useful life of the facility or keep it safe and functioning normally.

              (2) With this appropriation and that provided in section 709 of this act, the legislature intends to improve the average condition of state facilities as compared to the baseline conditions documented in report 03-1 of the joint legislative audit and review committee. Preventive facility maintenance project funds shall be allocated at local discretion to achieve the above stated performance goal, with particular attention given to buildings currently rated in superior to adequate condition so as to maximize useful life given both the passage of time and intensity with which the space is used.

              (3) Section 915 of this act does not apply to this appropriation.

              (4) The legislature does not intend to reappropriate amounts not expended by June 30, 2005.


Appropriation:

              Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,814,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,814,000


              Sec. 309. 2003 1st sp.s. c 26 s 799 (uncodified) is amended to read as follows:

FOR THE COMMUNITY AND TECHNICAL COLLEGE SYSTEM

              Preventive Facility Maintenance and Building System Repairs (04-1-950)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) Pursuant to definitions and provisions in section 925 of this act, the appropriation is provided solely to maintain facilities housing educational and general programs and to maintain its major building systems and campus infrastructure. Building maintenance, mechanical adjustments, repairs, and minor works for the facility or its major building systems and campus infrastructure must extend the remaining useful life of the facility or keep it safe and functioning normally.

              (2) With this appropriation and that provided in section 800 of this act, the legislature intends to improve the average condition of state facilities as compared to the baseline conditions documented in report 03-1 of the joint legislative audit and review committee. Preventive facility maintenance project funds shall be allocated at the state board's discretion to achieve the above stated performance goal, with particular attention given to buildings currently rated in superior to adequate condition so as to maximize useful life given both the passage of time and intensity with which the space is used.

              (3) Section 915 of this act does not apply to this appropriation.

              (4) The legislature does not intend to reappropriate amounts not expended by June 30, 2005.


Appropriation:

              Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,754,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$17,754,000


              NEW SECTION. Sec. 310. A new section is added to 2003 1st sp.s. c 26 (uncodified) to read as follows:

FOR WASHINGTON STATE UNIVERSITY

              Agricultural Research Facility Renovation and Repair (05-2-952)


              The appropriation in this section is subject to the following conditions and limitations:

              (1) The appropriation is provided solely for facility construction, renovation, and repair at agricultural research facilities other than in Pullman.

              (2) Washington State University shall retain ownership of 22 acres of the lower pasture area south of the WSU Puyallup research campus and continue its existing use for agricultural.


Appropriation:

              Gardner-Evans Higher Education Construction Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000


              Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

              Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0

                            TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000


PART 4

MISCELLANEOUS


              NEW SECTION. Sec. 901. A new section is added to chapter 89.08 RCW to read as follows:

              (1) The conservation assistance revolving account is created in the custody of the state treasurer. The account shall be administered by the conservation commission. Moneys from the account may only be spent after appropriation. Moneys placed in the account shall include principal and interest from the repayment of any loans granted under this section, and any other moneys appropriated to the account by the legislature. Expenditures from the account may be used to make loans to landowners for projects enrolled in the conservation reserve enhancement program.

              (2) In order to aid the financing of conservation reserve enhancement program projects, the conservation commission, through the conservation districts, may make interest-free loans to conservation reserve enhancement program enrollees from the conservation assistance revolving account. The conservation commission may require such terms and conditions as it deems necessary to carry out the purposes of this section. Loans to landowners shall be for costs associated with the installation of conservation improvements eligible for and secured by federal farm service agency practice incentive payment reimbursement. Loans under this program promote critical habitat protection and restoration by bridging the financing gap between project implementation and federal funding. The conservation commission shall give loan preferences to those projects expected to generate the greatest environmental benefits and that occur in basins with critical or depressed salmonid stocks. Money received from landowners in loan repayments made under this section shall be paid into the conservation assistance revolving account for uses consistent with this section.


              Sec. 902. 2003 1st sp.s. c 26 s 902 (uncodified) is amended to read as follows:

              (1) Allotments for appropriations in this act shall be provided in accordance with the capital project review requirements adopted by the office of financial management. The office of financial management shall notify the house of representatives capital budget committee and the senate ways and means committee of allotment releases based on review by the office of financial management. No expenditure may be incurred or obligation entered into for appropriations in this act until the office of financial management has given final approval to the allotment of the funds to be expended or encumbered. For allotments under this act, the allotment process includes, in addition to the statement of proposed expenditures for the current biennium, a category or categories for any reserve amounts and amounts expected to be expended in future biennia. Projects that will be employing alternative public works construction procedures under chapter 39.10 RCW are subject to the allotment procedures defined in this section and RCW 43.88.110. Contracts shall not be executed that call for expenditures in excess of the approved allotment, and the total amount shown in such contracts for the cost of future work that has not been appropriated shall not exceed the amount identified for such work in the level of funding approved by the office of financial management at the completion of predesign.

              (2) The legislature intends that each project be defined as proposed to the legislature in the governor's budget document, unless it clearly appears from the legislative history that the legislature intended to define the scope of a project in a different way.


              Sec. 903. 2003 1st sp.s. c 26 s 905 (uncodified) is amended to read as follows:

              (1) To ensure that minor works appropriations are carried out in accordance with legislative intent, funds appropriated in this act shall not be allotted until project lists are on file at the office of financial management and the office of financial management has formally approved the lists. Proposed revisions to the lists must be filed with and approved by the office of financial management before funds may be expended on the revisions.

              (2)(a) Minor works projects are single line appropriations that include multiple projects valued between $25,000 and $1 million each that are of a similar nature and can generally be completed within two years of the appropriation with the funding provided. Minor works categories include (i) health, safety, and code requirements; (ii) facility preservation; (iii) infrastructure preservation; and (iv) program improvement or expansion. Improvements for accessibility in compliance with the Americans with disabilities act may be included in any of the above minor works categories.

              (b) Minor works appropriations shall not be used for, among other things: Studies, except for technical or engineering reviews or designs that lead directly to and support a project on the same minor works list; planning; design outside the scope of work on a minor works list; moveable, temporary, and traditionally funded operating equipment not in compliance with the equipment criteria established by the office of financial management; software not dedicated to control of a specialized system; moving expenses; land or facility acquisition; or to supplement funding for projects with funding shortfalls unless expressly authorized elsewhere in this act. The office of financial management may make an exception to the limitations described in this subsection (2)(b) for exigent circumstances after notifying the legislative fiscal committees and waiting ten days for comments by the legislature regarding the proposed exception.

              (3) The office of financial management shall forward copies of these project lists and revised lists to the house of representatives capital budget committee and the senate ways and means committee. No expenditure may be incurred or obligation entered into for minor works appropriations until the office of financial management has approved the allotment of the funds to be expended. The office of financial management shall encourage state agencies to incorporate accessibility planning and improvements into the normal and customary capital program.

              (4) The legislature generally does not intend to make future appropriations for capital expenditures or for maintenance and operating expenses for an acquisition project or a significant expansion project that is initiated through the minor works process and therefore does not receive a policy and fiscal analysis by the legislature. Minor works projects are intended to be one-time expenditures that do not require future state resources to complete.


              Sec. 904. 2003 1st sp.s. c 26 s 907 (uncodified) is amended to read as follows:

              ACQUISITION OF PROPERTIES AND FACILITIES THROUGH FINANCIAL CONTRACTS. The following agencies may enter into financial contracts, paid from any funds of an agency, appropriated or nonappropriated, for the purposes indicated and in not more than the principal amounts indicated, plus financing expenses and required reserves pursuant to chapter 39.94 RCW. When securing properties under this section, agencies shall use the most economical financial contract option available, including long-term leases, lease-purchase agreements, lease-development with option to purchase agreements or financial contracts using certificates of participation. Expenditures made by an agency for one of the indicated purposes before the issue date of the authorized financial contract and any certificates of participation therein are intended to be reimbursed from proceeds of the financial contract and any certificates of participation therein to the extent provided in the agency's financing plan approved by the state finance committee.

              State agencies may enter into agreements with the department of general administration and the state treasurer's office to develop requests to the legislature for acquisition of properties and facilities through financial contracts. The agreements may include charges for services rendered.

              (1) Department of general administration: Enter into a financing contract for an amount approved by the office of financial management for costs and financing expenses and required reserves pursuant to chapter 39.94 RCW to lease develop or lease purchase a state office building of 150,000 to 200,000 square feet on state-owned property in Tumwater according to the terms of the agreement with the Port of Olympia when the property was acquired or within the preferred development/leasing areas in Thurston county. The building shall be constructed and financed so that agency occupancy costs will not exceed comparable private market rental rates. The comparable general office space rate shall be calculated based on the three latest Thurston county leases of new space of at least 100,000 rentable square feet adjusted for inflation as determined by the department of general administration. The department of general administration shall coordinate with potential state agency tenants whose current lease expire near the time of occupancy so that buyout of current leases do not add to state expense. The office of financial management shall certify to the state treasurer: (a) The project description and dollar amount; and (b) that all requirements of this subsection (1) have been met.

              (2) Enter into, after approval by the office of financial management and the state finance committee and a positive result from the joint legislative audit and review committee leasing model, a long-term lease of up to twenty-five years, or long-term lease with an option to purchase, with the city of Seattle, for up to 250,000 square feet of office space that is being lease developed by the city of Seattle. Agency occupancy costs will not exceed comparable private market rental rates in downtown Seattle. The comparable general office space rate shall be calculated based on lease rates (adjusted for inflation) of the tenants at the time of proposed occupancy as determined by the department of general administration.

              (3) Department of veterans affairs: Enter into a financing contract in an amount not to exceed $1,441,500 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to build and equip a kitchen in existing shell space at the Spokane veterans home and provide space for displaced functions.

              (((3))) (4) Department of corrections:

              (a) Enter into a financing contract for up to $400,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to construct a waste transfer station and purchase a garbage truck at the McNeil Island corrections center.

              (b) Enter into a financing contract for up to $4,588,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to construct a transportation services warehouse and offices for correctional industries.

              (c) Enter into a financing contract for up to $4,536,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to construct additions to the food factory and warehouses at the Airway Heights corrections center for correctional industries.

              (5) Parks and recreation commission: Enter into a financing contract in an amount not to exceed $4,800,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to develop Cama Beach state park.

              (((4))) (6) Community and technical colleges:

              (a) Enter into a financing contract on behalf of Bellevue Community College for up to $20,000,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to purchase North Center campus.

              (b) Enter into a financing contract on behalf of Big Bend Community College for up to $6,500,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to construct an international conference and training center and dining services center building.

              (c) Enter into a financing contract on behalf of Clark Community College for up to $9,839,464 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to construct a bookstore, meeting rooms, student lounge, and study space.

              (d) Enter into a financing contract on behalf of Green River Community College for up to $7,000,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to purchase Kent Station higher education center.

              (e) Enter into a financing contract on behalf of Seattle Central Community College for up to $1,300,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW for land acquisition and development of parking facilities.

              (f) Enter into a financing contract on behalf of Seattle Central Community College for up to $3,000,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to construct an above-ground parking garage.

              (((f))) (g) Enter into a financing contract on behalf of South Puget Sound Community College for up to $660,000 plus financing expenses and reserves pursuant to chapter 39.94 RCW to construct parking and stormwater mitigation facilities.

              (h) Enter into a financing contract on behalf of Spokane Community College for up to $725,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to purchase land.

              (i) Enter into a financing contract on behalf of Walla Walla Community College for up to $2,175,100 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to purchase land and construct a building for professional-technical instruction.

              (j) Enter into a financing contract on behalf of Walla Walla Community College for up to $504,400 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to purchase land and buildings at the Clarkston center.

              (k) Enter into a financing contract on behalf of Pierce College/Ft. Steilacoom for up to $5,000,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to construct an addition to the college health and wellness center.

              (l) Enter into a financing contract on behalf of Pierce College/Puyallup for up to $8,000,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to construct a student gym and fitness center.

              (m) Enter into a financing contract on behalf of Columbia Basin College for up to $8,000,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to construct the medical technology and science education addition to the T-Building renovation and establish the Washington institute of science education (WISE).


              NEW SECTION. Sec. 905. (1) The department of natural resources shall conduct an inventory on state lands of old growth forest stands as defined by a panel of scientists. The panel of scientists shall include three scientific scholars with well documented expertise in Pacific Northwest forest ecology, one of whom will serve as chair by consensus of the panel, one representative from the department of natural resources, and one representative from the Washington department of fish and wildlife. The panel shall review the best available scientific information and develop a definition for old growth forest stands in Washington state. The inventory shall include maps illustrating the distribution of old growth forest stands on state lands, and tables describing the number of acres of such stands in each county, the department's administrative unit, and forest type. The maps and tables shall identify both structurally uniform and structurally complex stands. The department of natural resources shall make a report of the inventory to the appropriate committees of the legislature.

              (2) For the duration of the study, cutting or removal of the trees and stands 160 years or older is subject to the department publishing notification of proposed cutting or removal of old growth timber.

              (3) This section expires June 30, 2005.


              Sec. 906. RCW 43.82.010 and 1997 c 117 s 1 are each amended to read as follows:

              (1) The director of general administration, on behalf of the agency involved, shall purchase, lease, lease purchase, rent, or otherwise acquire all real estate, improved or unimproved, as may be required by elected state officials, institutions, departments, commissions, boards, and other state agencies, or federal agencies where joint state and federal activities are undertaken and may grant easements and transfer, exchange, sell, lease, or sublease all or part of any surplus real estate for those state agencies which do not otherwise have the specific authority to dispose of real estate. This section does not transfer financial liability for the acquired property to the department of general administration.

              (2) Except for real estate occupied by federal agencies, the director shall determine the location, size, and design of any real estate or improvements thereon acquired or held pursuant to subsection (1) of this section. Facilities acquired or held pursuant to this chapter, and any improvements thereon, shall conform to standards adopted by the director and approved by the office of financial management governing facility efficiency unless a specific exemption from such standards is provided by the director of general administration. The director of general administration shall report to the office of financial management annually on any exemptions granted pursuant to this subsection.

              (3) The director of general administration may fix the terms and conditions of each lease entered into under this chapter, except that no lease shall extend greater than twenty years in duration. The director of general administration may enter into a long-term lease greater than ten years in duration upon a determination by the director of the office of financial management that the long-term lease provides a more favorable rate than would otherwise be available, it appears to a substantial certainty that the facility is necessary for use by the state for the full length of the lease term, and the facility meets the standards adopted pursuant to subsection (2) of this section. The director of general administration may enter into a long-term lease greater than ten years in duration if an analysis shows that the life-cycle cost of leasing the facility is less than the life-cycle cost of purchasing or constructing a facility in lieu of leasing the facility. For the 2003-05 biennium, any lease entered into after the effective date of this section with a term of ten years or less shall not contain a nonappropriation clause.

              (4) Except as permitted under chapter 39.94 RCW, no lease for or on behalf of any state agency may be used or referred to as collateral or security for the payment of securities offered for sale through a public offering. Except as permitted under chapter 39.94 RCW, no lease for or on behalf of any state agency may be used or referred to as collateral or security for the payment of securities offered for sale through a private placement without the prior written approval of the state treasurer. However, this limitation shall not prevent a lessor from assigning or encumbering its interest in a lease as security for the repayment of a promissory note provided that the transaction would otherwise be an exempt transaction under RCW 21.20.320. The state treasurer shall adopt rules that establish the criteria under which any such approval may be granted. In establishing such criteria the state treasurer shall give primary consideration to the protection of the state's credit rating and the integrity of the state's debt management program. If it appears to the state treasurer that any lease has been used or referred to in violation of this subsection or rules adopted under this subsection, then he or she may recommend that the governor cause such lease to be terminated. The department of general administration shall promptly notify the state treasurer whenever it may appear to the department that any lease has been used or referred to in violation of this subsection or rules adopted under this subsection.

              (5) It is the policy of the state to encourage the colocation and consolidation of state services into single or adjacent facilities, whenever appropriate, to improve public service delivery, minimize duplication of facilities, increase efficiency of operations, and promote sound growth management planning.

              (6) The director of general administration shall provide coordinated long-range planning services to identify and evaluate opportunities for colocating and consolidating state facilities. Upon the renewal of any lease, the inception of a new lease, or the purchase of a facility, the director of general administration shall determine whether an opportunity exists for colocating the agency or agencies in a single facility with other agencies located in the same geographic area. If a colocation opportunity exists, the director of general administration shall consult with the affected state agencies and the office of financial management to evaluate the impact colocation would have on the cost and delivery of agency programs, including whether program delivery would be enhanced due to the centralization of services. The director of general administration, in consultation with the office of financial management, shall develop procedures for implementing colocation and consolidation of state facilities.

              (7) The director of general administration is authorized to purchase, lease, rent, or otherwise acquire improved or unimproved real estate as owner or lessee and to lease or sublet all or a part of such real estate to state or federal agencies. The director of general administration shall charge each using agency its proportionate rental which shall include an amount sufficient to pay all costs, including, but not limited to, those for utilities, janitorial and accounting services, and sufficient to provide for contingencies; which shall not exceed five percent of the average annual rental, to meet unforeseen expenses incident to management of the real estate.

              (8) If the director of general administration determines that it is necessary or advisable to undertake any work, construction, alteration, repair, or improvement on any real estate acquired pursuant to subsection (1) or (7) of this section, the director shall cause plans and specifications thereof and an estimate of the cost of such work to be made and filed in his or her office and the state agency benefiting thereby is hereby authorized to pay for such work out of any available funds: PROVIDED, That the cost of executing such work shall not exceed the sum of twenty-five thousand dollars. Work, construction, alteration, repair, or improvement in excess of twenty-five thousand dollars, other than that done by the owner of the property if other than the state, shall be performed in accordance with the public works law of this state.

              (9) In order to obtain maximum utilization of space, the director of general administration shall make space utilization studies, and shall establish standards for use of space by state agencies. Such studies shall include the identification of opportunities for colocation and consolidation of state agency office and support facilities.

              (10) The director of general administration may construct new buildings on, or improve existing facilities, and furnish and equip, all real estate under his or her management. Prior to the construction of new buildings or major improvements to existing facilities or acquisition of facilities using a lease purchase contract, the director of general administration shall conduct an evaluation of the facility design and budget using life-cycle cost analysis, value-engineering, and other techniques to maximize the long-term effectiveness and efficiency of the facility or improvement.

              (11) All conveyances and contracts to purchase, lease, rent, transfer, exchange, or sell real estate and to grant and accept easements shall be approved as to form by the attorney general, signed by the director of general administration or the director's designee, and recorded with the county auditor of the county in which the property is located.

              (12) The director of general administration may delegate any or all of the functions specified in this section to any agency upon such terms and conditions as the director deems advisable.

              (13) This section does not apply to the acquisition of real estate by:

              (a) The state college and universities for research or experimental purposes;

              (b) The state liquor control board for liquor stores and warehouses; and

              (c) The department of natural resources, the department of fish and wildlife, the department of transportation, and the state parks and recreation commission for purposes other than the leasing of offices, warehouses, and real estate for similar purposes.

              (14) Notwithstanding any provision in this chapter to the contrary, the department of general administration may negotiate ground leases for public lands on which property is to be acquired under a financing contract pursuant to chapter 39.94 RCW under terms approved by the state finance committee.


              NEW SECTION. Sec. 907. (1)(a) The legislature acknowledges the recommendation of the house of representatives capital budget committee 2002 interim workgroup on higher education facilities regarding encouragement of partnerships that attract federal and private funding for certain types of capital facilities, particularly research facilities and facilities providing unique or targeted skills. One incentive to attracting nonstate funding of facilities might be the state sharing in the ongoing operating and maintenance costs through the operating budget and sharing future capital maintenance costs. The workgroup recommended that a process be developed to enable an institution to request such assistance up-front at the time the facility being funded with nonstate resources is planned, rather than after the facility is built. While the legislature will not commit in a present budget to providing operating and maintenance or capital maintenance funding in the future, the institution is less likely to receive this assistance when the facility is constructed if the assistance was not requested up-front when the facility was being planned. Until a more formal process is identified, the legislature will acknowledge such a request in a budget proviso or in the legislative budget notes. This section does not apply to facilities that traditionally do not receive any state budget support, such as student dining, recreation, and housing facilities.

              (b) While the legislature assumes facilities funded using alternative financing contracts approved in the capital budget will not be receiving state budget support, exceptions to this should be requested of the governor and legislature up-front, as provided for in this section for nonstate funded facilities.

              (2)(a) The following project, funded primarily by nonstate budget sources, is expected to be included in the institution's operating budget request once the facility is completed: Washington State University's agricultural research facility, constructed using federal funds.

              (b) The legislature is not committing to providing funds for operating and maintenance or capital maintenance on the facility described in (a) of this subsection at this time, but will consider that decision when the project nears completion. Considerations will include the appropriate amount of such assistance, particularly given the research nature of the facility and the potential for indirect cost recovery associated with the research grants coming to the institution as a result of the facility.


              Sec. 908. 2003 1st sp.s. c 26 s 915 (uncodified) is amended to read as follows:

              (1) The governor, through the office of financial management, may authorize a transfer of appropriation authority provided for a capital project that is in excess of the amount required for the completion of such project to another capital project for which the appropriation is insufficient. No such transfer may be used to expand the capacity of any facility beyond that intended by the legislature in making the appropriation. Such transfers may be effected only between capital appropriations to a specific department, commission, agency, or institution of higher education and only between capital projects that are funded from the same fund or account. No transfers may occur between projects to local government agencies except where the grants are provided within a single omnibus appropriation and where such transfers are specifically authorized by the implementing statutes that govern the grants.

              (2) For purposes of this section, the governor may find that an amount is in excess of the amount required for the completion of a project only if: (a) The project as defined in the notes to the budget document is substantially complete and there are funds remaining; or (b) bids have been let on a project and it appears to a substantial certainty that the project as defined in the notes to the budget document can be completed within the biennium for less than the amount appropriated in this act.

              (3) For the purposes of this section, the legislature intends that each project be defined as proposed to the legislature in the governor's budget document, unless it clearly appears from the legislative history that the legislature intended to define the scope of a project in a different way.

              (4) Transfers of funds to an agency's infrastructure savings appropriation are subject to review and approval by the office of financial management. Expenditures from an infrastructure savings appropriation are limited to projects that have a primary purpose to correct infrastructure deficiencies or conditions that: (a) Adversely affect the ability to utilize the infrastructure for its current programmatic use; (b) reduce the life expectancy of the infrastructure; or (c) increase the operating costs of the infrastructure for its current programmatic use. Eligible infrastructure projects may include structures and surface improvements, site amenities, utility systems outside building footprints and natural environmental changes or requirements as part of an environmental regulation, a declaration of emergency for an infrastructure issue in conformance with RCW 43.88.250, or infrastructure planning as part of a facility master plan.

              (5) A report of any transfer effected under this section, except emergency projects or any transfer under $250,000, shall be filed with the legislative fiscal committees of the senate and house of representatives by the office of financial management at least thirty days before the date the transfer is effected. The office of financial management shall report all emergency or smaller transfers within thirty days from the date of transfer.

              (6) This section does not apply to sections 506 through 508, chapter 26, Laws of 2003 1st sp. sess.


              Sec. 909. RCW 70.146.030 and 2003 1st sp.s. c 25 s 934 are each amended to read as follows:

              (1) The water quality account is hereby created in the state treasury. Moneys in the account may be used only in a manner consistent with this chapter. Moneys deposited in the account shall be administered by the department of ecology and shall be subject to legislative appropriation. Moneys placed in the account shall include tax receipts as provided in RCW 82.24.027, 82.26.025, and 82.32.390, principal and interest from the repayment of any loans granted pursuant to this chapter, and any other moneys appropriated to the account by the legislature.

              (2) The department may use or permit the use of any moneys in the account to make grants or loans to public bodies, including grants to public bodies as cost-sharing moneys in any case where federal, local, or other funds are made available on a cost-sharing basis, for water pollution control facilities and activities, or for purposes of assisting a public body to obtain an ownership interest in water pollution control facilities and/or to defray a part of the payments made by a public body to a service provider under a service agreement entered into pursuant to RCW 70.150.060, within the purposes of this chapter and for related administrative expenses. For the period July 1, 2003, to June 30, 2005, moneys in the account may be used to process applications received by the department that seek to make changes to or transfer existing water rights, for water conveyance projects, and for grants and technical assistance to public bodies for watershed planning under chapter 90.82 RCW. No more than three percent of the moneys deposited in the account may be used by the department to pay for the administration of the grant and loan program authorized by this chapter.

              (3) Beginning with the biennium ending June 30, 1997, the department shall present a biennial progress report on the use of moneys from the account to the chairs of the senate committee on ways and means and the house of representatives committee on appropriations. The first report is due June 30, 1996, and the report for each succeeding biennium is due December 31 of the odd-numbered year. The report shall consist of a list of each recipient, project description, and amount of the grant, loan, or both.


              Sec. 910. RCW 28B.50.360 and 2002 c 238 s 303 are each amended to read as follows:

              Within thirty-five days from the date of start of each quarter all collected building fees of each such community and technical college shall be paid into the state treasury, and shall be credited as follows:

              (1) On or before June 30th of each year the college board if issuing bonds payable out of building fees shall certify to the state treasurer the amounts required in the ensuing twelve-month period to pay and secure the payment of the principal of and interest on such bonds. The state treasurer shall thereupon deposit the amounts so certified in the community and technical college capital projects account. Such amounts of the funds deposited in the community and technical college capital projects account as are necessary to pay and secure the payment of the principal of and interest on the building bonds issued by the college board as authorized by this chapter shall be exclusively devoted to that purpose. If in any twelve-month period it shall appear that the amount certified by the college board is insufficient to pay and secure the payment of the principal of and interest on the outstanding building bonds, the state treasurer shall notify the college board and such board shall adjust its certificate so that all requirements of moneys to pay and secure the payment of the principal and interest on all such bonds then outstanding shall be fully met at all times.

              (2) The community and technical college capital projects account is hereby created in the state treasury. The sums deposited in the capital projects account shall be appropriated and expended exclusively to pay and secure the payment of the principal of and interest on bonds payable out of the building fees and for the construction, reconstruction, erection, equipping, maintenance, demolition and major alteration of buildings and other capital assets owned by the state board for community and technical colleges in the name of the state of Washington, and the acquisition of sites, rights-of-way, easements, improvements or appurtenances in relation thereto, and, during the 2003-05 biennium, engineering and architectural services provided by the department of general administration, and for the payment of principal of and interest on any bonds issued for such purposes. ((During the 2001-2003 fiscal biennium, the legislature may transfer from the account to the state general fund such amounts as reflect the excess fund balance of the account.))


              NEW SECTION. Sec. 911. During the 2003-05 biennium, the state parks and recreation commission shall study the various options regarding the future of Old Man House state park. These alternatives include retention as a state park, roles of volunteer community groups, transfer to the Suquamish tribe, sale as surplus property, or other alternatives. The commission may, if it deems it appropriate after studying the various options, transfer the park to the Suquamish tribe. Any action shall provide for continued public access and use of the site for public recreation, and include a limited waiver of sovereignty by the tribe restricted to the enforceability of the reversion clause pursuant to RCW 79A.05.170.


              NEW SECTION. Sec. 912. A new section is added to chapter 39.33 RCW to read as follows:

              (1) During the 2003-05 biennium, notwithstanding any other provision of law, the department of general administration is authorized to sell the property and attendant parking lot located at 1058 Capitol Way, Olympia, for fair market value to a nonprofit organization whose function is to produce television coverage of state government deliberations and other events of statewide significance.

              (2) This section expires June 30, 2005.


              NEW SECTION. Sec. 913. A new section is added to chapter 79.19 RCW to read as follows:

              (1) All transaction costs associated with the exchange required under chapter . . . (House Bill No. 3045), Laws of 2004, shall be included in the valuation of the lands exchanged.

              (2) Notwithstanding any other provision of law, the department of natural resources is authorized to use moneys derived from the sale of lands acquired by the common school trust through the exchange required under chapter . . . (House Bill No. 3045), Laws of 2004, to acquire commercial or industrial properties for the common school trust.

              (3) If chapter . . . (House Bill No. 3045), Laws of 2004, is not enacted by April 15, 2004, this section expires April 16, 2004; if it is enacted by April 15, 2004, this section expires June 30, 2005.


              NEW SECTION. Sec. 914. (1) The legislature finds that it is in the public interest to encourage development of a BioGas facility at the Monroe honor farm to convert dairy waste, fish processing waste, and other waste products into energy. Such a facility will: Help improve water quality in area streams; help restore salmon habitat; create jobs; generate green energy; improve the economic sustainability of area dairy farms; help stem sprawl; serve as a demonstration project for environmental education; reduce on-going costs associated with maintaining state ownership of this facility; encourage greater cooperation between area tribes and agricultural interests; and be a model for other such efforts in the state.

              (2) In consideration of the multiple public benefits set forth in this section and notwithstanding any other provision of law, within one hundred twenty days of the requirements of subsection (4) of this section being completed during the 2003-05 biennium, the state shall transfer the Monroe honor farm to a federally recognized tribe within Snohomish county for construction and operation of a BioGas facility, related agricultural-based businesses, and activities designed to promote salmon restoration and sustainability of area dairy farms. The secretary of corrections shall enter into an agreement with the department of general administration to work with the federally recognized tribe to draft appropriate deed restrictions or conservation easements for the property to ensure that the property is used for the legislative purposes set forth in this section.

              (3) The department of general administration shall transfer the property only if the federally recognized tribe has completed a feasibility study for a BioGas facility at the site, only if the tribe has concluded that development of such a facility is feasible, only after the necessary development permits are approved, and only after a public hearing is conducted by the department of general administration. Further, if the property is not used for one or more of the purposes set forth in this section within two years from the date of transfer or if at any time the property is used for activities inconsistent with the legislative purposes set forth in this section, then the ownership of the property shall automatically revert to the state of Washington and be processed as surplus property. The tribe shall be liable or responsible for any environmental contamination occurring during the period the tribe owns the property.

              (4) The legislature finds that the value of the public benefits set forth in this section exceeds the fair market value of Monroe honor farm. Accordingly, the state shall transfer the property to a federally recognized tribe within Snohomish county at no cost beyond the consideration set forth in this section. Nothing in this section shall be deemed to affect or modify liability or responsibility for any existing environmental contamination related to the Monroe honor farm.


              NEW SECTION. Sec. 915. By October 1, 2004, the department of general administration shall report to the legislature the priority order of the state buildings the department would map subject to implementation of RCW 36.28A.060.


              NEW SECTION. Sec. 916. (1) In order to enhance salmon recovery efforts funded in the 2003-05 biennium in eastern Washington, a management board for regional fish recovery is established for Asotin, Columbia, Garfield, Walla Walla, and Whitman counties. The board shall consist of representatives of local and regional interests, and the board shall invite state agencies and tribal governments with treaty fishing rights to participate as voting members on the board.

              (2) The number of members, qualifications, terms, and responsibilities of the board shall be specified in an interlocal agreement under chapter 39.34 RCW or resolution of a local government.

              (3) The board shall, at a minimum, have the following powers and duties:

              (a) The board is responsible for the development and the adoption of a salmon and steelhead recovery plan.

              (b) The habitat sections of the plan must be consistent with local watershed plans developed under chapter 90.82 RCW, the Northwest power and conservation council's subbasin plans, and be based on critical pathway methodology under RCW 77.85.060. The board may not exercise authority over land or water within the individual counties or otherwise preempt the authority of other units of local government.

              (c) The harvest and hatchery sections of the plan must be consistent with the policies developed jointly by the comanagers, the department, and treaty Indian tribes.

              (d) The hydropower sections of the plan must be consistent with policies developed by the federal agencies that operate or market power from the federal Columbia and Snake river power system.

              (e) The board has authority to: Hire and fire staff, including an executive director; enter into contracts; accept grants and other moneys; and disburse funds.

              (f) The board shall appoint and consult with a technical advisory committee. The board shall invite at least four representatives from state government and the treaty Indian tribes to participate on the technical advisory committee. The board may appoint additional members to the technical advisory committee.

              (4) No action may be brought or maintained against any board member, the board, or any of its agents, officers, or employees for any noncontractural acts or omissions in carrying out the purposes of this chapter.

              (5) Nothing in this section shall be construed to affect or modify any treaty or other federal rights of an Indian tribe, nor as affecting or modifying any existing right of a federally recognized Indian tribe as determined under United States v. Washington, 384 F. Supp. 312 (W.D. Wash. 1974), or Sohappy v. Smith, 302 F. Supp. 899 (D. Oregon 1969), and any applicable posttrial orders of those courts.

              (6) This section expires June 30, 2005.


              NEW SECTION. Sec. 917. Washington State University shall retain ownership of 22 acres of the lower pasture area south of the WSU Puyallup research campus and continue its existing use for agricultural research.


              NEW SECTION. Sec. 918. Part headings in this act are not any part of the law.


              NEW SECTION. Sec. 919. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.


              NEW SECTION. Sec. 920. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately, except for sections 117 and 202 of this act, which take effect April 16, 2004.


              On page 1, beginning on line 1 of the title, after "budget;" strike the remainder of the title and insert "making appropriations and authorizing expenditures for capital improvements; amending RCW 43.82.010, 70.146.030, and 28B.50.360; amending 2003 1st sp.s. c 26 ss 101, 104, 105, 107, 110, 161, 159, 173, 169, 250, 234, 313, 312, 317, 309, 340, 367, 369, 354, 394, 398, 406, 408, 501, 604, 615, 743, 380, 738, 805, 782, 816, 821, 130, 134, 151, 135, 162, 267, 273, 304, 310, 315, 333, 356, 366, 379, 399, 397, 389, 390, 412, 426, 606, 628, 633, 659, 678, 695, 702, 784, 786, 798, 801, 787, 601, 603, 629, 650, 672, 685, 697, 708, 799, 902, 905, 907, and 915 (uncodified); adding new sections to 2003 1st sp.s. c 26 (uncodified); adding a new section to chapter 89.08 RCW; adding a new section to chapter 39.33 RCW; adding a new section to chapter 79.19 RCW; creating new sections; providing an effective date; providing expiration dates; and declaring an emergency."


and the same is herewith transmitted.

Milt H. Doumit, Secretary


             There being no objection, the House concurred in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2573 and advanced the bill, as amended by the Senate, to final passage.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


             Representatives Dunshee, Alexander, Shabro and Clements spoke in favor of the passage of the bill.


             Representative Pearson spoke against the passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2573, as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2573, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 82, Nays - 14, Absent - 0, Excused - 2.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Buck, Cairnes, Campbell, Carrell, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Darneille, DeBolt, Dickerson, Dunshee, Eickmeyer, Ericksen, Flannigan, Fromhold, Grant, Haigh, Hatfield, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McMorris, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, O'Brien, Orcutt, Ormsby, Pettigrew, Priest, Quall, Roach, Rockefeller, Rodne, Romero, Ruderman, Santos, Schoesler, Schual-Berke, Sehlin, Shabro, D. Simpson, G. Simpson, Skinner, Sommers, Sullivan, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 82.

             Voting nay: Representatives Boldt, Bush, Chandler, Crouse, Delvin, Hankins, Kristiansen, McIntire, McMahan, Mielke, Nixon, Pearson, Schindler and Sump - 14.

             Excused: Representatives Edwards and Hinkle - 2.

  

             ENGROSSED SUBSTITUTE HOUSE BILL NO. 2573, as amended by the Senate, having received the constitutional majority, was declared passed.


POINT OF PERSONAL PRIVILEGE


             Representative Dunshee acknowledged and thanked the staff of the Capital Budget Committee for their hard work in developing the capital budget. He asked the chamber to acknowledge the staff members as well.


SENATE AMENDMENTS TO HOUSE BILL

March 11, 2004

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 2802, with the following amendment:


              Strike everything after the enacting clause and insert the following:


              "NEW SECTION. Sec. 1. A new section is added to chapter 16.52 RCW to read as follows:

              (1) A person is guilty of a gross misdemeanor punishable as provided in RCW 9A.20.021 if he or she knowingly transports or accepts delivery of live nonambulatory livestock to, from, or between any livestock market, feedlot, slaughtering facility, or similar facility that trades in livestock. The transport or acceptance of each nonambulatory livestock animal is considered a separate and distinct violation.

              (2) Nonambulatory livestock must be humanely euthanized before transport to, from, or between locations listed in subsection (1) of this section.

              (3) Livestock that was ambulatory prior to transport to a feedlot and becomes nonambulatory because of an injury sustained during transport may be unloaded and placed in a separate pen for rehabilitation at the feedlot.

              (4) For the purposes of this section, "nonambulatory livestock" means cattle, sheep, swine, goats, horses, mules, or other equine that cannot rise from a recumbent position or cannot walk, including but not limited to those with broken appendages, severed tendons or ligaments, nerve paralysis, a fractured vertebral column, or metabolic conditions.


              NEW SECTION. Sec. 2. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."


              On page 1, line 2 of the title, after "livestock;" strike the remainder of the title and insert "adding a new section to chapter 16.52 RCW; prescribing penalties; and declaring an emergency."


and the same is herewith transmitted.

Milt H. Doumit, Secretary


             There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 2802 and advanced the bill, as amended by the Senate, to final passage.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


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


             The Speaker stated the question before the House to be final passage of Substitute House Bill No. 2802, as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 2802, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 94, Nays - 2, Absent - 0, Excused - 2.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Eickmeyer, Ericksen, Flannigan, Fromhold, Grant, Haigh, Hankins, Hatfield, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Rockefeller, Rodne, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, D. Simpson, G. Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 94.

             Voting nay: Representatives Chase and Moeller - 2.

             Excused: Representatives Edwards and Hinkle - 2.

  

             SUBSTITUTE HOUSE BILL NO. 2802, as amended by the Senate, having received the constitutional majority, was declared passed.


STATEMENT FOR THE JOURNAL


             I intended to vote YEA on SUBSTITUTE HOUSE BILL NO. 2802.

MARALYN CHASE, 32nd District


STATEMENT FOR THE JOURNAL


             I intended to vote YEA on SUBSTITUTE HOUSE BILL NO. 2802.

JIM MOELLER, 49th District


SENATE AMENDMENTS TO HOUSE BILL

March 11, 2004

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 2299, with the following amendment:


              Strike everything after the enacting clause and insert the following:


              "NEW SECTION. Sec. 1. A new section is added to chapter 16.57 RCW to read as follows:

              (1) The director may adopt rules:

              (a) To support the agriculture industry in meeting federal requirements for the country-of-origin labeling of meat. Any requirements established under this subsection for country of origin labeling purposes shall be substantially consistent with and shall not exceed the requirements established by the United States department of agriculture; and

              (b) In consultation with the livestock identification advisory board under RCW 16.57.015, to implement federal requirements for animal identification needed to trace the source of livestock for disease control and response purposes.

              (2) The director may cooperate with and enter into agreements with other states and agencies of federal government to carry out such systems and to promote consistency of regulation."


              On page 1, line 1 of the title, after "systems;" strike the remainder of the title and insert "and adding a new section to chapter 16.57 RCW."


and the same is herewith transmitted.

Milt H. Doumit, Secretary


             There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 2299 and advanced the bill, as amended by the Senate, to final passage.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


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


             The Speaker stated the question before the House to be final passage of Substitute House Bill No. 2299, as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 2299, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

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

             Excused: Representatives Edwards and Hinkle - 2.

  

             SUBSTITUTE HOUSE BILL NO. 2299, as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL

March 11, 2004

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 2929, with the following amendment:


              Strike everything after the enacting clause and insert the following:


              "NEW SECTION. Sec. 1. The legislature finds that the recent occurrence of bovine spongiform encephalopathy and the resulting bans on beef imports from the United States have had a severe economic impact on the state's beef processing industry. The legislature intends to provide temporary business and occupation tax relief for Washington's beef processors.


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

              (1) In computing tax there may be deducted from the measure of tax those amounts received for:

              (a) Slaughtering cattle, but only if the taxpayer sells the resulting slaughtered cattle at wholesale and not at retail;

              (b) Breaking or processing perishable beef products, but only if the perishable beef products are derived from cattle slaughtered by the taxpayer and sold at wholesale only and not at retail;

              (c) Wholesale sales of perishable beef products derived from cattle slaughtered by the taxpayer;

              (d) Processing nonperishable beef products, but only if the products are derived from cattle slaughtered by the taxpayer and sold at wholesale only and not at retail; and

              (e) Wholesale sales of nonperishable beef products derived from cattle slaughtered by the taxpayer.

              (2) For the purposes of this section, "beef products" means the carcass, parts of carcass, meat, and meat by-products, derived exclusively from cattle and containing no other ingredients.

              (3) The deduction allowed under this section is allowed only for tax liability incurred after the effective date of this section and until the first day of the month following the date on which the bans on the importation of beef and beef products from the United States of America by Japan, Mexico, and the Republic of South Korea have all been lifted.

              (4) The department must provide notice, on the department's web site, of the date on which this deduction is no longer available. The notice required by this section does not affect the availability of the deduction under this section.


              NEW SECTION. Sec. 3. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."


              On page 1, line 2 of the title, after "products;" strike the remainder of the title and insert "adding a new section to chapter 82.04 RCW; creating a new section; and declaring an emergency."


and the same is herewith transmitted.

Milt H. Doumit, Secretary


             There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 2929 and advanced the bill, as amended by the Senate, to final passage.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


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


             Representative Upthegrove spoke against the passage of the bill.


