WHEREAS, Ryne Dee Sandberg was born in Spokane, Washington, on September 18, 1959; and

      WHEREAS, Ryne Sandberg was a standout athlete in baseball, football, and basketball at North Central High School (the "Indians") in Spokane; and

      WHEREAS, Ryne Sandberg led the Indians to a 25-3 record and the 1978 state baseball championship game, hitting .417 with 4 home runs his senior season; and

      WHEREAS, Ryne Sandberg was drafted by the Philadelphia Phillies in the twentieth round of the 1978 major league baseball draft; and

      WHEREAS, Ryne Sandberg was traded to the Chicago Cubs in 1982, where his unique combination of power and consistency made him one of the greatest second basemen in the history of baseball; and

      WHEREAS, Ryne Sandberg was a ten-time All-Star and nine-time Gold Glove second baseman; and

      WHEREAS, Ryne Sandberg is only the tenth player in history to hit at least 250 home runs and steal at least 250 bases; and

      WHEREAS, Ryne Sandberg holds the major league record for fielding percentage for a second baseman, at .989; and

      WHEREAS, Ryne "Ryno" Sandberg became a Cubs legend on June 23, 1984, when he hit two game-tying home runs off All-Star closer Bruce Sutter in the Cubs' extra-innings victory over the St. Louis Cardinals at Wrigley Field, evoking the nickname "Baby Ruth" from opposing manager Whitey Herzog, who called it one of the greatest performances he had ever seen; and

      WHEREAS, Ryne Sandberg gained even more respect and admiration from fans for his willingness to give back to the community through charities and other activities; and

      WHEREAS, Ryne Sandberg was elected to the Baseball Hall of Fame on January 4, 2005; and

      WHEREAS, Ryne Sandberg is only the second graduate of a Washington high school to be elected to the Baseball Hall of Fame;

      NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate honor Ryne Sandberg on his long and wonderful career with the Chicago Cubs and thank him for giving so much back to the team's fans and to the community.

      Senators Benson, Esser and Brandland spoke in favor of adoption of the resolution.

      The President declared the question before the Senate to be the adoption of Senate Resolution No. 8603.

      The motion by Senator Benson carried and the resolution was adopted by voice vote.

INTRODUCTION OF SPECIAL GUESTS

      The President welcomed and introduced family and friends of Mr. Ryne Sandberg, sister Meryl Nance; brother Del and wife Julie; daughter Jill and fiancé Ruben Andrews; Mr. Sandberg’s high school coach, Ken Eilmes; high school teammate Marty Hare and his daughter Kalena; and Mr. Sandberg’s wife, Margaret, who were seated in the gallery.

INTRODUCTION OF SPECIAL GUESTS

      The President welcomed and introduced Ryne Sandberg who was seated on the rostrum.

      With permission of the Senate, business was suspended to allow Mr. Ryne Sandberg, Major League Baseball’s 2005 inductee to the Baseball Hall of Fame, to address the Senate.

REMARKS BY MR. RYNE SANDBERG

      Mr. Ryne Sandberg: “I believe that passed in a land slide, didn’t it. That was good to hear. I have great pride growing up in Spokane, spending my first eighteen years there. It was a great opportunity for me to grow up. It had great opportunities for the athletes. I got to play my basketball at the coliseum, which was a big thrill. I played all my football games at Joe Albi Stadium, for high school, it doesn’t get any better than that. Of course, I played American Legion baseball at Shadle Park under the lights. So, I felt like I was in the right place for me to flourish and to work and play at the game that I love. I loved all sports. In 1978, I was fortunate enough to be drafted by the Philadelphia Phillies. An interesting story growing up in Spokane, we didn’t have the Seattle Mariners yet, so I was a big Cincinnati Red’s fan because they seemed to be on the Saturday Games of the Week quite often in the ’70s. My favorite player was Pete Rose growing up and besides a family vacation trip where we went to Fenway Park and saw the Minnesota Twins play once and then the Oakland A’s play. Those were my only three times in a major league ballpark Until the fourth time, I was in uniform with the Philadelphia Phillies after spending four years in the minor league with the Phillies and my locker was next to Pete Rose. So just a lot of great thrills along the way. That was definitely a big one but playing for the team, the Chicago Cubs, I also felt very, very lucky and very fortunate. A lot of our games, as you know, were on WGN TV so that my relatives could watch me. My friends could watch. Hanging out with Harry Caray wasn’t too bad, a lot of laughs there. The Cubs have always been a team that’s had a great following of fans and I saw that all across the United States when we played, so that was a big thrill. Also playing our games at Wrigley Field was I thought was a treat. We had a lot, most of our games were day baseball which I enjoyed as a hitter being able to see the ball very well. I was actually there when we finally put lights up in 1988. That was a big thrill. I hit a two-run home run my first at bat under the lights. So, all in all it’s just been like a dream come true for me. I always played sports, played a lot out in the front yard by myself, actually. We had a house, a two-story house with two-tiered grass going up. And we had the nice steps up there and I used to throw the ball up against the steps and field the ball coming back and imagine that I was playing in the major leagues. Emulated players that were on the major games of the week back then and so to have everything happen as it did is just remarkable to me. This is a great honor being here today and throughout the State of Washington I feel like I always had great support and especially out of Spokane. This is an honor here today also. Thank you very much.”

MOTION

      On motion of Senator Eide, the Senate reverted to the fourth order of business.

MESSAGE FROM THE HOUSE

April 14, 2005

MR. PRESIDENT:

      The House has passed ENGROSSED SENATE BILL NO. 5094, with the following amendment{s}:

      On page 3, line 5, after "over" strike "one million"

      On page 4, line 10 after "work." strike all material through "section." on line 13 and insert: "All remaining collected funds shall be used for conservation district purposes."

and the same are herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

      Senator Rasmussen moved that the Senate refuse to concur in the House amendment(s) to Engrossed Senate Bill No. 5094 and ask the House to recede therefrom.

      Senators Rasmussen and Schoesler spoke in favor of the motion.

MOTION

On motion of Senator Mulliken, Senator Zarelli was excused.

      The President declared the question before the Senate to be the motion by Senator Rasmussen that the Senate refuse to concur in the House amendment(s) to Engrossed Senate Bill No. 5094 and ask the House to recede therefrom.

      The motion by Senator Rasmussen carried and the Senate refused to concur in the House amendment(s) to Engrossed Senate Bill No. 5094 and asked the House to recede therefrom by voice vote.

MESSAGE FROM THE HOUSE

April 11, 2005

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5308, with the following amendment{s}:

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 26.44.030 and 2003 c 207 s 4 are each amended to read as follows:

      (1)(a) When any practitioner, county coroner or medical examiner, law enforcement officer, professional school personnel, registered or licensed nurse, social service counselor, psychologist, pharmacist, licensed or certified child care providers or their employees, employee of the department, juvenile probation officer, placement and liaison specialist, responsible living skills program staff, HOPE center staff, or state family and children's ombudsman or any volunteer in the ombudsman's office has reasonable cause to believe that a child has suffered abuse or neglect, he or she shall report such incident, or cause a report to be made, to the proper law enforcement agency or to the department as provided in RCW 26.44.040.

      (b)(i) When any person who is an employee or regular-service volunteer of a for-profit entity that provides services to children as a primary mission or purpose of the entity, or nonprofit entity as defined in RCW 84.36.800, has reasonable cause to believe that a child has suffered abuse or neglect, and the alleged perpetrator is an employee, contractor, or regular-service or occasional-service volunteer of the same for-profit or nonprofit entity, he or she shall report such incident, or cause a report to be made, to the proper law enforcement agency or to the department as provided in RCW 26.44.040.

      (ii) Nothing in this subsection (1)(b) shall limit a person's duty to report under (a) of this subsection.

      (c) The reporting requirement also applies to department of corrections personnel who, in the course of their employment, observe offenders or the children with whom the offenders are in contact. If, as a result of observations or information received in the course of his or her employment, any department of corrections personnel has reasonable cause to believe that a child has suffered abuse or neglect, he or she shall report the incident, or cause a report to be made, to the proper law enforcement agency or to the department as provided in RCW 26.44.040.

      (((c))) (d) The reporting requirement shall also apply to any adult who has reasonable cause to believe that a child who resides with them, has suffered severe abuse, and is able or capable of making a report. For the purposes of this subsection, "severe abuse" means any of the following: Any single act of abuse that causes physical trauma of sufficient severity that, if left untreated, could cause death; any single act of sexual abuse that causes significant bleeding, deep bruising, or significant external or internal swelling; or more than one act of physical abuse, each of which causes bleeding, deep bruising, significant external or internal swelling, bone fracture, or unconsciousness.

      (((d))) (e) The report must be made at the first opportunity, but in no case longer than forty-eight hours after there is reasonable cause to believe that the child has suffered abuse or neglect. The report must include the identity of the accused if known.

      (2)(a) The reporting requirement of subsection (1) of this section does not apply to a member of the clergy with regard to information obtained by the member of the clergy in his or her professional character as a religious or spiritual advisor when the information is obtained solely as a result of a confession made pursuant to the clergy-penitent privilege as provided in RCW 5.60.060(3), and the member of the clergy is authorized to hear such confession, and has a duty under the discipline, tenets, doctrine, or custom of his or her church, religious denomination, religious body, spiritual community, or sect to keep the confession secret. The privilege shall not apply, and the member of the clergy shall report child abuse or neglect pursuant to this section, if the member of the clergy has received the information from any source other than from a confession.

      (b) Nothing in this subsection shall exempt a member of the clergy from making a report of child abuse or neglect as required in subsection (1) of this section when the member of the clergy is acting in some other capacity that would otherwise require him or her to make a report.

      (3) The reporting requirement of subsection (1) of this section does not apply to the discovery of abuse or neglect that occurred during childhood if it is discovered after the child has become an adult. However, if there is reasonable cause to believe other children are or may be at risk of abuse or neglect by the accused, the reporting requirement of subsection (1) of this section does apply.

      (((3))) (4) Any other person who has reasonable cause to believe that a child has suffered abuse or neglect may report such incident to the proper law enforcement agency or to the department of social and health services as provided in RCW 26.44.040.

      (((4))) (5) The department, upon receiving a report of an incident of alleged abuse or neglect pursuant to this chapter, involving a child who has died or has had physical injury or injuries inflicted upon him or her other than by accidental means or who has been subjected to alleged sexual abuse, shall report such incident to the proper law enforcement agency. In emergency cases, where the child's welfare is endangered, the department shall notify the proper law enforcement agency within twenty-four hours after a report is received by the department. In all other cases, the department shall notify the law enforcement agency within seventy-two hours after a report is received by the department. If the department makes an oral report, a written report must also be made to the proper law enforcement agency within five days thereafter.

      (((5))) (6) Any law enforcement agency receiving a report of an incident of alleged abuse or neglect pursuant to this chapter, involving a child who has died or has had physical injury or injuries inflicted upon him or her other than by accidental means, or who has been subjected to alleged sexual abuse, shall report such incident in writing as provided in RCW 26.44.040 to the proper county prosecutor or city attorney for appropriate action whenever the law enforcement agency's investigation reveals that a crime may have been committed. The law enforcement agency shall also notify the department of all reports received and the law enforcement agency's disposition of them. In emergency cases, where the child's welfare is endangered, the law enforcement agency shall notify the department within twenty-four hours. In all other cases, the law enforcement agency shall notify the department within seventy-two hours after a report is received by the law enforcement agency.

      (((6))) (7) Any county prosecutor or city attorney receiving a report under subsection (((5))) (6) of this section shall notify the victim, any persons the victim requests, and the local office of the department, of the decision to charge or decline to charge a crime, within five days of making the decision.

      (((7))) (8) The department may conduct ongoing case planning and consultation with those persons or agencies required to report under this section, with consultants designated by the department, and with designated representatives of Washington Indian tribes if the client information exchanged is pertinent to cases currently receiving child protective services. Upon request, the department shall conduct such planning and consultation with those persons required to report under this section if the department determines it is in the best interests of the child. Information considered privileged by statute and not directly related to reports required by this section must not be divulged without a valid written waiver of the privilege.

      (((8))) (9) Any case referred to the department by a physician licensed under chapter 18.57 or 18.71 RCW on the basis of an expert medical opinion that child abuse, neglect, or sexual assault has occurred and that the child's safety will be seriously endangered if returned home, the department shall file a dependency petition unless a second licensed physician of the parents' choice believes that such expert medical opinion is incorrect. If the parents fail to designate a second physician, the department may make the selection. If a physician finds that a child has suffered abuse or neglect but that such abuse or neglect does not constitute imminent danger to the child's health or safety, and the department agrees with the physician's assessment, the child may be left in the parents' home while the department proceeds with reasonable efforts to remedy parenting deficiencies.

      (((9))) (10) Persons or agencies exchanging information under subsection (((7))) (8) of this section shall not further disseminate or release the information except as authorized by state or federal statute. Violation of this subsection is a misdemeanor.

      (((10))) (11) Upon receiving reports of alleged abuse or neglect, the department or law enforcement agency may interview children. The interviews may be conducted on school premises, at day-care facilities, at the child's home, or at other suitable locations outside of the presence of parents. Parental notification of the interview must occur at the earliest possible point in the investigation that will not jeopardize the safety or protection of the child or the course of the investigation. Prior to commencing the interview the department or law enforcement agency shall determine whether the child wishes a third party to be present for the interview and, if so, shall make reasonable efforts to accommodate the child's wishes. Unless the child objects, the department or law enforcement agency shall make reasonable efforts to include a third party in any interview so long as the presence of the third party will not jeopardize the course of the investigation.

      (((11))) (12) Upon receiving a report of alleged child abuse and neglect, the department or investigating law enforcement agency shall have access to all relevant records of the child in the possession of mandated reporters and their employees.

      (((12))) (13) The department shall maintain investigation records and conduct timely and periodic reviews of all cases constituting abuse and neglect. The department shall maintain a log of screened-out nonabusive cases.

      (((13))) (14) The department shall use a risk assessment process when investigating alleged child abuse and neglect referrals. The department shall present the risk factors at all hearings in which the placement of a dependent child is an issue. Substance abuse must be a risk factor. The department shall, within funds appropriated for this purpose, offer enhanced community-based services to persons who are determined not to require further state intervention.

      (((14))) (15) Upon receipt of a report of alleged abuse or neglect the law enforcement agency may arrange to interview the person making the report and any collateral sources to determine if any malice is involved in the reporting.

      (((15))) (16) The department shall make reasonable efforts to learn the name, address, and telephone number of each person making a report of abuse or neglect under this section. The department shall provide assurances of appropriate confidentiality of the identification of persons reporting under this section. If the department is unable to learn the information required under this subsection, the department shall only investigate cases in which: (a) The department believes there is a serious threat of substantial harm to the child; (b) the report indicates conduct involving a criminal offense that has, or is about to occur, in which the child is the victim; or (c) the department has, after investigation, a report of abuse or neglect that has been founded with regard to a member of the household within three years of receipt of the referral.

      (17) For the purposes of this section, the following definitions apply:

      (a) "Volunteer" means any person who, of his or her own free will, provides goods or services without any financial gain to any agency, instrumentality, political subdivision, or school district of the state of Washington;

      (b) "Occasional-service volunteer" means any person who provides a one-time or occasional volunteer service; and

      (c) "Regular-service volunteer" means any person engaged in specific volunteer service activities on an ongoing or continuing basis."

      Correct the title.

and the same are herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

      Senator Hargrove moved that the Senate refuse to concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5308 and ask the House to recede therefrom.

      Senators Hargrove spoke in favor of the motion.

      The President declared the question before the Senate to be the motion by Senator Hargrove that the Senate refuse to concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5308 and ask the House to recede therefrom.

      The motion by Senator Hargrove carried and the Senate refused to concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5308 and asked the House to recede therefrom by voice vote.

MESSAGE FROM THE HOUSE

April 12, 2005

MR. PRESIDENT:

      The House has passed ENGROSSED SENATE BILL NO. 5513, with the following amendment{s}:

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The legislature finds that it is in the interest of the state to restructure the roles and responsibilities of the state's transportation agencies in order to improve efficiency and accountability. The legislature also finds that continued citizen oversight of performance of the state's transportation system remains an important priority. To achieve these purposes, the legislature intends to provide direct accountability of the department of transportation to the governor, in his or her role as chief executive officer of state government, by making the secretary of transportation a cabinet-level official. Additionally, it is essential to clearly delineate between the separate and distinct roles and responsibilities of the executive and legislative branches of government. The role of executive is to oversee the implementation of transportation programs, while the legislature reserves to itself the role of policy making. Finally, consolidating public outreach and auditing of the state's transportation agencies under a single citizen-governed entity, the transportation accountability commission, will provide the public with information about the performance of the transportation system and an avenue for direct participation in its oversight.