             The Speaker stated the question before the House to be final passage of Substitute House Bill No. 2929, as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 2929, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 79, Nays - 17, Absent - 0, Excused - 2.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Clements, Cody, Condotta, Conway, Cooper, Cox, Crouse, DeBolt, Delvin, Dunshee, Eickmeyer, Ericksen, Flannigan, Fromhold, Grant, Haigh, Hankins, Hatfield, Holmquist, Hunt, Hunter, Jarrett, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Morrell, Morris, Murray, Newhouse, O'Brien, Orcutt, Pearson, Pettigrew, Priest, Quall, Roach, Rockefeller, Rodne, Ruderman, Santos, Schindler, Schoesler, Sehlin, Shabro, Simpson, D., Skinner, Sullivan, Sump, Talcott, Tom, Veloria, Wallace, Woods and Mr. Speaker - 79.

             Voting nay: Representatives Chase, Clibborn, Darneille, Dickerson, Hudgins, Kagi, McCoy, Miloscia, Moeller, Nixon, Ormsby, Romero, Schual-Berke, Simpson, G., Sommers, Upthegrove and Wood - 17.

             Excused: Representatives Edwards and Hinkle - 2.

  

             SUBSTITUTE HOUSE BILL NO. 2929, as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL

March 11, 2004

Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2787, with the following amendment:


              On page 2, line 2, after "provider" strike "as listed in" and insert "regulated by a disciplining authority under"


and the same is herewith transmitted.

Milt H. Doumit, Secretary


             There being no objection, the House concurred in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2787 and advanced the bill, as amended by the Senate, to final passage.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


             Representatives Kessler and Buck spoke in favor the passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2787, as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2787, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

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

             Excused: Representatives Edwards and Hinkle - 2.

  

             ENGROSSED SUBSTITUTE HOUSE BILL NO. 2787, as amended by the Senate, having received the constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL

March 11, 2004

Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2784, with the following amendment:


              Strike everything after the enacting clause and insert the following:


              "NEW SECTION. Sec. 1. It is hereby declared to be the policy of the state of Washington to assist in the creation and expansion of innovative small commercial enterprises that produce marketable goods and services through the employment of Washington residents, the use of technology, and the application of best management practices. This policy is to be implemented through the use of small business incubators.


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

              (1) "Business incubator" means a facility that offers:

              (a) Space for start-up and expanding firms;

              (b) The shared use of equipment and work areas;

              (c) Daily management support services essential to high-quality commercial operations; and

              (d) Technical assistance.

              (2) "Qualified small business incubator" means an incubator that is:

              (a)(i) Designated as a nonprofit organization under section 501(c)(3) of the internal revenue code, or (ii) consists of a partnership between a designated nonprofit organization under section 501(c)(3) of the internal revenue code and a government or quasi-government agency;

              (b) Focused on developing small businesses in an economically distressed or disadvantaged area; and

              (c) Structured around a sound business plan.


              NEW SECTION. Sec. 3. (1) The small business incubator program is created in the department of community, trade, and economic development to provide start-up and operating assistance to qualified small business incubators.

              (2) The department shall award grants to qualified small business incubator organizations for:

              (a) Construction and equipment costs, up to a maximum of three million dollars per recipient; and

              (b) Provision of technical assistance to small businesses, up to a maximum of one hundred twenty-five thousand dollars per year per recipient.

              (3) The department shall:

              (a) Require a grant recipient to show that it has the resources to complete the project in a timely manner and the state grant is not the sole source of funds;

              (b) Develop, in conjunction with the Washington association of small business incubators, criteria for receipt of grant funds, including criteria related to organizational capacity, community need, and the availability of other economic development resources;

              (c) Accept and receive grants, gifts, and pledges of funds for the support of the small business incubator program, which shall be deposited in the small business incubator account established in section 4 of this act; and

              (d) Integrate the promotion of small business incubators as economic development tools in its strategic plan.


              NEW SECTION. Sec. 4. The small business incubator account is created in the custody of the state treasurer. All money received for the incubator program under section 3 of this act must be deposited in the account. Expenditures from the account may be used only for the small business incubator program. Only the director of the department of community, trade, and economic development or the director's designee may authorize expenditures from the account. The account is subject to the allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.


              NEW SECTION. Sec. 5. This act may be known as the Washington small business incubator and entrepreneurship assistance act of 2004.


              NEW SECTION. Sec. 6. The department of community, trade, and economic development shall have no duty to provide services related to the small business incubator and entrepreneurship assistance act of 2004 unless and until the small business incubator program and related administrative expenses are funded by the legislature.


              NEW SECTION. Sec. 7. Sections 1 through 6 of this act constitute a new chapter in Title 43 RCW."


              On page 1, line 1 of the title, after "program;" strike the remainder of the title and insert "and adding a new chapter to Title 43 RCW."


and the same is herewith transmitted.

Milt H. Doumit, Secretary


             There being no objection, the House concurred in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2784 and advanced the bill, as amended by the Senate, to final passage.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


             Representatives Pettigrew and Skinner spoke in favor the passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2784, as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2784, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 89, Nays - 7, Absent - 0, Excused - 2.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Eickmeyer, Ericksen, Flannigan, Fromhold, Grant, Haigh, Hankins, Hatfield, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McIntire, McMorris, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, O'Brien, Orcutt, Ormsby, Pettigrew, Priest, Quall, Roach, Rockefeller, Rodne, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, D. Simpson, G. Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 89.

             Voting nay: Representatives Boldt, Condotta, Kristiansen, McMahan, Mielke, Nixon and Pearson - 7.

             Excused: Representatives Edwards and Hinkle - 2.

  

             ENGROSSED SUBSTITUTE HOUSE BILL NO. 2784, as amended by the Senate, having received the constitutional majority, was declared passed.


MESSAGES FROM THE SENATE

March 11, 2004

Mr. Speaker:


             The President has signed:

THIRD SUBSTITUTE SENATE BILL NO. 5412,

SUBSTITUTE SENATE BILL NO. 5733,

SUBSTITUTE SENATE BILL NO. 6211,

SENATE BILL NO. 6314,

SENATE BILL NO. 6448,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6472,

SENATE BILL NO. 6490,

SENATE BILL NO. 6493,

SENATE CONCURRENT RESOLUTION NO. 8419,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


March 11, 2004

Mr. Speaker:


             The President has signed:

ENGROSSED HOUSE BILL NO. 1433,

ENGROSSED HOUSE BILL NO. 1777,

SUBSTITUTE HOUSE BILL NO 2321,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2400,

SUBSTITUTE HOUSE BILL NO. 2452,

SUBSTITUTE HOUSE BILL NO. 2455,

SUBSTITUTE HOUSE BILL NO. 2475,

HOUSE BILL NO. 2476,

HOUSE BILL NO. 2485,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2488,

SUBSTITUTE HOUSE BILL NO. 2660,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2675,

SUBSTITUTE HOUSE BILL NO. 2904,

SUBSTITUTE HOUSE BILL NO. 2988,

SUBSTITUTE HOUSE BILL NO. 3103,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


March 11, 2004

Mr. Speaker:


             The President has signed:

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2295,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2693,

HOUSE BILL NO. 2934,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


March 11, 2004

Mr. Speaker:


             The President has signed SENATE BILL NO. 6515, and the same is herewith transmitted.

Milt H. Doumit, Secretary


March 11, 2004

Mr. Speaker:


             The President has signed:

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5957,

SUBSTITUTE SENATE BILL NO. 6107,

SUBSTITUTE SENATE BILL NO. 6148,

SUBSTITUTE SENATE BILL NO. 6155,

SUBSTITUTE SENATE BILL NO. 6302,

SENATE BILL NO. 6356,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6358,

SUBSTITUTE SENATE BILL NO. 6402,

SENATE BILL NO. 6488,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6489,

SUBSTITUTE SENATE BILL NO. 6560,

SUBSTITUTE SENATE BILL NO. 6636,

SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8418,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


March 11, 2004

Mr. Speaker:


             The President has signed ENGROSSED SUBSTITUTE SENATE BILL NO. 5428, and the same is herewith transmitted.

Milt H. Doumit, Secretary


SIGNED BY THE SPEAKER


             The Speaker signed:


SUBSTITUTE HOUSE BILL NO. 2366,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2459,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2518,

SUBSTITUTE HOUSE BILL NO. 2618,

THIRD SUBSTITUTE SENATE BILL NO. 5412,


MESSAGES FROM THE SENATE

March 11, 2004

Mr. Speaker:


             The President has signed SUBSTITUTE SENATE BILL NO. 6676, and the same is herewith transmitted.

Milt H. Doumit, Secretary


March 11, 2004

Mr. Speaker:


             The President has signed:

SUBSTITUTE HOUSE BILL NO. 2618,

ENGROSSED SENATE BILL NO. 6188,

SUBSTITUTE SENATE BILL NO. 6189,

SUBSTITUTE SENATE BILL NO. 6225,

SENATE BILL NO. 6614,

ENGROSSED SENATE BILL NO. 6453,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6554,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6642,

SENATE BILL NO. 6643,

SUBSTITUTE SENATE BILL NO. 6655,

SENATE BILL NO. 6663,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


SIGNED BY THE SPEAKER


             The Speaker signed:

ENGROSSED SUBSTITUTE SENATE BILL NO. 5428,

SUBSTITUTE SENATE BILL NO. 5733,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5957,

SUBSTITUTE SENATE BILL NO. 6107,

SUBSTITUTE SENATE BILL NO. 6148,

SUBSTITUTE SENATE BILL NO. 6155,

ENGROSSED SENATE BILL NO. 6188,

SUBSTITUTE SENATE BILL NO. 6189,

SUBSTITUTE SENATE BILL NO. 6211,

SUBSTITUTE SENATE BILL NO. 6225,

SUBSTITUTE SENATE BILL NO. 6302,

SENATE BILL NO. 6314,

SENATE BILL NO. 6356,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6358,

SUBSTITUTE SENATE BILL NO. 6402,

SENATE BILL NO. 6448,

ENGROSSED SENATE BILL NO. 6453,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6472,

SENATE BILL NO. 6488,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6489,

SENATE BILL NO. 6490,

SENATE BILL NO. 6493,

SENATE BILL NO. 6515,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6554,

SUBSTITUTE SENATE BILL NO. 6560,

SENATE BILL NO. 6614,

SUBSTITUTE SENATE BILL NO. 6636,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6642,

SENATE BILL NO. 6643,

SUBSTITUTE SENATE BILL NO. 6655,

SENATE BILL NO. 6663,

SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8418,

SENATE CONCURRENT RESOLUTION NO. 8419,


MESSAGES FROM THE SENATE

March 11, 2004

Mr. Speaker:


             The Senate concurred in the House amendment to SECOND ENGROSSED SUBSTITUTE SENATE BILL NO. 5536, and passed the bill as amended by the House.

Milt H. Doumit, Secretary


March 11, 2004

Mr. Speaker:


             The President has signed:

SECOND ENGROSSED SUBSTITUTE SENATE BILL NO. 5536,

SECOND SUBSTITUTE SENATE BILL NO. 6144,

SUBSTITUTE SENATE BILL NO. 6208,

SENATE BILL NO. 6339,

SENATE BILL NO. 6485,

SENATE BILL NO. 6561,

SENATE BILL NO. 6593,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


             With the consent of the House, House Rule 13c was suspended.


SENATE AMENDMENTS TO HOUSE BILL

March 3, 2004

Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2460, with the following amendment:


              Strike everything after the enacting clause and insert the following:


              "Sec. 1. RCW 48.21.045 and 1995 c 265 s 14 are each amended to read as follows:

              (1)(a) An insurer offering any health benefit plan to a small employer ((shall)), either directly or through an association or member-governed group formed specifically for the purpose of purchasing health care, may offer and actively market to the small employer a health benefit plan ((providing benefits identical to the schedule of covered health services that are required to be delivered to an individual enrolled in the basic health plan)) featuring a limited schedule of covered health care services. Nothing in this subsection shall preclude an insurer from offering, or a small employer from purchasing, other health benefit plans that may have more ((or less)) comprehensive benefits than ((the basic health plan, provided such plans are in accordance with this chapter)) those included in the product offered under this subsection. An insurer offering a health benefit plan ((that does not include benefits in the basic health plan)) under this subsection shall clearly disclose ((these differences)) all covered benefits to the small employer in a brochure ((approved by)) filed with the commissioner.

              (b) A health benefit plan offered under this subsection shall provide coverage for hospital expenses and services rendered by a physician licensed under chapter 18.57 or 18.71 RCW but is not subject to the requirements of RCW 48.21.130, 48.21.140, 48.21.141, 48.21.142, 48.21.144, 48.21.146, 48.21.160 through 48.21.197, 48.21.200, 48.21.220, 48.21.225, 48.21.230, 48.21.235, 48.21.240, 48.21.244, 48.21.250, 48.21.300, 48.21.310, or 48.21.320 ((if: (i) The health benefit plan is the mandatory offering under (a) of this subsection that provides benefits identical to the basic health plan, to the extent these requirements differ from the basic health plan; or (ii) the health benefit plan is offered to employers with not more than twenty-five employees)).

              (2) Nothing in this section shall prohibit an insurer from offering, or a purchaser from seeking, health benefit plans with benefits in excess of the ((basic health plan services)) health benefit plan offered under subsection (1) of this section. All forms, policies, and contracts shall be submitted for approval to the commissioner, and the rates of any plan offered under this section shall be reasonable in relation to the benefits thereto.

              (3) Premium rates for health benefit plans for small employers as defined in this section shall be subject to the following provisions:

              (a) The insurer shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:

              (i) Geographic area;

              (ii) Family size;

              (iii) Age; and

              (iv) Wellness activities.

              (b) The adjustment for age in (a)(iii) of this subsection may not use age brackets smaller than five-year increments, which shall begin with age twenty and end with age sixty-five. Employees under the age of twenty shall be treated as those age twenty.

              (c) The insurer shall be permitted to develop separate rates for individuals age sixty-five or older for coverage for which medicare is the primary payer and coverage for which medicare is not the primary payer. Both rates shall be subject to the requirements of this subsection (3).

              (d) The permitted rates for any age group shall be no more than four hundred twenty-five percent of the lowest rate for all age groups on January 1, 1996, four hundred percent on January 1, 1997, and three hundred seventy-five percent on January 1, 2000, and thereafter.

              (e) A discount for wellness activities shall be permitted to reflect actuarially justified differences in utilization or cost attributed to such programs ((not to exceed twenty percent)).

              (f) The rate charged for a health benefit plan offered under this section may not be adjusted more frequently than annually except that the premium may be changed to reflect:

              (i) Changes to the enrollment of the small employer;

              (ii) Changes to the family composition of the employee;

              (iii) Changes to the health benefit plan requested by the small employer; or

              (iv) Changes in government requirements affecting the health benefit plan.

              (g) Rating factors shall produce premiums for identical groups that differ only by the amounts attributable to plan design, with the exception of discounts for health improvement programs.

              (h) For the purposes of this section, a health benefit plan that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not contain such a provision, provided that the restrictions of benefits to network providers result in substantial differences in claims costs. A carrier may develop its rates based on claims costs due to network provider reimbursement schedules or type of network. This subsection does not restrict or enhance the portability of benefits as provided in RCW 48.43.015.

              (i) Adjusted community rates established under this section shall pool the medical experience of all small groups purchasing coverage. However, annual rate adjustments for each small group health benefit plan may vary by up to plus or minus four percentage points from the overall adjustment of a carrier's entire small group pool, such overall adjustment to be approved by the commissioner, upon a showing by the carrier, certified by a member of the American academy of actuaries that: (i) The variation is a result of deductible leverage, benefit design, or provider network characteristics; and (ii) for a rate renewal period, the projected weighted average of all small group benefit plans will have a revenue neutral effect on the carrier's small group pool. Variations of greater than four percentage points are subject to review by the commissioner, and must be approved or denied within sixty days of submittal. A variation that is not denied within sixty days shall be deemed approved. The commissioner must provide to the carrier a detailed actuarial justification for any denial within thirty days of the denial.

              (4) ((The health benefit plans authorized by this section that are lower than the required offering shall not supplant or supersede any existing policy for the benefit of employees in this state.)) Nothing in this section shall restrict the right of employees to collectively bargain for insurance providing benefits in excess of those provided herein.

              (5)(a) Except as provided in this subsection, requirements used by an insurer in determining whether to provide coverage to a small employer shall be applied uniformly among all small employers applying for coverage or receiving coverage from the carrier.

              (b) An insurer shall not require a minimum participation level greater than:

              (i) One hundred percent of eligible employees working for groups with three or less employees; and

              (ii) Seventy-five percent of eligible employees working for groups with more than three employees.

              (c) In applying minimum participation requirements with respect to a small employer, a small employer shall not consider employees or dependents who have similar existing coverage in determining whether the applicable percentage of participation is met.

              (d) An insurer may not increase any requirement for minimum employee participation or modify any requirement for minimum employer contribution applicable to a small employer at any time after the small employer has been accepted for coverage.

              (6) An insurer must offer coverage to all eligible employees of a small employer and their dependents. An insurer may not offer coverage to only certain individuals or dependents in a small employer group or to only part of the group. An insurer may not modify a health plan with respect to a small employer or any eligible employee or dependent, through riders, endorsements or otherwise, to restrict or exclude coverage or benefits for specific diseases, medical conditions, or services otherwise covered by the plan.

              (7) As used in this section, "health benefit plan," "small employer," (("basic health plan,")) "adjusted community rate," and "wellness activities" mean the same as defined in RCW 48.43.005.


              Sec. 2. RCW 48.43.005 and 2001 c 196 s 5 and 2001 c 147 s 1 are each reenacted and amended to read as follows:

              Unless otherwise specifically provided, the definitions in this section apply throughout this chapter.

              (1) "Adjusted community rate" means the rating method used to establish the premium for health plans adjusted to reflect actuarially demonstrated differences in utilization or cost attributable to geographic region, age, family size, and use of wellness activities.

              (2) "Basic health plan" means the plan described under chapter 70.47 RCW, as revised from time to time.

              (3) "Basic health plan model plan" means a health plan as required in RCW 70.47.060(2)(d).

              (4) "Basic health plan services" means that schedule of covered health services, including the description of how those benefits are to be administered, that are required to be delivered to an enrollee under the basic health plan, as revised from time to time.

              (5) "Catastrophic health plan" means:

              (a) In the case of a contract, agreement, or policy covering a single enrollee, a health benefit plan requiring a calendar year deductible of, at a minimum, one thousand five hundred dollars and an annual out-of-pocket expense required to be paid under the plan (other than for premiums) for covered benefits of at least three thousand dollars; and

              (b) In the case of a contract, agreement, or policy covering more than one enrollee, a health benefit plan requiring a calendar year deductible of, at a minimum, three thousand dollars and an annual out-of-pocket expense required to be paid under the plan (other than for premiums) for covered benefits of at least five thousand five hundred dollars; or

              (c) Any health benefit plan that provides benefits for hospital inpatient and outpatient services, professional and prescription drugs provided in conjunction with such hospital inpatient and outpatient services, and excludes or substantially limits outpatient physician services and those services usually provided in an office setting.

              (6) "Certification" means a determination by a review organization that an admission, extension of stay, or other health care service or procedure has been reviewed and, based on the information provided, meets the clinical requirements for medical necessity, appropriateness, level of care, or effectiveness under the auspices of the applicable health benefit plan.

              (7) "Concurrent review" means utilization review conducted during a patient's hospital stay or course of treatment.

              (8) "Covered person" or "enrollee" means a person covered by a health plan including an enrollee, subscriber, policyholder, beneficiary of a group plan, or individual covered by any other health plan.

              (9) "Dependent" means, at a minimum, the enrollee's legal spouse and unmarried dependent children who qualify for coverage under the enrollee's health benefit plan.

              (10) "Eligible employee" means an employee who works on a full-time basis with a normal work week of thirty or more hours. The term includes a self-employed individual, including a sole proprietor, a partner of a partnership, and may include an independent contractor, if the self-employed individual, sole proprietor, partner, or independent contractor is included as an employee under a health benefit plan of a small employer, but does not work less than thirty hours per week and derives at least seventy-five percent of his or her income from a trade or business through which he or she has attempted to earn taxable income and for which he or she has filed the appropriate internal revenue service form. Persons covered under a health benefit plan pursuant to the consolidated omnibus budget reconciliation act of 1986 shall not be considered eligible employees for purposes of minimum participation requirements of chapter 265, Laws of 1995.

              (11) "Emergency medical condition" means the emergent and acute onset of a symptom or symptoms, including severe pain, that would lead a prudent layperson acting reasonably to believe that a health condition exists that requires immediate medical attention, if failure to provide medical attention would result in serious impairment to bodily functions or serious dysfunction of a bodily organ or part, or would place the person's health in serious jeopardy.

              (12) "Emergency services" means otherwise covered health care services medically necessary to evaluate and treat an emergency medical condition, provided in a hospital emergency department.

              (13) "Enrollee point-of-service cost-sharing" means amounts paid to health carriers directly providing services, health care providers, or health care facilities by enrollees and may include copayments, coinsurance, or deductibles.

              (14) "Grievance" means a written complaint submitted by or on behalf of a covered person regarding: (a) Denial of payment for medical services or nonprovision of medical services included in the covered person's health benefit plan, or (b) service delivery issues other than denial of payment for medical services or nonprovision of medical services, including dissatisfaction with medical care, waiting time for medical services, provider or staff attitude or demeanor, or dissatisfaction with service provided by the health carrier.

              (15) "Health care facility" or "facility" means hospices licensed under chapter 70.127 RCW, hospitals licensed under chapter 70.41 RCW, rural health care facilities as defined in RCW 70.175.020, psychiatric hospitals licensed under chapter 71.12 RCW, nursing homes licensed under chapter 18.51 RCW, community mental health centers licensed under chapter 71.05 or 71.24 RCW, kidney disease treatment centers licensed under chapter 70.41 RCW, ambulatory diagnostic, treatment, or surgical facilities licensed under chapter 70.41 RCW, drug and alcohol treatment facilities licensed under chapter 70.96A RCW, and home health agencies licensed under chapter 70.127 RCW, and includes such facilities if owned and operated by a political subdivision or instrumentality of the state and such other facilities as required by federal law and implementing regulations.

              (16) "Health care provider" or "provider" means:

              (a) A person regulated under Title 18 or chapter 70.127 RCW, to practice health or health-related services or otherwise practicing health care services in this state consistent with state law; or

              (b) An employee or agent of a person described in (a) of this subsection, acting in the course and scope of his or her employment.

              (17) "Health care service" means that service offered or provided by health care facilities and health care providers relating to the prevention, cure, or treatment of illness, injury, or disease.

              (18) "Health carrier" or "carrier" means a disability insurer regulated under chapter 48.20 or 48.21 RCW, a health care service contractor as defined in RCW 48.44.010, or a health maintenance organization as defined in RCW 48.46.020.

              (19) "Health plan" or "health benefit plan" means any policy, contract, or agreement offered by a health carrier to provide, arrange, reimburse, or pay for health care services except the following:

              (a) Long-term care insurance governed by chapter 48.84 RCW;

              (b) Medicare supplemental health insurance governed by chapter 48.66 RCW;

              (c) Limited health care services offered by limited health care service contractors in accordance with RCW 48.44.035;

              (d) Disability income;

              (e) Coverage incidental to a property/casualty liability insurance policy such as automobile personal injury protection coverage and homeowner guest medical;

              (f) Workers' compensation coverage;

              (g) Accident only coverage;

              (h) Specified disease and hospital confinement indemnity when marketed solely as a supplement to a health plan;

              (i) Employer-sponsored self-funded health plans;

              (j) Dental only and vision only coverage; and

              (k) Plans deemed by the insurance commissioner to have a short-term limited purpose or duration, or to be a student-only plan that is guaranteed renewable while the covered person is enrolled as a regular full-time undergraduate or graduate student at an accredited higher education institution, after a written request for such classification by the carrier and subsequent written approval by the insurance commissioner.

              (20) "Material modification" means a change in the actuarial value of the health plan as modified of more than five percent but less than fifteen percent.

              (21) "Preexisting condition" means any medical condition, illness, or injury that existed any time prior to the effective date of coverage.

              (22) "Premium" means all sums charged, received, or deposited by a health carrier as consideration for a health plan or the continuance of a health plan. Any assessment or any "membership," "policy," "contract," "service," or similar fee or charge made by a health carrier in consideration for a health plan is deemed part of the premium. "Premium" shall not include amounts paid as enrollee point-of-service cost-sharing.

              (23) "Review organization" means a disability insurer regulated under chapter 48.20 or 48.21 RCW, health care service contractor as defined in RCW 48.44.010, or health maintenance organization as defined in RCW 48.46.020, and entities affiliated with, under contract with, or acting on behalf of a health carrier to perform a utilization review.

              (24) "Small employer" or "small group" means any person, firm, corporation, partnership, association, political subdivision, sole proprietor, or self-employed individual that is actively engaged in business that, on at least fifty percent of its working days during the preceding calendar quarter, employed at least two but no more than fifty eligible employees, with a normal work week of thirty or more hours, the majority of whom were employed within this state, and is not formed primarily for purposes of buying health insurance and in which a bona fide employer-employee relationship exists. In determining the number of eligible employees, companies that are affiliated companies, or that are eligible to file a combined tax return for purposes of taxation by this state, shall be considered an employer. Subsequent to the issuance of a health plan to a small employer and for the purpose of determining eligibility, the size of a small employer shall be determined annually. Except as otherwise specifically provided, a small employer shall continue to be considered a small employer until the plan anniversary following the date the small employer no longer meets the requirements of this definition. ((The term "small employer" includes a self-employed individual or sole proprietor. The term "small employer" also includes)) A self-employed individual or sole proprietor ((who derives)) must derive at least seventy-five percent of his or her income from a trade or business through which the individual or sole proprietor has attempted to earn taxable income and for which he or she has filed the appropriate internal revenue service form 1040, schedule C or F, for the previous taxable year except for a self-employed individual or sole proprietor in an agricultural trade or business, who must derive at least fifty-one percent of his or her income from the trade or business through which the individual or sole proprietor has attempted to earn taxable income and for which he or she has filed the appropriate internal revenue service form 1040, for the previous taxable year. A self-employed individual or sole proprietor who is covered as a group of one on the day prior to the effective date of this section shall also be considered a "small employer" to the extent that individual or group of one is entitled to have his or her coverage renewed as provided in RCW 48.43.035(6).

              (25) "Utilization review" means the prospective, concurrent, or retrospective assessment of the necessity and appropriateness of the allocation of health care resources and services of a provider or facility, given or proposed to be given to an enrollee or group of enrollees.

              (26) "Wellness activity" means an explicit program of an activity consistent with department of health guidelines, such as, smoking cessation, injury and accident prevention, reduction of alcohol misuse, appropriate weight reduction, exercise, automobile and motorcycle safety, blood cholesterol reduction, and nutrition education for the purpose of improving enrollee health status and reducing health service costs.


              Sec. 3. RCW 48.43.018 and 2001 c 196 s 8 are each amended to read as follows:

              (1) Except as provided in (a) through (((c))) (e) of this subsection, a health carrier may require any person applying for an individual health benefit plan to complete the standard health questionnaire designated under chapter 48.41 RCW.

              (a) If a person is seeking an individual health benefit plan due to his or her change of residence from one geographic area in Washington state to another geographic area in Washington state where his or her current health plan is not offered, completion of the standard health questionnaire shall not be a condition of coverage if application for coverage is made within ninety days of relocation.

              (b) If a person is seeking an individual health benefit plan:

              (i) Because a health care provider with whom he or she has an established care relationship and from whom he or she has received treatment within the past twelve months is no longer part of the carrier's provider network under his or her existing Washington individual health benefit plan; and

              (ii) His or her health care provider is part of another carrier's provider network; and

              (iii) Application for a health benefit plan under that carrier's provider network individual coverage is made within ninety days of his or her provider leaving the previous carrier's provider network; then completion of the standard health questionnaire shall not be a condition of coverage.

              (c) If a person is seeking an individual health benefit plan due to his or her having exhausted continuation coverage provided under 29 U.S.C. Sec. 1161 et seq., completion of the standard health questionnaire shall not be a condition of coverage if application for coverage is made within ninety days of exhaustion of continuation coverage. A health carrier shall accept an application without a standard health questionnaire from a person currently covered by such continuation coverage if application is made within ninety days prior to the date the continuation coverage would be exhausted and the effective date of the individual coverage applied for is the date the continuation coverage would be exhausted, or within ninety days thereafter.

              (d) If a person is seeking an individual health benefit plan due to his or her receiving notice that his or her coverage under a conversion contract is discontinued, completion of the standard health questionnaire shall not be a condition of coverage if application for coverage is made within ninety days of discontinuation of eligibility under the conversion contract. A health carrier shall accept an application without a standard health questionnaire from a person currently covered by such conversion contract if application is made within ninety days prior to the date eligibility under the conversion contract would be discontinued and the effective date of the individual coverage applied for is the date eligibility under the conversion contract would be discontinued, or within ninety days thereafter.

              (e) If a person is seeking an individual health benefit plan and, but for the number of persons employed by his or her employer, would have qualified for continuation coverage provided under 29 U.S.C. Sec. 1161 et seq., completion of the standard health questionnaire shall not be a condition of coverage if: (i) Application for coverage is made within ninety days of a qualifying event as defined in 29 U.S.C. Sec. 1163; and (ii) the person had at least twenty-four months of continuous group coverage immediately prior to the qualifying event. A health carrier shall accept an application without a standard health questionnaire from a person with at least twenty-four months of continuous group coverage if application is made no more than ninety days prior to the date of a qualifying event and the effective date of the individual coverage applied for is the date of the qualifying event, or within ninety days thereafter.

              (2) If, based upon the results of the standard health questionnaire, the person qualifies for coverage under the Washington state health insurance pool, the following shall apply:

              (a) The carrier may decide not to accept the person's application for enrollment in its individual health benefit plan; and

              (b) Within fifteen business days of receipt of a completed application, the carrier shall provide written notice of the decision not to accept the person's application for enrollment to both the person and the administrator of the Washington state health insurance pool. The notice to the person shall state that the person is eligible for health insurance provided by the Washington state health insurance pool, and shall include information about the Washington state health insurance pool and an application for such coverage. If the carrier does not provide or postmark such notice within fifteen business days, the application is deemed approved.

              (3) If the person applying for an individual health benefit plan: (a) Does not qualify for coverage under the Washington state health insurance pool based upon the results of the standard health questionnaire; (b) does qualify for coverage under the Washington state health insurance pool based upon the results of the standard health questionnaire and the carrier elects to accept the person for enrollment; or (c) is not required to complete the standard health questionnaire designated under this chapter under subsection (1)(a) or (b) of this section, the carrier shall accept the person for enrollment if he or she resides within the carrier's service area and provide or assure the provision of all covered services regardless of age, sex, family structure, ethnicity, race, health condition, geographic location, employment status, socioeconomic status, other condition or situation, or the provisions of RCW 49.60.174(2). The commissioner may grant a temporary exemption from this subsection if, upon application by a health carrier, the commissioner finds that the clinical, financial, or administrative capacity to serve existing enrollees will be impaired if a health carrier is required to continue enrollment of additional eligible individuals.


              Sec. 4. RCW 48.43.035 and 2000 c 79 s 24 are each amended to read as follows:

              For group health benefit plans, the following shall apply:

              (1) All health carriers shall accept for enrollment any state resident within the group to whom the plan is offered and within the carrier's service area and provide or assure the provision of all covered services regardless of age, sex, family structure, ethnicity, race, health condition, geographic location, employment status, socioeconomic status, other condition or situation, or the provisions of RCW 49.60.174(2). The insurance commissioner may grant a temporary exemption from this subsection, if, upon application by a health carrier the commissioner finds that the clinical, financial, or administrative capacity to serve existing enrollees will be impaired if a health carrier is required to continue enrollment of additional eligible individuals.

              (2) Except as provided in subsection (5) of this section, all health plans shall contain or incorporate by endorsement a guarantee of the continuity of coverage of the plan. For the purposes of this section, a plan is "renewed" when it is continued beyond the earliest date upon which, at the carrier's sole option, the plan could have been terminated for other than nonpayment of premium. The carrier may consider the group's anniversary date as the renewal date for purposes of complying with the provisions of this section.

              (3) The guarantee of continuity of coverage required in health plans shall not prevent a carrier from canceling or nonrenewing a health plan for:

              (a) Nonpayment of premium;

              (b) Violation of published policies of the carrier approved by the insurance commissioner;

              (c) Covered persons entitled to become eligible for medicare benefits by reason of age who fail to apply for a medicare supplement plan or medicare cost, risk, or other plan offered by the carrier pursuant to federal laws and regulations;

              (d) Covered persons who fail to pay any deductible or copayment amount owed to the carrier and not the provider of health care services;

              (e) Covered persons committing fraudulent acts as to the carrier;

              (f) Covered persons who materially breach the health plan; or

              (g) Change or implementation of federal or state laws that no longer permit the continued offering of such coverage.

              (4) The provisions of this section do not apply in the following cases:

              (a) A carrier has zero enrollment on a product; ((or))

              (b) A carrier replaces a product and the replacement product is provided to all covered persons within that class or line of business, includes all of the services covered under the replaced product, and does not significantly limit access to the kind of services covered under the replaced product. The health plan may also allow unrestricted conversion to a fully comparable product; ((or))

              (c) No sooner than January 1, 2005, a carrier discontinues offering a particular type of health benefit plan offered for groups of up to two hundred if: (i) The carrier provides notice to each group of the discontinuation at least ninety days prior to the date of the discontinuation; (ii) the carrier offers to each group provided coverage of this type the option to enroll, with regard to small employer groups, in any other small employer group plan, or with regard to groups of up to two hundred, in any other applicable group plan, currently being offered by the carrier in the applicable group market; and (iii) in exercising the option to discontinue coverage of this type and in offering the option of coverage under (c)(ii) of this subsection, the carrier acts uniformly without regard to any health status-related factor of enrolled individuals or individuals who may become eligible for this coverage;

              (d) A carrier discontinues offering all health coverage in the small group market or for groups of up to two hundred, or both markets, in the state and discontinues coverage under all existing group health benefit plans in the applicable market involved if: (i) The carrier provides notice to the commissioner of its intent to discontinue offering all such coverage in the state and its intent to discontinue coverage under all such existing health benefit plans at least one hundred eighty days prior to the date of the discontinuation of coverage under all such existing health benefit plans; and (ii) the carrier provides notice to each covered group of the intent to discontinue the existing health benefit plan at least one hundred eighty days prior to the date of discontinuation. In the case of discontinuation under this subsection, the carrier may not issue any group health coverage in this state in the applicable group market involved for a five-year period beginning on the date of the discontinuation of the last health benefit plan not so renewed. This subsection (4) does not require a carrier to provide notice to the commissioner of its intent to discontinue offering a health benefit plan to new applicants when the carrier does not discontinue coverage of existing enrollees under that health benefit plan; or

              (e) A carrier is withdrawing from a service area or from a segment of its service area because the carrier has demonstrated to the insurance commissioner that the carrier's clinical, financial, or administrative capacity to serve enrollees would be exceeded.

              (5) The provisions of this section do not apply to health plans deemed by the insurance commissioner to be unique or limited or have a short-term purpose, after a written request for such classification by the carrier and subsequent written approval by the insurance commissioner.

              (6) Notwithstanding any other provision of this section, the guarantee of continuity of coverage applies to a group of one only if: (a) The carrier continues to offer any other small employer group plan in which the group of one was eligible to enroll on the day prior to the effective date of this section; and (b) the person continues to qualify as a group of one under the criteria in place on the day prior to the effective date of this section.


              Sec. 5. RCW 48.43.038 and 2000 c 79 s 25 are each amended to read as follows:

              (1) Except as provided in subsection (4) of this section, all individual health plans shall contain or incorporate by endorsement a guarantee of the continuity of coverage of the plan. For the purposes of this section, a plan is "renewed" when it is continued beyond the earliest date upon which, at the carrier's sole option, the plan could have been terminated for other than nonpayment of premium.

              (2) The guarantee of continuity of coverage required in individual health plans shall not prevent a carrier from canceling or nonrenewing a health plan for:

              (a) Nonpayment of premium;

              (b) Violation of published policies of the carrier approved by the commissioner;

              (c) Covered persons entitled to become eligible for medicare benefits by reason of age who fail to apply for a medicare supplement plan or medicare cost, risk, or other plan offered by the carrier pursuant to federal laws and regulations;

              (d) Covered persons who fail to pay any deductible or copayment amount owed to the carrier and not the provider of health care services;

              (e) Covered persons committing fraudulent acts as to the carrier;

              (f) Covered persons who materially breach the health plan; or

              (g) Change or implementation of federal or state laws that no longer permit the continued offering of such coverage.

              (3) This section does not apply in the following cases:

              (a) A carrier has zero enrollment on a product;

              (b) A carrier is withdrawing from a service area or from a segment of its service area because the carrier has demonstrated to the commissioner that the carrier's clinical, financial, or administrative capacity to serve enrollees would be exceeded;

              (c) No sooner than the first day of the month following the expiration of a one hundred eighty-day period beginning on March 23, 2000, a carrier discontinues offering a particular type of health benefit plan offered in the individual market, including conversion contracts, if: (i) The carrier provides notice to each covered individual provided coverage of this type of such discontinuation at least ninety days prior to the date of the discontinuation; (ii) the carrier offers to each individual provided coverage of this type the option, without being subject to the standard health questionnaire, to enroll in any other individual health benefit plan currently being offered by the carrier; and (iii) in exercising the option to discontinue coverage of this type and in offering the option of coverage under (c)(ii) of this subsection, the carrier acts uniformly without regard to any health status-related factor of enrolled individuals or individuals who may become eligible for such coverage; or

              (d) A carrier discontinues offering all individual health coverage in the state and discontinues coverage under all existing individual health benefit plans if: (i) The carrier provides notice to the commissioner of its intent to discontinue offering all individual health coverage in the state and its intent to discontinue coverage under all existing health benefit plans at least one hundred eighty days prior to the date of the discontinuation of coverage under all existing health benefit plans; and (ii) the carrier provides notice to each covered individual of the intent to discontinue his or her existing health benefit plan at least one hundred eighty days prior to the date of such discontinuation. In the case of discontinuation under this subsection, the carrier may not issue any individual health coverage in this state for a five-year period beginning on the date of the discontinuation of the last health plan not so renewed. Nothing in this subsection (3) shall be construed to require a carrier to provide notice to the commissioner of its intent to discontinue offering a health benefit plan to new applicants where the carrier does not discontinue coverage of existing enrollees under that health benefit plan.

              (4) The provisions of this section do not apply to health plans deemed by the commissioner to be unique or limited or have a short-term purpose, after a written request for such classification by the carrier and subsequent written approval by the commissioner.


              Sec. 6. RCW 48.44.022 and 2000 c 79 s 30 are each amended to read as follows:

              (1) Premium rates for health benefit plans for individuals shall be subject to the following provisions:

              (a) The health care service contractor shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:

              (i) Geographic area;

              (ii) Family size;

              (iii) Age;

              (iv) Tenure discounts; and

              (v) Wellness activities.

              (b) The adjustment for age in (a)(iii) of this subsection may not use age brackets smaller than five-year increments which shall begin with age twenty and end with age sixty-five. Individuals under the age of twenty shall be treated as those age twenty.

              (c) The health care service contractor shall be permitted to develop separate rates for individuals age sixty-five or older for coverage for which medicare is the primary payer and coverage for which medicare is not the primary payer. Both rates shall be subject to the requirements of this subsection.

              (d) The permitted rates for any age group shall be no more than four hundred twenty-five percent of the lowest rate for all age groups on January 1, 1996, four hundred percent on January 1, 1997, and three hundred seventy-five percent on January 1, 2000, and thereafter.

              (e) A discount for wellness activities shall be permitted to reflect actuarially justified differences in utilization or cost attributed to such programs ((not to exceed twenty percent)).

              (f) The rate charged for a health benefit plan offered under this section may not be adjusted more frequently than annually except that the premium may be changed to reflect:

              (i) Changes to the family composition;

              (ii) Changes to the health benefit plan requested by the individual; or

              (iii) Changes in government requirements affecting the health benefit plan.

              (g) For the purposes of this section, a health benefit plan that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not contain such a provision, provided that the restrictions of benefits to network providers result in substantial differences in claims costs. This subsection does not restrict or enhance the portability of benefits as provided in RCW 48.43.015.

              (h) A tenure discount for continuous enrollment in the health plan of two years or more may be offered, not to exceed ten percent.

              (2) Adjusted community rates established under this section shall pool the medical experience of all individuals purchasing coverage, and shall not be required to be pooled with the medical experience of health benefit plans offered to small employers under RCW 48.44.023.

              (3) As used in this section and RCW 48.44.023 "health benefit plan," "small employer," "adjusted community rates," and "wellness activities" mean the same as defined in RCW 48.43.005.


              Sec. 7. RCW 48.44.023 and 1995 c 265 s 16 are each amended to read as follows:

              (1)(a) A health care services contractor offering any health benefit plan to a small employer ((shall)), either directly or through an association or member-governed group formed specifically for the purpose of purchasing health care, may offer and actively market to the small employer a health benefit plan ((providing benefits identical to the schedule of covered health services that are required to be delivered to an individual enrolled in the basic health plan)) featuring a limited schedule of covered health care services. Nothing in this subsection shall preclude a contractor from offering, or a small employer from purchasing, other health benefit plans that may have more ((or less)) comprehensive benefits than ((the basic health plan, provided such plans are in accordance with this chapter)) those included in the product offered under this subsection. A contractor offering a health benefit plan ((that does not include benefits in the basic health plan)) under this subsection shall clearly disclose ((these differences)) all covered benefits to the small employer in a brochure ((approved by)) filed with the commissioner.