Departmental Governance

   Sec. 2. RCW 43.17.020 and 1995 1st sp.s. c 2 s 2 are each amended to read as follows:

   There shall be a chief executive officer of each department to be known as: (1) The secretary of social and health services, (2) the director of ecology, (3) the director of labor and industries, (4) the director of agriculture, (5) the director of fish and wildlife, (6) the secretary of transportation, (7) the director of licensing, (8) the director of general administration, (9) the director of community, trade, and economic development, (10) the director of veterans affairs, (11) the director of revenue, (12) the director of retirement systems, (13) the secretary of corrections, ((and)) (14) the secretary of health, and (15) the director of financial institutions.

   Such officers, except the ((secretary of transportation and the)) director of fish and wildlife, shall be appointed by the governor, with the consent of the senate, and hold office at the pleasure of the governor. ((The secretary of transportation shall be appointed by the transportation commission as prescribed by RCW 47.01.041.)) The director of fish and wildlife shall be appointed by the fish and wildlife commission as prescribed by RCW 77.04.055.

    Sec. 3. RCW 47.01.041 and 1983 1st ex.s. c 53 s 28 are each amended to read as follows:

    The executive head of the department of transportation shall be the secretary of transportation, who shall be appointed by the ((transportation commission)) governor with the advice and consent of the senate, and shall be paid a salary to be fixed by the governor in accordance with the provisions of RCW 43.03.040. The secretary shall be an ex officio member of the transportation commission without a vote. ((The secretary shall be the chief executive officer of the commission and be responsible to it, and shall be guided by policies established by it.)) The secretary shall serve ((until removed by the commission, but only for incapacity, incompetence, neglect of duty, malfeasance in office, or failure to carry out the commission's policies. Before a motion for dismissal shall be acted on by the commission, the secretary shall be granted a hearing on formal written charges before the full commission. An action by the commission to remove the secretary shall be final)) at the pleasure of the governor.

    Sec. 4. RCW 47.01.051 and 1977 ex.s. c 151 s 5 are each amended to read as follows:

    (1) There is hereby created a transportation commission, which shall consist of seven members appointed by the governor, with the consent of the senate. The present five members of the highway commission shall serve as five initial members of the transportation commission until their terms of office as highway commission members would have expired. The additional two members provided herein for the transportation commission shall be appointed for initial terms to expire on June 30, 1982, and June 30, 1983. Thereafter all terms shall be for six years. No elective state official or state officer or state employee shall be a member of the commission, and not more than four members of the commission shall at the time of appointment or thereafter during their respective terms of office be members of the same major political party. At the time of appointment or thereafter during their respective terms of office, four members of the commission shall reside in the western part of the state and three members shall reside in the eastern part of the state as divided north and south by the summit of the Cascade mountains. No more than two members of the commission shall reside in the same county. Commissioners shall not be removed from office by the governor before the expiration of their terms unless for a disqualifying change of residence or for cause based upon a determination of incapacity, incompetence, neglect of duty, or malfeasance in office by the superior court of the state of Washington in and for Thurston county upon petition and show cause proceedings duly brought therefor in said court and directed to the commissioner in question. No member shall be appointed for more than two consecutive terms.

    (2) This section expires July 1, 2006.

    Sec. 5. RCW 47.01.061 and 1987 c 364 s 2 are each amended to read as follows:

    (1) The commission shall meet at such times as it deems advisable but at least once every month. It may adopt its own rules and regulations and may establish its own procedure. It shall act collectively in harmony with recorded resolutions or motions adopted by majority vote of at least four members. The commission may appoint an administrative secretary, and shall elect one of its members chairman for a term of one year. The chairman shall be able to vote on all matters before the commission. The commission may from time to time retain planners, consultants, and other technical personnel to advise it in the performance of its duties.

   (2) The commission shall submit to each regular session of the legislature held in an odd-numbered year its own budget proposal necessary for the commission's operations separate from that proposed for the department.

   (3) Each member of the commission shall be compensated in accordance with RCW 43.03.250 and shall be reimbursed for actual necessary traveling and other expenses in going to, attending, and returning from meetings of the commission, and actual and necessary traveling and other expenses incurred in the discharge of such duties as may be requested by a majority vote of the commission or by the secretary of transportation, but in no event shall a commissioner be compensated in any year for more than one hundred twenty days, except the chairman of the commission who may be paid compensation for not more than one hundred fifty days. Service on the commission shall not be considered as service credit for the purposes of any public retirement system.

   (4) Each member of the commission shall disclose any actual or potential conflict of interest, if applicable under the circumstance, regarding any commission business.

   Sec. 6. RCW 47.01.071 and 1981 c 59 s 2 are each amended to read as follows:

   The transportation commission shall have the following functions, powers, and duties:

   (1) To propose policies to be adopted by the governor and the legislature designed to assure the development and maintenance of a comprehensive and balanced statewide transportation system which will meet the needs of the people of this state for safe and efficient transportation services. Wherever appropriate the policies shall provide for the use of integrated, intermodal transportation systems to implement the social, economic, and environmental policies, goals, and objectives of the people of the state, and especially to conserve nonrenewable natural resources including land and energy. To this end the commission shall:

   (a) Develop transportation policies which are based on the policies, goals, and objectives expressed and inherent in existing state laws;

   (b) Inventory the adopted policies, goals, and objectives of the local and area-wide governmental bodies of the state and define the role of the state, regional, and local governments in determining transportation policies, in transportation planning, and in implementing the state transportation plan;

   (c) Propose a transportation policy for the state((, and after notice and public hearings, submit the proposal to the legislative transportation committee and the senate and house transportation committees by January 1, 1978, for consideration in the next legislative session));

   (d) Establish a procedure for review and revision of the state transportation policy and for submission of proposed changes to the governor and the legislature;

   (e) To integrate the statewide transportation plan with the needs of the elderly and handicapped, and to coordinate federal and state programs directed at assisting local governments to answer such needs;

   (2) ((To establish the policy of the department to be followed by the secretary on each of the following items:

   (a))) To provide for the effective coordination of state transportation planning with national transportation policy, state and local land use policies, and local and regional transportation plans and programs;

    (((b) To provide for public involvement in transportation designed to elicit the public's views both with respect to adequate transportation services and appropriate means of minimizing adverse social, economic, environmental, and energy impact of transportation programs;

    (c) To provide for the administration of grants in aid and other financial assistance to counties and municipal corporations for transportation purposes;

    (d) To provide for the management, sale, and lease of property or property rights owned by the department which are not required for transportation purposes;))

    (3) To ((direct the secretary to)) prepare ((and submit to the commission)) a comprehensive and balanced statewide transportation plan which shall be based on the transportation policy adopted by the legislature and applicable state and federal laws. ((After public notice and hearings, the commission shall adopt the plan and submit it to the legislative transportation committee and to the house and senate standing committees on transportation before January 1, 1980, for consideration in the 1980 regular legislative session.)) The plan shall be reviewed and revised, and submitted to the governor and the house of representatives and senate standing committees on transportation, prior to each regular session of the legislature during an even-numbered year thereafter. ((A preliminary plan shall be submitted to such committees by January 1, 1979.))

    The plan shall take into account federal law and regulations relating to the planning, construction, and operation of transportation facilities;

    (4) To propose to the governor and the legislature prior to the convening of each regular session held in an odd-numbered year a recommended budget for the operations of the commission as required by RCW 47.01.061;

    (5) ((To approve and propose to the governor and to the legislature prior to the convening of each regular session during an odd-numbered year a recommended budget for the operation of the department and for carrying out the program of the department for the ensuing biennium. The proposed budget shall separately state the appropriations to be made from the motor vehicle fund for highway purposes in accordance with constitutional limitations and appropriations and expenditures to be made from the general fund, or accounts thereof, and other available sources for other operations and programs of the department;

    (6) To review and authorize all departmental requests for legislation;

    (7) To approve the issuance and sale of all bonds authorized by the legislature for capital construction of state highways, toll facilities, Columbia Basin county roads (for which reimbursement to the motor vehicle fund has been provided), urban arterial projects, and aviation facilities;

    (8))) To adopt such rules, regulations, and policy directives as may be necessary to carry out reasonably and properly those functions expressly vested in the commission by statute;

    (((9) To delegate any of its powers to the secretary of transportation whenever it deems it desirable for the efficient administration of the department and consistent with the purposes of this title;

    (10))) (6) To exercise such other specific powers and duties as may be vested in the transportation commission by this or any other provision of law.