              (b) A health benefit plan offered under this subsection shall provide coverage for hospital expenses and services rendered by a physician licensed under chapter 18.57 or 18.71 RCW but is not subject to the requirements of RCW 48.44.225, 48.44.240, 48.44.245, 48.44.290, 48.44.300, 48.44.310, 48.44.320, 48.44.325, 48.44.330, 48.44.335, 48.44.340, 48.44.344, 48.44.360, 48.44.400, 48.44.440, 48.44.450, and 48.44.460 ((if: (i) The health benefit plan is the mandatory offering under (a) of this subsection that provides benefits identical to the basic health plan, to the extent these requirements differ from the basic health plan; or (ii) the health benefit plan is offered to employers with not more than twenty-five employees)).

              (2) Nothing in this section shall prohibit a health care service contractor from offering, or a purchaser from seeking, health benefit plans with benefits in excess of the ((basic health plan services)) health benefit plan offered under subsection (1) of this section. All forms, policies, and contracts shall be submitted for approval to the commissioner, and the rates of any plan offered under this section shall be reasonable in relation to the benefits thereto.

              (3) Premium rates for health benefit plans for small employers as defined in this section shall be subject to the following provisions:

              (a) The contractor shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:

              (i) Geographic area;

              (ii) Family size;

              (iii) Age; and

              (iv) Wellness activities.

              (b) The adjustment for age in (a)(iii) of this subsection may not use age brackets smaller than five-year increments, which shall begin with age twenty and end with age sixty-five. Employees under the age of twenty shall be treated as those age twenty.

              (c) The contractor shall be permitted to develop separate rates for individuals age sixty-five or older for coverage for which medicare is the primary payer and coverage for which medicare is not the primary payer. Both rates shall be subject to the requirements of this subsection (3).

              (d) The permitted rates for any age group shall be no more than four hundred twenty-five percent of the lowest rate for all age groups on January 1, 1996, four hundred percent on January 1, 1997, and three hundred seventy-five percent on January 1, 2000, and thereafter.

              (e) A discount for wellness activities shall be permitted to reflect actuarially justified differences in utilization or cost attributed to such programs ((not to exceed twenty percent)).

              (f) The rate charged for a health benefit plan offered under this section may not be adjusted more frequently than annually except that the premium may be changed to reflect:

              (i) Changes to the enrollment of the small employer;

              (ii) Changes to the family composition of the employee;

              (iii) Changes to the health benefit plan requested by the small employer; or

              (iv) Changes in government requirements affecting the health benefit plan.

              (g) Rating factors shall produce premiums for identical groups that differ only by the amounts attributable to plan design, with the exception of discounts for health improvement programs.

              (h) For the purposes of this section, a health benefit plan that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not contain such a provision, provided that the restrictions of benefits to network providers result in substantial differences in claims costs. A carrier may develop its rates based on claims costs due to network provider reimbursement schedules or type of network. This subsection does not restrict or enhance the portability of benefits as provided in RCW 48.43.015.

              (i) Adjusted community rates established under this section shall pool the medical experience of all groups purchasing coverage. However, annual rate adjustments for each small group health benefit plan may vary by up to plus or minus four percentage points from the overall adjustment of a carrier's entire small group pool, such overall adjustment to be approved by the commissioner, upon a showing by the carrier, certified by a member of the American academy of actuaries that: (i) The variation is a result of deductible leverage, benefit design, or provider network characteristics; and (ii) for a rate renewal period, the projected weighted average of all small group benefit plans will have a revenue neutral effect on the carrier's small group pool. Variations of greater than four percentage points are subject to review by the commissioner, and must be approved or denied within sixty days of submittal. A variation that is not denied within sixty days shall be deemed approved. The commissioner must provide to the carrier a detailed actuarial justification for any denial within thirty days of the denial.

              (4) ((The health benefit plans authorized by this section that are lower than the required offering shall not supplant or supersede any existing policy for the benefit of employees in this state.)) Nothing in this section shall restrict the right of employees to collectively bargain for insurance providing benefits in excess of those provided herein.

              (5)(a) Except as provided in this subsection, requirements used by a contractor in determining whether to provide coverage to a small employer shall be applied uniformly among all small employers applying for coverage or receiving coverage from the carrier.

              (b) A contractor shall not require a minimum participation level greater than:

              (i) One hundred percent of eligible employees working for groups with three or less employees; and

              (ii) Seventy-five percent of eligible employees working for groups with more than three employees.

              (c) In applying minimum participation requirements with respect to a small employer, a small employer shall not consider employees or dependents who have similar existing coverage in determining whether the applicable percentage of participation is met.

              (d) A contractor may not increase any requirement for minimum employee participation or modify any requirement for minimum employer contribution applicable to a small employer at any time after the small employer has been accepted for coverage.

              (6) A contractor must offer coverage to all eligible employees of a small employer and their dependents. A contractor may not offer coverage to only certain individuals or dependents in a small employer group or to only part of the group. A contractor may not modify a health plan with respect to a small employer or any eligible employee or dependent, through riders, endorsements or otherwise, to restrict or exclude coverage or benefits for specific diseases, medical conditions, or services otherwise covered by the plan.


              Sec. 8. RCW 48.46.064 and 2000 c 79 s 33 are each amended to read as follows:

              (1) Premium rates for health benefit plans for individuals shall be subject to the following provisions:

              (a) The health maintenance organization shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:

              (i) Geographic area;

              (ii) Family size;

              (iii) Age;

              (iv) Tenure discounts; and

              (v) Wellness activities.

              (b) The adjustment for age in (a)(iii) of this subsection may not use age brackets smaller than five-year increments which shall begin with age twenty and end with age sixty-five. Individuals under the age of twenty shall be treated as those age twenty.

              (c) The health maintenance organization shall be permitted to develop separate rates for individuals age sixty-five or older for coverage for which medicare is the primary payer and coverage for which medicare is not the primary payer. Both rates shall be subject to the requirements of this subsection.

              (d) The permitted rates for any age group shall be no more than four hundred twenty-five percent of the lowest rate for all age groups on January 1, 1996, four hundred percent on January 1, 1997, and three hundred seventy-five percent on January 1, 2000, and thereafter.

              (e) A discount for wellness activities shall be permitted to reflect actuarially justified differences in utilization or cost attributed to such programs ((not to exceed twenty percent)).

              (f) The rate charged for a health benefit plan offered under this section may not be adjusted more frequently than annually except that the premium may be changed to reflect:

              (i) Changes to the family composition;

              (ii) Changes to the health benefit plan requested by the individual; or

              (iii) Changes in government requirements affecting the health benefit plan.

              (g) For the purposes of this section, a health benefit plan that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not contain such a provision, provided that the restrictions of benefits to network providers result in substantial differences in claims costs. This subsection does not restrict or enhance the portability of benefits as provided in RCW 48.43.015.

              (h) A tenure discount for continuous enrollment in the health plan of two years or more may be offered, not to exceed ten percent.

              (2) Adjusted community rates established under this section shall pool the medical experience of all individuals purchasing coverage, and shall not be required to be pooled with the medical experience of health benefit plans offered to small employers under RCW 48.46.066.

              (3) As used in this section and RCW 48.46.066, "health benefit plan," "adjusted community rate," "small employer," and "wellness activities" mean the same as defined in RCW 48.43.005.


              Sec. 9. RCW 48.46.066 and 1995 c 265 s 18 are each amended to read as follows:

              (1)(a) A health maintenance organization offering any health benefit plan to a small employer ((shall)), either directly or through an association or member-governed group formed specifically for the purpose of purchasing health care, may offer and actively market to the small employer a health benefit plan ((providing benefits identical to the schedule of covered health services that are required to be delivered to an individual enrolled in the basic health plan)) featuring a limited schedule of covered health care services. Nothing in this subsection shall preclude a health maintenance organization from offering, or a small employer from purchasing, other health benefit plans that may have more ((or less)) comprehensive benefits than ((the basic health plan, provided such plans are in accordance with this chapter)) those included in the product offered under this subsection. A health maintenance organization offering a health benefit plan ((that does not include benefits in the basic health plan)) under this subsection shall clearly disclose ((these differences)) all the covered benefits to the small employer in a brochure ((approved by)) filed with the commissioner.

              (b) A health benefit plan offered under this subsection shall provide coverage for hospital expenses and services rendered by a physician licensed under chapter 18.57 or 18.71 RCW but is not subject to the requirements of RCW 48.46.275, 48.46.280, 48.46.285, 48.46.290, 48.46.350, 48.46.355, 48.46.375, 48.46.440, 48.46.480, 48.46.510, 48.46.520, and 48.46.530 ((if: (i) The health benefit plan is the mandatory offering under (a) of this subsection that provides benefits identical to the basic health plan, to the extent these requirements differ from the basic health plan; or (ii) the health benefit plan is offered to employers with not more than twenty- five employees)).

              (2) Nothing in this section shall prohibit a health maintenance organization from offering, or a purchaser from seeking, health benefit plans with benefits in excess of the ((basic health plan services)) health benefit plan offered under subsection (1) of this section. All forms, policies, and contracts shall be submitted for approval to the commissioner, and the rates of any plan offered under this section shall be reasonable in relation to the benefits thereto.

              (3) Premium rates for health benefit plans for small employers as defined in this section shall be subject to the following provisions:

              (a) The health maintenance organization shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:

              (i) Geographic area;

              (ii) Family size;

              (iii) Age; and

              (iv) Wellness activities.

              (b) The adjustment for age in (a)(iii) of this subsection may not use age brackets smaller than five-year increments, which shall begin with age twenty and end with age sixty-five. Employees under the age of twenty shall be treated as those age twenty.

              (c) The health maintenance organization shall be permitted to develop separate rates for individuals age sixty-five or older for coverage for which medicare is the primary payer and coverage for which medicare is not the primary payer. Both rates shall be subject to the requirements of this subsection (3).

              (d) The permitted rates for any age group shall be no more than four hundred twenty-five percent of the lowest rate for all age groups on January 1, 1996, four hundred percent on January 1, 1997, and three hundred seventy-five percent on January 1, 2000, and thereafter.

              (e) A discount for wellness activities shall be permitted to reflect actuarially justified differences in utilization or cost attributed to such programs ((not to exceed twenty percent)).

              (f) The rate charged for a health benefit plan offered under this section may not be adjusted more frequently than annually except that the premium may be changed to reflect:

              (i) Changes to the enrollment of the small employer;

              (ii) Changes to the family composition of the employee;

              (iii) Changes to the health benefit plan requested by the small employer; or

              (iv) Changes in government requirements affecting the health benefit plan.

              (g) Rating factors shall produce premiums for identical groups that differ only by the amounts attributable to plan design, with the exception of discounts for health improvement programs.

              (h) For the purposes of this section, a health benefit plan that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not contain such a provision, provided that the restrictions of benefits to network providers result in substantial differences in claims costs. A carrier may develop its rates based on claims costs due to network provider reimbursement schedules or type of network. This subsection does not restrict or enhance the portability of benefits as provided in RCW 48.43.015.

              (i) Adjusted community rates established under this section shall pool the medical experience of all groups purchasing coverage. However, annual rate adjustments for each small group health benefit plan may vary by up to plus or minus four percentage points from the overall adjustment of a carrier's entire small group pool, such overall adjustment to be approved by the commissioner, upon a showing by the carrier, certified by a member of the American academy of actuaries that: (i) The variation is a result of deductible leverage, benefit design, or provider network characteristics; and (ii) for a rate renewal period, the projected weighted average of all small group benefit plans will have a revenue neutral effect on the carrier's small group pool. Variations of greater than four percentage points are subject to review by the commissioner, and must be approved or denied within sixty days of submittal. A variation that is not denied within sixty days shall be deemed approved. The commissioner must provide to the carrier a detailed actuarial justification for any denial within thirty days of the denial.

              (4) ((The health benefit plans authorized by this section that are lower than the required offering shall not supplant or supersede any existing policy for the benefit of employees in this state.)) Nothing in this section shall restrict the right of employees to collectively bargain for insurance providing benefits in excess of those provided herein.

              (5)(a) Except as provided in this subsection, requirements used by a health maintenance organization in determining whether to provide coverage to a small employer shall be applied uniformly among all small employers applying for coverage or receiving coverage from the carrier.

              (b) A health maintenance organization shall not require a minimum participation level greater than:

              (i) One hundred percent of eligible employees working for groups with three or less employees; and

              (ii) Seventy-five percent of eligible employees working for groups with more than three employees.

              (c) In applying minimum participation requirements with respect to a small employer, a small employer shall not consider employees or dependents who have similar existing coverage in determining whether the applicable percentage of participation is met.

              (d) A health maintenance organization may not increase any requirement for minimum employee participation or modify any requirement for minimum employer contribution applicable to a small employer at any time after the small employer has been accepted for coverage.

              (6) A health maintenance organization must offer coverage to all eligible employees of a small employer and their dependents. A health maintenance organization may not offer coverage to only certain individuals or dependents in a small employer group or to only part of the group. A health maintenance organization may not modify a health plan with respect to a small employer or any eligible employee or dependent, through riders, endorsements or otherwise, to restrict or exclude coverage or benefits for specific diseases, medical conditions, or services otherwise covered by the plan.


              Sec. 10. RCW 48.21.143 and 1997 c 276 s 3 are each amended to read as follows:

              The legislature finds that diabetes imposes a significant health risk and tremendous financial burden on the citizens and government of the state of Washington, and that access to the medically accepted standards of care for diabetes, its treatment and supplies, and self-management training and education is crucial to prevent or delay the short and long-term complications of diabetes and its attendant costs.

              (1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

              (a) "Person with diabetes" means a person diagnosed by a health care provider as having insulin using diabetes, noninsulin using diabetes, or elevated blood glucose levels induced by pregnancy; and

              (b) "Health care provider" means a health care provider as defined in RCW 48.43.005.

              (2) All group disability insurance contracts and blanket disability insurance contracts providing health care services, issued or renewed after January 1, 1998, shall provide benefits for at least the following services and supplies for persons with diabetes:

              (a) For group disability insurance contracts and blanket disability insurance contracts that include coverage for pharmacy services, appropriate and medically necessary equipment and supplies, as prescribed by a health care provider, that includes but is not limited to insulin, syringes, injection aids, blood glucose monitors, test strips for blood glucose monitors, visual reading and urine test strips, insulin pumps and accessories to the pumps, insulin infusion devices, prescriptive oral agents for controlling blood sugar levels, foot care appliances for prevention of complications associated with diabetes, and glucagon emergency kits; and

              (b) For all group disability insurance contracts and blanket disability insurance contracts providing health care services, outpatient self-management training and education, including medical nutrition therapy, as ordered by the health care provider. Diabetes outpatient self-management training and education may be provided only by health care providers with expertise in diabetes. Nothing in this section prevents the insurer from restricting patients to seeing only health care providers who have signed participating provider agreements with the insurer or an insuring entity under contract with the insurer.

              (3) Coverage required under this section may be subject to customary cost-sharing provisions established for all other similar services or supplies within a policy.

              (4) Health care coverage may not be reduced or eliminated due to this section.

              (5) Services required under this section shall be covered when deemed medically necessary by the medical director, or his or her designee, subject to any referral and formulary requirements.

              (6) The insurer need not include the coverage required in this section in a group contract offered to an employer or other group that offers to its eligible enrollees a self-insured health plan not subject to mandated benefits status under this title that does not offer coverage similar to that mandated under this section.

              (7) This section does not apply to the health benefit plan that provides benefits identical to the schedule of services covered by the basic health plan((, as required by RCW 48.21.045)).


              Sec. 11. RCW 48.21.250 and 1984 c 190 s 2 are each amended to read as follows:

              Every insurer that issues policies providing group coverage for hospital or medical expense shall offer the policyholder an option to include a policy provision granting a person who becomes ineligible for coverage under the group policy, the right to continue the group benefits for a period of time and at a rate agreed upon. ((The policy provision shall provide that when such coverage terminates, the covered person may convert to a policy as provided in RCW 48.21.260.))


              Sec. 12. RCW 48.44.315 and 1997 c 276 s 4 are each amended to read as follows:

              The legislature finds that diabetes imposes a significant health risk and tremendous financial burden on the citizens and government of the state of Washington, and that access to the medically accepted standards of care for diabetes, its treatment and supplies, and self-management training and education is crucial to prevent or delay the short and long-term complications of diabetes and its attendant costs.

              (1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

              (a) "Person with diabetes" means a person diagnosed by a health care provider as having insulin using diabetes, noninsulin using diabetes, or elevated blood glucose levels induced by pregnancy; and

              (b) "Health care provider" means a health care provider as defined in RCW 48.43.005.

              (2) All health benefit plans offered by health care service contractors, issued or renewed after January 1, 1998, shall provide benefits for at least the following services and supplies for persons with diabetes:

              (a) For health benefit plans that include coverage for pharmacy services, appropriate and medically necessary equipment and supplies, as prescribed by a health care provider, that includes but is not limited to insulin, syringes, injection aids, blood glucose monitors, test strips for blood glucose monitors, visual reading and urine test strips, insulin pumps and accessories to the pumps, insulin infusion devices, prescriptive oral agents for controlling blood sugar levels, foot care appliances for prevention of complications associated with diabetes, and glucagon emergency kits; and

              (b) For all health benefit plans, outpatient self-management training and education, including medical nutrition therapy, as ordered by the health care provider. Diabetes outpatient self-management training and education may be provided only by health care providers with expertise in diabetes. Nothing in this section prevents the health care services contractor from restricting patients to seeing only health care providers who have signed participating provider agreements with the health care services contractor or an insuring entity under contract with the health care services contractor.

              (3) Coverage required under this section may be subject to customary cost-sharing provisions established for all other similar services or supplies within a policy.

              (4) Health care coverage may not be reduced or eliminated due to this section.

              (5) Services required under this section shall be covered when deemed medically necessary by the medical director, or his or her designee, subject to any referral and formulary requirements.

              (6) The health care service contractor need not include the coverage required in this section in a group contract offered to an employer or other group that offers to its eligible enrollees a self-insured health plan not subject to mandated benefits status under this title that does not offer coverage similar to that mandated under this section.

              (7) This section does not apply to the health benefit plans that provide benefits identical to the schedule of services covered by the basic health plan((, as required by RCW 48.44.022 and 48.44.023)).


              Sec. 13. RCW 48.44.360 and 1984 c 190 s 5 are each amended to read as follows:

              Every health care service contractor that issues group contracts providing group coverage for hospital or medical expense shall offer the contract holder an option to include a contract provision granting a person who becomes ineligible for coverage under the group contract, the right to continue the group benefits for a period of time and at a rate agreed upon. ((The contract provision shall provide that when such coverage terminates, the covered person may convert to a contract as provided in RCW 48.44.370.))


              Sec. 14. RCW 48.46.272 and 1997 c 276 s 5 are each amended to read as follows:

              The legislature finds that diabetes imposes a significant health risk and tremendous financial burden on the citizens and government of the state of Washington, and that access to the medically accepted standards of care for diabetes, its treatment and supplies, and self-management training and education is crucial to prevent or delay the short and long-term complications of diabetes and its attendant costs.

              (1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

              (a) "Person with diabetes" means a person diagnosed by a health care provider as having insulin using diabetes, noninsulin using diabetes, or elevated blood glucose levels induced by pregnancy; and

              (b) "Health care provider" means a health care provider as defined in RCW 48.43.005.

              (2) All health benefit plans offered by health maintenance organizations, issued or renewed after January 1, 1998, shall provide benefits for at least the following services and supplies for persons with diabetes:

              (a) For health benefit plans that include coverage for pharmacy services, appropriate and medically necessary equipment and supplies, as prescribed by a health care provider, that includes but is not limited to insulin, syringes, injection aids, blood glucose monitors, test strips for blood glucose monitors, visual reading and urine test strips, insulin pumps and accessories to the pumps, insulin infusion devices, prescriptive oral agents for controlling blood sugar levels, foot care appliances for prevention of complications associated with diabetes, and glucagon emergency kits; and

              (b) For all health benefit plans, outpatient self-management training and education, including medical nutrition therapy, as ordered by the health care provider. Diabetes outpatient self-management training and education may be provided only by health care providers with expertise in diabetes. Nothing in this section prevents the health maintenance organization from restricting patients to seeing only health care providers who have signed participating provider agreements with the health maintenance organization or an insuring entity under contract with the health maintenance organization.

              (3) Coverage required under this section may be subject to customary cost-sharing provisions established for all other similar services or supplies within a policy.

              (4) Health care coverage may not be reduced or eliminated due to this section.

              (5) Services required under this section shall be covered when deemed medically necessary by the medical director, or his or her designee, subject to any referral and formulary requirements.

              (6) The health maintenance organization need not include the coverage required in this section in a group contract offered to an employer or other group that offers to its eligible enrollees a self-insured health plan not subject to mandated benefits status under this title that does not offer coverage similar to that mandated under this section.

              (7) This section does not apply to the health benefit plans that provide benefits identical to the schedule of services covered by the basic health plan((, as required by RCW 48.46.064 and 48.46.066)).


              Sec. 15. RCW 48.46.440 and 1984 c 190 s 8 are each amended to read as follows:

              Every health maintenance organization that issues agreements providing group coverage for hospital or medical care shall offer the agreement holder an option to include an agreement provision granting a person who becomes ineligible for coverage under the group agreement, the right to continue the group benefits for a period of time and at a rate agreed upon. ((The agreement provision shall provide that when such coverage terminates the covered person may convert to an agreement as provided in RCW 48.46.450.))


              NEW SECTION. Sec. 16. The following acts or parts of acts are each repealed:

              (1) RCW 48.21.260 (Conversion policy to be offered--Exceptions, conditions) and 1984 c 190 s 3;

              (2) RCW 48.21.270 (Conversion policy--Restrictions and requirements) and 1984 c 190 s 4;

              (3) RCW 48.44.370 (Conversion contract to be offered--Exceptions, conditions) and 1984 c 190 s 6;

              (4) RCW 48.44.380 (Conversion contract--Restrictions and requirements) and 1984 c 190 s 7;

              (5) RCW 48.46.450 (Conversion agreement to be offered--Exceptions, conditions) and 1984 c 190 s 9; and

              (6) RCW 48.46.460 (Conversion agreement--Restrictions and requirements) and 1984 c 190 s 10.


              NEW SECTION. Sec. 17. Sections 1 through 15 of this act apply to all small group health benefit plans issued or renewed on or after the effective date of this section."


              On page 1, line 2 of the title, after "employees;" strike the remainder of the title and insert "amending RCW 48.21.045, 48.43.018, 48.43.035, 48.43.038, 48.44.022, 48.44.023, 48.46.064, 48.46.066, 48.21.143, 48.21.250, 48.44.315, 48.44.360, 48.46.272, and 48.46.440; reenacting and amending RCW 48.43.005; creating a new section; and repealing RCW 48.21.260, 48.21.270, 48.44.370, 48.44.380, 48.46.450, and 48.46.460."


and the same is herewith transmitted.

Milt H. Doumit, Secretary


MOTION


             On motion of Representative Cody, the House refused to concur in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2460, and asked the Senate to recede therefrom.


SENATE AMENDMENTS TO HOUSE BILL

March 11, 2004

Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2474, with the following amendment:


              Strike everything after the enacting clause and insert the following:


"GENERAL GOVERNMENT AGENCIES--OPERATING


              Sec. 101. 2003 c 360 s 102 (uncodified) is amended to read as follows:

FOR THE MARINE EMPLOYEES COMMISSION

Puget Sound Ferry Operations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($352,000))

$365,000


              NEW SECTION. Sec. 102. A new section is added to 2003 c 360 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--INITIATIVE MEASURE NO. 776 COSTS

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,200,000

Motor Vehicle Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,100,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,300,000


              The appropriations in this section are subject to the following conditions and limitations: $1,200,000 of the motor vehicle account--state appropriation and $2,100,000 of the motor vehicle account--local appropriation are provided solely for the administrative costs associated with issuing refunds resulting from Pierce County et al. v. State of Washington et al. (Supreme Court Cause No. 73607-3), upholding the Initiative Measure No. 776. Funds may not be expended unless the King county superior court issues a final order requiring the repayment of fees collected.


TRANSPORTATION AGENCIES--OPERATING


              Sec. 201. 2003 c 360 s 202 (uncodified) is amended to read as follows:

FOR THE COUNTY ROAD ADMINISTRATION BOARD

Rural Arterial Trust Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $769,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,927,000))

$1,934,000

County Arterial Preservation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$719,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($3,415,000))

$3,422,000


              Sec. 202. 2003 c 360 s 203 (uncodified) is amended to read as follows:

FOR THE TRANSPORTATION IMPROVEMENT BOARD

Urban Arterial Trust Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,611,000))

$1,613,000

Transportation Improvement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,620,000))

$1,622,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($3,231,000))

$3,235,000


              Sec. 203. 2003 c 360 s 204 (uncodified) is amended to read as follows:

FOR THE BOARD OF PILOTAGE COMMISSIONERS

Pilotage Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($272,000))

$344,000


              Sec. 204. 2003 c 360 s 206 (uncodified) is amended to read as follows:

FOR THE TRANSPORTATION COMMISSION

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($807,000))

$813,000


              Sec. 205. 2003 c 360 s 207 (uncodified) is amended to read as follows:

FOR THE FREIGHT MOBILITY STRATEGIC INVESTMENT BOARD

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($616,000))

$625,000


              Sec. 206. 2003 c 360 s 208 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE PATROL--FIELD OPERATIONS BUREAU

State Patrol Highway Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($171,269,000))

$174,438,000

State Patrol Highway Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($6,167,000))

$6,957,000

State Patrol Highway Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $175,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($177,611,000))

$181,570,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Washington state patrol officers engaged in off-duty uniformed employment providing traffic control services to the department of transportation or other state agencies are authorized to use state patrol vehicles for the purposes of that employment, subject to guidelines adopted by the chief of the Washington state patrol. The Washington state patrol shall be reimbursed for the use of the vehicle at the prevailing state employee rate for mileage and hours of usage, subject to guidelines developed by the chief of the Washington state patrol. The patrol shall report to the house of representatives and senate transportation committees by December 31, 2004, on the use of agency vehicles by officers engaging in the off-duty employment specified in this subsection. The report shall include an analysis that compares cost reimbursement and cost-impacts, including increased vehicle mileage, maintenance costs, and indirect impacts, associated with the private use of patrol vehicles.

              (2) $2,075,000 of the state patrol highway account--state appropriation in this section is provided solely for the addition of thirteen troopers to those permanently assigned to vessel and terminal security. The Washington state patrol shall continue to provide the enhanced services levels established after September 11, 2001.

              (3) In addition to the user fees, the patrol shall transfer into the state patrol nonappropriated airplane revolving account created under section 1501 of this act, no more than the amount of appropriated state patrol highway account and general fund funding necessary to cover the costs for the patrol's use of the aircraft. The state patrol highway account and general fund--state funds shall be transferred proportionately in accordance with a cost allocation that differentiates between highway traffic enforcement services and general policing purposes.

              (4) The patrol shall not account for or record locally provided DUI cost reimbursement payments as expenditure credits to the state patrol highway account. The patrol shall report the amount of expected locally provided DUI cost reimbursements to the transportation committees of the senate and house of representatives by December 31 of each year.

              (5) $2,138,000 of the state patrol highway account--state appropriation is provided solely for additional security personnel and equipment necessary to comply with the ferry security plan submitted by the Washington state ferry system to the United States coast guard.

              (6) $264,600 of the state patrol highway account--state appropriation in this subsection is provided solely for two full-time detectives to work solely to investigate incidents of identity fraud, drivers' license fraud, and identity theft. The detectives, as part of their duty to police the public highways, shall work cooperatively with the department of licensing's driver's special investigation unit.


              Sec. 207. 2003 c 360 s 209 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE PATROL--SUPPORT SERVICES BUREAU

State Patrol Highway Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($69,993,000))

$69,799,000

State Patrol Highway Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,290,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($71,283,000))

$71,089,000


              The appropriations in this section are subject to the following conditions and limitations:

              (((1))) Under the direction of the legislative auditor, the patrol shall update the pursuit vehicle life-cycle cost model developed in the 1998 Washington state patrol performance audit (JLARC Report 99-4). The patrol shall utilize the updated model as a basis for determining maintenance and other cost impacts resulting from the increase to pursuit vehicle mileage above 110 thousand miles in the 2003-05 biennium. The patrol shall submit a report, that includes identified cost impacts, to the transportation committees of the senate and house of representatives by December 31, 2003.

              (((2) The Washington state patrol shall assign two full-time detectives to work solely to investigate incidents of identity fraud, drivers' license fraud, and identity theft. The detectives shall work cooperatively with the department of licensing's driver's special investigation unit.))


              Sec. 208. 2003 c 360 s 210 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--MANAGEMENT AND SUPPORT SERVICES

Marine Fuel Tax Refund Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($7,000))

$3,000

Motorcycle Safety Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($85,000))

$97,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($77,000))

$84,000

Highway Safety Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($8,286,000))

$8,316,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($4,623,000))

$4,403,000

DOL Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($107,000))

$144,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($13,185,000))

$13,053,000


              Sec. 209. 2003 c 360 s 211 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--INFORMATION SERVICES

Marine Fuel Tax Refund Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,000

Motorcycle Safety Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($133,000))

$144,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($58,000))

$55,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($10,489,000))

$11,656,000

Highway Safety Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,000

Highway Safety Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$60,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($6,569,000))

$6,285,000

DOL Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($670,000))

$1,220,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($17,927,000))

$19,428,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The department shall submit a report to the transportation committees of the legislature detailing the progress made in transitioning off of the Unisys system by December 1, 2003, and each December 1 thereafter.

              (2) $151,000 of the highway safety account--state appropriation is provided solely for the implementation of Third Substitute Senate Bill No. 5412. Within the amount provided, the department of licensing shall prepare to implement a "one-to-one" biometric matching system that compares the biometric identifier submitted to the individual applicant's record. The authority to expend funds provided under this subsection is subject to compliance with the provisions under section 504 of this act. If Third Substitute Senate Bill No. 5412 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              Sec. 210. 2003 c 360 s 212 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--VEHICLE SERVICES

Marine Fuel Tax Refund Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,000

License Plate Technology Account--State Appropriation                                                                                             $2,000,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $585,000

Motor Vehicle Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,372,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($61,509,000))

$58,193,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $600,000

DOL Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($3,211,000))

$3,844,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($67,337,000))

$66,654,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $144,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Substitute Senate Bill No. 5435 or Engrossed Substitute House Bill No. 1592.

              (2) If Engrossed Senate Bill No. 6063 is not enacted by June 30, 2003, $1,100,000 of the motor vehicle account--state appropriation shall lapse.

              (3) $81,000 of the DOL services account--state appropriation is provided solely for the implementation of Substitute House Bill No. 1036.

              (4) $58,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Substitute Senate Bill No. 6325. If Substitute Senate Bill No. 6325 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (5) $192,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Engrossed Senate Bill No. 6710. If Engrossed Senate Bill No. 6710 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (6) $25,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Substitute Senate Bill No. 6688. If Substitute Senate Bill No. 6688 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (7) $33,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Substitute House Bill No. 2910. If Substitute House Bill No. 2910 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (8) $25,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Substitute Senate Bill No. 6148. If Substitute Senate Bill No. 6148 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (9) $2,000,000 of the license plate technology account--state appropriation and $400,000 of the motor vehicle account--state appropriation are provided solely for the implementation of a digital license plate printing system. Within the amounts provided, the department shall fund the implementation of a digital license plate system including: The purchase or lease of digital license plate printing equipment by correctional industries; the remodeling of space to provide climate control, ventilation, and power requirements, for the equipment that will be housed at correctional industries; and the purchase of digital license plate inventory. The department shall expend all of the license plate technology account--state appropriation before expending any of the motor vehicle account--state appropriation. By December 1, 2004, the department and correctional industries shall submit a joint report to the transportation committees of the legislature detailing a digital license plate printing system implementation plan. By June 30, 2005, the department and correctional industries shall submit a joint report to the transportation committees of the legislature concerning the cost of the consumables used in the digital license plate printing process.


              Sec. 211. 2003 c 360 s 213 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--DRIVER SERVICES

Motorcycle Safety Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,576,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($84,809,000))

$87,259,000

Highway Safety Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $318,000

Highway Safety Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$67,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($87,703,000))

$90,220,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $178,000 of the highway safety account--state appropriation is provided solely for two temporary collision processing FTEs to eliminate the backlog of collision reports. The department shall report, informally, to the house of representatives and senate transportation committees quarterly, beginning October 1, 2003, on the progress made in eliminating the backlog.

              (2) $369,000 of the highway safety account--state appropriation is provided solely to implement Engrossed Substitute Senate Bill No. 5428 or House Bill No. 1681. Within the amount provided in this subsection, the department is authorized to accept applications for driver's license and identicard renewals via the mail or internet. If Engrossed Substitute Senate Bill No. 5428 or House Bill No. 1681 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (3) $282,000 of the highway safety account--state appropriation is provided solely for the implementation of Third Substitute Senate Bill No. 5412. Within the amount provided, the department of licensing shall prepare to implement a "one-to-one" biometric matching system that compares the biometric identifier submitted to the individual applicant's record. The authority to expend funds provided under this subsection is subject to compliance with the provisions under section 504 of this act. If Third Substitute Senate Bill No. 5412 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (4) $354,000 of the highway safety account--state appropriation is provided solely for the implementation of Substitute House Bill No. 2532. If Substitute House Bill No. 2532 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.

              (5) $538,000 of the highway safety account--state appropriation is provided solely for the implementation of Substitute House Bill No. 2660. If Substitute House Bill No. 2660 is not enacted by June 30, 2004, the amount provided in this subsection shall lapse.


              Sec. 212. 2003 c 360 s 214 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--INFORMATION TECHNOLOGY--PROGRAM C

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($58,661,000))

$56,236,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,163,000

Puget Sound Ferry Operations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($6,583,000))

$7,038,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $363,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($70,770,000))

$68,800,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) (($715,000 of the motor vehicle account--state appropriation is provided solely to retain an external consultant to provide an assessment of the department's review of current major information technology systems and planning for system and application modernization. The legislative transportation committee shall approve the statement of work before the consultant is hired. The consultant shall also work with the department to prepare an application modernization strategy and preliminary project plan.

              The department and the consultant shall work with the office of financial management and the department of information services to ensure that (a) the department's current and future system development is consistent with the overall direction of other key state systems; and (b) when possible, common statewide information systems are used or developed to encourage coordination and integration of information used by the department and other state agencies and to avoid duplication. The department shall provide a report on its proposed application modernization plan to the transportation committees of the legislature by June 30, 2004.)) $850,000 of the motor vehicle account--state appropriation is provided for the continued maintenance and support of the transportation executive information system (TEIS). The TEIS shall be enhanced during the 2004 interim to shift towards a monitoring and reporting system capable of tracking and reporting on major project milestones and measurements. The department shall work with the legislature to identify and define meaningful milestones and measures to be used in monitoring the scope, schedule, and cost of projects.

              (2)(a) (($2,963,000)) $2,959,000 of the motor vehicle account--state appropriation and $2,963,000 of the motor vehicle account--federal appropriation are provided solely for implementation of a new revenue collection system, including the integration of the regional fare coordination system (smart card), at the Washington state ferries. By December 1st of each year, an annual update must be provided to the legislative transportation committee concerning the status of implementing and completing this project.

              (b) (($400,000)) $200,000 of the Puget Sound ferry operation account--state appropriation is provided solely for implementation of the smart card program. (($200,000 of this amount must be held in allotment reserve until a smart card report is delivered to the legislative transportation committee indicating that an agreement on which technology will be used throughout the state of Washington for the smart card program has been reached among smart card participants.))

              (3) The department shall contract with the department of information services to conduct a survey that identifies possible opportunities and benefits associated with siting and use of technology and wireless facilities located on state right of way authorized by RCW 47.60.140. The department shall submit a report regarding the survey to the appropriate legislative committees by December 1, 2004.


              Sec. 213. 2003 c 360 s 215 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--FACILITY MAINTENANCE, OPERATIONS AND CONSTRUCTION--PROGRAM D--OPERATING

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($31,048,000))

$30,981,000


              Sec. 214. 2003 c 360 s 216 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--AVIATION--PROGRAM F

Aeronautics Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($5,107,000))

$5,607,000

Aeronautics Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($650,000))

$2,150,000

Aircraft Search and Rescue Safety and Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . .(($282,000))

$260,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($6,039,000))

$8,017,000


              The appropriations in this section are subject to the following conditions and limitations: $1,381,000 of the aeronautics account--state appropriation is provided solely for additional preservation grants to airports. (($122,000 of the aircraft search and rescue safety and education account--state appropriation is provided for additional search and rescue and safety and education activities.)) If Senate Bill No. 6056 is not enacted by June 30, 2003, the amounts provided shall lapse.


              Sec. 215. 2003 c 360 s 217 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--PROGRAM DELIVERY MANAGEMENT AND SUPPORT--PROGRAM H

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($49,010,000))

$49,056,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $400,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($49,410,000))

$49,456,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $14,310,000 of the motor vehicle account--state appropriation is provided solely for the staffing, activities, and overhead of the department's environmental affairs office. This funding is provided in lieu of funding provided in sections 305 and 306 of this act.

              (2) $3,100,000 of the motor vehicle account--state appropriation is provided solely for the staffing and activities of the transportation permit efficiency and accountability committee. The committee shall develop a model national environmental policy act (NEPA) tribal consultation process for federal transportation aid projects related to the preservation of cultural, historic, and environmental resources. The process shall ensure that Tribal participation in the NEPA consultation process is conducted pursuant to treaty rights, federal law, and state statutes, consistent with their expectations for protection of such resources.

              (3) $300,000 of the motor vehicle account--state appropriation is provided to the department in accordance with RCW 46.68.110(2) and 46.68.120(3) and shall be used by the department solely for the purposes of providing contract services to the association of Washington cities and Washington state association of counties to implement section 2(3)(c), (5), and (6), chapter 8 (ESB 5279), Laws of 2003 for activities of the transportation permit efficiency and accountability committee.


              Sec. 216. 2003 c 360 s 218 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--ECONOMIC PARTNERSHIPS--PROGRAM K

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($1,011,000))

$1,411,000


              The appropriation in this section is subject to the following conditions and limitations: $200,000 of the motor vehicle account--state appropriation is provided solely for a traffic study of the Mount Saint Helens tourist and recreational area. The study shall analyze existing and potential traffic patterns in the area. $200,000 of the motor vehicle account--state appropriation is provided solely for an economic analysis study of the Mount Saint Helens tourist and recreational area. The study shall develop funding strategies sufficient to fund construction of a connection between state route number 504 and forest service road number 99. The economic study shall also include an analysis of potential partnership funding plans involving the use of tolls in order to determine the potential to pay for ongoing maintenance and operations requirements of visitor centers, roads, and other amenities provided to tourists. The purpose and results of the studies shall be made available to citizens, businesses, and community organizations in the affected area. The studies shall be completed and submitted to the transportation committees of the legislature by December 31, 2004.


              Sec. 217. 2003 c 360 s 219 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MAINTENANCE--PROGRAM M

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($283,350,000))

$283,991,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,426,000

Motor Vehicle Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,253,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($289,029,000))

$289,670,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) If portions of the appropriations in this section are required to fund maintenance work resulting from major disasters not covered by federal emergency funds such as fire, flooding, and major slides, supplemental appropriations must be requested to restore state funding for ongoing maintenance activities.

              (2) The department shall request an unanticipated receipt for any federal moneys received for emergency snow and ice removal and shall place an equal amount of the motor vehicle account--state into unallotted status. This exchange shall not affect the amount of funding available for snow and ice removal.

              (3) The department shall request an unanticipated receipt for any private or local funds received for reimbursements of third party damages that are in excess of the motor vehicle account--private/local appropriation.

              (4) Funding is provided for maintenance on the state system to allow for a continuation of the level of service targets included in the 2001-03 biennium. In delivering the program, the department should concentrate on the following areas:

              (a) Meeting or exceeding the target for structural bridge repair on a statewide basis;

              (b) Eliminating the number of activities delivered in the "f" level of service at the region level;

              (c) Reducing the number of activities delivered in the "d" level of service by increasing the resources directed to those activities on a statewide and region basis; and

              (d) Evaluating, analyzing, and potentially redistributing resources within and among regions to provide greater consistency in delivering the program statewide and in achieving overall level of service targets.


              Sec. 218. 2003 c 360 s 220 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--TRAFFIC OPERATIONS--PROGRAM Q--OPERATING

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($38,869,000))

$38,924,000

Motor Vehicle Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $125,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($38,994,000))

$39,049,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) A maximum of $8,800,000 of the motor vehicle account--state appropriation may be expended for the incident response program, including the service patrols. The department and the Washington state patrol shall continue to consult and coordinate with private sector partners, such as towing companies, media, auto, insurance and trucking associations, and the legislative transportation committees to ensure that limited state resources are used most effectively. No funds shall be used to purchase tow trucks.

              (2) $4,400,000 of the motor vehicle account--state appropriation is provided solely for low-cost enhancements. The department shall give priority to low-cost enhancement projects that improve safety or provide congestion relief. The department shall prioritize low-cost enhancement projects on a statewide rather than regional basis.

              (3) At a frequency determined by the department, the interstate-5 variable message signs shall display a message advising slower traffic to keep right.

              (4) The appropriation authority under this section includes spending authority to administer the motorist information sign panel program. The department shall establish the annual fees charged for these services so that all costs to administer this program are recovered; in no event, however, shall the department charge more than:

              (a) $1,000 per business per location on freeways and expressways with average daily trips greater than 80,000;

              (b) $750 per business per location on freeways and expressways with average daily trips less than 80,000; and

              (c) $400 per business per location on conventional highways.


              Sec. 219. 2003 c 360 s 221 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION MANAGEMENT AND SUPPORT--PROGRAM S

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($24,852,000))

$24,579,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $636,000

Puget Sound Ferry Operations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,093,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $973,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($27,554,000))

$27,281,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $627,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Substitute Senate Bill No. 5248. If Substitute Senate Bill No. 5248 is not enacted by June 30, 2003, the amount provided in this subsection shall lapse. The agency may transfer between programs funds provided in this subsection.

              (2) The department shall transfer at no cost to the Washington state patrol the title to the Walla Walla colocation facility.


              Sec. 220. 2003 c 360 s 222 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION PLANNING, DATA, AND RESEARCH--PROGRAM T

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($30,064,000))

$29,494,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$14,814,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,021,000))

$1,521,000

Multimodal Transportation Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,000,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($47,899,000))

$47,829,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $3,800,000 of the motor vehicle account--state appropriation is provided solely for a study of regional congestion relief solutions for Puget Sound (including state route 169), Spokane, and Vancouver. The study must include proposals to alleviate congestion consistent with population and land use expectations under the growth management act, and must include measurement of all modes of transportation.

              (2) $2,000,000 of the motor vehicle account--state appropriation is provided solely for additional assistance to support regional transportation planning organizations and long-range transportation planning efforts. As a condition of receiving this support, a regional transportation planning organization containing any county with a population in excess of one million shall provide voting membership on its executive board to any incorporated principal city of a metropolitan statistical area within the region, as designated by the United States census bureau.

              (3) $3,000,000 of the motor vehicle account--state appropriation is provided solely for the costs of the regional transportation investment district (RTID) election and department of transportation project oversight. These funds are provided as a loan to the RTID and shall be repaid to the state motor vehicle account within one year following the certification of the election results related to the RTID.

              (4) $650,000 of the motor vehicle account--state appropriation is provided to the department in accordance with RCW 46.68.110(2) and 46.68.120(3) and shall be used by the department to support the processing and analysis of the backlog of city and county collision reports.

              (5) The department shall contribute to the report required in section 208(1) of this act in the form of an analysis of the cost impacts incurred by the department as the result of the policy implemented in section 208(1) of this act. The analysis shall contrast overtime costs charged by the patrol prior to July 1, 2003, with contract costs for similar services after July 1, 2003.

              (6) $60,000 of the distribution under RCW 46.68.110(2) and 46.68.120(3) is provided solely to the department for the Washington strategic freight transportation analysis.

              (7) $500,000 of the multimodal transportation account--state appropriation is provided solely for contracting with the department of natural resources to develop data systems for state submerged lands that can be shared with other governmental agencies and that can support the state vision for ecoregional planning. The data to be shared shall include, but not limited to, tabular and geospatial data describing public land ownership, distributions of native plants, marine and aquatic species and their habitats, physical attributes, aquatic ecosystems, and specially designated conservation or environmentally sensitive areas.


              Sec. 221. 2003 c 360 s 223 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--CHARGES FROM OTHER AGENCIES--PROGRAM U

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($61,082,000))

$54,738,000


              The appropriation in this section is subject to the following conditions and limitations:

              (1) $50,799,000 of the motor vehicle fund--state appropriation is provided solely for the liabilities attributable to the department of transportation. The office of financial management must provide a detailed accounting of the revenues and expenditures of the self-insurance fund to the transportation committees of the legislature on December 31st and June 30th of each year.

              (2) Payments in this section represent charges from other state agencies to the department of transportation.

              (a) FOR PAYMENT OF OFFICE OF FINANCIAL MANAGEMENT DIVISION OF

RISK MANAGEMENT FEES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($989,000))

$848,000

              (b) FOR PAYMENT OF COSTS OF THE OFFICE OF THE STATE AUDITOR. . . . . . . . . . . . . . . . . . (($823,000))

$819,000

              (c) FOR PAYMENT OF COSTS OF DEPARTMENT OF GENERAL ADMINISTRATION

FACILITIES AND SERVICES AND CONSOLIDATED MAIL SERVICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,850,000

              (d) FOR PAYMENT OF COSTS OF THE DEPARTMENT OF PERSONNEL. . . . . . . . . . . . . . . . . . .(($2,252,000))

$2,786,000

              (e) FOR PAYMENT OF SELF-INSURANCE LIABILITY PREMIUMS AND

ADMINISTRATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($50,799,000))

$43,799,000

              (f) FOR PAYMENT OF THE DEPARTMENT OF GENERAL ADMINISTRATION

CAPITAL PROJECTS SURCHARGE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,846,000

              (g) FOR ARCHIVES AND RECORDS MANAGEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($523,000))

$538,000

              (h) FOR PAYMENT OF COSTS OF THE OFFICE OF MINORITY AND WOMEN'S BUSINESS ENTERPRISES$252,000


              Sec. 222. 2003 c 360 s 224 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--PUBLIC TRANSPORTATION--PROGRAM V

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($46,457,000))

$47,057,000

Multimodal Transportation Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,574,000

Multimodal Transportation Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $155,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($49,186,000))

$49,786,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) (($4,000,000 of the multimodal transportation account--state appropriation is provided solely for a grant program for nonprofit providers of transportation for persons with special transportation needs. $14,000,000 of the multimodal transportation account--state appropriation is provided solely for a grant program for transit agencies to transport persons with special transportation needs. Moneys shall be to provide additional service only and may not be used to supplant current funding. Grants shall only be used by nonprofit providers and transit agencies for capital and operating costs directly associated with adding additional service. Grants for nonprofit providers shall be based on need, including the availability of other providers of service in the area, efforts to coordinate trips among providers and riders, and the cost effectiveness of trips provided. Grants for transit agencies shall be prorated based on the amount expended for demand response service and route deviated service in calendar year 2001 as reported in the "Summary of Public Transportation - 2001" published by the department of transportation. No transit agency may receive more than thirty percent of these distributions.)) $18,000,000 of the multimodal transportation account--state appropriation is provided solely for a grant program for special needs transportation provided by transit agencies and nonprofit providers of transportation.

              (a) $4,000,000 of the amount provided in this subsection is provided solely for grants to nonprofit providers of special needs transportation. Grants for nonprofit providers shall be based on need, including the availability of other providers of service in the area, efforts to coordinate trips among providers and riders, and the cost effectiveness of trips provided.

              (b) $14,000,000 of the amount provided in this subsection is provided solely for grants to transit agencies to transport persons with special transportation needs. To receive a grant, the transit agency must have a maintenance of effort for special needs transportation that is no less than the previous year's maintenance of effort for special needs transportation. Grants for transit agencies shall be prorated based on the amount expended for demand response service and route deviated service in calendar year 2001 as reported in the "Summary of Public Transportation - 2001" published by the department of transportation. No transit agency may receive more than thirty percent of these distributions.

              (2) $1,500,000 of the multimodal transportation account--state appropriation is provided solely for grants to implement section 9 of Engrossed Substitute House Bill No. 2228.

              (3) Funds are provided for the rural mobility grant program as follows:

              (a) $6,000,000 of the multimodal transportation account--state appropriation is provided solely for grants for those transit systems serving small cities and rural areas as identified in the Summary of Public Transportation - 2001 published by the department of transportation. Noncompetitive grants must be distributed to the transit systems serving small cities and rural areas in a manner similar to past disparity equalization programs.

              (b) $4,000,000 of the multimodal transportation account--state appropriation is provided solely to providers of rural mobility service in areas not served or underserved by transit agencies through a competitive grant process.

              (4) $4,000,000 of the multimodal transportation account--state appropriation is provided solely for a vanpool grant program for: (a) Public transit agencies to add vanpools; and (b) incentives for employers to increase employee vanpool use. The grant program for public transit agencies will cover capital costs only; no operating costs for public transit agencies are eligible for funding under this grant program. ((Only grants that add vanpools are eligible, no)) No additional employees may be hired for the vanpool grant program, and supplanting of transit funds currently funding vanpools is not allowed. Additional criteria for selecting grants will include leveraging funds other than state funds. The commute trip reduction task force shall determine the cost effectiveness of the grants, including vanpool system coordination, regarding the use of the funds.

              (5) $100,000 of the multimodal transportation account--state appropriation is provided solely for the commute trip reduction program for Benton county.

              (6) $3,000,000 of the multimodal transportation account--state appropriation is provided to the city of Seattle for the Seattle streetcar project on South Lake Union.

              (7) $500,000 of the multimodal transportation account--state appropriation is provided solely to King county as a state match to obtain federal funding for a car sharing program.


              Sec. 223. 2003 c 360 s 225 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--MARINE--PROGRAM X

Puget Sound Ferry Operations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($309,580,000))

$312,490,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,120,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($314,700,000))

$317,610,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The appropriation is based on the budgeted expenditure of (($34,701,000)) $35,348,000 for vessel operating fuel in the 2003-2005 biennium. If the actual cost of fuel is less than this budgeted amount, the excess amount may not be expended. If the actual cost exceeds this amount, the department shall request a supplemental appropriation.

              (2) The appropriation provides for the compensation of ferry employees. The expenditures for compensation paid to ferry employees during the 2003-2005 biennium may not exceed (($207,757,000)) $208,935,700, plus a dollar amount, as prescribed by the office of financial management, that is equal to any insurance benefit increase granted general government employees in excess of $495.30 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for fiscal year 2004 and $567.67 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for fiscal year 2005, a dollar amount as prescribed by the office of financial management for costs associated with pension amortization charges, and a dollar amount prescribed by the office of financial management for salary increases during the 2003-2005 biennium. For the purposes of this section, the expenditures for compensation paid to ferry employees shall be limited to salaries and wages and employee benefits as defined in the office of financial management's policies, regulations, and procedures named under objects of expenditure "A" and "B" (7.2.6.2).

              The prescribed salary increase or decrease dollar amount that shall be allocated from the governor's compensation appropriations is in addition to the appropriation contained in this section and may be used to increase or decrease compensation costs, effective July 1, 2003, and thereafter, as established in the 2003-2005 general fund operating budget.

              (3) $4,234,000 of the multimodal transportation account--state appropriation and $800,000 of the Puget Sound ferry operations account--state appropriation are provided solely for operating costs associated with the Vashon to Seattle passenger-only ferry. The Washington state ferries will develop a plan to increase passenger-only farebox recovery to at least forty percent by July 1, 2003, with an additional goal of eighty percent, through increased fares, lower operation costs, and other cost-saving measures as appropriate. In order to implement the plan, ferry system management is authorized to negotiate changes in work hours (requirements for split shift work), but only with respect to operating passenger-only ferry service, to be included in a collective bargaining agreement in effect during the 2003-05 biennium that differs from provisions regarding work hours in the prior collective bargaining agreement. The department must report to the transportation committees of the legislature by December 1, 2003.

              (4) $984,000 of the Puget Sound ferry operations account--state appropriation is provided solely for ferry security operations necessary to comply with the ferry security plan submitted by the Washington state ferry system to the United States coast guard. The department shall track security costs and expenditures. Ferry security operations costs shall not be included as part of the operational costs that are used to calculate farebox recovery.

              (5) $866,000 of the multimodal transportation account--state appropriation and $200,000 of the Puget Sound ferry operations account--state appropriation are provided solely for operating costs associated with the Bremerton to Seattle passenger-only ferry service for thirteen weeks.

              (((5))) (6) The department shall study the potential for private or public partners, including but not limited to King county, to provide passenger-only ferry service from Vashon to Seattle. The department shall report to the legislative transportation committees by December 31, 2003.

              (((6))) (7) The Washington state ferries shall continue to provide service to Sidney, British Columbia.

              (((7))) (8) When augmenting the existing ferry fleet, the department of transportation ferry capital program shall explore cost-effective options to include the leasing of ferries from private-sector organizations.

              (((8))) (9) The Washington state ferries shall work with the department of general administration, office of state procurement to improve the existing fuel procurement process and solicit, identify, and evaluate, purchasing alternatives to reduce the overall cost of fuel and mitigate the impact of market fluctuations and pressure on both short- and long-term fuel costs. Consideration shall include, but not be limited to, long-term fuel contracts, partnering with other public entities, and possibilities for fuel storage in evaluating strategies and options. The department shall report back to the transportation committees of the legislature by December 1, 2003, on the options, strategies, and recommendations for managing fuel purchases and costs.

              (((9))) (10) The department must provide a separate accounting of passenger-only ferry service costs and auto ferry service costs, and must provide periodic reporting to the legislature on the financial status of both passenger-only and auto ferry service in Washington state.

              (((10))) (11) The Washington state ferries must work with the department's information technology division to implement a new revenue collection system, including the integration of the regional fare coordination system (smart card). Each December, annual updates are to be provided to the transportation committees of the legislature concerning the status of implementing and completing this project, with updates concluding the first December after full project implementation.

              (((11))) (12) The Washington state ferries shall evaluate the benefits and costs of selling the depreciation rights to ferries purchased by the state in the future through sale and lease-back agreements, as permitted under RCW 47.60.010. The department is authorized to issue a request for proposal to solicit proposals from potential buyers. The department must report to the transportation committees of the legislature by December 1, 2004, on the options, strategies, and recommendations for sale/lease-back agreements on existing ferry boats as well as future ferry boat purchases.


              Sec. 224. 2003 c 360 s 226 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--RAIL--PROGRAM Y--OPERATING

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($35,075,000))

$34,118,000


              The appropriation in this section is subject to the following conditions and limitations:

              (1) (($30,831,000)) $29,961,000 of the multimodal transportation account--state appropriation is provided solely for the Amtrak service contract and Talgo maintenance contract associated with providing and maintaining the state-supported passenger rail service.

              (2) No Amtrak Cascade runs may be eliminated.

              (3) The department is directed to explore scheduling changes that will reduce the delay in Seattle when traveling from Portland to Vancouver B.C.

              (4) The department is directed to explore opportunities with British Columbia (B.C.) concerning the possibility of leasing an existing Talgo trainset to B.C. during the day for a commuter run when the Talgo is not in use during the Bellingham layover.

              (5) The department shall undertake an origin and destination study to provide data that may be used for a new passenger train cost sharing agreement with the state of Oregon. The study shall be delivered to the transportation committees of the legislature before July 1, 2004.


              Sec. 225. 2003 c 360 s 227 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--LOCAL PROGRAMS--PROGRAM Z--OPERATING

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($7,057,000))

$7,067,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,569,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($9,626,000))

$9,636,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) Up to $75,000 of the total appropriation is provided in accordance with RCW 46.68.110(2) and 46.68.120(3) to fund the state's share of the 2004 Washington marine cargo forecast study. Public port districts, acting through their association, must provide funding to cover the remaining cost of the forecast.

              (2) $300,000 of the motor vehicle account--state appropriation is provided in accordance with RCW 46.68.110(2) and 46.68.120(3) solely to fund a study of the threats posed by flooding to the state and other infrastructure near the Interstate 5 crossing of the Skagit River. This funding is contingent on the receipt of federal matching funds.

              (3) In addition to other gubernatorial appointees, the state historic preservation officer shall be appointed to any steering committee that makes the final selection of projects funded from the surface transportation program enhancement funds or a similar program anticipated to be authorized in the extension or reauthorization of the transportation equity act for the 21st century (TEA-21).


TRANSPORTATION AGENCIES--CAPITAL


              Sec. 301. 2003 c 360 s 304 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--PROGRAM D (DEPARTMENT OF TRANSPORTATION-ONLY PROJECTS)--CAPITAL

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($17,296,000))

$17,186,000


              The appropriation in this section is subject to the following conditions and limitations:

              (1) The entire motor vehicle account--state appropriation is provided solely to implement the activities and projects included in the Legislative 2003 Transportation Project List - Current Law report as transmitted to LEAP on April 27, 2003.

              (2) The department shall develop a standard design for all maintenance facilities to be funded under this section. Prior to developing design standards, the department must solicit input from all personnel classifications typically employed at maintenance facilities. By September 1, 2003, the department shall submit a report to the legislative transportation committees describing the stakeholder involvement process undertaken and the adopted design standards for maintenance facilities.


              Sec. 302. 2003 c 360 s 305 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--IMPROVEMENTS--PROGRAM I

Transportation 2003 Account (Nickel Account)--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($565,300,000))

$558,465,000

((Transportation 2003 Account (Nickel Account)--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$950,000

Transportation 2003 Account (Nickel Account)--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,434,000))

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($157,374,000))

$159,135,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($192,940,000))

$201,578,000

Motor Vehicle Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($13,258,000))

$30,158,000

Special Category C Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$50,279,000

Tacoma Narrows Toll Bridge Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($613,300,000))

$603,992,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,596,835,000))

$1,603,607,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) (($157,374,000 of the motor vehicle account--state appropriation, $192,940,000 of the motor vehicle account--federal appropriation, $13,258,000 of the motor vehicle account--local appropriation, and $50,279,000 of the special category C account--state appropriation are provided solely to implement the activities and projects included in the Legislative 2003 Transportation Project List - Current Law report as transmitted to LEAP on April 27, 2003.)) The entire transportation 2003 account (nickel account) appropriation is provided solely for the projects and activities as listed by project, biennium, and amount in the Legislative 2003 Transportation Project List - New Law List under the heading "Nickel Funds" as transmitted to LEAP on March 11, 2004. However, limited transfers of allocations between projects may occur for those amounts listed for the 2003-05 biennium subject to conditions and limitations in section 503 of this act.

              (a) Within the amount provided in this subsection, $11,000,000 of the transportation 2003 account (nickel account)--state appropriation is provided solely for the environmental impact statement on the SR 520 Evergreen floating bridge.

              (b) Within the amount provided in this subsection, $250,000 of the transportation 2003 account (Nickel Account)--state appropriation and an equal amount from the city of Seattle are provided solely for an analysis of the impacts that an expansion of the SR 520 Evergreen floating bridge will have on the streets of North Capitol Hill, Roanoke Park, and Montlake. An advisory committee with two members each from Portage Bay/Roanoke Park Community Council, Montlake Community Council, and the North Capitol Hill community organization along with the secretary of transportation is established. The seven-member committee shall hire and oversee the contract with a transportation consulting organization to: (a) Perform an analysis of such impacts; and (b) design a traffic and circulation plan that mitigates the adverse consequences of such impacts. If the city of Seattle does not agree to provide $250,000 by January 1, 2004, the amount provided in this subsection (1)(b) shall lapse.

              (2) $126,533,253 of the motor vehicle account--state appropriation and motor vehicle account--federal appropriation is provided solely to implement the projects as indicated in the Legislative 2003 Transportation Project List - New Law List under the heading "Pre-Existing Revenues" as transmitted to LEAP on March 11, 2004.

              (3) The motor vehicle account--state appropriation includes (($78,000,000)) $93,615,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation. The motor vehicle account--state appropriation includes (($18,038,000)) $17,380,000 in unexpended proceeds from bond sales authorized in RCW 47.10.843 for mobility and economic initiative improvement projects.

              (((3))) (4) $192,180,381 of the motor vehicle account--state appropriation and motor vehicle account--federal appropriation and $50,279,000 of the special category C account--state appropriation are provided solely to implement the projects included in the Legislative 2003 Transportation Project List - Current Law List under the heading "Improvement Projects" as transmitted to LEAP on March 11, 2004. The department shall manage all projects on the list within the overall expenditure authority provided in this subsection.

              (a) Within the amounts provided in this subsection, $1,700,000 of the motor vehicle account--state appropriation is provided solely for the I-5 Salmon creek noisewall project.

              (b) Within amounts provided in this subsection, $100,000 of the motor vehicle account--state appropriation is provided solely for the department to hire a consultant to complete a cost-benefit analysis comparing the efficiency of having high-occupancy vehicle (HOV) lanes in the right lane versus the left lane. The study shall compare the costs, and the traffic efficiencies of building HOV lanes in the right and left lanes. The study shall be completed and submitted to the transportation committees of the legislature by December 1, 2004.

              (c) Within amounts provided in this subsection, $500,000 of the motor vehicle account--state appropriation is provided solely for a study to provide the legislature with information regarding the feasibility of pursuing a Washington commerce corridor. The department shall retain outside experts to conduct the study. The study must include the following conditions:

              (i) The Washington commerce corridor must be a north-south corridor starting in the vicinity of Lewis county and extending northerly to the vicinity of the Canadian border. The corridor must be situated east of state route number 405 and west of the Cascades. The corridor may include any of the following features:

              (A) Ability to carry long-haul freight;

              (B) Ability to provide for passenger auto travel;

              (C) Freight rail;

              (D) Passenger rail;

              (E) Public utilities; and

              (F) Other ancillary facilities as may be desired to maximize use of the corridor;

              (ii) The Washington commerce corridor must be developed, financed, designed, constructed, and operated by private sector consortiums;

              (iii) The Washington commerce corridor must be subject to a joint permitting process involving federal, state, and local agencies with jurisdiction; and

              (iv) The legislative transportation committee shall form a working group to work with the department and the outside consultant on the study.

              (d) Within the amounts provided in this subsection, $2,480,000 of the motor vehicle account--state appropriation is provided solely for either the SR 28 east end of the George Sellar bridge - phase 1 project or the US 2/97 Peshastin East Interchange project.

              (e) Within the amounts provided in this subsection, $400,000 of the motor vehicle account--state appropriation and $150,000 of the motor vehicle account--local appropriation are provided solely for a route development plan to identify the future transportation improvements that should be pursued for state route 169. The study shall include the following elements:

              (i) Documentation of existing conditions;

              (ii) Determination of present and future operating conditions;

              (iii) Development and testing of various transportation conceptual improvement strategies;

              (iv) Preliminary environmental analysis;

              (v) Public involvement; and

              (vi) Cost estimates for the identified conceptual improvements.

              (f) Within the amounts provided in this subsection, $1,200,000 from the motor vehicle account--state appropriation is provided solely for the SR507-SR510 Yelm Bypass project.

              (g) Within the amount provided in this subsection, $650,000 from the motor vehicle account--state appropriation is provided solely for the SR164 Corridor Analysis project.

              (5) A maximum of $28,643,607 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation is provided for direct project support costs, including, but not limited to, direct project support, property management, scenic byways, and other administration.

              (6) A maximum of $9,238,726 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation is provided for environmental retrofit improvement projects not included in the list in subsection (4) of this section.

              (7) A maximum of $2,266,813 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation is provided for improvement projects programmed through the transportation commission's priority programming process.

              (8) The Tacoma Narrows toll bridge account--state appropriation includes $567,000,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The Tacoma Narrows toll bridge account--state appropriation includes (($46,300,000)) $36,992,000 in unexpended proceeds from the January 2003 bond sale authorized in RCW 47.10.843 for the Tacoma Narrows bridge project.

              (((4))) (9) The special category C account--state appropriation includes $44,000,000 in proceeds from the sale of bonds authorized by RCW 47.10.812. The transportation commission may authorize the use of current revenues available in the special category C account in lieu of bond proceeds for any part of the state appropriation.

              (((5) The entire transportation 2003 account (nickel account) appropriation is provided solely for the projects and activities as indicated in the Legislative 2003 Transportation Project List - New Law report transmitted to LEAP on April 27, 2003.

              (6))) (10) The ((motor vehicle account)) transportation 2003 account (nickel account)--state appropriation includes (($280,000,000)) $275,000,000 in proceeds from the sale of bonds authorized by Senate Bill No. 6062. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

              (((7) $11,000,000 of the motor vehicle account--state appropriation is provided solely for the environmental impact statement on the SR 520 Evergreen floating bridge.

              (8) $250,000 of the transportation 2003 account (Nickel Account)--state appropriation and an equal amount from the city of Seattle are provided solely for an analysis of the impacts that an expansion of the SR 520 Evergreen floating bridge will have on the streets of North Capitol Hill, Roanoke Park, and Montlake. An advisory committee with two members each from Portage Bay/Roanoke Park Community Council, Montlake Community Council, and the North Capitol Hill community organization along with the secretary of transportation is established. The seven-member committee shall hire and oversee the contract with a transportation consulting organization to: (a) Perform an analysis of such impacts; and (b) design a traffic and circulation plan that mitigates the adverse consequences of such impacts. If the city of Seattle does not agree to provide $250,000 by January 1, 2004, the amount provided in this subsection shall lapse.

              (9)(a) $500,000 of the motor vehicle account--state appropriation is provided solely for a study to provide the legislature with information regarding the feasibility of pursuing a Washington commerce corridor. The department shall retain outside experts to conduct the study. The study must include the following conditions:

              (i) The Washington commerce corridor must be a north-south corridor starting in the vicinity of Lewis county and extending northerly to the vicinity of the Canadian border. The corridor must be situated east of state route number 405 and west of the Cascades. The corridor may include any of the following features:

              (A) Ability to carry long-haul freight;

              (B) Ability to provide for passenger auto travel;

              (C) Freight rail;

              (D) Passenger rail;

              (E) Public utilities; and

              (F) Other ancillary facilities as may be desired to maximize use of the corridor;

              (ii) The Washington commerce corridor must be developed, financed, designed, constructed, and operated by private sector consortiums; and

              (iii) The Washington commerce corridor must be subject to a joint permitting process involving federal, state, and local agencies with jurisdiction.

              (b) The legislative transportation committee shall form a working group to work with the department and the outside consultant on the study.

              (10) $8,000,000 of the motor vehicle account--state appropriation is provided for the SR 522, University of Washington-Bothell campus access project. This amount will cover approximately one-half of the construction costs.))

              (11) The transportation permit efficiency and accountability committee (TPEAC) shall select from the project list under ((this)) subsection (1) of this section ten projects that have not yet secured state permits. TPEAC shall select projects from both urban and rural areas representing a wide variety of locations within the state. These projects shall be designated "Department of Transportation Permit Drafting Pilot Projects" and shall become a part of the work plan of TPEAC required under section 2(1)(b), chapter 8 (ESB 5279), Laws of 2003.

              (12) Of the amounts appropriated in this section and section 306 of this act, no more than $124,000 is provided for increased project costs due to the enactment of Substitute Senate Bill No. 5457.

              (((14))) (13) To manage some projects more efficiently, federal funds may be transferred from program Z to program I ((to replace those federal)) and replaced with state funds in a dollar-for-dollar match. However, funds may not be transferred between federal programs, except in order to accept federally earmarked funds and maintain eligibility for federal discretionary programs. Fund transfers authorized under this subsection shall not affect project prioritization status. Appropriations shall initially be allotted as appropriated in this act. The department shall not transfer funds as authorized under this subsection without approval of the transportation commission and the director of financial management. The department shall submit a report on those projects receiving fund transfers to the transportation committees of the senate and house of representatives by December 1, 2004.

              (14) The department shall, on a quarterly basis beginning July 1, 2004, provide to the legislature reports providing the status on each project in the project lists submitted pursuant to this act to LEAP on March 11, 2004, and on any additional projects for which the department has expended funds during the 2003-05 fiscal biennium. The department shall work with the transportation committees of the legislature to agree on report formatting and elements. Elements shall include, but not be limited to, project scope, schedule, and costs. The department shall also provide the information required under this subsection via the transportation executive information systems (TEIS).

              (15) Funding provided by this act for the Alaskan Way Viaduct project shall not be spent for preliminary engineering, design, right of way acquisition, or construction on the project if it could have the effect of reducing roadway capacity on that facility.

              (16) In conducting its environmental impact statement responsibilities on the Alaskan Way Viaduct project, the department of transportation must provide briefings and consult with the legislators in the affected project area, and the chairs of the transportation committees of the legislature, on the design alternatives for that facility.


              Sec. 303. 2003 1st sp.s. c 26 s 506 (uncodified) is amended to read as follows:

              FOR THE DEPARTMENT OF TRANSPORTATION--PRESERVATION--PROGRAM P

Transportation 2003 Account (Nickel Account). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,000,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($178,909,000))

$205,349,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($457,467,000))

$499,067,000

Motor Vehicle Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,666,000

Multimodal Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,690,000

((Multimodal Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,247,000))

Puyallup Tribal Settlement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$11,000,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($656,979,000))

$731,772,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) (($178,909,000 of the motor vehicle account--state appropriation, $457,467,000 of the motor vehicle account--federal appropriation, $12,666,000 of the motor vehicle account--local appropriation, $1,690,000 of the multimodal transportation account--state appropriation, and $4,247,000 of the multimodal transportation account--federal appropriation are provided solely to implement the activities and projects included in the Legislative 2003 Transportation Project List - Current Law report transmitted to LEAP on April 27, 2003.)) The entire 2003 transportation account (nickel account) appropriation is provided solely for the projects and activities as listed by project, biennium, and amount in the Legislative 2003 Transportation Project List - New Law List under the heading "Nickel Funds" as transmitted to LEAP on March 11, 2004. However, limited transfers of allocations between projects may occur for those amounts listed for the 2003-05 biennium subject to conditions and limitations in section 503 of this act.

              (2) $35,974,657 of the motor vehicle account--state appropriation and motor vehicle account--federal appropriation and $11,000,000 of the Puyallup tribal settlement account--state appropriation are provided solely to implement the projects included in the Legislative 2003 Transportation Project List - Current Law List under the heading "Bridge Improvements" as transmitted to LEAP on March 11, 2004. The department shall manage all projects on the list within the overall expenditure authority provided in this subsection.

              (a) Within the amounts provided in this subsection, $1,000,000 of the motor vehicle account--state appropriation is provided solely for the Purdy creek bridge project. The 2005-07 biennium appropriations for this project are expected to be $5,074,000.

              (b) Within the amounts provided in this subsection, $11,000,000 of the Puyallup tribal settlement account--state appropriation is provided solely for mitigation costs associated with the Murray Morgan/11st Street Bridge demolition. The department may negotiate with the city of Tacoma for the purpose of transferring ownership of the Murray Morgan/11th Street Bridge to the city. The department is allowed to use the Puyallup tribal settlement account appropriation, as well as any funds appropriated in the current biennium and planned in future biennia for the demolition and mitigation for the demolition of the bridge to rehabilitate or replace the bridge, if agreed to by the city. In no event will the department's participation exceed $26,500,000 and no funds may be expended unless the city of Tacoma agrees to take ownership of the bridge in its entirety and provide that the payment of these funds extinguishes any real or implied agreements regarding future expenditures on the bridge.

              (3) A maximum of $211,585,010 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation and $1,690,000 of the multimodal account--state appropriation are provided for roadway preservation projects.

              (4) A maximum of $55,336,893 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation is provided for bridge repair projects.

              (5) A maximum of $51,562,422 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation is provided for other facilities preservation projects.

              (6) A maximum of $38,968,540 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation is provided for other preservation projects programmed through the transportation commission's priority programming process.

              (7) A maximum of $56,737,803 from the motor vehicle account--state appropriation and motor vehicle account--federal appropriation is provided for direct project support costs, including, but not limited to, direct project support, property management, scenic byways, and other administration.

              (8) $81,147,069 of the motor vehicle account--state appropriation and $173,103,529 of the motor vehicle account--federal appropriation are provided solely for the Hood Canal bridge project.

              (9) The motor vehicle account--state appropriation includes $2,850,000 in proceeds from the sale of bonds authorized in RCW 47.10.761 and 47.10.762 for emergency purposes.

              (((3))) (10) The motor vehicle account--state appropriation includes $77,700,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

              (((4) The entire transportation 2003 account (nickel account) appropriation is provided solely for the projects and activities as indicated in the Legislative 2003 Transportation Project List - New Law report transmitted to LEAP on April 27, 2003.

              (5))) (11) The department of transportation shall continue to implement the lowest life cycle cost planning approach to pavement management throughout the state to encourage the most effective and efficient use of pavement preservation funds. Emphasis should be placed on increasing the number of roads addressed on time and reducing the number of roads past due.

              (((6))) (12) Of the amounts appropriated in this section and section 305 of this act, no more than $124,000 is provided for increased project costs due to the enactment of Substitute Senate Bill No. 5457.

              (((7))) (13) To manage some projects more efficiently, federal funds may be transferred from program Z to program P ((to replace those federal)) and replaced with state funds in a dollar-for-dollar match. However, funds may not be transferred between federal programs, except in order to accept federally earmarked funds and maintain eligibility for federal discretionary programs. Fund transfers authorized under this subsection shall not affect project prioritization status. Appropriations shall initially be allotted as appropriated in this act. The department shall not transfer funds as authorized under this subsection without approval of the transportation commission and the director of financial management. The department shall submit a report on those projects receiving fund transfers to the transportation committees of the senate and house of representatives by December 1, 2004.

              (14) The department shall, on a quarterly basis beginning July 1, 2004, provide to the legislature reports providing the status on each project in the project lists submitted pursuant to this act to LEAP on March 11, 2004, and on any additional projects for which the department has expended funds during the 2003-05 fiscal biennium. The department shall work with the transportation committees of the legislature to agree on report formatting and elements. Elements shall include, but not be limited to, project scope, schedule, and costs. The department shall also provide the information required under this subsection via the transportation executive information systems (TEIS).


              Sec. 304. 2003 c 360 s 308 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--WASHINGTON STATE FERRIES CONSTRUCTION--PROGRAM W

Puget Sound Capital Construction Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($129,066,000))

$108,330,000

Puget Sound Capital Construction Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($34,400,000))

$69,881,000

Puget Sound Capital Construction Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $249,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$13,381,000

Transportation 2003 Account (nickel account) Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,749,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($182,596,000))

$197,590,000


              The appropriations in this section are provided for improving the Washington state ferry system, including, but not limited to, vessel construction, major and minor vessel ((improvements)) preservation, and terminal preservation, construction, and improvements. The appropriations in this section are subject to the following conditions and limitations:

              (1) The multimodal transportation account--state appropriation includes $11,772,000 in proceeds from the sale of bonds authorized by Senate Bill No. 6062. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

              (2) (($129,066,000 of the Puget Sound capital construction account--state appropriation and $34,400,000 of the Puget Sound capital construction account--federal appropriation are provided solely for capital projects as listed in the Legislative 2003 Transportation Project List - Current Law as transmitted to the LEAP on April 27, 2003.

              (3) $17,521,000 of the transportation 2003 account (nickel account)--state appropriation is provided solely for capital projects as listed in the Legislative 2003 Transportation Project List - New Law as transmitted to the LEAP on April 27, 2003.

              (4))) $108,330,000 of the Puget Sound capital construction account--state appropriation, $69,881,000 of the Puget Sound capital construction account--federal appropriation, $249,000 of the Puget Sound capital construction account--local appropriation, and $1,609,000 of the multimodal transportation account--state appropriation are provided for ferry construction projects. The department shall report against the Legislative 2003 Transportation Project List - Current Law transmitted to LEAP on March 11, 2004.

              (a) Within the amounts provided in this subsection, a maximum of $58,205,000 of the Puget Sound capital construction account--state appropriation, $21,362,000 of the Puget Sound capital construction account--federal appropriation, $409,000 of the multimodal transportation account--state appropriation, and $249,000 of the Puget Sound capital construction account--local appropriation are provided for terminal projects.

              (b) Within the amounts provided in this subsection, a maximum of $44,875,000 of the Puget Sound capital construction account--state appropriation, $48,432,000 of the Puget Sound capital construction account--federal appropriation, and $1,200,000 of the multimodal transportation account--state appropriation are provided for vessel projects.

              (c) Within the amounts provided in this subsection, $5,250,000 of the Puget Sound capital construction account--state appropriation and $87,000 of the Puget Sound capital construction account--federal appropriation are provided for emergency repair projects. Additionally, unused funds under (a) and (b) of this subsection, may be transferred to emergency repair projects.

              (3) $11,772,000 of the multimodal transportation account--state appropriation and $5,749,000 of the transportation 2003 (nickel) account--state appropriation are provided solely for the projects and activities as listed by project, biennium, and amount in the Legislative 2003 Transportation Project List - New Law transmitted to LEAP on March 11, 2004. However, limited transfers of allocations between projects may occur for those amounts listed for the 2003-05 biennium subject to conditions and limitations in section 503 of this act.

              (4) $1,000,000 of the Puget Sound capital construction account--state appropriation is provided solely for the department of transportation's Washington state ferry program to conduct a terminal analysis, including technical analysis, to determine the viability of the existing Keystone harbor. The department of transportation staff, including the chief of staff, secretary, or the secretary's designee, and the citizen advisory group formed under this subsection, shall meet at least three times during the duration of the analysis. The first meeting shall occur before the analysis is created.

              (a) The technical analysis shall at a minimum include the following issues: (i) The costs and benefits associated with preserving and maintaining the terminal, including enlarging the harbor and dredging; (ii) ridership projections associated with preserving and maintaining the current terminal; (iii) maintaining and retrofitting existing vessels so they can serve the terminal; (iv) coordinating the impact of vehicles using the ferry run with highway capacity; (v) how many, if any, new vessels should be constructed; and (vi) the impact on the environment. The department shall report back to the legislative transportation committee by December 1, 2004. The report must include alternatives to relocating the Keystone Terminal.

              (b) By June 1, 2004, the transportation commission shall select a citizen advisory group to be composed of the following: One Washington state ferry pilot, two members of the traveling public that use the Keystone to Port Townsend route on a regular basis, and one tug pilot.

              (5) The Puget Sound capital construction account--state appropriation includes (($45,000,000)) $29,385,000 in proceeds from the sale of bonds authorized by RCW 47.10.843 for vessel and terminal acquisition, major and minor improvements, and long lead time materials acquisition for the Washington state ferries. The transportation commission may authorize the use of current revenues available to the motor vehicle account in lieu of bond proceeds for any part of the state appropriation.

              (((5))) (6) The Washington state ferries shall consult with the United States Coast Guard regarding operational and design standards required to meet Safety of Life at Sea requirements, in an effort to determine the most efficient and cost-effective vessel design that meets these requirements.

              (7) The department shall, on a quarterly basis beginning July 1, 2004, provide to the legislature reports providing the status on each project in the project lists submitted pursuant to this act to LEAP on March 11, 2004, and on any additional projects for which the department has expended funds during the 2003-05 fiscal biennium. The department shall work with the transportation committees of the legislature to agree on report formatting and elements. Elements shall include, but not be limited to, project scope, schedule, and costs. The department shall also provide the information required under this subsection via the transportation executive information systems (TEIS).


              Sec. 305. 2003 1st sp.s. c 26 s 508 (uncodified) is amended to read as follows:

              FOR THE DEPARTMENT OF TRANSPORTATION--RAIL--PROGRAM Y--CAPITAL

Essential Rail Assistance Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$770,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($34,530,000))

$35,330,000

Multimodal Transportation Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($9,499,000))

$10,088,000

Multimodal Transportation Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,787,000

Washington Fruit Express Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($45,299,000))

$56,475,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) The multimodal transportation account--state appropriation includes $30,000,000 in proceeds from the sale of bonds authorized by Senate Bill No. 6062. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

              (2) $4,530,000 of the multimodal transportation account--state appropriation, $9,499,000 of the multimodal transportation account--federal appropriation, $500,000 of the Washington fruit express account--state appropriation, and $770,000 of the essential rail assistance account--state appropriation are provided solely for capital projects as listed in the Legislative 2003 Transportation Project List - Current Law as transmitted to the LEAP on ((April 27, 2003)) March 11, 2004.

              (3) $1,230,000 of the multimodal transportation account--state appropriation and $770,000 of the essential rail assistance account--state appropriation is to be placed in reserve status by the office of financial management to be held until the department identifies the location for a new transload facility at either Wenatchee or Quincy. The funds are to be released upon determination of a location and approval by the office of financial management.

              (4) $30,000,000 of the multimodal transportation account--state appropriation is provided solely for capital projects as listed in the Legislative 2003 Transportation Project List - New Law as transmitted to the LEAP on ((April 27, 2003)) March 11, 2004.

              (5) If federal block grant funding for freight or passenger rail is received, the department shall consult with the legislative transportation committee prior to spending the funds on additional projects.

              (6) If the department issues a call for projects, applications must be received by the department by November 1, 2003, and November 1, 2004.

              (7) The department may not execute the Palouse River & Coulee City Rail purchase until the chairs of the transportation committees of the legislature have reviewed, and the office of financial management has approved, a business plan that demonstrates the long term financial viability of state-owned, privately operated short rail service. The office of financial management shall issue to the chairs of the transportation committees of the legislature a report outlining reasons for the acceptance or rejection of the plan.


              Sec. 306. 2003 c 360 s 310 (uncodified) is amended to read as follows:

              FOR THE DEPARTMENT OF TRANSPORTATION--LOCAL PROGRAMS--PROGRAM Z--CAPITAL

Highway Infrastructure Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $207,000

Highway Infrastructure Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,602,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($28,425,000))

$34,496,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,000,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($13,726,000))

$16,476,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($43,960,000))

$53,781,000


              The appropriations in this section are subject to the following conditions and limitations:

              (1) $6,000,000 of the multimodal transportation account--state appropriation is provided solely for the projects and activities as indicated in the Legislative 2003 Transportation Project List - New Law Local Projects report transmitted to LEAP on April 27, 2003.