    Sec. 7. RCW 47.01.101 and 1987 c 505 s 48 and 1987 c 179 s 1 are each reenacted and amended to read as follows:

   The secretary shall have the authority and it shall be his or her duty, subject to policy guidance from the ((commission)) governor and the legislature:

   (1) To serve as chief executive officer of the department with full administrative authority to direct all its activities;

   (2) To organize the department as he or she may deem necessary to carry out the work and responsibilities of the department effectively;

   (3) To designate and establish such transportation district or branch offices as may be necessary or convenient, and to appoint assistants and delegate any powers, duties, and functions to them or any officer or employee of the department as deemed necessary to administer the department efficiently;

   (4) To direct and coordinate the programs of the various divisions of the department to assure that they achieve the greatest possible mutual benefit, produce a balanced overall effort, and eliminate unnecessary duplication of activity;

   (5) To adopt all department rules that are subject to the adoption procedures contained in the state administrative procedure act, except rules subject to adoption by the commission pursuant to statute;

   (6) To maintain and safeguard the official records of the department, including the commission's recorded resolutions and orders;

   (7) To provide, under contract or interagency agreement, full staff support to the commission to assist it in carrying out its functions, powers, and duties ((and to execute the policy established by the commission pursuant to its legislative authority));

   (8) To execute and implement the biennial operating budget for the operation of the department in accordance with chapter 43.88 RCW and with legislative appropriation ((and, in such manner as prescribed therein, to make and report to the commission and the chairs of the transportation committees of the senate and house of representatives, including one copy to the staff of each of the committees, deviations from the planned biennial category A and H highway construction programs necessary to adjust to unexpected delays or other unanticipated circumstances.));

   (9) To approve the issuance and sale of all bonds authorized by the legislature for capital construction of state highways, toll facilities, Columbia Basin county roads (for which reimbursement to the motor vehicle fund has been provided), urban arterial projects, and aviation facilities;

   (10) To advise the governor and the legislature with respect to matters under the jurisdiction of the department; and

   (11) To exercise all other powers and perform all other duties as are now or hereafter provided by law.

   Sec. 8. RCW 47.05.021 and 2002 c 56 s 301 are each amended to read as follows:

   (1) The ((transportation commission is hereby directed to)) department shall conduct periodic analyses of the entire state highway system, report ((thereon)) to the commission and the chairs of the transportation committees of the senate and house of representatives, ((including one copy to the staff of each of the committees, biennially and based thereon,)) any subsequent recommendations to subdivide, classify, and subclassify ((according to their function and importance)) all designated state highways ((and those added from time to time and periodically review and revise the classifications)) into the following three functional classes:

   (a) The "principal arterial system" shall consist of a connected network of rural arterial routes with appropriate extensions into and through urban areas, including all routes designated as part of the interstate system, which serve corridor movements having travel characteristics indicative of substantial statewide and interstate travel;

    (b) The "minor arterial system" shall, in conjunction with the principal arterial system, form a rural network of arterial routes linking cities and other activity centers which generate long distance travel, and, with appropriate extensions into and through urban areas, form an integrated network providing interstate and interregional service; and

    (c) The "collector system" shall consist of routes which primarily serve the more important intercounty, intracounty, and intraurban travel corridors, collect traffic from the system of local access roads and convey it to the arterial system, and on which, regardless of traffic volume, the predominant travel distances are shorter than on arterial routes.

    (2) ((In making the functional classification)) The transportation commission shall adopt ((and)) a functional classification of highways. The commission shall consider the recommendations of the department and testimony from the public and local municipalities. The commission shall give consideration to criteria consistent with this section and federal regulations relating to the functional classification of highways, including but not limited to the following:

    (a) Urban population centers within and without the state stratified and ranked according to size;

    (b) Important traffic generating economic activities, including but not limited to recreation, agriculture, government, business, and industry;

    (c) Feasibility of the route, including availability of alternate routes within and without the state;

    (d) Directness of travel and distance between points of economic importance;

    (e) Length of trips;

    (f) Character and volume of traffic;

    (g) Preferential consideration for multiple service which shall include public transportation;

    (h) Reasonable spacing depending upon population density; and

    (i) System continuity.

    (3) The transportation commission or the legislature shall designate state highways of statewide significance under RCW 47.06.140. If the commission designates a state highway of statewide significance, it shall submit a list of such facilities for adoption by the legislature. This statewide system shall include at a minimum interstate highways and other statewide principal arterials that are needed to connect major communities across the state and support the state's economy.

    (4) The transportation commission shall designate a freight and goods transportation system. This statewide system shall include state highways, county roads, and city streets. The commission, in cooperation with cities and counties, shall review and make recommendations to the legislature regarding policies governing weight restrictions and road closures which affect the transportation of freight and goods.

    Sec. 9. RCW 47.05.030 and 2002 c 5 s 402 are each amended to read as follows:

    The transportation commission shall adopt a comprehensive ((six-year)) ten-year investment program specifying program objectives and performance measures for the preservation and improvement programs defined in this section. The adopted ten-year investment program must be forwarded as a recommendation to the governor and legislature for final adoption. In the specification of investment program objectives and performance measures, the transportation commission, in consultation with the Washington state department of transportation, shall define and adopt standards for effective programming and prioritization practices including a needs analysis process. The analysis process must ensure the identification of problems and deficiencies, the evaluation of alternative solutions and trade-offs, and estimations of the costs and benefits of prospective projects. The investment program must be revised ((biennially, effective on July 1st of odd-numbered years)) based on directions by the office of financial management. The investment program must be based upon the needs identified in the state-owned highway component of the statewide transportation plan as defined in RCW 47.01.071(3).

   (1) The preservation program consists of those investments necessary to preserve the existing state highway system and to restore existing safety features, giving consideration to lowest life cycle costing. The preservation program must require use of the most cost-effective pavement surfaces, considering:

   (a) Life-cycle cost analysis;

   (b) Traffic volume;

   (c) Subgrade soil conditions;

   (d) Environmental and weather conditions;

   (e) Materials available; and

   (f) Construction factors.

   The comprehensive ((six-year)) ten-year investment program for preservation must identify projects for two years and an investment plan for the remaining ((four)) eight years.

   (2) The improvement program consists of investments needed to address identified deficiencies on the state highway system to increase mobility, address congestion, and improve safety, support for the economy, and protection of the environment. The ((six-year)) ten-year investment program for improvements must identify projects for two years and major deficiencies proposed to be addressed in the ((six-year)) ten-year period giving consideration to relative benefits and life cycle costing. The transportation commission shall give higher priority for correcting identified deficiencies on those facilities classified as facilities of statewide significance as defined in RCW 47.06.140. Project prioritization must be based primarily upon cost-benefit analysis, where appropriate.

   The transportation commission shall approve and present the comprehensive ((six-year)) ten-year investment program to the governor and the legislature ((in support of the biennial budget request under RCW 44.40.070 and 44.40.080)) as directed by the office of financial management.

   Sec. 10. RCW 47.05.035 and 2002 c 5 s 403 are each amended to read as follows:

   (1) The department ((and the commission)) shall use the transportation demand modeling tools developed under subsection (2) of this section to evaluate investments based on the best mode or improvement, or mix of modes and improvements, to meet current and future long-term demand within a corridor or system for the lowest cost. The end result of these demand modeling tools is to provide a cost-benefit analysis by which the department ((and the commission)) can determine the relative mobility improvement and congestion relief each mode or improvement under consideration will provide and the relative investment each mode or improvement under consideration will need to achieve that relief.

   (2) The department will participate in the refinement, enhancement, and application of existing transportation demand modeling tools to be used to evaluate investments. This participation and use of transportation demand modeling tools will be phased in.

    (3) In developing program objectives and performance measures, the ((transportation commission)) department shall evaluate investment trade-offs between the preservation and improvement programs. In making these investment trade-offs, the ((commission)) department shall evaluate, using cost-benefit techniques, roadway and bridge maintenance activities as compared to roadway and bridge preservation program activities and adjust those programs accordingly.

    (4) The ((commission)) department shall allocate the estimated revenue between preservation and improvement programs giving primary consideration to the following factors:

    (a) The relative needs in each of the programs and the system performance levels that can be achieved by meeting these needs;

    (b) The need to provide adequate funding for preservation to protect the state's investment in its existing highway system;

    (c) The continuity of future transportation development with those improvements previously programmed; and

    (d) The availability of dedicated funds for a specific type of work.

    (5) The commission shall review the results of the department's findings and shall consider those findings in the development of the ten-year program.