              (2) To manage some projects more efficiently, federal funds may be transferred from program Z to programs I and P and state funds shall be transferred from programs I and P to program Z to replace those federal funds in a dollar-for-dollar match. However, funds may not be transferred between federal programs. Fund transfers authorized under this subsection shall not affect project prioritization status. Appropriations shall initially be allotted as appropriated in this act. The department may not transfer funds as authorized under this subsection without approval of the transportation commission. The department shall submit a report on those projects receiving fund transfers to the transportation committees of the senate and house of representatives by December 1, 2004.

              (3) $7,576,000 of the multimodal transportation account--state appropriation is reappropriated and provided solely to fund the first phase of a multiphase cooperative project with the state of Oregon to dredge the Columbia River. If dredge material is disposed of in the ocean, the department shall not expend the appropriation in this subsection unless agreement on ocean disposal sites has been reached that protects the state's commercial crab fishery. The amount provided in this subsection shall lapse unless the state of Oregon appropriates a dollar-for-dollar match to fund its share of the project.

              (4) (($1,156,000)) $647,000 of the motor vehicle account--state appropriation is reappropriated and provided solely for additional small city pavement preservation program grants, to be administered by the department's highways and local programs division. The department shall review all projects receiving grant awards under this program at least semiannually to determine whether the projects are making satisfactory progress. Any project that has been awarded small city pavement preservation program grant funds, but does not report activity on the project within one year of grant award, should be reviewed by the department to determine whether the grant should be terminated. The department must promptly close out grants when projects have been completed, and identify where unused grant funds remain because actual project costs were lower than estimated in the grant award. The department shall expeditiously extend new grant awards to qualified projects when funds become available either because grant awards have been rescinded for lack of sufficient project activity or because completed projects returned excess grant funds upon project closeout.

              (5) (($4,010,000)) $3,156,000 of the motor vehicle account--state appropriation is reappropriated and provided solely for additional traffic and pedestrian safety improvements near schools. The highways and local programs division within the department of transportation shall administer this program. The department shall review all projects receiving grant awards under this program at least semiannually to determine whether the projects are making satisfactory progress. Any project that has been awarded traffic and pedestrian safety improvement grant funds, but does not report activity on the project within one year of grant award should be reviewed by the department to determine whether the grant should be terminated. The department must promptly close out grants when projects have been completed, and identify where unused grant funds remain because actual project costs were lower than estimated in the grant award. The department shall expeditiously extend new grant awards to qualified projects when funds become available either because grant awards have been rescinded for lack of sufficient project activity or because completed projects returned excess grant funds upon project closeout.

              (6) The motor vehicle account--state appropriation includes (($20,452,000)) $15,317,000 in unexpended proceeds from the sale of bonds authorized by RCW 47.10.843.

              (7) The multimodal transportation account--state appropriation includes $6,000,000 in proceeds from the sale of bonds authorized by Senate Bill No. 6062. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

              (8) $500,000 of the multimodal account--state appropriation is provided solely to complete the engineering and permitting necessary to implement the Skagit county flood control project.

              (9) $1,000,000 of the multimodal transportation account--state appropriation is provided solely to support the safe routes to school program.

              (10) $12,670,000 of the motor vehicle account--state appropriation is provided solely for the local freight projects identified in this subsection. The specific funding listed is provided solely for the respective projects: SR 397 Ainsworth Ave. Grade Crossing, $4,650,000; Colville Alternate Truck Route, $2,000,000; S. 228th Street Extension and Grade Separation, $2,000,000; Duwamish Intelligent Transportation Systems (ITS), $450,000; Bigelow Gulch Road-Urban Boundary to Argonne Rd., $500,000; Granite Falls Alternate Route, $1,800,000; Port of Kennewick/Piert Road, $520,000; and Pacific Hwy. E./Port of Tacoma Road to Alexander, $750,000.

              (11) $1,250,000 of the multimodal account--state appropriation is provided solely for the Port of Kalama Grain terminal track improvement project.


TRANSFERS AND DISTRIBUTIONS


              Sec. 401. 2003 c 360 s 401 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALES DISCOUNTS AND DEBT TO BE PAID BY MOTOR VEHICLE ACCOUNT AND TRANSPORTATION FUND REVENUE

Highway Bond Retirement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($258,971,000))

$250,000,000

Nondebt-Limit Reimbursable Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,131,000

Ferry Bond Retirement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $43,340,000

Transportation Improvement Board Bond Retirement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . .$36,721,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($3,876,000))

$5,254,000

Special Category C Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($331,000))

$338,000

Transportation Improvement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$240,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $358,000

Transportation 2003 Account (nickel account) Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($2,100,000))

$2,117,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($350,068,000))

$342,499,000


              Sec. 402. 2003 c 360 s 402 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES AND FISCAL AGENT CHARGES

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,293,000

Special Category C Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$111,000

Transportation Improvement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($5,000))

$21,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $119,000

Transportation 2003 Account (nickel account)--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $700,000

                            TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($2,228,000))

$2,244,000


              Sec. 403. 2003 c 360 s 403 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR MVFT BONDS AND TRANSFERS

              (1) Motor Vehicle Account--State Reappropriation:

For transfer to the Tacoma Narrows toll bridge account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$567,000,000


              The department of transportation is authorized to sell up to $567,000,000 in bonds authorized by RCW 47.10.843 for the Tacoma Narrows bridge project. Proceeds from the sale of the bonds shall be deposited into the motor vehicle account. The department of transportation shall inform the treasurer of the amount to be deposited.


              (2) Motor Vehicle Account--State Appropriation:

For transfer to the Puget Sound capital construction account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($45,000,000))

$29,385,000


              The department of transportation is authorized to sell up to (($45,000,000)) $29,385,000 in bonds authorized by RCW 47.10.843 for vessel and terminal acquisition, major and minor improvements, and long lead-time materials acquisition for the Washington state ferries.


              Sec. 404. 2003 c 360 s 404 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--STATE REVENUES FOR DISTRIBUTION STATE TREASURER||STATE REVENUES FOR DISTRIBUTION             Motor Vehicle Account Appropriation for

motor vehicle fuel tax distributions to

cities and counties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($441,359,000))

$440,228,000

              Motor Vehicle Account--State Appropriation:

For license permit and fee distributions to cities and counties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($51,652,000))

$13,119,000


              Sec. 405. 2003 c 360 s 405 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--TRANSFERS

              (1) State Patrol Highway Account--State

Appropriation: For transfer to the Motor Vehicle Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,000,000

              (2) Motor Vehicle Account--State Appropriation: For motor vehicle fuel tax

refunds and transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($465,152,000))

$770,347,000

              (3) Highway Safety Account--State Appropriation: For transfer to the motor

vehicle account--state. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,000,000


              The state treasurer shall perform the transfers from the state patrol highway account and the highway safety account to the motor vehicle account on a quarterly basis.


              Sec. 406. 2003 c 360 s 406 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--TRANSFERS

              (1) Motor Vehicle Account--State Appropriation:

For transfer to Puget Sound Ferry Operations Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,757,000

              (2) RV Account--State Appropriation:

For transfer to the Motor Vehicle Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,954,000

              (3) Motor Vehicle Account--State Appropriation:

For transfer to Puget Sound Capital Construction Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($64,287,000))

$61,287,000

              (4) Puget Sound Ferry Operations Account--State Appropriation:

For transfer to Puget Sound Capital Construction Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,000,000

              (5) Transportation Equipment Fund--State

Appropriation:

For transfer to the Motor Vehicle Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,000,000

              (6) Advanced Right-of-Way Revolving Account--State Appropriation:

For transfer to the Motor Vehicle Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,000,000


              The transfers identified in this section are subject to the following conditions and limitations:

              (a) The department of transportation shall only transfer funds in subsections (2) and (3) of this section up to the level provided, on an as-needed basis.

              (b) The department of transportation shall transfer funds in subsection (4) of this section up to the amount identified, provided that a minimum balance of $5,000,000 is retained in the Puget Sound ferry operations account.

              (c) The amount identified in subsection (4) of this section may not include any revenues collected as passenger fares.


              Sec. 407. 2003 c 360 s 407 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF RETIREMENT SYSTEMS--TRANSFERS

              State Patrol Highway Account:

For transfer to the department of retirement systems expense account:

              For the administrative expenses of the ((judicial)) Washington state patrol retirement system. . . . . . . . . .(($223,304))

$290,000


MISCELLANEOUS


              Sec. 501. RCW 70.94.996 and 2003 c 364 s 9 are each amended to read as follows:

              (1) To the extent that funds are appropriated, the department of transportation shall administer a performance-based grant program for private employers, public agencies, nonprofit organizations, developers, and property managers who provide financial incentives for ride sharing in vehicles carrying two or more persons, for using public transportation, for using car sharing, or for using nonmotorized commuting, including telework, before July 1, 2013, to their own or other employees.

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

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

              (4) The total of grants provided under this section may not exceed seven hundred fifty thousand dollars in any fiscal year. However, this subsection does not apply during the 2003-2005 fiscal biennium.

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

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

              (7) This section expires January 1, 2014.


              NEW SECTION. Sec. 502. A new section is added to 2003 c 360 (uncodified) to read as follows:

              The department is given the authority to provide up to $3,000,000 in toll credits to Kitsap transit for its role in new passenger-only ferry service. The number of toll credits provided to Kitsap transit must be equal to, but no more than, a number sufficient to meet federal match requirements for grant funding for passenger-only ferry service, but shall not exceed the amount authorized under this section.


              NEW SECTION. Sec. 503. A new section is added to 2003 c 360 (uncodified) to read as follows:

              (1) The transportation commission may authorize a transfer of spending allocation within the appropriation provided and between projects as listed in the Legislative 2003 Transportation Project List - New Law to manage project spending near biennial cutoffs under the following conditions and limitations:

              (a) Transfers from a project may be made if the funds allocated to the project are in excess of the amount needed to complete the project, but transfers may only be made in the biennium in which the savings occur;

              (b) Transfers from a project may not be made as a result of the reduction of the scope of a project, nor shall a transfer be made to support increases in the scope of a project;

              (c) Transfers may be made within the current biennium from projects that are experiencing unavoidable expenditure delays, but the transfers may only occur if the commission finds that any resulting change to the nickel program financial plan provides that all projects on the list may be completed as intended by the legislature; and

              (d) Transfers may not occur to projects not identified on the list.


              NEW SECTION. Sec. 504. A new section is added to 2003 c 360 (uncodified) to read as follows:

              INFORMATION SYSTEMS PROJECTS.

Agencies shall comply with the following requirements regarding information systems projects when specifically directed to do so by this act.

              (1) Agency planning and decisions concerning information technology shall be made in the context of its information technology portfolio. "Information technology portfolio" means a strategic management approach in which the relationships between agency missions and information technology investments can be seen and understood, such that: Technology efforts are linked to agency objectives and business plans; the impact of new investments on existing infrastructure and business functions are assessed and understood before implementation; and agency activities are consistent with the development of an integrated, nonduplicative statewide infrastructure.

              (2) Agencies shall use their information technology portfolios in making decisions on matters related to the following:

              (a) System refurbishment, acquisitions, and development efforts;

              (b) Setting goals and objectives for using information technology in meeting legislatively-mandated missions and business needs;

              (c) Assessment of overall information processing performance, resources, and capabilities;

              (d) Ensuring appropriate transfer of technological expertise for the operation of any new systems developed using external resources; and

              (e) Progress toward enabling electronic access to public information.

              (3) Each project will be planned and designed to take optimal advantage of Internet technologies and protocols. Agencies shall ensure that the project is in compliance with the architecture, infrastructure, principles, policies, and standards of digital government as maintained by the information services board.

              (4) The agency shall produce a feasibility study for information technology projects at the direction of the information services board and in accordance with published department of information services policies and guidelines. At a minimum, such studies shall include a statement of: (a) The purpose or impetus for change; (b) the business value to the agency, including an examination and evaluation of benefits, advantages, and cost; (c) a comprehensive risk assessment based on the proposed project's impact on both citizens and state operations, its visibility, and the consequences of doing nothing; (d) the impact on agency and statewide information infrastructure; and (e) the impact of the proposed enhancements to an agency's information technology capabilities on meeting service delivery demands.

              (5) The agency shall produce a comprehensive management plan for each project. The plan or plans shall address all factors critical to successful completion of each project. The plan(s) shall include, but is not limited to, the following elements: A description of the problem or opportunity that the information technology project is intended to address; a statement of project objectives and assumptions; a definition and schedule of phases, tasks, and activities to be accomplished; and the estimated cost of each phase. The planning for the phased approach shall be such that the business case justification for a project needs to demonstrate how the project recovers cost or adds measurable value or positive cost benefit to the agency's business functions within each development cycle.

              (6) The agency shall produce quality assurance plans for information technology projects. Consistent with the direction of the information services board and the published policies and guidelines of the department of information services, the quality assurance plan shall address all factors critical to successful completion of the project and successful integration with the agency and state information technology infrastructure. At a minimum, quality assurance plans shall provide time and budget benchmarks against which project progress can be measured, a specification of quality assurance responsibilities, and a statement of reporting requirements. The quality assurance plans shall set out the functionality requirements for each phase of a project.

              (7) A copy of each feasibility study, project management plan, and quality assurance plan shall be provided to the department of information services, the office of financial management, and legislative fiscal committees. The plans and studies shall demonstrate a sound business case that justifies the investment of taxpayer funds on any new project, an assessment of the impact of the proposed system on the existing information technology infrastructure, the disciplined use of preventative measures to mitigate risk, and the leveraging of private-sector expertise as needed. Authority to expend any funds for individual information systems projects is conditioned on the approval of the relevant feasibility study, project management plan, and quality assurance plan by the department of information services and the office of financial management.

              (8) Quality assurance status reports shall be submitted to the department of information services, the office of financial management, and legislative fiscal committees at intervals specified in the project's quality assurance plan.


              NEW SECTION. Sec. 505. A new section is added to 2003 c 360 (uncodified) to read as follows:

              (1) It is the intent of the legislature that the freight mobility account created in Substitute Senate Bill No. 6680 maintain a zero or positive cash balance at the end of each biennium. Toward this purpose the Washington state department of transportation may make expenditures from the account before receiving reimbursements. Before the end of the biennium, the department shall transfer sufficient cash to cover any negative cash balances from the motor vehicle fund and the multimodal transportation account to the freight mobility account for unrecovered reimbursements. The department shall calculate the distribution of this transfer based on expenditures. In the ensuing biennium the department shall transfer the reimbursements received in the freight mobility account back to the motor vehicle fund and the multimodal transportation account to the extent of the cash transferred at biennium end. The department shall also distribute any interest charges accruing to the freight mobility account to the motor vehicle fund and the multimodal transportation account. Adjustments for any indirect cost recoveries may also be made at this time.

              (2) This section is null and void unless either Engrossed Substitute Senate Bill No. 6701 or Engrossed Substitute Senate Bill No. 6680 is enacted by June 30, 2004.


              NEW SECTION. Sec. 506. A new section is added to 2003 c 360 (uncodified) to read as follows:

              Washington state ferries are more than a symbol of the state's natural beauty and economic vitality. They also are a critical component of our state's transportation system, serving as an extension of our land-based highways and transit systems, connecting Washington's people, jobs, and communities.

              The investments made in the 2003 transportation funding package provide the foundation for a marine transportation system that coordinates Washington's cross-Sound marine transportation and our land-based transportation alternatives to create a fully integrated marine/land multimodal transportation system. Achieving this will require the development of a long-range vision and supporting strategy that will provide the policy guidance to define and maximize efficient delivery of quality marine transportation service to the traveling public.

              (1) To accomplish this, the Washington state department of transportation shall develop a vision statement and 10-year strategy for the future development of Washington's multimodal water-based transportation system.

              (a) This strategy shall recommend the most appropriate means of moving foot passengers across central Puget Sound, using Washington state ferries, alternative operators, or a combination of both, in the immediate future and over the longer term:

              (i) Giving priority to those routes where passenger service likely will be provided at least for the near term on passenger-only vessels, such as Vashon-Seattle, Kingston-Seattle, Southworth-Seattle, and Clinton-Seattle. Consideration shall be given to existing public-private partnership opportunities;

              (ii) Considering how service patterns will best fit in the near and long term with development goals and opportunities of Colman Dock as a major hub for integrating water transportation with other transportation modes in downtown Seattle;

              (iii) Evaluating how operating economies and reasonable fare box recoveries can be established by scheduling A.M. and P.M. services to match commuter demand and to fit within existing collective bargaining agreements as interpreted and applied to facilitate "split shift" transit-like operations; and

              (iv) Providing a vessel plan that most efficiently uses existing state ferry assets and provides for their likely repair and rehabilitation needs, while preserving flexibility to structure services around vessel availability that could rely on purchase or lease of additional vessels, as may suitably be required.

              The strategy shall also consider the availability of partnering in operations, vessel deployment, or funding arrangements with other public transportation entities and with the private sector. The study shall also recommend the most effective use of federal funding opportunities for the overall support of integrated water transportation services on the central Puget Sound.

              (b) Other components of the strategy shall include but not be limited to:

              (i) A long-term plan for the ferry system's existing terminals, considering the revenue generation opportunities and potential for partnering with the private sector where appropriate. This should include a plan for generating other revenues as identified in the 2003 5-5-5 plan; and

              (ii) A more equitable fare structure for the San Juan Islands, particularly for island residents.

              (2) The department shall consult with key public and private sector stakeholders including business, labor, environmental community representatives, local governments, and transit agencies as part of the development of the vision statement and supporting strategy.

              The long-range strategy should also recommend a short-range implementation plan for the 2005-07 biennium. The department shall provide its recommendations to the transportation committees of the legislature by December 15, 2004.


              NEW SECTION. Sec. 507. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.


              NEW SECTION. Sec. 508. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.


              On page 1, line 1 of the title, after "appropriations;" strike the remainder of the title and insert "amending RCW 70.94.996; amending 2003 1st sp.s. c 26 ss 506 and 508 (uncodified); amending 2003 c 360 ss 102, 202, 203, 204, 206, 207, 208, 209, 210, 211, 212, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 226, 227, 304, 305, 308, 310, 401, 402, 403, 404, 405, 406, and 407 (uncodified); adding new sections to 2003 c 360 (uncodified); and declaring an emergency."


and the same is herewith transmitted.

Milt H. Doumit, Secretary


             There being no objection, the House concurred in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2474 and advanced the bill, as amended by the Senate, to final passage.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


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


MOTION


             On motion of Representative Santos, Representative Flannigan was excused.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2474, as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2474, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 93, Nays - 3, Absent - 0, Excused - 2.

             Voting yea: Representatives Ahern, Alexander, Anderson, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Eickmeyer, Ericksen, Fromhold, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Rockefeller, Rodne, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, D. Simpson, G. Simpson, Skinner, Sommers, Sullivan, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 93.

             Voting nay: Representatives Armstrong, Condotta and Sump - 3.

             Excused: Representatives Edwards and Flannigan - 2.

  

             ENGROSSED SUBSTITUTE HOUSE BILL NO. 2474, as amended by the Senate, having received the constitutional majority, was declared passed.


POINT OF PERSONAL PRIVILEGE


             Representative Murray acknowledged and thanked the staff of the Transportation Committee for their hard work in developing the transportation budget. He asked the chamber to acknowledge the staff members as well.


SENATE AMENDMENTS TO HOUSE BILL

March 11, 2004

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 2313, with the following amendment:


              Strike everything after the enacting clause and insert the following:


              "NEW SECTION. Sec. 1. The legislature recognizes that bail bond agents and bail bond recovery agents serve a necessary and important purpose in the criminal justice system by locating, apprehending, and surrendering fugitive criminal defendants. The legislature also recognizes that locating, apprehending, and surrendering fugitives requires special skills and expertise; that bail bond agents and bail bond recovery agents are often required to perform their duties under stressful and demanding conditions; and that it serves the public interest to have qualified people performing such essential functions. Therefore, bail bond agencies that use the services of bail bond recovery agents must, in the interest of public safety, use bail bond recovery agents who possess the knowledge and competence necessary for the job.


              Sec. 2. RCW 18.185.010 and 2000 c 171 s 40 are each amended to read as follows:

              Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

              (1) "Department" means the department of licensing.

              (2) "Director" means the director of licensing.

              (3) "Commission" means the criminal justice training commission.

              (4) "Collateral or security" means property of any kind given as security to obtain a bail bond.

              (((4))) (5) "Bail bond agency" means a business that sells and issues corporate surety bail bonds or that provides security in the form of personal or real property to ((insure)) ensure the appearance of a criminal defendant before the courts of this state or the United States.

              (((5))) (6) "Qualified agent" means an owner, sole proprietor, partner, manager, officer, or chief operating officer of a corporation who meets the requirements set forth in this chapter for obtaining a bail bond agency license.

              (((6))) (7) "Bail bond agent" means a person who is employed by a bail bond agency and engages in the sale or issuance of bail bonds, but does not mean a clerical, secretarial, or other support person who does not participate in the sale or issuance of bail bonds.

              (((7))) (8) "Licensee" means a bail bond agency ((or)), a bail bond agent ((or both)), a qualified agent, or a bail bond recovery agent.

              (((8))) (9) "Branch office" means any office physically separated from the principal place of business of the licensee from which the licensee or an employee or ((agents conduct)) agent of the licensee conducts any activity meeting the criteria of a bail bond agency.

              (10) "Bail bond recovery agent" means a person who is under contract with a bail bond agent to receive compensation, reward, or any other form of lawful consideration for locating, apprehending, and surrendering a fugitive criminal defendant for whom a bail bond has been posted. "Bail bond recovery agent" does not include a general authority Washington peace officer or a limited authority Washington peace officer.

              (11) "Contract" means a written agreement between a bail bond agent or qualified agent and a bail bond recovery agent for the purpose of locating, apprehending, and surrendering a fugitive criminal defendant in exchange for lawful consideration.

              (12) "Planned forced entry" means a premeditated forcible entry into a dwelling, building, or other structure without the occupant's knowledge or consent for the purpose of apprehending a fugitive criminal defendant subject to a bail bond. "Planned forced entry" does not include situations where, during an imminent or actual chase or pursuit of a fleeing fugitive criminal defendant, or during a casual or unintended encounter with the fugitive, the bail bond recovery agent forcibly enters into a dwelling, building, or other structure without advanced planning.


              NEW SECTION. Sec. 3. A new section is added to chapter 18.185 RCW to read as follows:

              An applicant must meet the following requirements to obtain a bail bond recovery agent license:

              (1) Submit a fully completed application that includes proper identification on a form prescribed by the director;

              (2) Pass an examination determined by the director to measure his or her knowledge and competence in the bail recovery business;

              (3) Be at least twenty-one years old;

              (4) Be a citizen or legal resident alien of the United States;

              (5) Not have been convicted of a crime in any jurisdiction, if the director determines that the applicant's particular crime directly relates to a capacity to perform the duties of a bail bond recovery agent, and that the license should be withheld to protect the citizens of Washington state. The director shall make the director's determination to withhold a license because of previous convictions notwithstanding the restoration of employment rights act, chapter 9.96A RCW;

              (6) Submit a receipt showing payment for a background check through the Washington state patrol and the federal bureau of investigation;

              (7) Have a current firearms certificate issued by the commission if carrying a firearm in the performance of his or her duties as a bail bond recovery agent;

              (8)(a) Have a current license to carry a concealed pistol if carrying a firearm in the performance of his or her duties as a bail bond recovery agent;

              (b) A resident alien must provide a copy of his or her alien firearm license if carrying a firearm in the performance of his or her duties as a bail bond recovery agent; and

              (9)(a) Pay the required nonrefundable fee for each application for a bail bond recovery agent license;

              (b) A bail bond agent or qualified agent who wishes to perform the duties of a bail bond recovery agent must first obtain a bail bond recovery agent endorsement to his or her bail bond agent or agency license in order to act as a bail bond recovery agent, and pay the required nonrefundable fee for each application for a bail bond recovery agent endorsement.


              Sec. 4. RCW 18.185.040 and 1993 c 260 s 5 are each amended to read as follows:

              (1) Applications for licenses required under this chapter shall be filed with the director on a form provided by the director. The director may require any information and documentation that reasonably relates to the need to determine whether the applicant meets the criteria, ((which may include)) including fingerprints.

              (2) ((After receipt of an application for a license, the director may conduct an investigation to determine whether the facts set forth in the application are true.)) Applicants for licensure or endorsement as a bail bond recovery agent must complete a records check through the Washington state patrol criminal identification system and through the federal bureau of investigation at the applicant's expense. Such record check shall include a fingerprint check using a Washington state patrol approved fingerprint card. The Washington state patrol shall forward the fingerprints of applicants to the federal bureau of investigation for a national criminal history records check. The director may accept proof of a recent national crime information center/III criminal background report or any national or interstate criminal background report in addition to fingerprints to accelerate the licensing and endorsement process. The director is authorized to periodically perform a background investigation of licensees to identify criminal convictions subsequent to the renewal of a license or endorsement.


              NEW SECTION. Sec. 5. A new section is added to chapter 18.185 RCW to read as follows:

              (1) The director shall adopt rules establishing prelicense training and testing requirements, which shall include a minimum of four hours of classes. The director may establish, by rule, continuing education requirements for bail bond recovery agents.

              (2) The director shall consult with representatives of the bail bond industry and associations before adopting or amending the prelicensing training or continuing education requirements of this section.

              (3) A bail bond recovery agent need not fulfill the prelicensing training requirements of this chapter if he or she, within sixty days prior to July 1, 2005, provides proof to the director that he or she previously has met the training requirements of this chapter.

              (4) The director, or the director's designee, with the advice of representatives of the bail bond industry and associations, law enforcement agencies and associations, and prosecutors' associations, shall adopt rules establishing prelicense training and testing requirements and shall establish minimum exam standards necessary for a bail bond recovery agent to qualify for licensure or endorsement.

              (5) The standards shall be limited to the following:

              (a) A minimum level of education or experience appropriate for performing the duties of a bail bond recovery agent;

              (b) A minimum level of knowledge in relevant areas of criminal and civil law;

              (c) A minimum level of knowledge regarding the appropriate use of force and different degrees of the use of force; and

              (d) Adequate training of the use of firearms from the criminal justice training commission or from an instructor who has been trained or certified by the criminal justice training center.

              (6) The legislature does not intend, and nothing in this chapter shall be construed to restrict or limit in any way the powers of bail bond agents as recognized in and derived from the United States Supreme Court case of Taylor v. Taintor, 16 Wall. 366 (1872).


              NEW SECTION. Sec. 6. A new section is added to chapter 18.185 RCW to read as follows:

              (1) Each fugitive criminal defendant to be recovered will be treated as an individual contract between the bail bond agent and the bail bond recovery agent. A bail bond agent shall provide a bail bond recovery agent a copy of each individual contract. A bail bond recovery agent must carry, in addition to the license issued by the department, a copy of the contract and, if requested, must present a copy of the contract and the license to the fugitive criminal defendant, the owner or manager of the property in which the agent entered in order to locate or apprehend the fugitive, other residents, if any, of the residence in which the agent entered in order to locate or apprehend the fugitive, and to the local law enforcement agency or officer. If presenting a copy of the contract or the license at the time of the request would unduly interfere with the location or apprehension of the fugitive, the agent shall present the copy of the contract or the license within a reasonable period of time after the exigent circumstances expire.

              (2) The director, or the director's designee, with the advice of the bail bond industry and associations, law enforcement agencies and associations, and prosecutors' associations shall develop a format for the contract. At a minimum, the contract must include the following:

              (a) The name, address, phone number, and license number of the bail bond agency or bail bond agent contracting with the bail bond recovery agent;

              (b) The name and license number of the bail bond recovery agent; and

              (c) The name, last known address, and phone number of the fugitive.


              Sec. 7. RCW 18.185.090 and 1993 c 260 s 10 are each amended to read as follows:

              (1) A bail bond agency shall notify the director within thirty days after the death or termination of employment of any employee who is a licensed bail bond agent.

              (2) A bail bond agency shall notify the director within seventy-two hours upon receipt of information affecting a licensed bail bond agent's continuing eligibility to hold a license under the provisions of this chapter.

              (3) A bail bond agent or bail bond recovery agent shall notify the director within seventy-two hours upon receipt of information affecting the bail bond recovery agent's continuing eligibility to hold a bail bond recovery agent's license under the provisions of this chapter.

              (4) A bail bond agent or bail bond recovery agent shall notify the local law enforcement agency whenever the bail bond recovery agent discharges his or her firearm while on duty, other than on a supervised firearms range. The notification must be made within ten business days of the date the firearm is discharged.


              Sec. 8. RCW 18.185.100 and 1996 c 242 s 3 are each amended to read as follows:

              (1) Every qualified agent shall keep adequate records for three years of all collateral and security received, all trust accounts required by this section, and all bail bond transactions handled by the bail bond agency, as specified by rule. The records shall be open to inspection without notice by the director or authorized representatives of the director.

              (2) Every qualified agent who receives collateral or security is a fiduciary of the property and shall keep adequate records for three years of the receipt, safekeeping, and disposition of the collateral or security. Every qualified agent shall maintain a trust account in a federally insured financial institution located in this state. All moneys, including cash, checks, money orders, wire transfers, and credit card sales drafts, received as collateral or security or otherwise held for a bail bond agency's client shall be deposited in the trust account not later than the third banking day following receipt of the funds or money. A qualified agent shall not in any way encumber the corpus of the trust account or commingle any other moneys with moneys properly maintained in the trust account. Each qualified agent required to maintain a trust account shall report annually under oath to the director the account number and balance of the trust account, and the name and address of the institution that holds the trust account, and shall report to the director within ten business days whenever the trust account is changed or relocated or a new trust account is opened.

              (3) Whenever a bail bond is exonerated by the court, the qualified agent shall, within five business days after written notification of exoneration ((and upon written demand)), return all collateral or security to the person entitled thereto.

              (4) Records of contracts for fugitive apprehension must be retained by the bail bond agent and by the bail bond recovery agent for a period of three years.


              Sec. 9. RCW 18.185.110 and 2002 c 86 s 251 are each amended to read as follows:

              In addition to the unprofessional conduct described in RCW 18.235.130, the following conduct, acts, or conditions constitute unprofessional conduct:

              (1) Violating any of the provisions of this chapter or the rules adopted under this chapter;

              (2) Failing to meet the qualifications set forth in RCW 18.185.020 and 18.185.030;

              (3) Knowingly committing, or being a party to, any material fraud, misrepresentation, concealment, conspiracy, collusion, trick, scheme, or device whereby any other person lawfully relies upon the word, representation, or conduct of the licensee. However, this subsection (3) does not prevent a bail bond recovery agent from using any pretext to locate or apprehend a fugitive criminal defendant or gain any information regarding the fugitive;

              (4) Assigning or transferring any license issued pursuant to the provisions of this chapter, except as provided in RCW 18.185.030;

              (5) Conversion of any money or contract, deed, note, mortgage, or other evidence of title, to his or her own use or to the use of his or her principal or of any other person, when delivered to him or her in trust or on condition, in violation of the trust or before the happening of the condition; and failure to return any money or contract, deed, note, mortgage, or other evidence of title within thirty days after the owner is entitled to possession, and makes demand for possession, shall be prima facie evidence of conversion;

              (6) Failing to keep records, maintain a trust account, or return collateral or security, as required by RCW 18.185.100;

              (7) Any conduct in a bail bond transaction which demonstrates bad faith, dishonesty, or untrustworthiness; ((or))

              (8) Violation of an order to cease and desist that is issued by the director under this chapter;

              (9) Wearing, displaying, holding, or using badges not approved by the department;

              (10) Making any statement that would reasonably cause another person to believe that the bail bond recovery agent is a sworn peace officer;

              (11) Failing to carry a copy of the contract or to present a copy of the contract as required under section 6(1) of this act;

              (12) Using the services of an unlicensed bail bond recovery agent or using the services of a bail bond recovery agent without issuing the proper contract;

              (13) Misrepresenting or knowingly making a material misstatement or omission in the application for a license;

              (14) Using the services of a person performing the functions of a bail bond recovery agent who has not been licensed by the department as required by this chapter; or

              (15) Performing the functions of a bail bond recovery agent without being both (a) licensed under this chapter or supervised by a licensed bail bond recovery agent under section 11 of this act; and (b) under contract with a bail bond agent.


              NEW SECTION. Sec. 10. A new section is added to chapter 18.185 RCW to read as follows:

              (1) A person may not perform the functions of a bail bond recovery agent unless the person is licensed by the department under this chapter.

              (2) A bail bond agent may contract with a person to perform the functions of a bail bond recovery agent. Before contracting with the bail bond recovery agent, the bail bond agent must check the license issued by the department under this chapter. The requirements established by the department under this chapter do not prevent the bail bond agent from imposing additional requirements that the bail bond agent considers appropriate.

              (3) A contract entered into under this chapter is authority for the person to perform the functions of a bail bond recovery agent as specifically authorized by the contract and in accordance with applicable law. A contract entered into by a bail bond agent with a bail bond recovery agent is not transferable by the bail bond recovery agent to another bail bond recovery agent.

              (4) Whenever a person licensed by the department as a bail bond recovery agent is engaged in the performance of the person's duties as a bail bond recovery agent, the person must carry a copy of the license.

              (5) A license or endorsement issued by the department under this chapter is valid from the date the license or endorsement is issued until its expiration date unless it is suspended or revoked by the department prior to its expiration date.

              (6) No person may perform the functions of a bail bond recovery agent after December 31, 2005, unless the person has first complied with the provisions of this chapter.

              (7) Nothing in this chapter is meant to prevent a bail bond agent from contacting a fugitive criminal defendant for the purpose of requesting the surrender of the fugitive, or from accepting the voluntary surrender of the fugitive.


              NEW SECTION. Sec. 11. A new section is added to chapter 18.185 RCW to read as follows:

              A bail bond recovery agent from another state who is not licensed under this chapter may not perform the functions of a bail bond recovery agent in this state unless the agent is working under the direct supervision of a licensed bail bond recovery agent.


              NEW SECTION. Sec. 12. A new section is added to chapter 18.185 RCW to read as follows:

              (1) Before a bail bond recovery agent may apprehend a person subject to a bail bond in a planned forced entry, the bail bond recovery agent must notify an appropriate law enforcement agency in the local jurisdiction in which the apprehension is expected to occur. Notification must include, at a minimum: The name of the defendant; the address, or the approximate location if the address is undeterminable, of the dwelling, building, or other structure where the planned forced entry is expected to occur; the name of the bail bond recovery agent; the name of the contracting bail bond agent; and the alleged offense or conduct the defendant committed that resulted in the issuance of a bail bond.

              (2) During the actual planned forced entry, a bail bond recovery agent:

              (a) Shall wear a shirt, vest, or other garment with the words "BAIL BOND RECOVERY AGENT" displayed in at least two-inch-high reflective print letters across the front and back of the garment and in a contrasting color to that of the garment; and

              (b) May display a badge approved by the department with the words "BAIL BOND RECOVERY AGENT" prominently displayed.


              Sec. 13. RCW 18.185.170 and 2002 c 86 s 254 are each amended to read as follows:

              (1) ((After June 30, 1994,)) Any person who performs the functions and duties of a bail bond agent in this state without being licensed in accordance with the provisions of this chapter, or any person presenting or attempting to use as his or her own the license of another, or any person who gives false or forged evidence of any kind to the director in obtaining a license, or any person who falsely impersonates any other licensee, or any person who attempts to use an expired or revoked license, or any person who violates any of the provisions of this chapter is guilty of a gross misdemeanor.

              (2) ((After January 1, 1994,)) A person is guilty of a gross misdemeanor if ((he or she)) the person owns or operates a bail bond agency in this state without first obtaining a bail bond agency license.

              (3) ((After June 30, 1994,)) The owner or qualified agent of a bail bond agency is guilty of a gross misdemeanor if ((he or she)) the owner or qualified agent employs any person to perform the duties of a bail bond agent without the employee having in ((his or her)) the employee's possession a permanent bail bond agent license issued by the department.

              (4) After December 31, 2005, a person is guilty of a gross misdemeanor if the person:

              (a) Performs the functions of a bail bond recovery agent without first obtaining a license from the department and entering into a contract with a bail bond agent as required by this chapter; or, in the case of a bail bond recovery agent from another state, the person performs the functions of a bail bond recovery agent without operating under the direct supervision of a licensed bail bond recovery agent as required by this chapter; or

              (b) Conducts a planned forced entry without first complying with the requirements of this chapter."


              On page 1, beginning on line 1 of the title, after "agents;" strike the remainder of the title and insert "amending RCW 18.185.010, 18.185.040, 18.185.090, 18.185.100, 18.185.110, and 18.185.170; adding new sections to chapter 18.185 RCW; creating a new section; and prescribing penalties."


and the same is herewith transmitted.

Milt H. Doumit, Secretary


             There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 2313 and advanced the bill, as amended by the Senate, to final passage.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


             Representative Carrell spoke in favor the passage of the bill.


MOTION


             On motion of Representative Santos, Speaker Chopp was excused.


             The Speaker stated the question before the House to be final passage of Substitute House Bill No. 2313, as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 2313, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

             Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Eickmeyer, Ericksen, Fromhold, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Rockefeller, Rodne, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, D. Simpson, G. Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood and Woods - 95.

             Excused: Representatives Edwards, Flannigan and Mr. Speaker - 3.

  

             SUBSTITUTE HOUSE BILL NO. 2313, as amended by the Senate, having received the constitutional majority, was declared passed.


RESOLUTION


             HOUSE RESOLUTION NO. 2004-4729, By Representatives DeBolt, Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Chase, Chopp, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Crouse, Darneille, Delvin, Dickerson, Dunshee, Edwards, Eickmeyer, Ericksen, Flannigan, Fromhold, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Rockefeller, Rodne, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, D. Simpson, G. Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood and Woods


             WHEREAS, It is the policy of the Washington State Legislature to recognize excellence in all fields of endeavor; and

             WHEREAS, Barry Sehlin attained the highest level of excellence during his legislative service in the Washington State House of Representatives; and

             WHEREAS, Representative Barry Sehlin served as Representative from the 10th District, which encompasses Island County and parts of Skagit and Snohomish Counties; and

             WHEREAS, Representative Barry Sehlin began his distinguished legislative career when he was first elected in 1993, serving three terms through 1999, and was reelected in 2001, serving two terms through 2004; and

             WHEREAS, Representative Barry Sehlin, during his terms in office, served with distinction as Chairman of the House of Representatives Capital Budget Committee, as a Member, Co-Chair, and Ranking Member of the House of Representatives Appropriations Committee, as a Member of the Executive Committee on the Joint Pension Policy Committee, and as a Member of the Caseload Forecast Council; and

             WHEREAS, Representative Barry Sehlin, during his time with the legislature, has primarily focused his attention on the state's capital and operating budgets; and

             WHEREAS, Representative Barry Sehlin has earned the deep respect of the members of this body for his exceptional ability to reach effective, bipartisan solutions to complex problems facing the state of Washington; and

             WHEREAS, Representative Barry Sehlin has remained an active supporter of Skagit Valley College, serving on the Board of Governors of the Skagit Valley College Foundation for several years, has also served on the Board of Directors of New Leaf, the Oak Harbor Chamber of Commerce Navy League, Whidbey Playhouse, and is a member of the Save NAS Task Force; and

             WHEREAS, Prior to his election to the House of Representatives, Barry Sehlin served for twenty-seven years in the Navy, during which he served at NAS Whidbey in VAQ-136, as Commanding Officer of VAQ-136 and VAQ-129, as well as Commanding Officer of the Naval Air Station; and

             WHEREAS, Representative Sehlin attended elementary school in Oak Harbor, and after moving with his family to Anacortes, graduated from Anacortes High School, and later went on to graduate from Skagit Valley College in 1963, and Western Washington University in 1992;

             NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives honor State Representative Barry Sehlin for his excellence in service, and his legislative and personal accomplishments and contributions on behalf of this institution, his colleagues, his constituents, and all the citizens of the great state of Washington; and

             BE IT FURTHER RESOLVED, That the House of Representatives extend its very best wishes to Barry Sehlin, his wife of thirty-eight years, Susan, and their two children, Jennifer and Martin; and

             BE IT FURTHER RESOLVED, That copies of this Resolution be immediately transmitted by the Chief Clerk of the House of Representatives to Representative Barry Sehlin.


             Representative DeBolt moved the adoption of the resolution.


             Representatives DeBolt, Sommers, Mastin, Linville and Schoesler spoke in favor of the adoption of the resolution.


             HOUSE RESOLUTION NO. 4729 was adopted.


POINT OF PERSONAL PRIVILEGE


             Representative Sehlin: "Thank you, Mr. Speaker. I was having a pretty nice day today until I was reminded about the Pension Policy Committee. You don't need to worry, I'm not coming back. Let me tell you in the headline in Oak Harbor newspaper, which is where I come from, on the day before Valentine's Day said 'Sehlin Will Not Run Again in 2004.' My wife, at her soroptomist meeting that morning said here is my Valentine. So I won't be back.

             I had an opportunity a little bit earlier to share my appreciation with my own caucus members but I would be remiss if I did not also share my appreciation for the ability to work with so many of you on the other side. And some things are better shared without words." (And Representative Sehlin proceeded to hug Representative Sommers.)


RESOLUTION


             HOUSE RESOLUTION NO. 2004-4727, By Representatives O'Brien, Lovick, Bailey, Skinner, Ahern, Alexander, Anderson, Armstrong, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Chase, Chopp, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Edwards, Eickmeyer, Ericksen, Flannigan, Fromhold, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Mastin, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Rockefeller, Rodne, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, D. Simpson, G. Simpson, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood and Woods


             WHEREAS, It is the policy of the Washington State Legislature to recognize excellence in all fields of endeavor; and

             WHEREAS, Washington State Representative Jeanne Edwards, first elected to the Washington State House of Representatives in 1998, is serving her third term of unselfish, distinguished service to the citizens of the first legislative district; and

             WHEREAS, Representative Edwards has announced that she will not seek reelection to the Washington State Legislature; and

             WHEREAS, Representative Edwards' life and career as a Washingtonian began when she moved to Seattle from Colorado in 1950; and

             WHEREAS, She and her late husband, Bill, built a home in Bothell in 1960, where they raised three sons and a daughter; and

             WHEREAS, Representative Edwards is now the proud grandmother of five grandchildren between the ages of twenty and twenty-nine; and

             WHEREAS, Most recently, Representative Edwards has served the people of the state of Washington as an integral part of the House committees on health care, transportation, and local government; and

             WHEREAS, During her legislative career, Representative Edwards has distinguished herself by demonstrating leadership in the areas of affordable health care, higher education, and local government; and

             WHEREAS, The tireless work and advocacy of Representative Edwards helped to establish the Washington State Children's Health Insurance Program so that children living in poverty could have access to health care; and

             WHEREAS, Thousands of students have been able to access higher education through Representative Edwards' contributions in helping to secure funds to build the University of Washington Bothell campus and Cascadia Community College; and

             WHEREAS, Representative Edwards has served her community as a member of the Bothell City Council, Board Chair of Community Transit of Snohomish County, Board Chair of the Washington State Transit Association, a member of the Snohomish County Board of Health, legislative chair of the King County Human Services Roundtable, and a member of the King County Regional Transit Committee; and

             WHEREAS, Representative Edwards' career has included serving as a reporter and then reporter/editor for the Everett Herald for thirteen years; and

             WHEREAS, Representative Edwards has also served as the executive director of Community Health Centers of Snohomish County; and

             WHEREAS, Representative Edwards played an instrumental role in opening the first Health Center in Sultan; and

             WHEREAS, Among numerous accomplishments, Representative Edwards is most proud of raising her four children to be contributing adults to society; and

             WHEREAS, Our friend and colleague will remain in our thoughts and hearts;

             NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives of the state of Washington honor her excellence in service and the untold legislative and personal accomplishments and contributions by State Representative Jeanne Edwards to her office, her constituents, and colleagues, and especially to the citizens of the great state of Washington; and

             BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to Washington State Representative Jeanne Edwards and the members of her family.


             Representative O'Brien moved the adoption of the resolution.


             Representatives O'Brien, DeBolt, Ruderman, Rockefeller, Santos, Hatfield and Schindler spoke in favor of the adoption of the resolution.


             HOUSE RESOLUTION NO. 4727 was adopted.


MESSAGE FROM THE SENATE

March 11, 2004

Mr. Speaker:


             The Senate has passed:

ENGROSSED HOUSE BILL NO. 1677,

SUBSTITUTE HOUSE BILL NO. 2510,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


POINT OF PERSONAL PRIVILEGE


             Representative Orcutt: "Thank you, Mr. Speaker. I wanted to rise and take a moment to thank all the members of this body for all of the assistance they have given me in this sixty day session. It has been very difficult for me to get around. The hardest part has been carrying anything so getting things from one place to another. I want to take a couple of minutes to thank some people. You know when you are sitting in a two hour long committee, and you're asking a lot questions, your throat kind of drys out and that sort of thing so it really means a lot even though it seems like a very small thing for someone to bring you a cup of water. It seemed like I had somebody in all three of my committees that would do that. So in Finance, I want to thank the gentle lady from the 37th, even when she couldn't talk, she'd tap me on the shoulder and hold the cup up – that was the way she would aks me if I wanted water. Capital Budget, the gentle lady from the 8th, I want to thank her. In Agriculture and Natural Resources, the gentleman from the 22nd. Most of you will notice that is across party lines. That is something that really strikes me. We have our floor debates and we do have our partisan issues and our party line votes but when it comes to something like this, the party affiliation doesn't enter into it. That means a lot to me. Carrying things like my laptop and other documents, that we get in committee, that I needed brought to the floor, there was the lady from the 13th, even though she was needing physical therapy on her arm. Both gentlemen from the 6th, the gentlemen from the 31st and the 39th. There are a number of pages, legislative aides and members of the security team have all been very helpful.

             I also want to thank the gentleman from the 40th, he was willing to trade parking spaces so I didn't have to got so far on crutches and I really appreciate that, that was something he didn't have to do. I also want to thank the Speaker and the Speaker Pro Tempore because when a dozen people were popping up, they generally didn't make me pop up more than two or three times.

             But there is one person I really need to thank more than anybody else – today makes five months since I broke my leg and the person who was there when I broke my leg has been here for me through the entire way. She had to take a week off to work to finish the move. She took another week off just to help me get settled when I got out of the hospital and help take care of me. Any though I started getting around and I could drive, I still couldn't carry things. So how do you live in Olympia and pack your suits in and out of the place you're staying without some help. So every Sunday, she has come up with me and she has packed all of my suits, clothing and supplies I needed – I really do need to thank my wife Marci. She has been a huge help, she has been very patient through all of this. So along with thanking all of you, I want to thank my wife Marci as well."


SIGNED BY THE SPEAKER

             The Speaker signed:

ENGROSSED HOUSE BILL NO. 1677,

SUBSTITUTE HOUSE BILL NO. 2299,

SUBSTITUTE HOUSE BILL NO. 2313,

HOUSE BILL NO. 2014,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2474,

SUBSTITUTE HOUSE BILL NO. 2510,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2573,

HOUSE BILL NO. 2663,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2784,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2787,

SUBSTITUTE HOUSE BILL NO. 2788,

SUBSTITUTE HOUSE BILL NO. 2802,

SUBSTITUTE HOUSE BILL NO. 2929,

SUBSTITUTE HOUSE JOINT MEMORIAL NO. 4028,

SECOND ENGROSSED SUBSTITUTE SENATE BILL NO. 5536,

SECOND SUBSTITUTE SENATE BILL NO. 6144,

SUBSTITUTE SENATE BILL NO. 6208,

SENATE BILL NO. 6339,

SENATE BILL NO. 6485,

SENATE BILL NO. 6561,


MESSAGE FROM THE SENATE

March 11, 2004

Mr. Speaker:


             The Senate has passed:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2554,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 3188,

HOUSE CONCURRENT RESOLUTION NO. 4418,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


SECOND READING


             SENATE BILL NO. 5034, By Senators Zarelli, Winsley, McCaslin, T. Sheldon, Hale, Benton, West, Esser, Sheahan, Oke and Kohl-Welles


             Providing property tax relief for senior citizens and persons retired because of physical disability.


             The bill was read the second time.


             There being no objection, the committee amendment by the Committee on Finance was adopted. (For committee amendment, see Journal, 50th Day, March 1, 2004.)


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


             Representatives McIntire, Sehlin, Morrell, Orcutt and McDonald spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be the final passage of Senate Bill No. 5034, as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Senate Bill No. 5034, as amended by the House, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

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

             Excused: Representatives Edwards and Flannigan - 2.


             SENATE BILL NO. 5034, as amended by the House, having received the necessary constitutional majority, was declared passed.


SPEAKER'S GIFT


             Representative Kessler: "Mr. Speaker, the tradition of the House of Representatives is to acknowledge your two years as Speaker, your first two year term I might add, and we all as members of the House of Representatives sort of put some things together to give you a gift that we hope will always be a reminder of your two years as Speaker, and how much we all appreciated the way you directed this House chamber and how often you let the Speaker Pro Tempore preside. Your good humor along the way, we really appreciated. This gift from both caucuses is a gift that we understand you will be able to use for your great Croatian dinners and your political soirees around a table.

             Please accept this gift from us to you and to your family."


             Representative DeBolt: "So you are thinking, 'we gave all this money, and you gave me apples.' What we did was to contact Nancy about something you have been wanting to purchase for a while. So there is a dining room table that you have had your eye on. So as you sit around with your family after session, now you will think about us."


             Mr. Speaker: "This is amazing. Now I have to talk to my wife about this. For weeks, we've been trying to pick out the color of the chairs. This is expensive by the way.

             I want to say thank you for doing this and it's a great honor to serve with all of you. I've got to say that it used to be in the old days that the press would complain about how little the Legislature did, but I've got to say that the last couple of years here we've accomplished a tremendous amount of work including the work we did this Session. I also feel compelled to recognize the person who maybe this gift should really go to, our Speaker Pro Tempore John Lovick. Will you please join me in supporting him? I've told this to John, that it got to the point where John was presiding so much that my mother called to complain, she said 'Frankie, where are you?' I really appreciate you, John, and all the work you've done. Believe me, I know how much work it is.

             Thank you." 


SENATE AMENDMENTS TO HOUSE BILL

March 11, 2004

Mr. Speaker:


             The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2797, with the following amendment:


              Strike everything after the enacting clause and insert the following:


              "Sec. 1. RCW 70.47.020 and 2000 c 79 s 43 are each amended to read as follows:

              As used in this chapter:

              (1) "Washington basic health plan" or "plan" means the system of enrollment and payment for basic health care services, administered by the plan administrator through participating managed health care systems, created by this chapter.

              (2) "Administrator" means the Washington basic health plan administrator, who also holds the position of administrator of the Washington state health care authority.

              (3) "Health coverage tax credit program" means the program created by the Trade Act of 2002 (P.L. 107-210) that provides a federal tax credit that subsidizes private health insurance coverage for displaced workers certified to receive certain trade adjustment assistance benefits and for individuals receiving benefits from the pension benefit guaranty corporation.

              (4) "Health coverage tax credit eligible enrollee" means individual workers and their qualified family members who lose their jobs due to the effects of international trade and are eligible for certain trade adjustment assistance benefits; or are eligible for benefits under the alternative trade adjustment assistance program; or are people who receive benefits from the pension benefit guaranty corporation and are at least fifty-five years old.

              (5) "Managed health care system" means: (a) Any health care organization, including health care providers, insurers, health care service contractors, health maintenance organizations, or any combination thereof, that provides directly or by contract basic health care services, as defined by the administrator and rendered by duly licensed providers, to a defined patient population enrolled in the plan and in the managed health care system; or (b) a self-funded or self-insured method of providing insurance coverage to subsidized enrollees provided under RCW 41.05.140 and subject to the limitations under RCW 70.47.100(7).

              (((4))) (6) "Subsidized enrollee" means an individual, or an individual plus the individual's spouse or dependent children: (a) Who is not eligible for medicare; (b) who is not confined or residing in a government-operated institution, unless he or she meets eligibility criteria adopted by the administrator; (c) who resides in an area of the state served by a managed health care system participating in the plan; (d) whose gross family income at the time of enrollment does not exceed two hundred percent of the federal poverty level as adjusted for family size and determined annually by the federal department of health and human services; and (e) who chooses to obtain basic health care coverage from a particular managed health care system in return for periodic payments to the plan. To the extent that state funds are specifically appropriated for this purpose, with a corresponding federal match, "subsidized enrollee" also means an individual, or an individual's spouse or dependent children, who meets the requirements in (a) through (c) and (e) of this subsection and whose gross family income at the time of enrollment is more than two hundred percent, but less than two hundred fifty-one percent, of the federal poverty level as adjusted for family size and determined annually by the federal department of health and human services.

              (((5))) (7) "Nonsubsidized enrollee" means an individual, or an individual plus the individual's spouse or dependent children: (a) Who is not eligible for medicare; (b) who is not confined or residing in a government-operated institution, unless he or she meets eligibility criteria adopted by the administrator; (c) who resides in an area of the state served by a managed health care system participating in the plan; (d) who chooses to obtain basic health care coverage from a particular managed health care system; and (e) who pays or on whose behalf is paid the full costs for participation in the plan, without any subsidy from the plan.

              (((6))) (8) "Subsidy" means the difference between the amount of periodic payment the administrator makes to a managed health care system on behalf of a subsidized enrollee plus the administrative cost to the plan of providing the plan to that subsidized enrollee, and the amount determined to be the subsidized enrollee's responsibility under RCW 70.47.060(2).

              (((7))) (9) "Premium" means a periodic payment, based upon gross family income which an individual, their employer or another financial sponsor makes to the plan as consideration for enrollment in the plan as a subsidized enrollee ((or)), a nonsubsidized enrollee, or a health coverage tax credit eligible enrollee.

              (((8))) (10) "Rate" means the amount, negotiated by the administrator with and paid to a participating managed health care system, that is based upon the enrollment of subsidized ((and)), nonsubsidized, and health coverage tax credit eligible enrollees in the plan and in that system.


              Sec. 2. RCW 70.47.030 and 1995 2nd sp.s. c 18 s 913 are each amended to read as follows:

              (1) The basic health plan trust account is hereby established in the state treasury. Any nongeneral fund-state funds collected for this program shall be deposited in the basic health plan trust account and may be expended without further appropriation. Moneys in the account shall be used exclusively for the purposes of this chapter, including payments to participating managed health care systems on behalf of enrollees in the plan and payment of costs of administering the plan.

              During the 1995-97 fiscal biennium, the legislature may transfer funds from the basic health plan trust account to the state general fund.

              (2) The basic health plan subscription account is created in the custody of the state treasurer. All receipts from amounts due from or on behalf of nonsubsidized enrollees and health coverage tax credit eligible enrollees shall be deposited into the account. Funds in the account shall be used exclusively for the purposes of this chapter, including payments to participating managed health care systems on behalf of nonsubsidized enrollees and health coverage tax credit eligible enrollees in the plan and payment of costs of administering the plan. The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures.

              (3) The administrator shall take every precaution to see that none of the funds in the separate accounts created in this section or that any premiums paid either by subsidized or nonsubsidized enrollees are commingled in any way, except that the administrator may combine funds designated for administration of the plan into a single administrative account.


              Sec. 3. RCW 70.47.060 and 2001 c 196 s 13 are each amended to read as follows:

              The administrator has the following powers and duties:

              (1) To design and from time to time revise a schedule of covered basic health care services, including physician services, inpatient and outpatient hospital services, prescription drugs and medications, and other services that may be necessary for basic health care. In addition, the administrator may, to the extent that funds are available, offer as basic health plan services chemical dependency services, mental health services and organ transplant services; however, no one service or any combination of these three services shall increase the actuarial value of the basic health plan benefits by more than five percent excluding inflation, as determined by the office of financial management. All subsidized and nonsubsidized enrollees in any participating managed health care system under the Washington basic health plan shall be entitled to receive covered basic health care services in return for premium payments to the plan. The schedule of services shall emphasize proven preventive and primary health care and shall include all services necessary for prenatal, postnatal, and well-child care. However, with respect to coverage for subsidized enrollees who are eligible to receive prenatal and postnatal services through the medical assistance program under chapter 74.09 RCW, the administrator shall not contract for such services except to the extent that such services are necessary over not more than a one-month period in order to maintain continuity of care after diagnosis of pregnancy by the managed care provider. The schedule of services shall also include a separate schedule of basic health care services for children, eighteen years of age and younger, for those subsidized or nonsubsidized enrollees who choose to secure basic coverage through the plan only for their dependent children. In designing and revising the schedule of services, the administrator shall consider the guidelines for assessing health services under the mandated benefits act of 1984, RCW 48.47.030, and such other factors as the administrator deems appropriate.

              (2)(a) To design and implement a structure of periodic premiums due the administrator from subsidized enrollees that is based upon gross family income, giving appropriate consideration to family size and the ages of all family members. The enrollment of children shall not require the enrollment of their parent or parents who are eligible for the plan. The structure of periodic premiums shall be applied to subsidized enrollees entering the plan as individuals pursuant to subsection (((9))) (11) of this section and to the share of the cost of the plan due from subsidized enrollees entering the plan as employees pursuant to subsection (((10))) (12) of this section.

              (b) To determine the periodic premiums due the administrator from nonsubsidized enrollees. Premiums due from nonsubsidized enrollees shall be in an amount equal to the cost charged by the managed health care system provider to the state for the plan plus the administrative cost of providing the plan to those enrollees and the premium tax under RCW 48.14.0201.

              (c) To determine the periodic premiums due the administrator from health coverage tax credit eligible enrollees. Premiums due from health coverage tax credit eligible enrollees must be in an amount equal to the cost charged by the managed health care system provider to the state for the plan, plus the administrative cost of providing the plan to those enrollees and the premium tax under RCW 48.14.0201. The administrator will consider the impact of eligibility determination by the appropriate federal agency designated by the Trade Act of 2002 (P.L. 107-210) as well as the premium collection and remittance activities by the United States internal revenue service when determining the administrative cost charged for health coverage tax credit eligible enrollees.

              (d) An employer or other financial sponsor may, with the prior approval of the administrator, pay the premium, rate, or any other amount on behalf of a subsidized or nonsubsidized enrollee, by arrangement with the enrollee and through a mechanism acceptable to the administrator. The administrator shall establish a mechanism for receiving premium payments from the United States internal revenue service for health coverage tax credit eligible enrollees.

              (((d))) (e) To develop, as an offering by every health carrier providing coverage identical to the basic health plan, as configured on January 1, 2001, a basic health plan model plan with uniformity in enrollee cost-sharing requirements.

              (3) To evaluate, with the cooperation of participating managed health care system providers, the impact on the basic health plan of enrolling health coverage tax credit eligible enrollees. The administrator shall issue to the appropriate committees of the legislature preliminary evaluations on June 1, 2005, and January 1, 2006, and a final evaluation by June 1, 2006. The evaluation shall address the number of persons enrolled, the duration of their enrollment, their utilization of covered services relative to other basic health plan enrollees, and the extent to which their enrollment contributed to any change in the cost of the basic health plan.

              (4) To end the participation of health coverage tax credit eligible enrollees in the basic health plan if the federal government reduces or terminates premium payments on their behalf through the United States internal revenue service.

              (5) To design and implement a structure of enrollee cost-sharing due a managed health care system from subsidized ((and)), nonsubsidized, and health coverage tax credit eligible enrollees. The structure shall discourage inappropriate enrollee utilization of health care services, and may utilize copayments, deductibles, and other cost-sharing mechanisms, but shall not be so costly to enrollees as to constitute a barrier to appropriate utilization of necessary health care services.

              (((4))) (6) To limit enrollment of persons who qualify for subsidies so as to prevent an overexpenditure of appropriations for such purposes. Whenever the administrator finds that there is danger of such an overexpenditure, the administrator shall close enrollment until the administrator finds the danger no longer exists. Such a closure does not apply to health coverage tax credit eligible enrollees who receive a premium subsidy from the United States internal revenue service as long as the enrollees qualify for the health coverage tax credit program.

              (((5))) (7) To limit the payment of subsidies to subsidized enrollees, as defined in RCW 70.47.020. The level of subsidy provided to persons who qualify may be based on the lowest cost plans, as defined by the administrator.

              (((6))) (8) To adopt a schedule for the orderly development of the delivery of services and availability of the plan to residents of the state, subject to the limitations contained in RCW 70.47.080 or any act appropriating funds for the plan.

              (((7))) (9) To solicit and accept applications from managed health care systems, as defined in this chapter, for inclusion as eligible basic health care providers under the plan for ((either)) subsidized enrollees, ((or)) nonsubsidized enrollees, or ((both)) health coverage tax credit eligible enrollees. The administrator shall endeavor to assure that covered basic health care services are available to any enrollee of the plan from among a selection of two or more participating managed health care systems. In adopting any rules or procedures applicable to managed health care systems and in its dealings with such systems, the administrator shall consider and make suitable allowance for the need for health care services and the differences in local availability of health care resources, along with other resources, within and among the several areas of the state. Contracts with participating managed health care systems shall ensure that basic health plan enrollees who become eligible for medical assistance may, at their option, continue to receive services from their existing providers within the managed health care system if such providers have entered into provider agreements with the department of social and health services.

              (((8))) (10) To receive periodic premiums from or on behalf of subsidized ((and)), nonsubsidized, and health coverage tax credit eligible enrollees, deposit them in the basic health plan operating account, keep records of enrollee status, and authorize periodic payments to managed health care systems on the basis of the number of enrollees participating in the respective managed health care systems.

              (((9))) (11) To accept applications from individuals residing in areas served by the plan, on behalf of themselves and their spouses and dependent children, for enrollment in the Washington basic health plan as subsidized ((or)), nonsubsidized, or health coverage tax credit eligible enrollees, to establish appropriate minimum-enrollment periods for enrollees as may be necessary, and to determine, upon application and on a reasonable schedule defined by the authority, or at the request of any enrollee, eligibility due to current gross family income for sliding scale premiums. Funds received by a family as part of participation in the adoption support program authorized under RCW 26.33.320 and 74.13.100 through 74.13.145 shall not be counted toward a family's current gross family income for the purposes of this chapter. When an enrollee fails to report income or income changes accurately, the administrator shall have the authority either to bill the enrollee for the amounts overpaid by the state or to impose civil penalties of up to two hundred percent of the amount of subsidy overpaid due to the enrollee incorrectly reporting income. The administrator shall adopt rules to define the appropriate application of these sanctions and the processes to implement the sanctions provided in this subsection, within available resources. No subsidy may be paid with respect to any enrollee whose current gross family income exceeds twice the federal poverty level or, subject to RCW 70.47.110, who is a recipient of medical assistance or medical care services under chapter 74.09 RCW. If a number of enrollees drop their enrollment for no apparent good cause, the administrator may establish appropriate rules or requirements that are applicable to such individuals before they will be allowed to reenroll in the plan.

              (((10))) (12) To accept applications from business owners on behalf of themselves and their employees, spouses, and dependent children, as subsidized or nonsubsidized enrollees, who reside in an area served by the plan. The administrator may require all or the substantial majority of the eligible employees of such businesses to enroll in the plan and establish those procedures necessary to facilitate the orderly enrollment of groups in the plan and into a managed health care system. The administrator may require that a business owner pay at least an amount equal to what the employee pays after the state pays its portion of the subsidized premium cost of the plan on behalf of each employee enrolled in the plan. Enrollment is limited to those not eligible for medicare who wish to enroll in the plan and choose to obtain the basic health care coverage and services from a managed care system participating in the plan. The administrator shall adjust the amount determined to be due on behalf of or from all such enrollees whenever the amount negotiated by the administrator with the participating managed health care system or systems is modified or the administrative cost of providing the plan to such enrollees changes.

              (((11))) (13) To determine the rate to be paid to each participating managed health care system in return for the provision of covered basic health care services to enrollees in the system. Although the schedule of covered basic health care services will be the same or actuarially equivalent for similar enrollees, the rates negotiated with participating managed health care systems may vary among the systems. In negotiating rates with participating systems, the administrator shall consider the characteristics of the populations served by the respective systems, economic circumstances of the local area, the need to conserve the resources of the basic health plan trust account, and other factors the administrator finds relevant.

              (((12))) (14) To monitor the provision of covered services to enrollees by participating managed health care systems in order to assure enrollee access to good quality basic health care, to require periodic data reports concerning the utilization of health care services rendered to enrollees in order to provide adequate information for evaluation, and to inspect the books and records of participating managed health care systems to assure compliance with the purposes of this chapter. In requiring reports from participating managed health care systems, including data on services rendered enrollees, the administrator shall endeavor to minimize costs, both to the managed health care systems and to the plan. The administrator shall coordinate any such reporting requirements with other state agencies, such as the insurance commissioner and the department of health, to minimize duplication of effort.

              (((13))) (15) To evaluate the effects this chapter has on private employer- based health care coverage and to take appropriate measures consistent with state and federal statutes that will discourage the reduction of such coverage in the state.

              (((14))) (16) To develop a program of proven preventive health measures and to integrate it into the plan wherever possible and consistent with this chapter.

              (((15))) (17) To provide, consistent with available funding, assistance for rural residents, underserved populations, and persons of color.

              (((16))) (18) In consultation with appropriate state and local government agencies, to establish criteria defining eligibility for persons confined or residing in government-operated institutions.

              (((17))) (19) To administer the premium discounts provided under RCW 48.41.200(3)(a) (i) and (ii) pursuant to a contract with the Washington state health insurance pool.


              Sec. 4. RCW 70.47.100 and 2000 c 79 s 35 are each amended to read as follows:

              (1) A managed health care system participating in the plan shall do so by contract with the administrator and shall provide, directly or by contract with other health care providers, covered basic health care services to each enrollee covered by its contract with the administrator as long as payments from the administrator on behalf of the enrollee are current. A participating managed health care system may offer, without additional cost, health care benefits or services not included in the schedule of covered services under the plan. A participating managed health care system shall not give preference in enrollment to enrollees who accept such additional health care benefits or services. Managed health care systems participating in the plan shall not discriminate against any potential or current enrollee based upon health status, sex, race, ethnicity, or religion. The administrator may receive and act upon complaints from enrollees regarding failure to provide covered services or efforts to obtain payment, other than authorized copayments, for covered services directly from enrollees, but nothing in this chapter empowers the administrator to impose any sanctions under Title 18 RCW or any other professional or facility licensing statute.

              (2) The plan shall allow, at least annually, an opportunity for enrollees to transfer their enrollments among participating managed health care systems serving their respective areas. The administrator shall establish a period of at least twenty days in a given year when this opportunity is afforded enrollees, and in those areas served by more than one participating managed health care system the administrator shall endeavor to establish a uniform period for such opportunity. The plan shall allow enrollees to transfer their enrollment to another participating managed health care system at any time upon a showing of good cause for the transfer.

              (3) Prior to negotiating with any managed health care system, the administrator shall determine, on an actuarially sound basis, the reasonable cost of providing the schedule of basic health care services, expressed in terms of upper and lower limits, and recognizing variations in the cost of providing the services through the various systems and in different areas of the state.

              (4) In negotiating with managed health care systems for participation in the plan, the administrator shall adopt a uniform procedure that includes at least the following:

              (a) The administrator shall issue a request for proposals, including standards regarding the quality of services to be provided; financial integrity of the responding systems; and responsiveness to the unmet health care needs of the local communities or populations that may be served;

              (b) The administrator shall then review responsive proposals and may negotiate with respondents to the extent necessary to refine any proposals;

              (c) The administrator may then select one or more systems to provide the covered services within a local area; and

              (d) The administrator may adopt a policy that gives preference to respondents, such as nonprofit community health clinics, that have a history of providing quality health care services to low-income persons.

              (5) The administrator may contract with a managed health care system to provide covered basic health care services to ((either)) subsidized enrollees, ((or)) nonsubsidized enrollees, health coverage tax credit eligible enrollees, or ((both)) any combination thereof.

              (6) The administrator may establish procedures and policies to further negotiate and contract with managed health care systems following completion of the request for proposal process in subsection (4) of this section, upon a determination by the administrator that it is necessary to provide access, as defined in the request for proposal documents, to covered basic health care services for enrollees.

              (7)(a) The administrator shall implement a self-funded or self-insured method of providing insurance coverage to subsidized enrollees, as provided under RCW 41.05.140, if one of the following conditions is met:

              (i) The authority determines that no managed health care system other than the authority is willing and able to provide access, as defined in the request for proposal documents, to covered basic health care services for all subsidized enrollees in an area; or

              (ii) The authority determines that no other managed health care system is willing to provide access, as defined in the request for proposal documents, for one hundred thirty-three percent of the statewide benchmark price or less, and the authority is able to offer such coverage at a price that is less than the lowest price at which any other managed health care system is willing to provide such access in an area.

              (b) The authority shall initiate steps to provide the coverage described in (a) of this subsection within ninety days of making its determination that the conditions for providing a self-funded or self-insured method of providing insurance have been met.

              (c) The administrator may not implement a self-funded or self-insured method of providing insurance in an area unless the administrator has received a certification from a member of the American academy of actuaries that the funding available in the basic health plan self-insurance reserve account is sufficient for the self-funded or self-insured risk assumed, or expected to be assumed, by the administrator.


              Sec. 5. RCW 48.43.015 and 2001 c 196 s 7 are each amended to read as follows:

              (1) For a health benefit plan offered to a group, every health carrier shall reduce any preexisting condition exclusion, limitation, or waiting period in the group health plan in accordance with the provisions of section 2701 of the federal health insurance portability and accountability act of 1996 (42 U.S.C. Sec. 300gg).

              (2) For a health benefit plan offered to a group other than a small group:

              (a) If the individual applicant's immediately preceding health plan coverage terminated during the period beginning ninety days and ending sixty-four days before the date of application for the new plan and such coverage was similar and continuous for at least three months, then the carrier shall not impose a waiting period for coverage of preexisting conditions under the new health plan.

              (b) If the individual applicant's immediately preceding health plan coverage terminated during the period beginning ninety days and ending sixty-four days before the date of application for the new plan and such coverage was similar and continuous for less than three months, then the carrier shall credit the time covered under the immediately preceding health plan toward any preexisting condition waiting period under the new health plan.

              (c) For the purposes of this subsection, a preceding health plan includes an employer-provided self-funded health plan, the basic health plan's offering to health coverage tax credit eligible enrollees as established by this act, and plans of the Washington state health insurance pool.

              (3) For a health benefit plan offered to a small group:

              (a) If the individual applicant's immediately preceding health plan coverage terminated during the period beginning ninety days and ending sixty-four days before the date of application for the new plan and such coverage was similar and continuous for at least nine months, then the carrier shall not impose a waiting period for coverage of preexisting conditions under the new health plan.

              (b) If the individual applicant's immediately preceding health plan coverage terminated during the period beginning ninety days and ending sixty-four days before the date of application for the new plan and such coverage was similar and continuous for less than nine months, then the carrier shall credit the time covered under the immediately preceding health plan toward any preexisting condition waiting period under the new health plan.

              (c) For the purpose of this subsection, a preceding health plan includes an employer-provided self-funded health plan, the basic health plan's offering to health coverage tax credit eligible enrollees as established by this act, and plans of the Washington state health insurance pool.

              (4) For a health benefit plan offered to an individual, other than an individual to whom subsection (5) of this section applies, every health carrier shall credit any preexisting condition waiting period in that plan for a person who was enrolled at any time during the sixty-three day period immediately preceding the date of application for the new health plan in a group health benefit plan or an individual health benefit plan, other than a catastrophic health plan, and (a) the benefits under the previous plan provide equivalent or greater overall benefit coverage than that provided in the health benefit plan the individual seeks to purchase; or (b) the person is seeking an individual health benefit plan due to his or her change of residence from one geographic area in Washington state to another geographic area in Washington state where his or her current health plan is not offered, if application for coverage is made within ninety days of relocation; or (c) the person is seeking an individual health benefit plan: (i) Because a health care provider with whom he or she has an established care relationship and from whom he or she has received treatment within the past twelve months is no longer part of the carrier's provider network under his or her existing Washington individual health benefit plan; and (ii) his or her health care provider is part of another carrier's provider network; and (iii) application for a health benefit plan under that carrier's provider network individual coverage is made within ninety days of his or her provider leaving the previous carrier's provider network. The carrier must credit the period of coverage the person was continuously covered under the immediately preceding health plan toward the waiting period of the new health plan. For the purposes of this subsection (4), a preceding health plan includes an employer-provided self-funded health plan, the basic health plan's offering to health coverage tax credit eligible enrollees as established by this act, and plans of the Washington state health insurance pool.

              (5) Every health carrier shall waive any preexisting condition waiting period in its individual plans for a person who is an eligible individual as defined in section 2741(b) of the federal health insurance portability and accountability act of 1996 (42 U.S.C. Sec. 300gg-41(b)).

              (6) Subject to the provisions of subsections (1) through (5) of this section, nothing contained in this section requires a health carrier to amend a health plan to provide new benefits in its existing health plans. In addition, nothing in this section requires a carrier to waive benefit limitations not related to an individual or group's preexisting conditions or health history.


              NEW SECTION. Sec. 6. This act takes effect January 1, 2005."


              On page 1, line 3 of the title, after "(P.L. 107-210);" strike the remainder of the title and insert "amending RCW 70.47.020, 70.47.030, 70.47.060, 70.47.100, and 48.43.015; and providing an effective date."


and the same is herewith transmitted.

Milt H. Doumit, Secretary


             There being no objection, the House concurred in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2797 and advanced the bill, as amended by the Senate, to final passage.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


             Representatives Cody and Bailey spoke in favor the passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2797, as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2797, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

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

             Excused: Representatives Edwards and Flannigan - 2.

  

             ENGROSSED SUBSTITUTE HOUSE BILL NO. 2797, as amended by the Senate, having received the constitutional majority, was declared passed.


             The Speaker called upon Representative Lovick to preside.


SENATE AMENDMENTS TO HOUSE BILL

March 11, 2004

Mr. Speaker:


             The Senate has passed SUBSTITUTE HOUSE BILL NO. 2985, with the following amendment:


              Strike everything after the enacting clause and insert the following:


              "Sec. 1. RCW 41.04.208 and 2002 c 319 s 2 are each amended to read as follows:

              (1) Unless the context clearly requires otherwise, the definitions in this subsection apply throughout this section.

              (a) "Disabled employee" means ((an individual)) a person eligible to receive a disability retirement allowance from the Washington law enforcement officers' and fire fighters' retirement system plan 2 and the public employees' retirement system.

              (b) "Health plan" means a contract, policy, fund, trust, or other program established jointly or individually by a county, municipality, or other political subdivision of the state that provides for all or a part of hospitalization or medical aid for its employees and their dependents under RCW 41.04.180.

              (c) "Retired employee" means a public employee meeting the retirement eligibility, years of service requirements, and other criteria ((set forth in)) of the Washington law enforcement officers' and fire fighters' retirement system plan 2 and the public employees' retirement system.

              (2) A county, municipality, or other political subdivision that provides a health plan for its employees shall permit retired and disabled employees and their dependents to continue participation in a plan subject to the exceptions, limitations, and conditions set forth in this section. However, this section does not apply to a county, municipality, or other political subdivision participating in an insurance program administered under chapter 41.05 RCW if retired and disabled employees and their dependents of the participating county, municipality, or other political subdivision are covered under an insurance program administered under chapter 41.05 RCW. Nothing in this subsection or chapter 319, Laws of 2002 precludes the local government employer from offering retired or disabled employees a health plan with a benefit structure, copayment, deductible, coinsurance, lifetime benefit maximum, and other plan features which differ from those offered through a health plan provided to active employees. Further, nothing in this subsection precludes a local government employer from joining with other public agency employers, including interjurisdictional benefit pools and multi-employer associations or consortiums, to fulfill its obligations under chapter 319, Laws of 2002.

              (3) A county, municipality, or other political subdivision has full authority to require a person who requests continued participation in a health plan under subsection (2) of this section to pay the full cost of such participation, including any amounts necessary for administration. However, this subsection does not require an employer who is currently paying for all or part of a health plan for its retired and disabled employees to discontinue those payments.

              (4) Payments for continued participation in a former employer's health plan may be assigned to the underwriter of the health plan from public pension benefits or may be paid to the former employer, as determined by the former employer, so that an underwriter of the health plan that is an insurance company, health care service contractor, or health maintenance organization is not required to accept individual payments from persons continuing participation in the employer's health plan.

              (5) After an initial open enrollment period of ninety days after January 1, 2003, an employer may not be required to permit a person to continue participation in the health plan if the person is responsible for a lapse in coverage under the plan. In addition, an employer may not be required to permit a person to continue participation in the employer's health plan if the employer offered continued participation in a health plan that meets the requirements of chapter 319, Laws of 2002.

              (6) If a person continuing participation in the former employer's health plan has medical coverage available through another employer, the medical coverage of the other employer is the primary coverage for purposes of coordination of benefits as provided for in the former employer's health plan.

              (7) If a person's continued participation in a health plan was permitted because of the person's relationship to a retired or disabled employee of the employer providing the health plan and the retired or disabled employee dies, then that person is permitted to continue participation in the health plan for a period of not more than six months after the death of the retired or disabled employee. However, the employer providing the health plan may permit continued participation beyond that time period.

              (8) An employer may offer one or more health plans different from that provided for active employees and designed to meet the needs of persons requesting continued participation in the employer's health plan. An employer, in designing or offering continued participation in a health plan, may utilize terms or conditions necessary to administer the plan to the extent the terms and conditions do not conflict with this section.

              (9) If an employer changes the underwriter of a health plan, the replaced underwriter has no further responsibility or obligation to persons who continued participation in a health plan of the replaced underwriter. However, the employer shall permit those persons to participate in any new health plan.

              (10) The benefits granted under this section are not considered a matter of contractual right. Should the legislature, a county, municipality, or other political subdivision of the state revoke or change any benefits granted under this section, an affected person is not entitled to receive the benefits as a matter of contractual right.

              (11) This section does not affect any health plan contained in a collective bargaining agreement in existence as of January 1, 2003. However, any plan contained in future collective bargaining agreements shall conform to this section. In addition, this section does not affect any health plan contract or policy in existence as of January 1, 2003. However, any renewal of the contract or policy shall conform to this section.

              (12) Counties, municipalities, and other political subdivisions that make a documented good faith effort to comply with the provisions of subsections (2) through (11) of this section and are unable to provide access to a fully insured group health benefit plan are discharged from any obligations under subsections (2) through (11) of this section but shall assist disabled employees and retired employees in applying for health insurance. Assistance may include developing and distributing standardized information on the availability and cost of individual health benefit plans, application packages, and health benefit fairs.

              (13) The office of the insurance commissioner shall make available to counties, municipalities, and other political subdivisions information regarding individual health benefit plans, including a list of carriers offering individual coverage, the rates charged, and how to apply for coverage.


              NEW SECTION. Sec. 2. 2002 c 319 s 5 (uncodified) is repealed.


              NEW SECTION. Sec. 3. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."


              On page 1, line 2 of the title, after "employees;" strike the remainder of the title and insert "amending RCW 41.04.208; repealing 2002 c 319 s 5 (uncodified); and declaring an emergency."


and the same is herewith transmitted.

Milt H. Doumit, Secretary


             There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 2985 and advanced the bill, as amended by the Senate, to final passage.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


             Representatives Cody and Bailey spoke in favor the passage of the bill.


             The Speaker (Representative Lovick presiding) stated the question before the House to be final passage of Substitute House Bill No. 2985, as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute House Bill No. 2985, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

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

             Excused: Representatives Edwards and Flannigan - 2.

  

             SUBSTITUTE HOUSE BILL NO. 2985, as amended by the Senate, having received the constitutional majority, was declared passed.


SECOND READING


             SUBSTITUTE SENATE BILL NO. 6242, By Senate Committee on Natural Resources, Energy & Water (originally sponsored by Senators Parlette and Berkey)


             Establishing a statewide strategy for land acquisitions and disposal.


             The bill was read the second time.


             There being no objection, the committee amendment by the Committee on Capital Budget was adopted. (For committee amendment, see Journal, 50th Day, March 1, 2004.)


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


             Representatives Dunshee and Alexander spoke in favor of passage of the bill.


             The Speaker stated the question before the House to be the final passage of Substitute Senate Bill No. 6242, as amended by the House.


ROLL CALL


             The Clerk called the roll on the final passage of Substitute Senate Bill No. 6242, as amended by the House, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

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

             Excused: Representatives Edwards and Flannigan - 2.


             SUBSTITUTE SENATE BILL NO. 6242, as amended by the House, having received the necessary constitutional majority, was declared passed.


SENATE AMENDMENTS TO HOUSE BILL

March 11, 2004

Mr. Speaker:


             The Senate receded from the amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2460. Under suspension of the rules Engrossed Substitute House Bill No. 2460 was returned to second reading for purpose of amendment. The Senate adopted the following amendment and passed the bill as amended by the Senate:


              Strike everything after the enacting clause and insert the following:


              "Sec. 1. RCW 48.21.045 and 1995 c 265 s 14 are each amended to read as follows:

              (1)(a) An insurer offering any health benefit plan to a small employer ((shall)), either directly or through an association or member-governed group formed specifically for the purpose of purchasing health care, may offer and actively market to the small employer a health benefit plan ((providing benefits identical to the schedule of covered health services that are required to be delivered to an individual enrolled in the basic health plan)) featuring a limited schedule of covered health care services. Nothing in this subsection shall preclude an insurer from offering, or a small employer from purchasing, other health benefit plans that may have more ((or less)) comprehensive benefits than ((the basic health plan, provided such plans are in accordance with this chapter)) those included in the product offered under this subsection. An insurer offering a health benefit plan ((that does not include benefits in the basic health plan)) under this subsection shall clearly disclose ((these differences)) all covered benefits to the small employer in a brochure ((approved by)) filed with the commissioner.

              (b) A health benefit plan offered under this subsection shall provide coverage for hospital expenses and services rendered by a physician licensed under chapter 18.57 or 18.71 RCW but is not subject to the requirements of RCW 48.21.130, 48.21.140, 48.21.141, 48.21.142, 48.21.144, 48.21.146, 48.21.160 through 48.21.197, 48.21.200, 48.21.220, 48.21.225, 48.21.230, 48.21.235, 48.21.240, 48.21.244, 48.21.250, 48.21.300, 48.21.310, or 48.21.320 ((if: (i) The health benefit plan is the mandatory offering under (a) of this subsection that provides benefits identical to the basic health plan, to the extent these requirements differ from the basic health plan; or (ii) the health benefit plan is offered to employers with not more than twenty-five employees)).

              (2) Nothing in this section shall prohibit an insurer from offering, or a purchaser from seeking, health benefit plans with benefits in excess of the ((basic health plan services)) health benefit plan offered under subsection (1) of this section. All forms, policies, and contracts shall be submitted for approval to the commissioner, and the rates of any plan offered under this section shall be reasonable in relation to the benefits thereto.