    Sec. 11. RCW 47.05.051 and 2002 c 189 s 3 are each amended to read as follows:

    (1) The comprehensive ((six-year)) ten-year investment program shall be based upon the needs identified in the state-owned highway component of the statewide multimodal transportation plan as defined in RCW 47.01.071(3) and priority selection systems that incorporate the following criteria:

    (a) Priority programming for the preservation program shall take into account the following, not necessarily in order of importance:

    (i) Extending the service life of the existing highway system, including using the most cost-effective pavement surfaces, considering:

    (A) Life-cycle cost analysis;

    (B) Traffic volume;

    (C) Subgrade soil conditions;

    (D) Environmental and weather conditions;

    (E) Materials available; and

    (F) Construction factors;

    (ii) Ensuring the structural ability to carry loads imposed upon highways and bridges; and

    (iii) Minimizing life cycle costs. The transportation commission in carrying out the provisions of this section may delegate to the department of transportation the authority to select preservation projects to be included in the ((six-year)) ten-year program.

    (b) Priority programming for the improvement program must be based primarily upon the following, not necessarily in order of importance:

    (i) Traffic congestion, delay, and accidents;

    (ii) Location within a heavily traveled transportation corridor;

    (iii) Except for projects in cities having a population of less than five thousand persons, synchronization with other potential transportation projects, including transit and multimodal projects, within the heavily traveled corridor; and

    (iv) Use of benefit/cost analysis wherever feasible to determine the value of the proposed project.

    (c) Priority programming for the improvement program may also take into account:

    (i) Support for the state's economy, including job creation and job preservation;

   (ii) The cost-effective movement of people and goods;

   (iii) Accident and accident risk reduction;

   (iv) Protection of the state's natural environment;

   (v) Continuity and systematic development of the highway transportation network;

   (vi) Consistency with local comprehensive plans developed under chapter 36.70A RCW including the following if they have been included in the comprehensive plan:

   (A) Support for development in and revitalization of existing downtowns;

   (B) Extent that development implements local comprehensive plans for rural and urban residential and nonresidential densities;

   (C) Extent of compact, transit-oriented development for rural and urban residential and nonresidential densities;

   (D) Opportunities for multimodal transportation; and

   (E) Extent to which the project accommodates planned growth and economic development;

   (vii) Consistency with regional transportation plans developed under chapter 47.80 RCW;

   (viii) Public views concerning proposed improvements;

   (ix) The conservation of energy resources;

   (x) Feasibility of financing the full proposed improvement;

   (xi) Commitments established in previous legislative sessions;

   (xii) Relative costs and benefits of candidate programs.

   (d) Major projects addressing capacity deficiencies which prioritize allowing for preliminary engineering shall be reprioritized during the succeeding biennium, based upon updated project data. Reprioritized projects may be delayed or canceled by the transportation commission if higher priority projects are awaiting funding.

   (e) Major project approvals which significantly increase a project's scope or cost from original prioritization estimates shall include a review of the project's estimated revised priority rank and the level of funding provided. Projects may be delayed or canceled by the transportation commission if higher priority projects are awaiting funding.

   (2) After final adoption of the ten-year investment program by the legislature, the commission may depart from the priority programming established under subsection (1) of this section: (a) To the extent that otherwise funds cannot be utilized feasibly within the program; (b) as may be required by a court judgment, legally binding agreement, or state and federal laws and regulations; (c) as may be required to coordinate with federal, local, or other state agency construction projects; (d) to take advantage of some substantial financial benefit that may be available; (e) for continuity of route development; or (f) because of changed financial or physical conditions of an unforeseen or emergent nature. The commission or secretary of transportation shall maintain in its files information sufficient to show the extent to which the commission has departed from the established priority.

   (3) The commission shall identify those projects that yield freight mobility benefits or that alleviate the impacts of freight mobility upon affected communities.

Joint Transportation Committee

   NEW SECTION. Sec. 12. The joint transportation committee is created. The executive committee of the joint committee consists of the chairs and ranking members of the house and senate transportation committees. The chairs of the house and senate transportation committees shall serve as cochairs of the joint committee. All members of the house and senate standing committees on transportation are eligible for membership of the joint committee and shall serve when appointed by the executive committee.

    The joint transportation committee shall review and research transportation programs and issues. All four members of the executive committee shall approve the annual work plan. Membership of the committee may vary depending on the subject matter of oversight and research projects. The committee may also make recommendations for functional or performance audits to the transportation accountability commission.

    Staff support of the joint transportation committee will be provided by the staffs of the house and senate transportation committees.

    NEW SECTION. Sec. 13. The members of the joint transportation committee and the house and senate transportation committees will receive allowances while attending meetings of the committees or subcommittees and while engaged in other authorized business of the committees as provided in RCW 44.04.120. Subject to RCW 44.04.260, all expenses incurred by the committee, and the house and senate transportation committees must be paid upon voucher forms as provided by the office of financial management and signed by the cochairs of the joint committee, or their authorized designees, and the authority of the chair or vice chair to sign vouchers continues until their successors are selected. Vouchers may be drawn upon funds appropriated for the expenses of the committee.

    NEW SECTION. Sec. 14. The joint transportation committee shall conduct a review of state level governance of transportation, with a focus on the appropriate roles of the separate branches of government. The committee shall review the statutory duties, roles, and functions of the transportation commission and the department. In that review the committee shall determine which responsibilities may be transferred to the executive and which may be transferred to the legislature. By December 15, 2005, the joint transportation committee shall make its recommendations to the house and senate transportation committees. The joint transportation committee shall consult with affected agencies and other stakeholders in conducting its analysis. The committee may consult with and retain private professional and technical experts as necessary to ensure an independent review and analysis.

Transfers

    NEW SECTION. Sec. 15. (1)(a) All reports, documents, surveys, books, records, files, papers, or written material relating to the conduct of performance reviews and audits in the possession of the legislative transportation committee must be delivered to the custody of the transportation accountability commission. Any remaining documents, books, records, files, papers, and written materials must be delivered to the custody of the joint transportation committee. All funds, credits, or other assets held by the legislative transportation committee for the purposes of staffing the transportation performance audit board are assigned to the transportation accountability commission. Any remaining funds, credits, or other assets held by the legislative transportation committee are assigned to the joint transportation committee.

    (b) If any question arises as to the transfer of any funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

   (2) All employees of the legislative transportation committee are transferred to the jurisdiction of the transportation accountability commission.

   (3) All existing contracts and obligations remain in full force and must be performed by the transportation accountability commission.

Transportation Accountability Commission

   Sec. 16. RCW 44.75.010 and 2003 c 362 s 1 are each amended to read as follows:

   It is essential that the legislature improve the accountability and efficiency of transportation-related agencies and measure transportation system performance against benchmarks established in chapter 5, Laws of 2002. Taxpayers must know that their tax dollars are being well spent to deliver critically needed transportation projects and services. To accomplish this, the transportation ((performance audit board)) accountability commission is created and a system of transportation functional and performance audits is established to provide oversight and accountability of transportation-related agencies. Furthermore, the transportation accountability commission will provide a public forum for the citizens of the state to contribute to the formation of state transportation policy.

   Sec. 17. RCW 44.75.020 and 2003 c 362 s 2 are each amended to read as follows:

   The definitions in this section apply throughout this chapter.

   (1) "Economy and efficiency audit" has the meaning contained in chapter 44.28 RCW.

   (2) "Joint legislative audit and review committee" means the agency created in chapter 44.28 RCW, or its statutory successor.

   (3) "Legislative auditor" has the meaning contained in chapter 44.28 RCW.

   (4) (("Legislative transportation committee" means the agency created in chapter 44.40 RCW, or its statutory successor.

   (5))) "Performance audit" has the meaning contained in chapter 44.28 RCW.

   (((6))) (5) "Performance review" means an outside evaluation of how a state agency uses its performance measures to assess the outcomes of its legislatively authorized activities.

   (((7))) (6) "Program audit" has the meaning contained in chapter 44.28 RCW.

   (((8) "Transportation performance audit board" or "board" means the board created in RCW 44.75.030.

   (9))) (7) "Transportation accountability commission" or "commission" means the commission created in RCW 44.75.030 (as recodified by this act).

   (8) "Transportation-related agencies" or "agency" means any state or local agency, board, special purpose district, or commission that receives or generates funding primarily for transportation-related purposes. At a minimum, the department of transportation, the Washington state patrol, the department of licensing, the transportation improvement board or its successor entity, the county road administration board or its successor entity, and the traffic safety commission are considered transportation-related agencies.

   Sec. 18. RCW 44.75.030 and 2003 c 362 s 3 are each amended to read as follows:

   (1) The transportation ((performance audit board)) accountability commission is created.

   (2) The ((board)) commission will consist of four legislative members, ((five)) three citizen members with transportation-related expertise, ((one)) three citizen members with performance measurement expertise, and one ex officio nonvoting member, and one at large member. The legislative auditor is the ex officio nonvoting member. The majority and minority leaders of the house and senate transportation committees, or their designees, are the legislative members. The governor shall appoint the at large member to serve for a term of four years. The citizen members must be ((nominated by professional associations chosen by the board's legislative members and)) appointed by the governor for terms of four years, except that at least half the initial appointments will be for terms of two years. The citizen members may not be currently, or within one year, employed by the Washington state department of transportation. The ((citizen members will consist of)) governor, when appointing the citizen members with transportation-related expertise, may consult with appropriate professional associations and shall consider the following transportation-related experiences:

    (a) ((One member with expertise in)) Construction project planning, including permitting and assuring regulatory compliance;

    (b) ((One member with expertise in)) Construction means and methods and construction management, crafting and implementing environmental mitigation plans, and administration;

    (c) ((One member with expertise in)) Construction engineering services, including construction management, materials testing, materials documentation, contractor payments, inspection, surveying, and project oversight;

    (d) ((One member with expertise in)) Project management, including design estimating, contract packaging, and procurement; and

    (e) ((One member with expertise in)) Transportation planning and congestion management.

    (3) The governor may not remove citizen members from the ((board)) commission before the expiration of their terms unless for cause based upon a determination of incapacity, incompetence, neglect of duty, ((of)) or malfeasance in office by the Thurston county superior court, upon petition and show cause proceedings brought for that purpose in that court and directed to the ((board member)) commissioner in question.

    (4) No member may be appointed for more than three consecutive terms.

    Sec. 19. RCW 44.75.040 and 2003 c 362 s 4 are each amended to read as follows:

    (1) The ((board)) commission shall meet periodically. It may adopt its own rules and may establish its own procedures. It shall act collectively in harmony with recorded resolutions or motions adopted by a majority vote of the members.

    (2) Each member of the ((transportation performance audit board)) commission will be compensated ((from the general appropriation for the legislative transportation committee)) in accordance with RCW 43.03.250 and reimbursed for actual necessary traveling and other expenses in going to, attending, and returning from meetings of the ((board)) commission or that are incurred in the discharge of duties requested by the chair. However, in no event may a ((board)) commission member be compensated in any year for more than one hundred twenty days, except the chair may be compensated for not more than one hundred fifty days. Service on the ((board)) commission does not qualify as a service credit for the purposes of a public retirement system.

    (3) The ((transportation performance audit board)) commission shall keep proper records and is subject to audit by the state auditor or other auditing entities.

   (4) ((Staff support to the transportation performance audit board must be provided by the legislative transportation committee, which shall provide professional support for the duties, functions, responsibilities, and activities of the board, including but not limited to information technology systems; data collection, processing, analysis, and reporting; project management; and office space, equipment, and secretarial support. The legislative evaluation and accountability program will provide data and information technology support consistent with the support currently supplied to existing legislative committees.)) The commission may appoint an administrative secretary and may from time to time retain consultants and other technical personnel to advise it in the performance of its duties.

   (5) Each member of the commission shall disclose any actual or potential conflict of interest, if applicable under the circumstance, regarding all performance reviews and performance audits conducted under this chapter.

   NEW SECTION. Sec. 20. A new section is added to chapter 47.-- RCW (new chapter created in section 149 of this act) to read as follows:

   (1) The transportation accountability commission shall provide a public forum for the development of transportation policy in Washington state. It may recommend to the secretary of transportation, the governor, and the legislature means for obtaining appropriate citizen and professional involvement in transportation accountability policy formulation. It may further hold hearings and explore ways to enhance the accountability of transportation programs.

   (2) Every two years, in coordination with the development of the state biennial budget, the commission shall prepare the statewide transportation accountability progress report that evaluates progress towards transportation performance goals and outlines the transportation priorities of the ensuing biennium. The report must:

   (a) Consider the citizen input gathered at the forums;

   (b) Consider the results of performance measure reviews and performance audits performed in the two-year period leading up to that review;

   (c) Be developed with the assistance of transportation-related agencies and organizations;

   (d) Be considered by the secretary of transportation and other state transportation-related agencies in preparing proposed agency budgets and executive request legislation;

   (e) Be submitted by the commission to the governor and the legislature by October 1st of each even-numbered year.

   (3) In fulfilling its responsibilities under this section, the commission may create ad hoc committees or other such committees of limited duration as necessary.

   Sec. 21. RCW 44.75.050 and 2003 c 362 s 5 are each amended to read as follows:

   (1) The transportation ((performance audit board)) accountability commission may review the performance and outcome measures of transportation-related agencies. The purpose of these reviews is to ensure that the governor and the legislature has the means to adequately and accurately assess the performance and outcomes of those agencies and departments. Where two or more agencies have shared responsibility for functions or priorities of government, these reviews can also determine whether effective interagency cooperation and collaboration occurs in areas such as program coordination, administrative structures, information systems, and administration of grants and loans.

   (2) The commission shall, as soon as practicable, conduct a review of the comprehensive ten-year investment program process, including the required criteria, under RCW 47.05.030 and 47.05.051.

    (3) In conducting these reviews, the ((transportation performance audit board)) commission may work in consultation with the ((legislative transportation committee, the)) joint legislative audit and review committee, the office of financial management, and other state agencies.

    Sec. 22. RCW 44.75.060 and 2003 c 362 s 6 are each amended to read as follows:

    The performance and outcome measures and benchmarks of each agency or department may be reviewed at the discretion of the transportation ((performance audit board)) accountability commission. In setting the schedule and the extent of performance reviews, the ((board)) commission shall consider the timing and results of other recent state, federal, and independent reviews and audits, the seriousness of past findings, any inadequate remedial action taken by an agency or department, whether an agency or department lacks performance and outcome measures, and the desirability to include a diverse range of agencies or programs each year.

    Sec. 23. RCW 44.75.080 and 2003 c 362 s 8 are each amended to read as follows:

    After reviewing the performance or outcome measures and benchmarks of an agency or department, or at any time it so determines, the ((transportation performance audit board shall recommend to the executive committee of the legislative transportation committee whether)) commission may direct a full performance or functional audit of the agency or department, or a specific program within the agency or department((, is appropriate. Upon the request of the legislative transportation committee or its executive committee, the joint legislative audit and review committee shall add the full performance or functional audit to its biennial performance audit work plan. If the request duplicates or overlaps audits already in the work plan, or was performed under the previous biennial work plan, the executive committees of the legislative transportation committee and the joint legislative audit and review committee shall meet to discuss and resolve the duplication or overlap)).

    Sec. 24. RCW 44.75.090 and 2003 c 362 s 9 are each amended to read as follows:

    (((1))) To the greatest extent possible, ((or when requested by the executive committee of the legislative transportation committee)) and to the extent funds are appropriated, the ((legislative auditor)) commission administrator shall, subject to commission approval, contract with and consult with private independent professional and technical experts to optimize the independence of the reviews and performance audits. In determining the need to contract with private experts, the ((legislative auditor)) commission administrator shall consider the degree of difficulty of the review or audit, the relative cost of contracting for expertise, and the need to maintain auditor independence from the subject agency or program. The commission administrator may, subject to commission approval, contract with the legislative auditor to serve as the contract manager of the reviews and performance audits.

    (((2) After consultation with the executive committee of the legislative transportation committee on the appropriateness of costs, the legislative transportation committee shall reimburse the joint legislative audit and review committee or the legislative auditor for the costs of carrying out any requested performance audits, including the cost of contracts and consultant services.

    (3) The executive committee of the legislative transportation committee must review and approve the methodology for performance audits recommended by the transportation performance audit board.))

   Sec. 25. RCW 44.75.100 and 2003 c 362 s 10 are each amended to read as follows:

   (1) When the commission has completed a performance audit, the commission shall transmit the preliminary performance audit report to the affected state agency or local government and the office of financial management for comment. The agency or local government and the office of financial management shall provide any response to the commission within thirty days after receipt of the preliminary report unless a different time period is approved by the commission. The commission shall incorporate the response of the agency or local government and the office of financial management into the final performance audit report. The commission may also include an addendum with commission comments on the management of the audit.

   (2) Before releasing the results of a performance audit originally requested by the joint transportation committee to the legislature or the public, the commission administrator shall submit the preliminary performance audit report to the joint committee for review and comments solely on the management of the audit. Any comments by the joint committee must be included as a separate addendum to the final performance audit report. However, the commission administrator is not required to submit the preliminary performance audit report if the legislative auditor submits it under RCW 44.28.088.