              (3) Premium rates for health benefit plans for small employers as defined in this section shall be subject to the following provisions:

              (a) The insurer shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:

              (i) Geographic area;

              (ii) Family size;

              (iii) Age; and

              (iv) Wellness activities.

              (b) The adjustment for age in (a)(iii) of this subsection may not use age brackets smaller than five-year increments, which shall begin with age twenty and end with age sixty-five. Employees under the age of twenty shall be treated as those age twenty.

              (c) The insurer shall be permitted to develop separate rates for individuals age sixty-five or older for coverage for which medicare is the primary payer and coverage for which medicare is not the primary payer. Both rates shall be subject to the requirements of this subsection (3).

              (d) The permitted rates for any age group shall be no more than four hundred twenty-five percent of the lowest rate for all age groups on January 1, 1996, four hundred percent on January 1, 1997, and three hundred seventy-five percent on January 1, 2000, and thereafter.

              (e) A discount for wellness activities shall be permitted to reflect actuarially justified differences in utilization or cost attributed to such programs ((not to exceed twenty percent)).

              (f) The rate charged for a health benefit plan offered under this section may not be adjusted more frequently than annually except that the premium may be changed to reflect:

              (i) Changes to the enrollment of the small employer;

              (ii) Changes to the family composition of the employee;

              (iii) Changes to the health benefit plan requested by the small employer; or

              (iv) Changes in government requirements affecting the health benefit plan.

              (g) Rating factors shall produce premiums for identical groups that differ only by the amounts attributable to plan design, with the exception of discounts for health improvement programs.

              (h) For the purposes of this section, a health benefit plan that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not contain such a provision, provided that the restrictions of benefits to network providers result in substantial differences in claims costs. A carrier may develop its rates based on claims costs due to network provider reimbursement schedules or type of network. This subsection does not restrict or enhance the portability of benefits as provided in RCW 48.43.015.

              (i) Adjusted community rates established under this section shall pool the medical experience of all small groups purchasing coverage. However, annual rate adjustments for each small group health benefit plan may vary by up to plus or minus four percentage points from the overall adjustment of a carrier's entire small group pool, such overall adjustment to be approved by the commissioner, upon a showing by the carrier, certified by a member of the American academy of actuaries that: (i) The variation is a result of deductible leverage, benefit design, or provider network characteristics; and (ii) for a rate renewal period, the projected weighted average of all small group benefit plans will have a revenue neutral effect on the carrier's small group pool. Variations of greater than four percentage points are subject to review by the commissioner, and must be approved or denied within sixty days of submittal. A variation that is not denied within sixty days shall be deemed approved. The commissioner must provide to the carrier a detailed actuarial justification for any denial within thirty days of the denial.

              (4) ((The health benefit plans authorized by this section that are lower than the required offering shall not supplant or supersede any existing policy for the benefit of employees in this state.)) Nothing in this section shall restrict the right of employees to collectively bargain for insurance providing benefits in excess of those provided herein.

              (5)(a) Except as provided in this subsection, requirements used by an insurer in determining whether to provide coverage to a small employer shall be applied uniformly among all small employers applying for coverage or receiving coverage from the carrier.

              (b) An insurer shall not require a minimum participation level greater than:

              (i) One hundred percent of eligible employees working for groups with three or less employees; and

              (ii) Seventy-five percent of eligible employees working for groups with more than three employees.

              (c) In applying minimum participation requirements with respect to a small employer, a small employer shall not consider employees or dependents who have similar existing coverage in determining whether the applicable percentage of participation is met.

              (d) An insurer may not increase any requirement for minimum employee participation or modify any requirement for minimum employer contribution applicable to a small employer at any time after the small employer has been accepted for coverage.

              (6) An insurer must offer coverage to all eligible employees of a small employer and their dependents. An insurer may not offer coverage to only certain individuals or dependents in a small employer group or to only part of the group. An insurer may not modify a health plan with respect to a small employer or any eligible employee or dependent, through riders, endorsements or otherwise, to restrict or exclude coverage or benefits for specific diseases, medical conditions, or services otherwise covered by the plan.

              (7) As used in this section, "health benefit plan," "small employer," (("basic health plan,")) "adjusted community rate," and "wellness activities" mean the same as defined in RCW 48.43.005.


              Sec. 2. RCW 48.43.005 and 2001 c 196 s 5 and 2001 c 147 s 1 are each reenacted and amended to read as follows:

              Unless otherwise specifically provided, the definitions in this section apply throughout this chapter.

              (1) "Adjusted community rate" means the rating method used to establish the premium for health plans adjusted to reflect actuarially demonstrated differences in utilization or cost attributable to geographic region, age, family size, and use of wellness activities.

              (2) "Basic health plan" means the plan described under chapter 70.47 RCW, as revised from time to time.

              (3) "Basic health plan model plan" means a health plan as required in RCW 70.47.060(2)(d).

              (4) "Basic health plan services" means that schedule of covered health services, including the description of how those benefits are to be administered, that are required to be delivered to an enrollee under the basic health plan, as revised from time to time.

              (5) "Catastrophic health plan" means:

              (a) In the case of a contract, agreement, or policy covering a single enrollee, a health benefit plan requiring a calendar year deductible of, at a minimum, one thousand five hundred dollars and an annual out-of-pocket expense required to be paid under the plan (other than for premiums) for covered benefits of at least three thousand dollars; and

              (b) In the case of a contract, agreement, or policy covering more than one enrollee, a health benefit plan requiring a calendar year deductible of, at a minimum, three thousand dollars and an annual out-of-pocket expense required to be paid under the plan (other than for premiums) for covered benefits of at least five thousand five hundred dollars; or

              (c) Any health benefit plan that provides benefits for hospital inpatient and outpatient services, professional and prescription drugs provided in conjunction with such hospital inpatient and outpatient services, and excludes or substantially limits outpatient physician services and those services usually provided in an office setting.

              (6) "Certification" means a determination by a review organization that an admission, extension of stay, or other health care service or procedure has been reviewed and, based on the information provided, meets the clinical requirements for medical necessity, appropriateness, level of care, or effectiveness under the auspices of the applicable health benefit plan.

              (7) "Concurrent review" means utilization review conducted during a patient's hospital stay or course of treatment.

              (8) "Covered person" or "enrollee" means a person covered by a health plan including an enrollee, subscriber, policyholder, beneficiary of a group plan, or individual covered by any other health plan.

              (9) "Dependent" means, at a minimum, the enrollee's legal spouse and unmarried dependent children who qualify for coverage under the enrollee's health benefit plan.

              (10) "Eligible employee" means an employee who works on a full-time basis with a normal work week of thirty or more hours. The term includes a self-employed individual, including a sole proprietor, a partner of a partnership, and may include an independent contractor, if the self-employed individual, sole proprietor, partner, or independent contractor is included as an employee under a health benefit plan of a small employer, but does not work less than thirty hours per week and derives at least seventy-five percent of his or her income from a trade or business through which he or she has attempted to earn taxable income and for which he or she has filed the appropriate internal revenue service form. Persons covered under a health benefit plan pursuant to the consolidated omnibus budget reconciliation act of 1986 shall not be considered eligible employees for purposes of minimum participation requirements of chapter 265, Laws of 1995.

              (11) "Emergency medical condition" means the emergent and acute onset of a symptom or symptoms, including severe pain, that would lead a prudent layperson acting reasonably to believe that a health condition exists that requires immediate medical attention, if failure to provide medical attention would result in serious impairment to bodily functions or serious dysfunction of a bodily organ or part, or would place the person's health in serious jeopardy.

              (12) "Emergency services" means otherwise covered health care services medically necessary to evaluate and treat an emergency medical condition, provided in a hospital emergency department.

              (13) "Enrollee point-of-service cost-sharing" means amounts paid to health carriers directly providing services, health care providers, or health care facilities by enrollees and may include copayments, coinsurance, or deductibles.

              (14) "Grievance" means a written complaint submitted by or on behalf of a covered person regarding: (a) Denial of payment for medical services or nonprovision of medical services included in the covered person's health benefit plan, or (b) service delivery issues other than denial of payment for medical services or nonprovision of medical services, including dissatisfaction with medical care, waiting time for medical services, provider or staff attitude or demeanor, or dissatisfaction with service provided by the health carrier.

              (15) "Health care facility" or "facility" means hospices licensed under chapter 70.127 RCW, hospitals licensed under chapter 70.41 RCW, rural health care facilities as defined in RCW 70.175.020, psychiatric hospitals licensed under chapter 71.12 RCW, nursing homes licensed under chapter 18.51 RCW, community mental health centers licensed under chapter 71.05 or 71.24 RCW, kidney disease treatment centers licensed under chapter 70.41 RCW, ambulatory diagnostic, treatment, or surgical facilities licensed under chapter 70.41 RCW, drug and alcohol treatment facilities licensed under chapter 70.96A RCW, and home health agencies licensed under chapter 70.127 RCW, and includes such facilities if owned and operated by a political subdivision or instrumentality of the state and such other facilities as required by federal law and implementing regulations.

              (16) "Health care provider" or "provider" means:

              (a) A person regulated under Title 18 or chapter 70.127 RCW, to practice health or health-related services or otherwise practicing health care services in this state consistent with state law; or

              (b) An employee or agent of a person described in (a) of this subsection, acting in the course and scope of his or her employment.

              (17) "Health care service" means that service offered or provided by health care facilities and health care providers relating to the prevention, cure, or treatment of illness, injury, or disease.

              (18) "Health carrier" or "carrier" means a disability insurer regulated under chapter 48.20 or 48.21 RCW, a health care service contractor as defined in RCW 48.44.010, or a health maintenance organization as defined in RCW 48.46.020.

              (19) "Health plan" or "health benefit plan" means any policy, contract, or agreement offered by a health carrier to provide, arrange, reimburse, or pay for health care services except the following:

              (a) Long-term care insurance governed by chapter 48.84 RCW;

              (b) Medicare supplemental health insurance governed by chapter 48.66 RCW;

              (c) Limited health care services offered by limited health care service contractors in accordance with RCW 48.44.035;

              (d) Disability income;

              (e) Coverage incidental to a property/casualty liability insurance policy such as automobile personal injury protection coverage and homeowner guest medical;

              (f) Workers' compensation coverage;

              (g) Accident only coverage;

              (h) Specified disease and hospital confinement indemnity when marketed solely as a supplement to a health plan;

              (i) Employer-sponsored self-funded health plans;

              (j) Dental only and vision only coverage; and

              (k) Plans deemed by the insurance commissioner to have a short-term limited purpose or duration, or to be a student-only plan that is guaranteed renewable while the covered person is enrolled as a regular full-time undergraduate or graduate student at an accredited higher education institution, after a written request for such classification by the carrier and subsequent written approval by the insurance commissioner.

              (20) "Material modification" means a change in the actuarial value of the health plan as modified of more than five percent but less than fifteen percent.

              (21) "Preexisting condition" means any medical condition, illness, or injury that existed any time prior to the effective date of coverage.

              (22) "Premium" means all sums charged, received, or deposited by a health carrier as consideration for a health plan or the continuance of a health plan. Any assessment or any "membership," "policy," "contract," "service," or similar fee or charge made by a health carrier in consideration for a health plan is deemed part of the premium. "Premium" shall not include amounts paid as enrollee point-of-service cost-sharing.

              (23) "Review organization" means a disability insurer regulated under chapter 48.20 or 48.21 RCW, health care service contractor as defined in RCW 48.44.010, or health maintenance organization as defined in RCW 48.46.020, and entities affiliated with, under contract with, or acting on behalf of a health carrier to perform a utilization review.

              (24) "Small employer" or "small group" means any person, firm, corporation, partnership, association, political subdivision, sole proprietor, or self-employed individual that is actively engaged in business that, on at least fifty percent of its working days during the preceding calendar quarter, employed at least two but no more than fifty eligible employees, with a normal work week of thirty or more hours, the majority of whom were employed within this state, and is not formed primarily for purposes of buying health insurance and in which a bona fide employer-employee relationship exists. In determining the number of eligible employees, companies that are affiliated companies, or that are eligible to file a combined tax return for purposes of taxation by this state, shall be considered an employer. Subsequent to the issuance of a health plan to a small employer and for the purpose of determining eligibility, the size of a small employer shall be determined annually. Except as otherwise specifically provided, a small employer shall continue to be considered a small employer until the plan anniversary following the date the small employer no longer meets the requirements of this definition. ((The term "small employer" includes a self-employed individual or sole proprietor. The term "small employer" also includes)) A self-employed individual or sole proprietor ((who derives)) must derive at least seventy-five percent of his or her income from a trade or business through which the individual or sole proprietor has attempted to earn taxable income and for which he or she has filed the appropriate internal revenue service form 1040, schedule C or F, for the previous taxable year except for a self-employed individual or sole proprietor in an agricultural trade or business, who must derive at least fifty-one percent of his or her income from the trade or business through which the individual or sole proprietor has attempted to earn taxable income and for which he or she has filed the appropriate internal revenue service form 1040, for the previous taxable year. A self-employed individual or sole proprietor who is covered as a group of one on the day prior to the effective date of this section shall also be considered a "small employer" to the extent that individual or group of one is entitled to have his or her coverage renewed as provided in RCW 48.43.035(6).

              (25) "Utilization review" means the prospective, concurrent, or retrospective assessment of the necessity and appropriateness of the allocation of health care resources and services of a provider or facility, given or proposed to be given to an enrollee or group of enrollees.

              (26) "Wellness activity" means an explicit program of an activity consistent with department of health guidelines, such as, smoking cessation, injury and accident prevention, reduction of alcohol misuse, appropriate weight reduction, exercise, automobile and motorcycle safety, blood cholesterol reduction, and nutrition education for the purpose of improving enrollee health status and reducing health service costs.


              Sec. 3. RCW 48.43.018 and 2001 c 196 s 8 are each amended to read as follows:

              (1) Except as provided in (a) through (((c))) (e) of this subsection, a health carrier may require any person applying for an individual health benefit plan to complete the standard health questionnaire designated under chapter 48.41 RCW.

              (a) If a person is seeking an individual health benefit plan due to his or her change of residence from one geographic area in Washington state to another geographic area in Washington state where his or her current health plan is not offered, completion of the standard health questionnaire shall not be a condition of coverage if application for coverage is made within ninety days of relocation.

              (b) If a person is seeking an individual health benefit plan:

              (i) Because a health care provider with whom he or she has an established care relationship and from whom he or she has received treatment within the past twelve months is no longer part of the carrier's provider network under his or her existing Washington individual health benefit plan; and

              (ii) His or her health care provider is part of another carrier's provider network; and

              (iii) Application for a health benefit plan under that carrier's provider network individual coverage is made within ninety days of his or her provider leaving the previous carrier's provider network; then completion of the standard health questionnaire shall not be a condition of coverage.

              (c) If a person is seeking an individual health benefit plan due to his or her having exhausted continuation coverage provided under 29 U.S.C. Sec. 1161 et seq., completion of the standard health questionnaire shall not be a condition of coverage if application for coverage is made within ninety days of exhaustion of continuation coverage. A health carrier shall accept an application without a standard health questionnaire from a person currently covered by such continuation coverage if application is made within ninety days prior to the date the continuation coverage would be exhausted and the effective date of the individual coverage applied for is the date the continuation coverage would be exhausted, or within ninety days thereafter.

              (d) If a person is seeking an individual health benefit plan due to his or her receiving notice that his or her coverage under a conversion contract is discontinued, completion of the standard health questionnaire shall not be a condition of coverage if application for coverage is made within ninety days of discontinuation of eligibility under the conversion contract. A health carrier shall accept an application without a standard health questionnaire from a person currently covered by such conversion contract if application is made within ninety days prior to the date eligibility under the conversion contract would be discontinued and the effective date of the individual coverage applied for is the date eligibility under the conversion contract would be discontinued, or within ninety days thereafter.

              (e) If a person is seeking an individual health benefit plan and, but for the number of persons employed by his or her employer, would have qualified for continuation coverage provided under 29 U.S.C. Sec. 1161 et seq., completion of the standard health questionnaire shall not be a condition of coverage if: (i) Application for coverage is made within ninety days of a qualifying event as defined in 29 U.S.C. Sec. 1163; and (ii) the person had at least twenty-four months of continuous group coverage immediately prior to the qualifying event. A health carrier shall accept an application without a standard health questionnaire from a person with at least twenty-four months of continuous group coverage if application is made no more than ninety days prior to the date of a qualifying event and the effective date of the individual coverage applied for is the date of the qualifying event, or within ninety days thereafter.

              (2) If, based upon the results of the standard health questionnaire, the person qualifies for coverage under the Washington state health insurance pool, the following shall apply:

              (a) The carrier may decide not to accept the person's application for enrollment in its individual health benefit plan; and

              (b) Within fifteen business days of receipt of a completed application, the carrier shall provide written notice of the decision not to accept the person's application for enrollment to both the person and the administrator of the Washington state health insurance pool. The notice to the person shall state that the person is eligible for health insurance provided by the Washington state health insurance pool, and shall include information about the Washington state health insurance pool and an application for such coverage. If the carrier does not provide or postmark such notice within fifteen business days, the application is deemed approved.

              (3) If the person applying for an individual health benefit plan: (a) Does not qualify for coverage under the Washington state health insurance pool based upon the results of the standard health questionnaire; (b) does qualify for coverage under the Washington state health insurance pool based upon the results of the standard health questionnaire and the carrier elects to accept the person for enrollment; or (c) is not required to complete the standard health questionnaire designated under this chapter under subsection (1)(a) or (b) of this section, the carrier shall accept the person for enrollment if he or she resides within the carrier's service area and provide or assure the provision of all covered services regardless of age, sex, family structure, ethnicity, race, health condition, geographic location, employment status, socioeconomic status, other condition or situation, or the provisions of RCW 49.60.174(2). The commissioner may grant a temporary exemption from this subsection if, upon application by a health carrier, the commissioner finds that the clinical, financial, or administrative capacity to serve existing enrollees will be impaired if a health carrier is required to continue enrollment of additional eligible individuals.


              Sec. 4. RCW 48.43.035 and 2000 c 79 s 24 are each amended to read as follows:

              For group health benefit plans, the following shall apply:

              (1) All health carriers shall accept for enrollment any state resident within the group to whom the plan is offered and within the carrier's service area and provide or assure the provision of all covered services regardless of age, sex, family structure, ethnicity, race, health condition, geographic location, employment status, socioeconomic status, other condition or situation, or the provisions of RCW 49.60.174(2). The insurance commissioner may grant a temporary exemption from this subsection, if, upon application by a health carrier the commissioner finds that the clinical, financial, or administrative capacity to serve existing enrollees will be impaired if a health carrier is required to continue enrollment of additional eligible individuals.

              (2) Except as provided in subsection (5) of this section, all health plans shall contain or incorporate by endorsement a guarantee of the continuity of coverage of the plan. For the purposes of this section, a plan is "renewed" when it is continued beyond the earliest date upon which, at the carrier's sole option, the plan could have been terminated for other than nonpayment of premium. The carrier may consider the group's anniversary date as the renewal date for purposes of complying with the provisions of this section.

              (3) The guarantee of continuity of coverage required in health plans shall not prevent a carrier from canceling or nonrenewing a health plan for:

              (a) Nonpayment of premium;

              (b) Violation of published policies of the carrier approved by the insurance commissioner;

              (c) Covered persons entitled to become eligible for medicare benefits by reason of age who fail to apply for a medicare supplement plan or medicare cost, risk, or other plan offered by the carrier pursuant to federal laws and regulations;

              (d) Covered persons who fail to pay any deductible or copayment amount owed to the carrier and not the provider of health care services;

              (e) Covered persons committing fraudulent acts as to the carrier;

              (f) Covered persons who materially breach the health plan; or

              (g) Change or implementation of federal or state laws that no longer permit the continued offering of such coverage.

              (4) The provisions of this section do not apply in the following cases:

              (a) A carrier has zero enrollment on a product; ((or))

              (b) A carrier replaces a product and the replacement product is provided to all covered persons within that class or line of business, includes all of the services covered under the replaced product, and does not significantly limit access to the kind of services covered under the replaced product. The health plan may also allow unrestricted conversion to a fully comparable product; ((or))

              (c) No sooner than January 1, 2005, a carrier discontinues offering a particular type of health benefit plan offered for groups of up to two hundred if: (i) The carrier provides notice to each group of the discontinuation at least ninety days prior to the date of the discontinuation; (ii) the carrier offers to each group provided coverage of this type the option to enroll, with regard to small employer groups, in any other small employer group plan, or with regard to groups of up to two hundred, in any other applicable group plan, currently being offered by the carrier in the applicable group market; and (iii) in exercising the option to discontinue coverage of this type and in offering the option of coverage under (c)(ii) of this subsection, the carrier acts uniformly without regard to any health status-related factor of enrolled individuals or individuals who may become eligible for this coverage;

              (d) A carrier discontinues offering all health coverage in the small group market or for groups of up to two hundred, or both markets, in the state and discontinues coverage under all existing group health benefit plans in the applicable market involved if: (i) The carrier provides notice to the commissioner of its intent to discontinue offering all such coverage in the state and its intent to discontinue coverage under all such existing health benefit plans at least one hundred eighty days prior to the date of the discontinuation of coverage under all such existing health benefit plans; and (ii) the carrier provides notice to each covered group of the intent to discontinue the existing health benefit plan at least one hundred eighty days prior to the date of discontinuation. In the case of discontinuation under this subsection, the carrier may not issue any group health coverage in this state in the applicable group market involved for a five-year period beginning on the date of the discontinuation of the last health benefit plan not so renewed. This subsection (4) does not require a carrier to provide notice to the commissioner of its intent to discontinue offering a health benefit plan to new applicants when the carrier does not discontinue coverage of existing enrollees under that health benefit plan; or

              (e) A carrier is withdrawing from a service area or from a segment of its service area because the carrier has demonstrated to the insurance commissioner that the carrier's clinical, financial, or administrative capacity to serve enrollees would be exceeded.

              (5) The provisions of this section do not apply to health plans deemed by the insurance commissioner to be unique or limited or have a short-term purpose, after a written request for such classification by the carrier and subsequent written approval by the insurance commissioner.

              (6) Notwithstanding any other provision of this section, the guarantee of continuity of coverage applies to a group of one only if: (a) The carrier continues to offer any other small employer group plan in which the group of one was eligible to enroll on the day prior to the effective date of this section; and (b) the person continues to qualify as a group of one under the criteria in place on the day prior to the effective date of this section.


              Sec. 5. RCW 48.43.038 and 2000 c 79 s 25 are each amended to read as follows:

              (1) Except as provided in subsection (4) of this section, all individual health plans shall contain or incorporate by endorsement a guarantee of the continuity of coverage of the plan. For the purposes of this section, a plan is "renewed" when it is continued beyond the earliest date upon which, at the carrier's sole option, the plan could have been terminated for other than nonpayment of premium.

              (2) The guarantee of continuity of coverage required in individual health plans shall not prevent a carrier from canceling or nonrenewing a health plan for:

              (a) Nonpayment of premium;

              (b) Violation of published policies of the carrier approved by the commissioner;

              (c) Covered persons entitled to become eligible for medicare benefits by reason of age who fail to apply for a medicare supplement plan or medicare cost, risk, or other plan offered by the carrier pursuant to federal laws and regulations;

              (d) Covered persons who fail to pay any deductible or copayment amount owed to the carrier and not the provider of health care services;

              (e) Covered persons committing fraudulent acts as to the carrier;

              (f) Covered persons who materially breach the health plan; or

              (g) Change or implementation of federal or state laws that no longer permit the continued offering of such coverage.

              (3) This section does not apply in the following cases:

              (a) A carrier has zero enrollment on a product;

              (b) A carrier is withdrawing from a service area or from a segment of its service area because the carrier has demonstrated to the commissioner that the carrier's clinical, financial, or administrative capacity to serve enrollees would be exceeded;

              (c) No sooner than the first day of the month following the expiration of a one hundred eighty-day period beginning on March 23, 2000, a carrier discontinues offering a particular type of health benefit plan offered in the individual market, including conversion contracts, if: (i) The carrier provides notice to each covered individual provided coverage of this type of such discontinuation at least ninety days prior to the date of the discontinuation; (ii) the carrier offers to each individual provided coverage of this type the option, without being subject to the standard health questionnaire, to enroll in any other individual health benefit plan currently being offered by the carrier; and (iii) in exercising the option to discontinue coverage of this type and in offering the option of coverage under (c)(ii) of this subsection, the carrier acts uniformly without regard to any health status-related factor of enrolled individuals or individuals who may become eligible for such coverage; or

              (d) A carrier discontinues offering all individual health coverage in the state and discontinues coverage under all existing individual health benefit plans if: (i) The carrier provides notice to the commissioner of its intent to discontinue offering all individual health coverage in the state and its intent to discontinue coverage under all existing health benefit plans at least one hundred eighty days prior to the date of the discontinuation of coverage under all existing health benefit plans; and (ii) the carrier provides notice to each covered individual of the intent to discontinue his or her existing health benefit plan at least one hundred eighty days prior to the date of such discontinuation. In the case of discontinuation under this subsection, the carrier may not issue any individual health coverage in this state for a five-year period beginning on the date of the discontinuation of the last health plan not so renewed. Nothing in this subsection (3) shall be construed to require a carrier to provide notice to the commissioner of its intent to discontinue offering a health benefit plan to new applicants where the carrier does not discontinue coverage of existing enrollees under that health benefit plan.

              (4) The provisions of this section do not apply to health plans deemed by the commissioner to be unique or limited or have a short-term purpose, after a written request for such classification by the carrier and subsequent written approval by the commissioner.


              Sec. 6. RCW 48.44.022 and 2000 c 79 s 30 are each amended to read as follows:

              (1) Premium rates for health benefit plans for individuals shall be subject to the following provisions:

              (a) The health care service contractor shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:

              (i) Geographic area;

              (ii) Family size;

              (iii) Age;

              (iv) Tenure discounts; and

              (v) Wellness activities.

              (b) The adjustment for age in (a)(iii) of this subsection may not use age brackets smaller than five-year increments which shall begin with age twenty and end with age sixty-five. Individuals under the age of twenty shall be treated as those age twenty.

              (c) The health care service contractor shall be permitted to develop separate rates for individuals age sixty-five or older for coverage for which medicare is the primary payer and coverage for which medicare is not the primary payer. Both rates shall be subject to the requirements of this subsection.

              (d) The permitted rates for any age group shall be no more than four hundred twenty-five percent of the lowest rate for all age groups on January 1, 1996, four hundred percent on January 1, 1997, and three hundred seventy-five percent on January 1, 2000, and thereafter.

              (e) A discount for wellness activities shall be permitted to reflect actuarially justified differences in utilization or cost attributed to such programs ((not to exceed twenty percent)).

              (f) The rate charged for a health benefit plan offered under this section may not be adjusted more frequently than annually except that the premium may be changed to reflect:

              (i) Changes to the family composition;

              (ii) Changes to the health benefit plan requested by the individual; or

              (iii) Changes in government requirements affecting the health benefit plan.

              (g) For the purposes of this section, a health benefit plan that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not contain such a provision, provided that the restrictions of benefits to network providers result in substantial differences in claims costs. This subsection does not restrict or enhance the portability of benefits as provided in RCW 48.43.015.

              (h) A tenure discount for continuous enrollment in the health plan of two years or more may be offered, not to exceed ten percent.

              (2) Adjusted community rates established under this section shall pool the medical experience of all individuals purchasing coverage, and shall not be required to be pooled with the medical experience of health benefit plans offered to small employers under RCW 48.44.023.

              (3) As used in this section and RCW 48.44.023 "health benefit plan," "small employer," "adjusted community rates," and "wellness activities" mean the same as defined in RCW 48.43.005.


              Sec. 7. RCW 48.44.023 and 1995 c 265 s 16 are each amended to read as follows:

              (1)(a) A health care services contractor offering any health benefit plan to a small employer ((shall)), either directly or through an association or member-governed group formed specifically for the purpose of purchasing health care, may offer and actively market to the small employer a health benefit plan ((providing benefits identical to the schedule of covered health services that are required to be delivered to an individual enrolled in the basic health plan)) featuring a limited schedule of covered health care services. Nothing in this subsection shall preclude a contractor from offering, or a small employer from purchasing, other health benefit plans that may have more ((or less)) comprehensive benefits than ((the basic health plan, provided such plans are in accordance with this chapter)) those included in the product offered under this subsection. A contractor offering a health benefit plan ((that does not include benefits in the basic health plan)) under this subsection shall clearly disclose ((these differences)) all covered benefits to the small employer in a brochure ((approved by)) filed with the commissioner.

              (b) A health benefit plan offered under this subsection shall provide coverage for hospital expenses and services rendered by a physician licensed under chapter 18.57 or 18.71 RCW but is not subject to the requirements of RCW 48.44.225, 48.44.240, 48.44.245, 48.44.290, 48.44.300, 48.44.310, 48.44.320, 48.44.325, 48.44.330, 48.44.335, 48.44.340, 48.44.344, 48.44.360, 48.44.400, 48.44.440, 48.44.450, and 48.44.460 ((if: (i) The health benefit plan is the mandatory offering under (a) of this subsection that provides benefits identical to the basic health plan, to the extent these requirements differ from the basic health plan; or (ii) the health benefit plan is offered to employers with not more than twenty-five employees)).

              (2) Nothing in this section shall prohibit a health care service contractor from offering, or a purchaser from seeking, health benefit plans with benefits in excess of the ((basic health plan services)) health benefit plan offered under subsection (1) of this section. All forms, policies, and contracts shall be submitted for approval to the commissioner, and the rates of any plan offered under this section shall be reasonable in relation to the benefits thereto.

              (3) Premium rates for health benefit plans for small employers as defined in this section shall be subject to the following provisions:

              (a) The contractor shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:

              (i) Geographic area;

              (ii) Family size;

              (iii) Age; and

              (iv) Wellness activities.

              (b) The adjustment for age in (a)(iii) of this subsection may not use age brackets smaller than five-year increments, which shall begin with age twenty and end with age sixty-five. Employees under the age of twenty shall be treated as those age twenty.

              (c) The contractor shall be permitted to develop separate rates for individuals age sixty-five or older for coverage for which medicare is the primary payer and coverage for which medicare is not the primary payer. Both rates shall be subject to the requirements of this subsection (3).

              (d) The permitted rates for any age group shall be no more than four hundred twenty-five percent of the lowest rate for all age groups on January 1, 1996, four hundred percent on January 1, 1997, and three hundred seventy-five percent on January 1, 2000, and thereafter.

              (e) A discount for wellness activities shall be permitted to reflect actuarially justified differences in utilization or cost attributed to such programs ((not to exceed twenty percent)).

              (f) The rate charged for a health benefit plan offered under this section may not be adjusted more frequently than annually except that the premium may be changed to reflect:

              (i) Changes to the enrollment of the small employer;

              (ii) Changes to the family composition of the employee;

              (iii) Changes to the health benefit plan requested by the small employer; or

              (iv) Changes in government requirements affecting the health benefit plan.

              (g) Rating factors shall produce premiums for identical groups that differ only by the amounts attributable to plan design, with the exception of discounts for health improvement programs.

              (h) For the purposes of this section, a health benefit plan that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not contain such a provision, provided that the restrictions of benefits to network providers result in substantial differences in claims costs. A carrier may develop its rates based on claims costs due to network provider reimbursement schedules or type of network. This subsection does not restrict or enhance the portability of benefits as provided in RCW 48.43.015.

              (i) Adjusted community rates established under this section shall pool the medical experience of all groups purchasing coverage. However, annual rate adjustments for each small group health benefit plan may vary by up to plus or minus four percentage points from the overall adjustment of a carrier's entire small group pool, such overall adjustment to be approved by the commissioner, upon a showing by the carrier, certified by a member of the American academy of actuaries that: (i) The variation is a result of deductible leverage, benefit design, or provider network characteristics; and (ii) for a rate renewal period, the projected weighted average of all small group benefit plans will have a revenue neutral effect on the carrier's small group pool. Variations of greater than four percentage points are subject to review by the commissioner, and must be approved or denied within sixty days of submittal. A variation that is not denied within sixty days shall be deemed approved. The commissioner must provide to the carrier a detailed actuarial justification for any denial within thirty days of the denial.

              (4) ((The health benefit plans authorized by this section that are lower than the required offering shall not supplant or supersede any existing policy for the benefit of employees in this state.)) Nothing in this section shall restrict the right of employees to collectively bargain for insurance providing benefits in excess of those provided herein.

              (5)(a) Except as provided in this subsection, requirements used by a contractor in determining whether to provide coverage to a small employer shall be applied uniformly among all small employers applying for coverage or receiving coverage from the carrier.

              (b) A contractor shall not require a minimum participation level greater than:

              (i) One hundred percent of eligible employees working for groups with three or less employees; and

              (ii) Seventy-five percent of eligible employees working for groups with more than three employees.

              (c) In applying minimum participation requirements with respect to a small employer, a small employer shall not consider employees or dependents who have similar existing coverage in determining whether the applicable percentage of participation is met.

              (d) A contractor may not increase any requirement for minimum employee participation or modify any requirement for minimum employer contribution applicable to a small employer at any time after the small employer has been accepted for coverage.

              (6) A contractor must offer coverage to all eligible employees of a small employer and their dependents. A contractor may not offer coverage to only certain individuals or dependents in a small employer group or to only part of the group. A contractor may not modify a health plan with respect to a small employer or any eligible employee or dependent, through riders, endorsements or otherwise, to restrict or exclude coverage or benefits for specific diseases, medical conditions, or services otherwise covered by the plan.


              Sec. 8. RCW 48.46.064 and 2000 c 79 s 33 are each amended to read as follows:

              (1) Premium rates for health benefit plans for individuals shall be subject to the following provisions:

              (a) The health maintenance organization shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:

              (i) Geographic area;

              (ii) Family size;

              (iii) Age;

              (iv) Tenure discounts; and

              (v) Wellness activities.

              (b) The adjustment for age in (a)(iii) of this subsection may not use age brackets smaller than five-year increments which shall begin with age twenty and end with age sixty-five. Individuals under the age of twenty shall be treated as those age twenty.

              (c) The health maintenance organization shall be permitted to develop separate rates for individuals age sixty-five or older for coverage for which medicare is the primary payer and coverage for which medicare is not the primary payer. Both rates shall be subject to the requirements of this subsection.

              (d) The permitted rates for any age group shall be no more than four hundred twenty-five percent of the lowest rate for all age groups on January 1, 1996, four hundred percent on January 1, 1997, and three hundred seventy-five percent on January 1, 2000, and thereafter.

              (e) A discount for wellness activities shall be permitted to reflect actuarially justified differences in utilization or cost attributed to such programs ((not to exceed twenty percent)).

              (f) The rate charged for a health benefit plan offered under this section may not be adjusted more frequently than annually except that the premium may be changed to reflect:

              (i) Changes to the family composition;

              (ii) Changes to the health benefit plan requested by the individual; or

              (iii) Changes in government requirements affecting the health benefit plan.

              (g) For the purposes of this section, a health benefit plan that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not contain such a provision, provided that the restrictions of benefits to network providers result in substantial differences in claims costs. This subsection does not restrict or enhance the portability of benefits as provided in RCW 48.43.015.

              (h) A tenure discount for continuous enrollment in the health plan of two years or more may be offered, not to exceed ten percent.

              (2) Adjusted community rates established under this section shall pool the medical experience of all individuals purchasing coverage, and shall not be required to be pooled with the medical experience of health benefit plans offered to small employers under RCW 48.46.066.

              (3) As used in this section and RCW 48.46.066, "health benefit plan," "adjusted community rate," "small employer," and "wellness activities" mean the same as defined in RCW 48.43.005.


              Sec. 9. RCW 48.46.066 and 1995 c 265 s 18 are each amended to read as follows:

              (1)(a) A health maintenance organization offering any health benefit plan to a small employer ((shall)), either directly or through an association or member-governed group formed specifically for the purpose of purchasing health care, may offer and actively market to the small employer a health benefit plan ((providing benefits identical to the schedule of covered health services that are required to be delivered to an individual enrolled in the basic health plan)) featuring a limited schedule of covered health care services. Nothing in this subsection shall preclude a health maintenance organization from offering, or a small employer from purchasing, other health benefit plans that may have more ((or less)) comprehensive benefits than ((the basic health plan, provided such plans are in accordance with this chapter)) those included in the product offered under this subsection. A health maintenance organization offering a health benefit plan ((that does not include benefits in the basic health plan)) under this subsection shall clearly disclose ((these differences)) all the covered benefits to the small employer in a brochure ((approved by)) filed with the commissioner.

              (b) A health benefit plan offered under this subsection shall provide coverage for hospital expenses and services rendered by a physician licensed under chapter 18.57 or 18.71 RCW but is not subject to the requirements of RCW 48.46.275, 48.46.280, 48.46.285, 48.46.290, 48.46.350, 48.46.355, 48.46.375, 48.46.440, 48.46.480, 48.46.510, 48.46.520, and 48.46.530 ((if: (i) The health benefit plan is the mandatory offering under (a) of this subsection that provides benefits identical to the basic health plan, to the extent these requirements differ from the basic health plan; or (ii) the health benefit plan is offered to employers with not more than twenty- five employees)).

              (2) Nothing in this section shall prohibit a health maintenance organization from offering, or a purchaser from seeking, health benefit plans with benefits in excess of the ((basic health plan services)) health benefit plan offered under subsection (1) of this section. All forms, policies, and contracts shall be submitted for approval to the commissioner, and the rates of any plan offered under this section shall be reasonable in relation to the benefits thereto.

              (3) Premium rates for health benefit plans for small employers as defined in this section shall be subject to the following provisions:

              (a) The health maintenance organization shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:

              (i) Geographic area;

              (ii) Family size;

              (iii) Age; and

              (iv) Wellness activities.

              (b) The adjustment for age in (a)(iii) of this subsection may not use age brackets smaller than five-year increments, which shall begin with age twenty and end with age sixty-five. Employees under the age of twenty shall be treated as those age twenty.

              (c) The health maintenance organization shall be permitted to develop separate rates for individuals age sixty-five or older for coverage for which medicare is the primary payer and coverage for which medicare is not the primary payer. Both rates shall be subject to the requirements of this subsection (3).

              (d) The permitted rates for any age group shall be no more than four hundred twenty-five percent of the lowest rate for all age groups on January 1, 1996, four hundred percent on January 1, 1997, and three hundred seventy-five percent on January 1, 2000, and thereafter.

              (e) A discount for wellness activities shall be permitted to reflect actuarially justified differences in utilization or cost attributed to such programs ((not to exceed twenty percent)).

              (f) The rate charged for a health benefit plan offered under this section may not be adjusted more frequently than annually except that the premium may be changed to reflect:

              (i) Changes to the enrollment of the small employer;

              (ii) Changes to the family composition of the employee;

              (iii) Changes to the health benefit plan requested by the small employer; or

              (iv) Changes in government requirements affecting the health benefit plan.

              (g) Rating factors shall produce premiums for identical groups that differ only by the amounts attributable to plan design, with the exception of discounts for health improvement programs.

              (h) For the purposes of this section, a health benefit plan that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not contain such a provision, provided that the restrictions of benefits to network providers result in substantial differences in claims costs. A carrier may develop its rates based on claims costs due to network provider reimbursement schedules or type of network. This subsection does not restrict or enhance the portability of benefits as provided in RCW 48.43.015.

              (i) Adjusted community rates established under this section shall pool the medical experience of all groups purchasing coverage. However, annual rate adjustments for each small group health benefit plan may vary by up to plus or minus four percentage points from the overall adjustment of a carrier's entire small group pool, such overall adjustment to be approved by the commissioner, upon a showing by the carrier, certified by a member of the American academy of actuaries that: (i) The variation is a result of deductible leverage, benefit design, or provider network characteristics; and (ii) for a rate renewal period, the projected weighted average of all small group benefit plans will have a revenue neutral effect on the carrier's small group pool. Variations of greater than four percentage points are subject to review by the commissioner, and must be approved or denied within sixty days of submittal. A variation that is not denied within sixty days shall be deemed approved. The commissioner must provide to the carrier a detailed actuarial justification for any denial within thirty days of the denial.

              (4) ((The health benefit plans authorized by this section that are lower than the required offering shall not supplant or supersede any existing policy for the benefit of employees in this state.)) Nothing in this section shall restrict the right of employees to collectively bargain for insurance providing benefits in excess of those provided herein.

              (5)(a) Except as provided in this subsection, requirements used by a health maintenance organization in determining whether to provide coverage to a small employer shall be applied uniformly among all small employers applying for coverage or receiving coverage from the carrier.

              (b) A health maintenance organization shall not require a minimum participation level greater than:

              (i) One hundred percent of eligible employees working for groups with three or less employees; and

              (ii) Seventy-five percent of eligible employees working for groups with more than three employees.

              (c) In applying minimum participation requirements with respect to a small employer, a small employer shall not consider employees or dependents who have similar existing coverage in determining whether the applicable percentage of participation is met.

              (d) A health maintenance organization may not increase any requirement for minimum employee participation or modify any requirement for minimum employer contribution applicable to a small employer at any time after the small employer has been accepted for coverage.