   (3) Completed performance audits must be presented to the ((transportation performance audit board and the legislative transportation committee)) commission. Published performance audits must be made available to the public through the ((legislative transportation committee and the joint legislative audit and review committee's)) commission's web site and through customary public communications. Final reports must also be transmitted to the affected agency, the director of financial management, and the appropriate policy and fiscal standing committees of the legislature.

   Sec. 26. RCW 44.75.110 and 2003 c 362 s 11 are each amended to read as follows:

   The ((legislative auditor)) commission administrator, or the legislative auditor if contracted under RCW 44.75.090 (as recodified by this act), shall determine in writing the scope of any performance audit ((requested)) directed by the ((legislative transportation committee or its executive committee)) commission, subject to the review and approval of the final scope of the audit by the ((transportation performance audit board, and the legislative transportation committee or its executive committee)) commission. In doing so, the ((legislative auditor,)) commission administrator, or legislative auditor if contracted under RCW 44.75.090 (as recodified by this act), and the ((transportation performance audit board, and the legislative transportation committee or its executive committee)) commission shall consider inclusion of the following elements in the scope of the audit:

   (1) Identification of potential cost savings in the agency, its programs, and its services;

   (2) Identification and recognition of best practices;

   (3) Identification of funding to the agency, to programs, and to services that can be eliminated or reduced;

   (4) Identification of programs and services that can be eliminated, reduced, or transferred to the private sector;

   (5) Analysis of gaps and overlaps in programs and services and recommendations for improving, dropping, blending, or separating functions to correct gaps or overlaps;

    (6) Analysis and recommendations for pooling information technology systems;

    (7) Analysis of the roles and functions of the agency, its programs, and its services and their compliance with statutory authority and recommendations for eliminating or changing those roles and functions and ensuring compliance with statutory authority;

    (8) Recommendations for eliminating or changing statutes, rules, and policy directives as may be necessary to ensure that the agency carry out reasonably and properly those functions expressly vested in the department by statute; and

    (9) Verification of the reliability and validity of department performance data, self-assessments, and performance measurement systems as required under RCW 43.88.090.

    Sec. 27. RCW 44.75.120 and 2003 c 362 s 12 are each amended to read as follows:

    When conducting a full performance audit of an agency or department, or a specific program within an agency or department, or multiple agencies, in accordance with RCW 44.75.110 (as recodified by this act), the ((legislative auditor)) commission administrator shall solicit input from appropriate industry representatives or experts. The audit report must make recommendations regarding the continuation, abolition, consolidation, or reorganization of each affected agency, department, or program. The audit report must identify opportunities to develop government partnerships, and eliminate program redundancies that will result in increased quality, effectiveness, and efficiency of state agencies.

    Sec. 28. RCW 44.28.161 and 2003 c 362 s 13 are each amended to read as follows:

    In addition to any other audits developed or included in the audit work plan under this chapter, the legislative auditor shall manage transportation-related performance audits ((directed by the executive committee of the legislative transportation committee under RCW 44.75.080. If directed to perform or contract for audit services under RCW 44.75.080, the legislative auditor or joint legislative audit and review committee will receive from the legislative transportation committee an interagency reimbursement equal to the cost of the contract or audit services)) if contracted to do so under RCW 44.75.090 (as recodified by this act).

References to LTC and Commission

    Sec. 101. RCW 35.58.2796 and 1989 c 396 s 2 are each amended to read as follows:

    The department of transportation shall develop an annual report summarizing the status of public transportation systems in the state. By September 1st of each year, copies of the report shall be submitted to the ((legislative transportation committee)) transportation committees of the legislature and to each municipality, as defined in RCW 35.58.272, and to individual members of the municipality's legislative authority. ((The department shall prepare and submit a preliminary report by December 1, 1989.))

    To assist the department with preparation of the report, each municipality shall file a system report by April 1st of each year with the state department of transportation identifying its public transportation services for the previous calendar year and its objectives for improving the efficiency and effectiveness of those services. The system report shall address those items required for each public transportation system in the department's report.

    The department report shall describe individual public transportation systems, including contracted transportation services and dial-a-ride services, and include a statewide summary of public transportation issues and data. The descriptions shall include the following elements and such other elements as the department deems appropriate after consultation with the municipalities and the ((legislative transportation committee)) transportation committees of the legislature:

   (1) Equipment and facilities, including vehicle replacement standards;

   (2) Services and service standards;

   (3) Revenues, expenses, and ending balances, by fund source;

   (4) Policy issues and system improvement objectives, including community participation in development of those objectives and how those objectives address statewide transportation priorities;

   (5) Operating indicators applied to public transportation services, revenues, and expenses. Operating indicators shall include operating cost per passenger trip, operating cost per revenue vehicle service hour, passenger trips per revenue service hour, passenger trips per vehicle service mile, vehicle service hours per employee, and farebox revenue as a percent of operating costs.

   Sec. 102. RCW 36.78.070 and 1999 c 269 s 1 are each amended to read as follows:

   The county road administration board shall:

   (1) Establish by rule, standards of good practice for the administration of county roads and the efficient movement of people and goods over county roads;

   (2) Establish reporting requirements for counties with respect to the standards of good practice adopted by the board;

   (3) Receive and review reports from counties and reports from its executive director to determine compliance with legislative directives and the standards of good practice adopted by the board;

   (4) Advise counties on issues relating to county roads and the safe and efficient movement of people and goods over county roads and assist counties in developing uniform and efficient transportation-related information technology resources;

   (5) Report annually before the fifteenth day of January, and throughout the year as appropriate, to the state department of transportation and to the chairs of the ((legislative transportation committee and the)) house and senate transportation committees, and to other entities as appropriate on the status of county road administration in each county, including one copy to the staff of each of the committees. The annual report shall contain recommendations for improving administration of the county road programs;

   (6) Administer the rural arterial program established by chapter 36.79 RCW and the program funded by the county arterial preservation account established by RCW 46.68.090, as well as any other programs provided for in law.

   Sec. 103. RCW 41.40.037 and 2004 c 242 s 63 are each amended to read as follows:

   (1)(a) If a retiree enters employment with an employer sooner than one calendar month after his or her accrual date, the retiree's monthly retirement allowance will be reduced by five and one-half percent for every eight hours worked during that month. This reduction will be applied each month until the retiree remains absent from employment with an employer for one full calendar month.

   (b) The benefit reduction provided in (a) of this subsection will accrue for a maximum of one hundred sixty hours per month. Any benefit reduction over one hundred percent will be applied to the benefit the retiree is eligible to receive in subsequent months.

    (2)(a) Except as provided in (b) of this subsection, a retiree from plan 1 who enters employment with an employer at least one calendar month after his or her accrual date may continue to receive pension payments while engaged in such service for up to eight hundred sixty-seven hours of service in a calendar year without a reduction of pension.

    (b) A retiree from plan 1 who enters employment with an employer at least three calendar months after his or her accrual date and:

    (i) Is hired into a position for which the employer has documented a justifiable need to hire a retiree into the position;

    (ii) Is hired through the established process for the position with the approval of: A school board for a school district; the chief executive officer of a state agency employer; the secretary of the senate for the senate; the chief clerk of the house of representatives for the house of representatives; the secretary of the senate and the chief clerk of the house of representatives jointly for the joint legislative audit and review committee, ((the legislative transportation committee,)) the joint committee on pension policy, the legislative evaluation and accountability program, the legislative systems committee, and the statute law committee; or according to rules adopted for the rehiring of retired plan 1 members for a local government employer;

    (iii) The employer retains records of the procedures followed and decisions made in hiring the retiree, and provides those records in the event of an audit; and

    (iv) The employee has not already rendered a cumulative total of more than one thousand nine hundred hours of service while in receipt of pension payments beyond an annual threshold of eight hundred sixty-seven hours;

shall cease to receive pension payments while engaged in that service after the retiree has rendered service for more than one thousand five hundred hours in a calendar year. The one thousand nine hundred hour cumulative total under this subsection applies prospectively to those retiring after July 27, 2003, and retroactively to those who retired prior to July 27, 2003, and shall be calculated from the date of retirement.

    (c) When a plan 1 member renders service beyond eight hundred sixty-seven hours, the department shall collect from the employer the applicable employer retirement contributions for the entire duration of the member's employment during that calendar year.

    (d) A retiree from plan 2 or plan 3 who has satisfied the break in employment requirement of subsection (1) of this section may work up to eight hundred sixty-seven hours in a calendar year in an eligible position, as defined in RCW 41.32.010, 41.35.010, 41.37.010, or 41.40.010, or as a fire fighter or law enforcement officer, as defined in RCW 41.26.030, without suspension of his or her benefit.