              (6) A health maintenance organization must offer coverage to all eligible employees of a small employer and their dependents. A health maintenance organization may not offer coverage to only certain individuals or dependents in a small employer group or to only part of the group. A health maintenance organization may not modify a health plan with respect to a small employer or any eligible employee or dependent, through riders, endorsements or otherwise, to restrict or exclude coverage or benefits for specific diseases, medical conditions, or services otherwise covered by the plan.


              Sec. 10. RCW 48.21.143 and 1997 c 276 s 3 are each amended to read as follows:

              The legislature finds that diabetes imposes a significant health risk and tremendous financial burden on the citizens and government of the state of Washington, and that access to the medically accepted standards of care for diabetes, its treatment and supplies, and self-management training and education is crucial to prevent or delay the short and long-term complications of diabetes and its attendant costs.

              (1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

              (a) "Person with diabetes" means a person diagnosed by a health care provider as having insulin using diabetes, noninsulin using diabetes, or elevated blood glucose levels induced by pregnancy; and

              (b) "Health care provider" means a health care provider as defined in RCW 48.43.005.

              (2) All group disability insurance contracts and blanket disability insurance contracts providing health care services, issued or renewed after January 1, 1998, shall provide benefits for at least the following services and supplies for persons with diabetes:

              (a) For group disability insurance contracts and blanket disability insurance contracts that include coverage for pharmacy services, appropriate and medically necessary equipment and supplies, as prescribed by a health care provider, that includes but is not limited to insulin, syringes, injection aids, blood glucose monitors, test strips for blood glucose monitors, visual reading and urine test strips, insulin pumps and accessories to the pumps, insulin infusion devices, prescriptive oral agents for controlling blood sugar levels, foot care appliances for prevention of complications associated with diabetes, and glucagon emergency kits; and

              (b) For all group disability insurance contracts and blanket disability insurance contracts providing health care services, outpatient self-management training and education, including medical nutrition therapy, as ordered by the health care provider. Diabetes outpatient self-management training and education may be provided only by health care providers with expertise in diabetes. Nothing in this section prevents the insurer from restricting patients to seeing only health care providers who have signed participating provider agreements with the insurer or an insuring entity under contract with the insurer.

              (3) Coverage required under this section may be subject to customary cost-sharing provisions established for all other similar services or supplies within a policy.

              (4) Health care coverage may not be reduced or eliminated due to this section.

              (5) Services required under this section shall be covered when deemed medically necessary by the medical director, or his or her designee, subject to any referral and formulary requirements.

              (6) The insurer need not include the coverage required in this section in a group contract offered to an employer or other group that offers to its eligible enrollees a self-insured health plan not subject to mandated benefits status under this title that does not offer coverage similar to that mandated under this section.

              (7) This section does not apply to the health benefit plan that provides benefits identical to the schedule of services covered by the basic health plan((, as required by RCW 48.21.045)).


              Sec. 11. RCW 48.21.250 and 1984 c 190 s 2 are each amended to read as follows:

              Every insurer that issues policies providing group coverage for hospital or medical expense shall offer the policyholder an option to include a policy provision granting a person who becomes ineligible for coverage under the group policy, the right to continue the group benefits for a period of time and at a rate agreed upon. ((The policy provision shall provide that when such coverage terminates, the covered person may convert to a policy as provided in RCW 48.21.260.))


              Sec. 12. RCW 48.44.315 and 1997 c 276 s 4 are each amended to read as follows:

              The legislature finds that diabetes imposes a significant health risk and tremendous financial burden on the citizens and government of the state of Washington, and that access to the medically accepted standards of care for diabetes, its treatment and supplies, and self-management training and education is crucial to prevent or delay the short and long-term complications of diabetes and its attendant costs.

              (1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

              (a) "Person with diabetes" means a person diagnosed by a health care provider as having insulin using diabetes, noninsulin using diabetes, or elevated blood glucose levels induced by pregnancy; and

              (b) "Health care provider" means a health care provider as defined in RCW 48.43.005.

              (2) All health benefit plans offered by health care service contractors, issued or renewed after January 1, 1998, shall provide benefits for at least the following services and supplies for persons with diabetes:

              (a) For health benefit plans that include coverage for pharmacy services, appropriate and medically necessary equipment and supplies, as prescribed by a health care provider, that includes but is not limited to insulin, syringes, injection aids, blood glucose monitors, test strips for blood glucose monitors, visual reading and urine test strips, insulin pumps and accessories to the pumps, insulin infusion devices, prescriptive oral agents for controlling blood sugar levels, foot care appliances for prevention of complications associated with diabetes, and glucagon emergency kits; and

              (b) For all health benefit plans, outpatient self-management training and education, including medical nutrition therapy, as ordered by the health care provider. Diabetes outpatient self-management training and education may be provided only by health care providers with expertise in diabetes. Nothing in this section prevents the health care services contractor from restricting patients to seeing only health care providers who have signed participating provider agreements with the health care services contractor or an insuring entity under contract with the health care services contractor.

              (3) Coverage required under this section may be subject to customary cost-sharing provisions established for all other similar services or supplies within a policy.

              (4) Health care coverage may not be reduced or eliminated due to this section.

              (5) Services required under this section shall be covered when deemed medically necessary by the medical director, or his or her designee, subject to any referral and formulary requirements.

              (6) The health care service contractor need not include the coverage required in this section in a group contract offered to an employer or other group that offers to its eligible enrollees a self-insured health plan not subject to mandated benefits status under this title that does not offer coverage similar to that mandated under this section.

              (7) This section does not apply to the health benefit plans that provide benefits identical to the schedule of services covered by the basic health plan((, as required by RCW 48.44.022 and 48.44.023)).


              Sec. 13. RCW 48.44.360 and 1984 c 190 s 5 are each amended to read as follows:

              Every health care service contractor that issues group contracts providing group coverage for hospital or medical expense shall offer the contract holder an option to include a contract provision granting a person who becomes ineligible for coverage under the group contract, the right to continue the group benefits for a period of time and at a rate agreed upon. ((The contract provision shall provide that when such coverage terminates, the covered person may convert to a contract as provided in RCW 48.44.370.))


              Sec. 14. RCW 48.46.272 and 1997 c 276 s 5 are each amended to read as follows:

              The legislature finds that diabetes imposes a significant health risk and tremendous financial burden on the citizens and government of the state of Washington, and that access to the medically accepted standards of care for diabetes, its treatment and supplies, and self-management training and education is crucial to prevent or delay the short and long-term complications of diabetes and its attendant costs.

              (1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

              (a) "Person with diabetes" means a person diagnosed by a health care provider as having insulin using diabetes, noninsulin using diabetes, or elevated blood glucose levels induced by pregnancy; and

              (b) "Health care provider" means a health care provider as defined in RCW 48.43.005.

              (2) All health benefit plans offered by health maintenance organizations, issued or renewed after January 1, 1998, shall provide benefits for at least the following services and supplies for persons with diabetes:

              (a) For health benefit plans that include coverage for pharmacy services, appropriate and medically necessary equipment and supplies, as prescribed by a health care provider, that includes but is not limited to insulin, syringes, injection aids, blood glucose monitors, test strips for blood glucose monitors, visual reading and urine test strips, insulin pumps and accessories to the pumps, insulin infusion devices, prescriptive oral agents for controlling blood sugar levels, foot care appliances for prevention of complications associated with diabetes, and glucagon emergency kits; and

              (b) For all health benefit plans, outpatient self-management training and education, including medical nutrition therapy, as ordered by the health care provider. Diabetes outpatient self-management training and education may be provided only by health care providers with expertise in diabetes. Nothing in this section prevents the health maintenance organization from restricting patients to seeing only health care providers who have signed participating provider agreements with the health maintenance organization or an insuring entity under contract with the health maintenance organization.

              (3) Coverage required under this section may be subject to customary cost-sharing provisions established for all other similar services or supplies within a policy.

              (4) Health care coverage may not be reduced or eliminated due to this section.

              (5) Services required under this section shall be covered when deemed medically necessary by the medical director, or his or her designee, subject to any referral and formulary requirements.

              (6) The health maintenance organization need not include the coverage required in this section in a group contract offered to an employer or other group that offers to its eligible enrollees a self-insured health plan not subject to mandated benefits status under this title that does not offer coverage similar to that mandated under this section.

              (7) This section does not apply to the health benefit plans that provide benefits identical to the schedule of services covered by the basic health plan((, as required by RCW 48.46.064 and 48.46.066)).


              Sec. 15. RCW 48.46.440 and 1984 c 190 s 8 are each amended to read as follows:

              Every health maintenance organization that issues agreements providing group coverage for hospital or medical care shall offer the agreement holder an option to include an agreement provision granting a person who becomes ineligible for coverage under the group agreement, the right to continue the group benefits for a period of time and at a rate agreed upon. ((The agreement provision shall provide that when such coverage terminates the covered person may convert to an agreement as provided in RCW 48.46.450.))


              NEW SECTION. Sec. 16. The following acts or parts of acts are each repealed:

              (7) RCW 48.21.260 (Conversion policy to be offered--Exceptions, conditions) and 1984 c 190 s 3;

              (8) RCW 48.21.270 (Conversion policy--Restrictions and requirements) and 1984 c 190 s 4;

              (9) RCW 48.44.370 (Conversion contract to be offered--Exceptions, conditions) and 1984 c 190 s 6;

              (10) RCW 48.44.380 (Conversion contract--Restrictions and requirements) and 1984 c 190 s 7;

              (11) RCW 48.46.450 (Conversion agreement to be offered--Exceptions, conditions) and 1984 c 190 s 9; and

              (12) RCW 48.46.460 (Conversion agreement--Restrictions and requirements) and 1984 c 190 s 10.


              NEW SECTION. Sec. 17. Sections 1 through 15 of this act apply to all small group health benefit plans issued or renewed on or after the effective date of this section."


              On page 1, line 2 of the title, after "employees;" strike the remainder of the title and insert "amending RCW 48.21.045, 48.43.018, 48.43.035, 48.43.038, 48.44.022, 48.44.023, 48.46.064, 48.46.066, 48.21.143, 48.21.250, 48.44.315, 48.44.360, 48.46.272, and 48.46.440; reenacting and amending RCW 48.43.005; creating a new section; and repealing RCW 48.21.260, 48.21.270, 48.44.370, 48.44.380, 48.46.450, and 48.46.460."


and the same is herewith transmitted.

Milt H. Doumit, Secretary


             There being no objection, the House concurred in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2460 and advanced the bill, as amended by the Senate, to final passage.


FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED


             Representatives Cody, Bailey, Campbell, Benson and Alexander spoke in favor the passage of the bill.


             The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2460, as amended by the Senate.


ROLL CALL


             The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2460, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 89, Nays - 7, Absent - 0, Excused - 2.

             Voting yea: Representatives Ahern, Alexander, Anderson, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Conway, Cooper, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Eickmeyer, Ericksen, Fromhold, Grant, Haigh, Hankins, Hatfield, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Rockefeller, Rodne, Romero, Ruderman, Santos, Schindler, Schoesler, Sehlin, Shabro, D. Simpson, G. Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 89.

             Voting nay: Representatives Armstrong, Condotta, Cox, Hinkle, Holmquist, McCoy and Schual-Berke - 7.

             Excused: Representatives Edwards and Flannigan - 2.

  

             ENGROSSED SUBSTITUTE HOUSE BILL NO. 2460, as amended by the Senate, having received the constitutional majority, was declared passed.


RESOLUTION


             HOUSE RESOLUTION NO. 2004-4733, By Representatives Kessler and Chandler


             WHEREAS, It is necessary to provide for the continuation of the work of the House of Representatives after its adjournment and during the interim periods between legislative sessions;

             NOW, THEREFORE, BE IT RESOLVED, That the Executive Rules Committee is hereby created by this resolution and shall consist of three members of the majority caucus and two members of the minority caucus, to be named by the Speaker of the House of Representatives and Minority Leader respectively; and

             BE IT FURTHER RESOLVED, That the Executive Rules Committee may assign subject matters, bills, memorials, and resolutions to authorized committees of the House of Representatives for study during the interim, and the Speaker of the House of Representatives may create special and select committees as may be necessary to carry out the functions, including interim studies, of the House of Representatives in an orderly manner and shall appoint members to such committees with the approval of the Executive Rules Committee; and

             BE IT FURTHER RESOLVED, That the Executive Rules Committee shall have full authority and direction over the authorization and execution of any personal services contracts or subcontracts that necessitate the expenditure of House of Representatives appropriations; and

             BE IT FURTHER RESOLVED, That, during the interim, the schedules of and locations for all meetings of any committee or subcommittee shall be approved by the Executive Rules Committee, and those committees or subcommittees may conduct hearings and scheduling without a quorum being present; and

             BE IT FURTHER RESOLVED, That, during the interim, authorized committees have the power of subpoena, the power to administer oaths, and the power to issue commissions for the examination of witnesses in accordance with chapter 44.16 RCW if and when specifically authorized by the Executive Rules Committee for specific purposes and specific subjects; and

             BE IT FURTHER RESOLVED, That the Chief Clerk of the House of Representatives shall complete the work of the 2004 Regular Session of the Fifty-Eighth Legislature during interim periods, and all details that arise therefrom, including the editing, indexing, and publishing of the journal of the House of Representatives; and

             BE IT FURTHER RESOLVED, That the Chief Clerk of the House of Representatives shall make the necessary inventory of furnishings, fixtures, and supplies; and

             BE IT FURTHER RESOLVED, That the Chief Clerk of the House of Representatives may approve vouchers of the members of the House of Representatives, covering expenses incurred during the interim for official business of the Legislature in accordance with policies set by the Executive Rules Committee, at the per diem rate provided by law and established by the Executive Rules Committee, for each day or major portion of a day, plus mileage at the rate provided by law and established by the Executive Rules Committee; and

             BE IT FURTHER RESOLVED, That the Chief Clerk of the House of Representatives shall, during the interim, and as authorized by the Speaker of the House of Representatives, retain or hire any necessary employees and order necessary supplies, equipment, and printing to enable the House of Representatives to carry out its work promptly and efficiently, and accept committee reports, committee bills, prefiled bills, memorials, and resolutions as directed by the Rules of the House of Representatives and by Joint Rules of the Legislature; and

             BE IT FURTHER RESOLVED, That the Chief Clerk of the House of Representatives shall execute the necessary vouchers upon which warrants are drawn for all legislative expenses and expenditures of the House of Representatives; and

             BE IT FURTHER RESOLVED, That the Speaker of the House of Representatives and the Chief Clerk of the House of Representatives may authorize the attendance of members and employees at conferences and meetings in accordance with the policies adopted by the Executive Rules Committee and may authorize the expenditure of registration or other fees and reimbursement for subsistence and travel for such purpose; and

             BE IT FURTHER RESOLVED, That members and employees of the Legislature be reimbursed for expenses incurred in attending conferences and meetings at the rate provided by law and established by the Executive Rules Committee, plus mileage to and from the conferences and meetings at the rate provided by law and established by the Executive Rules Committee, which reimbursement shall be paid on vouchers from any appropriation made to the House of Representatives for legislative expenses; and

             BE IT FURTHER RESOLVED, That, during the interim, the use of the House of Representatives Chamber, any of its committee rooms, or any of the furniture or furnishings in them is permitted upon such terms and conditions as the Chief Clerk of the House of Representatives shall deem appropriate; and

             BE IT FURTHER RESOLVED, That the Chief Clerk of the House of Representatives may express the sympathy of the House of Representatives by sending flowers and correspondence when the necessity arises; and

             BE IT FURTHER RESOLVED, That this Resolution applies throughout the interim between sessions of the Fifty-Eighth Legislature, as well as any committee assembly.


             HOUSE RESOLUTION NO. 4733 was adopted.


POINT OF PERSONAL PRIVILEGE


             Representative Mastin: "Thank you, Mr. Speaker. This is probably six years running, but each Sine Die I like to stand and speak for all of you to thank our families and those that we leave at home while we come here and do our best to represent our districts. While we are here late at night working and caught up in the stress of the policy that we are dealing with, sometimes we forget that those at home are waiting for us to come home. Mr. Speaker, I think that it is appropriate on Sine Die that we remember, recognize and honor those that allow us to come here and do the work of the people. Thank you."


MESSAGES FROM THE SENATE

March 11, 2004

Mr. Speaker:


             The President has signed:

SUBSTITUTE HOUSE BILL NO. 1322,

SUBSTITUTE HOUSE BILL NO. 1328,

SUBSTITUTE HOUSE BILL NO. 2313,

SUBSTITUTE HOUSE BILL NO. 2366,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2381,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2459,

HOUSE BILL NO. 2537,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2518,

HOUSE BILL NO. 2615,

ENGROSSED HOUSE BILL NO. 2968,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


March 11, 2004

Mr. Speaker:


             The Senate concurred in the Senate amendments to SENATE BILL NO. 5034, and passed the bill as amended by the House.

Milt H. Doumit, Secretary


March 11, 2004

Mr. Speaker:


             The President has signed:

SUBSTITUTE HOUSE BILL NO. 1328,

HOUSE BILL NO. 2014,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2460,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2474,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2554,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2797,

SUBSTITUTE HOUSE BILL NO. 2985,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 3188,

HOUSE CONCURRENT RESOLUTION NO. 4418,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


March 11, 2004

Mr. Speaker:


             The President has signed:

ENGROSSED HOUSE BILL NO. 1677,

SUBSTITUTE HOUSE BILL NO. 2299,

SUBSTITUTE HOUSE BILL NO. 2510,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2573,

HOUSE BILL NO. 2663,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2784,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2787,

SUBSTITUTE HOUSE BILL NO. 2788,

SUBSTITUTE HOUSE BILL NO. 2802,

SUBSTITUTE HOUSE BILL NO. 2929,

SUBSTITUTE HOUSE JOINT MEMORIAL NO. 4028,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


March 11, 2004

Mr. Speaker:


             The President has signed:

ENGROSSED SENATE BILL NO. 6737,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


SIGNED BY THE SPEAKER


             The Speaker signed:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2554,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2797,

SUBSTITUTE HOUSE BILL NO. 2985,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 3188,

HOUSE CONCURRENT RESOLUTION NO. 4418,

SENATE BILL NO. 6593,

SUBSTITUTE SENATE BILL NO. 6676,


MESSAGES FROM THE SENATE

March 11, 2004

Mr. Speaker:


             The Senate concurred in the House amendments to SUBSTITUTE SENATE BILL NO. 6242, and passed the bill as amended by the House.

Milt H. Doumit


March 11, 2004

Mr. Speaker:


             The Senate has passed:

HOUSE BILL NO. 2014,

SENATE CONCURRENT RESOLUTION NO. 8425,

SENATE CONCURRENT RESOLUTION NO. 8426,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


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


INTRODUCTION & FIRST READING

 

HB 3212           by Representatives Hunt, McDermott, Conway, Veloria, Cooper, Hudgins, Darneille, Romero and Dickerson


             AN ACT Relating to creating an open primary with voluntary party registration; amending RCW 29A.04.007, 29A.04.215, 29A.04.310, 29A.04.320, 29A.08.110, 29A.08.125, 29A.08.135, 29A.08.140, 29A.08.145, 29A.08.210, 29A.08.340, 29A.08.350, 29A.08.360, 29A.08.410, 29A.08.430, 29A.08.645, 29A.08.710, 29A.12.100, 29A.20.020, 29A.20.120, 29A.20.140, 29A.20.150, 29A.20.160, 29A.20.170, 29A.20.190, 29A.20.200, 29A.24.030, 29A.24.100, 29A.24.130, 29A.24.210, 29A.24.310, 29A.28.040, 29A.28.060, 29A.28.070, 29A.32.030, 29A.32.240, 29A.36.010, 29A.36.100, 29A.36.110, 29A.36.120, 29A.36.130, 29A.36.150, 29A.36.160, 29A.36.190, 29A.40.060, 29A.40.090, 29A.44.020, 29A.44.200, 29A.44.230, 29A.52.230, 29A.52.310, 29A.52.320, 29A.60.020, 29A.80.040, 29A.80.050, and 42.17.020; reenacting and amending RCW 42.17.310 and 42.17.310; adding new sections to chapter 29A.04 RCW; adding a new section to chapter 29A.08 RCW; adding a new section to chapter 29A.32 RCW; adding a new section to chapter 29A.36 RCW; adding a new section to chapter 29A.40 RCW; adding new sections to chapter 29A.52 RCW; adding a new section to chapter 29A.60 RCW; adding a new section to chapter 29A.64 RCW; adding a new section to chapter 29A.68 RCW; adding a new chapter to Title 29A RCW; creating new sections; repealing RCW 29A.04.903, 29A.36.140, 29A.52.110, 29A.52.120, 29A.52.130, and 29A.56.010; prescribing penalties; providing an effective date; providing expiration dates; and declaring an emergency.


             Referred to Committee on State Government.


HB 3213           by Representative Hunt


             AN ACT Relating to an open primary; amending RCW 29A.04.007, 29A.04.085, 29A.04.215, 29A.04.310, 29A.04.320, 29A.12.100, 29A.20.120, 29A.20.140, 29A.20.150, 29A.20.200, 29A.24.100, 29A.24.130, 29A.24.210, 29A.24.310, 29A.28.040, 29A.28.060, 29A.28.070, 29A.32.030, 29A.32.240, 29A.36.010, 29A.36.100, 29A.36.110, 29A.36.120, 29A.36.130, 29A.36.150, 29A.36.160, 29A.36.190, 29A.40.060, 29A.40.090, 29A.44.200, 29A.44.220, 29A.44.230, 29A.52.310, 29A.52.320, 29A.60.020, 29A.80.040, 29A.80.050, 29A.80.060, 29A.04.610, and 42.17.020; adding new sections to chapter 29A.08 RCW; adding a new section to chapter 29A.32 RCW; adding new sections to chapter 29A.36 RCW; adding new sections to chapter 29A.52 RCW; repealing RCW 29A.36.140, 29A.52.110, 29A.52.120, 29A.52.130, and 29A.04.903; and declaring an emergency.


             Referred to Committee on State Government.


HB 2314           by Representatives Carrell, Boldt, Mielke, Pearson, Priest, McMahan and Hinkle


             AN ACT Relating to visitation rights for nonparents; amending RCW 26.09.240, 26.10.160, 26.09.160, and 26.09.260; adding new sections to chapter 26.10 RCW; creating new sections; prescribing penalties; and declaring an emergency.


             Referred to Committee on Juvenile Justice & Family Law.

 

ESSB 6233       by Senate Committee on Ways & Means (originally sponsored by Senators Hewitt and Fairley; by request of Governor Locke)


             AN ACT Relating to the capital budget; making appropriations and authorizing expenditures for capital improvements; amending RCW 43.99E.025, 70.146.030, and 43.82.010; amending 2003 1st sp.s. c 26 ss 101, 104, 105, 107, 110, 159, 169, 234, 313, 312, 317, 340, 367, 369, 354, 394, 397, 406, 501, 743, 678, 738, 130, 135, 267, 273, 304, 310, 315, 356, 379, 389, 390, 412, 426, 601, 603, 606, 615, 633, 659, 702, 786, 798, 801, 695, 784, 787, 795, 628, 905, 907, and 915 (uncodified); adding new sections to 2003 1st sp.s. c 26 (uncodified); adding a new section to chapter 89.08 RCW; adding a new section to chapter 39.33 RCW; creating a new section; and declaring an emergency.


             Referred to Committee on Capital Budget.


SCR 8425         by Senators Finkbeiner and Brown


              Returning bills to the house of origin.

 

SCR 8426         by Senators Finkbeiner, Brown and Roach


              Adjourning Sine Die.


             There being no objection, SENATE CONCURRENT RESOLUTION NO. 8425 was read the first time, the rules were suspended and the concurrent resolution was placed on the second reading calendar.


             There being no objection, SENATE CONCURRENT RESOLUTION NO. 8426 was read the first time, the rules were suspended and the concurrent resolution was placed on the second reading calendar.


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


SECOND READING


             SENATE CONCURRENT RESOLUTION NO. 8425, By Senators Finkbeiner and Brown


             Returning bills to the house of origin.


             The concurrent resolution was read the second time and advanced to third reading.


             SENATE CONCURRENT RESOLUTION NO. 8425 was adopted.


             SENATE CONCURRENT RESOLUTION NO. 8426, By Senators Finkbeiner, Brown and Roach


             Adjourning Sine Die.


             The concurrent resolution was read the second time and advanced to third reading.


             SENATE CONCURRENT RESOLUTION NO. 8426 was adopted.


MESSAGE FROM THE SENATE

March 11, 2004

Mr. Speaker:


             The President has signed:

SENATE BILL NO. 5034,

SUBSTITUTE SENATE BILL NO. 6242,

SENATE CONCURRENT RESOLUTION NO. 8425,

SENATE CONCURRENT RESOLUTION NO. 8426,

and the same are herewith transmitted.

Milt H. Doumit, Secretary


SIGNED BY THE SPEAKER

             The Speaker signed:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2460,

SENATE BILL NO. 5034,

SUBSTITUTE SENATE BILL NO. 6242,

ENGROSSED SENATE BILL NO. 6737,

SENATE CONCURRENT RESOLUTION NO. 8425,

SENATE CONCURRENT RESOLUTION NO. 8426,


BILLS RETURNED TO HOUSE OF ORIGIN


             Under the provisions of SENATE CONCURRENT RESOLUTION NO. 8425, the following Senate bills were returned to the Senate:


ENGROSSED SENATE BILL NO. 5052,

SUBSTITUTE SENATE BILL NO. 5053,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5055,

SUBSTITUTE SENATE BILL NO. 5067,

SUBSTITUTE SENATE BILL NO. 5148,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5150,

ENGROSSED SENATE BILL NO. 5255,

ENGROSSED SENATE BILL NO. 5257,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5270,

ENGROSSED SENATE BILL NO. 5297,

ENGROSSED THIRD SUBSTITUTE SENATE BILL NO. 5319,

ENGROSSED THIRD SUBSTITUTE SENATE BILL NO. 5364,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5369,

SENATE BILL NO. 5373,

SECOND SUBSTITUTE SENATE BILL NO. 5378,

SUBSTITUTE SENATE BILL NO. 5408,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5431,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5585,

SENATE BILL NO. 5597,

SUBSTITUTE SENATE BILL NO. 5661,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5697,

SUBSTITUTE SENATE BILL NO. 5715,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5728,

SENATE BILL NO. 5744,

SENATE BILL NO. 5790,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5874,

SECOND SUBSTITUTE SENATE BILL NO. 5914,

SUBSTITUTE SENATE BILL NO. 5948,

SECOND ENGROSSED SENATE BILL NO. 5965,

ENGROSSED SENATE BILL NO. 6063,

SECOND SUBSTITUTE SENATE BILL NO. 6082,

SUBSTITUTE SENATE BILL NO. 6108,

SUBSTITUTE SENATE BILL NO. 6109,

ENGROSSED SENATE BILL NO. 6126,

SENATE BILL NO. 6127,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6129,

SUBSTITUTE SENATE BILL NO. 6132,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6136,

SUBSTITUTE SENATE BILL NO. 6138,

SUBSTITUTE SENATE BILL NO. 6157,

SENATE BILL NO. 6163,

SENATE BILL NO. 6165,

SUBSTITUTE SENATE BILL NO. 6173,

SUBSTITUTE SENATE BILL NO. 6178,

SENATE BILL NO. 6185,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6187,

SENATE BILL NO. 6191,

SENATE BILL NO. 6195,

SUBSTITUTE SENATE BILL NO. 6196,

SUBSTITUTE SENATE BILL NO. 6200,

SUBSTITUTE SENATE BILL NO. 6201,

SENATE BILL NO. 6202,

SECOND SUBSTITUTE SENATE BILL NO. 6217,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6233,

SENATE BILL NO. 6234,

SUBSTITUTE SENATE BILL NO. 6238,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6239,

SUBSTITUTE SENATE BILL NO. 6243,

SENATE BILL NO. 6247,

SENATE BILL NO. 6250,

SUBSTITUTE SENATE BILL NO. 6253,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6256,

SUBSTITUTE SENATE BILL NO. 6264,

SUBSTITUTE SENATE BILL NO. 6266,

SENATE BILL NO. 6279,

SENATE BILL NO. 6281,

SUBSTITUTE SENATE BILL NO. 6285,

ENGROSSED SENATE BILL NO. 6290,

SENATE BILL NO. 6315,

ENGROSSED SENATE BILL NO. 6317,

SUBSTITUTE SENATE BILL NO. 6327,

SUBSTITUTE SENATE BILL NO. 6331,

SENATE BILL NO. 6336,

SUBSTITUTE SENATE BILL NO. 6391,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6395,

SENATE BILL NO. 6403,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6413,

SUBSTITUTE SENATE BILL NO. 6414,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6420,

SUBSTITUTE SENATE BILL NO. 6424,

SUBSTITUTE SENATE BILL NO. 6437,

SUBSTITUTE SENATE BILL NO. 6438,

SUBSTITUTE SENATE BILL NO. 6442,

SUBSTITUTE SENATE BILL NO. 6457,

SENATE BILL NO. 6461,

SENATE BILL NO. 6491,

SUBSTITUTE SENATE BILL NO. 6496,

SENATE BILL NO. 6502,

SENATE BILL NO. 6516,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6519,

SUBSTITUTE SENATE BILL NO. 6531,

SENATE BILL NO. 6545,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6559,

SENATE BILL NO. 6577,

SUBSTITUTE SENATE BILL NO. 6587,

SUBSTITUTE SENATE BILL NO. 6592,

SUBSTITUTE SENATE BILL NO. 6609,

SENATE BILL NO. 6612,

SUBSTITUTE SENATE BILL NO. 6619,

ENGROSSED SENATE BILL NO. 6623,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6665,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6675,

SENATE BILL NO. 6679,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6680,

SUBSTITUTE SENATE BILL NO. 6682,

SENATE BILL NO. 6686,

SUBSTITUTE SENATE BILL NO. 6689,

ENGROSSED SENATE BILL NO. 6692,

SUBSTITUTE SENATE BILL NO. 6696,

ENGROSSED SENATE BILL NO. 6698,

SENATE BILL NO. 6700,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6701,

SENATE BILL NO. 6702,

ENGROSSED SENATE BILL NO. 6710,

SUBSTITUTE SENATE BILL NO. 6711,

SUBSTITUTE SENATE JOINT MEMORIAL NO. 8032,

SENATE JOINT MEMORIAL NO. 8043,

ENGROSSED SENATE JOINT MEMORIAL NO. 8047,

SENATE JOINT MEMORIAL NO. 8052,

SENATE CONCURRENT RESOLUTION NO. 8420,


MESSAGE FROM THE SENATE

March 11, 2004

Mr. Speaker:


             Under the provisions of SENATE CONCURRENT RESOLUTION NO. 8425, the following House Bills were returned to the House of Representatives:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1000,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1005,

SUBSTITUTE HOUSE BILL NO. 1012,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1013,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1019,

SUBSTITUTE HOUSE BILL NO. 1021,

SUBSTITUTE HOUSE BILL NO. 1031,

THIRD ENGROSSED SUBSTITUTE HOUSE BILL NO. 1053,

HOUSE BILL NO. 1064,

HOUSE BILL NO. 1072,

HOUSE BILL NO. 1119,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1123,

HOUSE BILL NO. 1133,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1151,

SUBSTITUTE HOUSE BILL NO. 1227,

SECOND SUBSTITUTE HOUSE BILL NO. 1230,

SECOND SUBSTITUTE HOUSE BILL NO. 1234,

SUBSTITUTE HOUSE BILL NO. 1257,

SUBSTITUTE HOUSE BILL NO. 1258,

SUBSTITUTE HOUSE BILL NO. 1283,

ENGROSSED HOUSE BILL NO. 1333,

SUBSTITUTE HOUSE BILL NO. 1357,

SUBSTITUTE HOUSE BILL NO. 1369,

HOUSE BILL NO. 1375,

SUBSTITUTE HOUSE BILL NO. 1488,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1498,

ENGROSSED HOUSE BILL NO. 1510,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1517,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1569,

HOUSE BILL NO. 1575,

HOUSE BILL NO. 1583,

SUBSTITUTE HOUSE BILL NO. 1594,

SUBSTITUTE HOUSE BILL NO. 1603,

ENGROSSED HOUSE BILL NO. 1615,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1656,

SECOND ENGROSSED SUBSTITUTE HOUSE BILL NO. 1660,

HOUSE BILL NO. 1667,

HOUSE BILL NO. 1670,

SECOND SUBSTITUTE HOUSE BILL NO. 1702,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1723,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1741,

ENGROSSED HOUSE BILL NO. 1746,

ENGROSSED THIRD SUBSTITUTE HOUSE BILL NO. 1796,

SUBSTITUTE HOUSE BILL NO. 1809,

SUBSTITUTE HOUSE BILL NO. 1820,

SECOND SUBSTITUTE HOUSE BILL NO. 1828,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1840,

SUBSTITUTE HOUSE BILL NO. 1862,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1869,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1872,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1879,

HOUSE BILL NO. 1895,

SECOND SUBSTITUTE HOUSE BILL NO. 1897,

ENGROSSED HOUSE BILL NO. 1926,

ENGROSSED HOUSE BILL NO. 1927,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1928,

HOUSE BILL NO. 1935,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1949,

HOUSE BILL NO. 1952,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1960,

HOUSE BILL NO. 1967

SUBSTITUTE HOUSE BILL NO. 1976,

SUBSTITUTE HOUSE BILL NO. 1982,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1989,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2043,

ENGROSSED HOUSE BILL NO. 2044,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2089,

SUBSTITUTE HOUSE BILL NO. 2090,

HOUSE BILL NO. 2100,

HOUSE BILL NO. 2129,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2131,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2167,

SUBSTITUTE HOUSE BILL NO. 2234,

HOUSE BILL NO. 2244,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2275,

SUBSTITUTE HOUSE BILL NO. 2298,

SUBSTITUTE HOUSE BILL NO. 2319,

SECOND SUBSTITUTE HOUSE BILL NO. 2322,

SUBSTITUTE HOUSE BILL NO. 2329,

HOUSE BILL NO. 2332,

SECOND SUBSTITUTE HOUSE BILL NO. 2339,

HOUSE BILL NO. 2344,

HOUSE BILL NO. 2345,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2347,

SUBSTITUTE HOUSE BILL NO. 2350,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2356,

SUBSTITUTE HOUSE BILL NO. 2361,

HOUSE BILL NO. 2377,

HOUSE BILL NO. 2380,

SUBSTITUTE HOUSE BILL NO. 2392,

SUBSTITUTE HOUSE BILL NO. 2394,

HOUSE BILL NO. 2395,

SUBSTITUTE HOUSE BILL NO. 2397,

HOUSE BILL NO. 2398,

SUBSTITUTE HOUSE BILL NO. 2404,

SECOND SUBSTITUTE HOUSE BILL NO. 2406,

SUBSTITUTE HOUSE BILL NO. 2414,

HOUSE BILL NO. 2415,

HOUSE BILL NO. 2420,

SUBSTITUTE HOUSE BILL NO. 2433,

HOUSE BILL NO. 2436,

HOUSE BILL NO. 2438,

SUBSTITUTE HOUSE BILL NO. 2439,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2441,

HOUSE BILL NO. 2450,

SUBSTITUTE HOUSE BILL NO. 2456,

SUBSTITUTE HOUSE BILL NO. 2457,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2469,

HOUSE BILL NO. 2470,

HOUSE BILL NO. 2471,

SUBSTITUTE HOUSE BILL NO. 2478,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2479,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2481,

HOUSE BILL NO. 2484,

HOUSE BILL NO. 2490,

HOUSE BILL NO. 2498,

HOUSE BILL NO. 2499,

HOUSE BILL NO. 2501,

HOUSE BILL NO. 2505,

SUBSTITUTE HOUSE BILL NO. 2506,

HOUSE BILL NO. 2511,

HOUSE BILL NO. 2512,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2513,

HOUSE BILL NO. 2520,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2531,

HOUSE BILL NO. 2536,

HOUSE BILL NO. 2541,

HOUSE BILL NO. 2542,

ENGROSSED HOUSE BILL NO. 2545,

HOUSE BILL NO. 2547,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2550,

HOUSE BILL NO. 2553,

HOUSE BILL NO. 2563,

HOUSE BILL NO. 2578,

SUBSTITUTE HOUSE BILL NO. 2582,

SUBSTITUTE HOUSE BILL NO. 2585,

SUBSTITUTE HOUSE BILL NO. 2596,

SUBSTITUTE HOUSE BILL NO. 2600,

SUBSTITUTE HOUSE BILL NO. 2626,

HOUSE BILL NO. 2627,

HOUSE BILL NO. 2628,

HOUSE BILL NO. 2632,

SUBSTITUTE HOUSE BILL NO. 2652,

ENGROSSED HOUSE BILL NO. 2654,

SECOND SUBSTITUTE HOUSE BILL NO. 2661,

SUBSTITUTE HOUSE BILL NO. 2662,

HOUSE BILL NO. 2669,

SUBSTITUTE HOUSE BILL NO. 2670,

SUBSTITUTE HOUSE BILL NO. 2680,

SUBSTITUTE HOUSE BILL NO. 2686,

HOUSE BILL NO. 2688,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2689,

ENGROSSED HOUSE BILL NO. 2694,

HOUSE BILL NO. 2696,

SUBSTITUTE HOUSE BILL NO. 2701,

SECOND SUBSTITUTE HOUSE BILL NO. 2704,

SUBSTITUTE HOUSE BILL NO. 2711,

HOUSE BILL NO. 2720,

SUBSTITUTE HOUSE BILL NO. 2723,

SUBSTITUTE HOUSE BILL NO. 2732,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2736,

HOUSE BILL NO. 2742,

HOUSE BILL NO. 2743,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2753,

HOUSE BILL NO. 2754,

HOUSE BILL NO. 2764,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2769,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2772,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2776,

SUBSTITUTE HOUSE BILL NO. 2777,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2779,

SUBSTITUTE HOUSE BILL NO. 2783,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2786,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2807,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2808,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2816,

SECOND SUBSTITUTE HOUSE BILL NO. 2818,

HOUSE BILL NO. 2831,

SUBSTITUTE HOUSE BILL NO. 2837,

ENGROSSED HOUSE BILL NO. 2839,

HOUSE BILL NO. 2841,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2844,

SUBSTITUTE HOUSE BILL NO. 2846,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2851,

HOUSE BILL NO. 2854,

HOUSE BILL NO. 2866,

HOUSE BILL NO. 2867,

ENGROSSED HOUSE BILL NO. 2870,

SUBSTITUTE HOUSE BILL NO. 2871,

SUBSTITUTE HOUSE BILL NO. 2875,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2879,

ENGROSSED HOUSE BILL NO. 2883,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2892,

SUBSTITUTE HOUSE BILL NO. 2906,

SUBSTITUTE HOUSE BILL NO. 2920,

HOUSE BILL NO. 2921,

HOUSE BILL NO. 2923,

SUBSTITUTE HOUSE BILL NO. 2931,

HOUSE BILL NO. 2935

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2941,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2955,

SUBSTITUTE HOUSE BILL NO. 3001,

SUBSTITUTE HOUSE BILL NO. 3020,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 3026,

HOUSE BILL NO. 3029,

SUBSTITUTE HOUSE BILL NO. 3039,

SUBSTITUTE HOUSE BILL NO. 3043,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 3054,

SUBSTITUTE HOUSE BILL NO. 3066,

HOUSE BILL NO. 3070,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 3080,

SUBSTITUTE HOUSE BILL NO. 3084,

SUBSTITUTE HOUSE BILL NO. 3090,

ENGROSSED HOUSE BILL NO. 3094,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 3101,

SECOND SUBSTITUTE HOUSE BILL NO. 3112,

SUBSTITUTE HOUSE BILL NO. 3124,

HOUSE BILL NO. 3133,

SUBSTITUTE HOUSE BILL NO. 3164,

SUBSTITUTE HOUSE BILL NO. 3175,

ENGROSSED HOUSE BILL NO. 3183,

ENGROSSED HOUSE BILL NO. 3197,

ENGROSSED HOUSE BILL NO. 3200,

ENGROSSED HOUSE BILL NO. 3201,

SUBSTITUTE HOUSE BILL NO. 3204,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 3205,

HOUSE JOINT MEMORIAL NO. 4018,

SUBSTITUTE HOUSE JOINT MEMORIAL NO. 4032,

SUBSTITUTE HOUSE JOINT MEMORIAL NO. 4036,

HOUSE JOINT MEMORIAL NO. 4039,

ENGROSSED SUBSTITUTE HOUSE JOINT MEMORIAL NO. 4042,

SUBSTITUTE HOUSE JOINT MEMORIAL NO. 4043,

HOUSE JOINT RESOLUTION NO. 4204,

HOUSE JOINT RESOLUTION NO. 4205,

SUBSTITUTE HOUSE CONCURRENT RESOLUTION NO. 4416,

ENGROSSED HOUSE CONCURRENT RESOLUTION NO. 4417,

ENGROSSED HOUSE CONCURRENT RESOLUTION NO. 4419,


and the same are herewith transmitted.

Milt H. Doumit, Secretary


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


MOTIONS


             On motion of Representative Kessler, the reading of the Journal of the Sixtieth Day of the Regular Session of the 58th 2004 Legislature was dispensed with and it was ordered to stand approved.


             On motion of Representative Kessler, the House of Representatives of the Regular Session of the 58th 2004 Legislature adjourned SINE DIE.


FRANK CHOPP, Speaker                                                                                 RICHARD NAFZIGER, Chief Clerk