    (3) If the retiree opts to reestablish membership under RCW 41.40.023(12), he or she terminates his or her retirement status and becomes a member. Retirement benefits shall not accrue during the period of membership and the individual shall make contributions and receive membership credit. Such a member shall have the right to again retire if eligible in accordance with RCW 41.40.180. However, if the right to retire is exercised to become effective before the member has rendered two uninterrupted years of service, the retirement formula and survivor options the member had at the time of the member's previous retirement shall be reinstated.

    (4) The department shall collect and provide the state actuary with information relevant to the use of this section for the select committee on pension policy.

   (5) The legislature reserves the right to amend or repeal this section in the future and no member or beneficiary has a contractual right to be employed for more than five months in a calendar year without a reduction of his or her pension.

   Sec. 104. RCW 43.10.101 and 1995 2nd sp.s. c 14 s 527 are each amended to read as follows:

   The attorney general shall prepare annually a report to the ((legislative)) transportation committees of the legislature comprising a comprehensive summary of all cases involving tort claims against the department of transportation involving highways which were concluded and closed in the previous calendar year. The report shall include for each case closed:

   (1) A summary of the factual background of the case;

   (2) Identification of the attorneys representing the state and the opposing parties;

   (3) A synopsis of the legal theories asserted and the defenses presented;

   (4) Whether the case was tried, settled, or dismissed, and in whose favor;

   (5) The approximate number of attorney hours expended by the state on the case, together with the corresponding dollar amount billed therefore; and

   (6) Such other matters relating to the case as the attorney general deems relevant or appropriate, especially including any comments or recommendations for changes in statute law or agency practice that might effectively reduce the exposure of the state to such tort claims.

   Sec. 105. RCW 43.79.270 and 1998 c 177 s 1 are each amended to read as follows:

   (1) Whenever any money, from the federal government, or from other sources, which was not anticipated in the budget approved by the legislature has actually been received and is designated to be spent for a specific purpose, the head of any department, agency, board, or commission through which such expenditure shall be made is to submit to the governor a statement which may be in the form of a request for an allotment amendment setting forth the facts constituting the need for such expenditure and the estimated amount to be expended: PROVIDED, That no expenditure shall be made in excess of the actual amount received, and no money shall be expended for any purpose except the specific purpose for which it was received. A copy of any proposal submitted to the governor to expend money from an appropriated fund or account in excess of appropriations provided by law which is based on the receipt of unanticipated revenues shall be submitted to the joint legislative audit and review committee and also to the standing committees on ways and means of the house and senate if the legislature is in session at the same time as it is transmitted to the governor.

   (2) Notwithstanding subsection (1) of this section, whenever money from any source that was not anticipated in the transportation budget approved by the legislature has actually been received and is designated to be spent for a specific purpose, the head of a department, agency, board, or commission through which the expenditure must be made shall submit to the governor a statement, which may be in the form of a request for an allotment amendment, setting forth the facts constituting the need for the expenditure and the estimated amount to be expended. However, no expenditure may be made in excess of the actual amount received, and no money may be expended for any purpose except the specific purpose for which it was received. A copy of any proposal submitted to the governor to expend money from an appropriated transportation fund or account in excess of appropriations provided by law that is based on the receipt of unanticipated revenues must be submitted, at a minimum, to the standing committees on transportation of the house and senate((, if the legislature is in session,)) at the same time as it is transmitted to the governor. ((During the legislative interim, any such proposal must be submitted to the legislative transportation committee.))

    Sec. 106. RCW 43.79.280 and 1998 c 177 s 2 are each amended to read as follows:

    (1) If the governor approves such estimate in whole or part, he shall endorse on each copy of the statement his approval, together with a statement of the amount approved in the form of an allotment amendment, and transmit one copy to the head of the department, agency, board, or commission authorizing the expenditure. An identical copy of the governor's statement of approval and a statement of the amount approved for expenditure shall be transmitted simultaneously to the joint legislative audit and review committee and also to the standing committee on ways and means of the house and senate of all executive approvals of proposals to expend money in excess of appropriations provided by law.

    (2) If the governor approves an estimate with transportation funding implications, in whole or part, he shall endorse on each copy of the statement his approval, together with a statement of the amount approved in the form of an allotment amendment, and transmit one copy to the head of the department, agency, board, or commission authorizing the expenditure. An identical copy of the governor's statement of approval of a proposal to expend transportation money in excess of appropriations provided by law and a statement of the amount approved for expenditure must be transmitted simultaneously to the standing committees on transportation of the house and senate. ((During the legislative interim, all estimate approvals endorsed by the governor along with a statement of the amount approved in the form of an allotment amendment must be transmitted simultaneously to the legislative transportation committee.))

    Sec. 107. RCW 43.88.020 and 2000 2nd sp.s. c 4 s 11 are each amended to read as follows:

    (1) "Budget" means a proposed plan of expenditures for a given period or purpose and the proposed means for financing these expenditures.

    (2) "Budget document" means a formal statement, either written or provided on any electronic media or both, offered by the governor to the legislature, as provided in RCW 43.88.030.

    (3) "Director of financial management" means the official appointed by the governor to serve at the governor's pleasure and to whom the governor may delegate necessary authority to carry out the governor's duties as provided in this chapter. The director of financial management shall be head of the office of financial management which shall be in the office of the governor.

    (4) "Agency" means and includes every state office, officer, each institution, whether educational, correctional, or other, and every department, division, board, and commission, except as otherwise provided in this chapter.

    (5) "Public funds", for purposes of this chapter, means all moneys, including cash, checks, bills, notes, drafts, stocks, and bonds, whether held in trust, for operating purposes, or for capital purposes, and collected or disbursed under law, whether or not such funds are otherwise subject to legislative appropriation, including funds maintained outside the state treasury.

    (6) "Regulations" means the policies, standards, and requirements, stated in writing, designed to carry out the purposes of this chapter, as issued by the governor or the governor's designated agent, and which shall have the force and effect of law.

   (7) "Ensuing biennium" means the fiscal biennium beginning on July 1st of the same year in which a regular session of the legislature is held during an odd-numbered year pursuant to Article II, section 12 of the Constitution and which biennium next succeeds the current biennium.

   (8) "Dedicated fund" means a fund in the state treasury, or a separate account or fund in the general fund in the state treasury, that by law is dedicated, appropriated, or set aside for a limited object or purpose; but "dedicated fund" does not include a revolving fund or a trust fund.

   (9) "Revolving fund" means a fund in the state treasury, established by law, from which is paid the cost of goods or services furnished to or by a state agency, and which is replenished through charges made for such goods or services or through transfers from other accounts or funds.

   (10) "Trust fund" means a fund in the state treasury in which designated persons or classes of persons have a vested beneficial interest or equitable ownership, or which was created or established by a gift, grant, contribution, devise, or bequest that limits the use of the fund to designated objects or purposes.

   (11) "Administrative expenses" means expenditures for: (a) Salaries, wages, and related costs of personnel and (b) operations and maintenance including but not limited to costs of supplies, materials, services, and equipment.

   (12) "Fiscal year" means the year beginning July 1st and ending the following June 30th.

   (13) "Lapse" means the termination of authority to expend an appropriation.

   (14) "Legislative fiscal committees" means the joint legislative audit and review committee, the legislative evaluation and accountability program committee, and the ways and means and transportation committees of the senate and house of representatives((, and, where appropriate, the legislative transportation committee)).

   (15) "Fiscal period" means the period for which an appropriation is made as specified within the act making the appropriation.

   (16) "Primary budget driver" means the primary determinant of a budget level, other than a price variable, which causes or is associated with the major expenditure of an agency or budget unit within an agency, such as a caseload, enrollment, workload, or population statistic.

   (17) "State tax revenue limit" means the limitation created by chapter 43.135 RCW.

   (18) "General state revenues" means the revenues defined by Article VIII, section 1(c) of the state Constitution.

   (19) "Annual growth rate in real personal income" means the estimated percentage growth in personal income for the state during the current fiscal year, expressed in constant value dollars, as published by the office of financial management or its successor agency.

   (20) "Estimated revenues" means estimates of revenue in the most recent official economic and revenue forecast prepared under RCW 82.33.020, and prepared by the office of financial management for those funds, accounts, and sources for which the office of the economic and revenue forecast council does not prepare an official forecast ((including estimates of revenues to support financial plans under RCW 44.40.070)), that are prepared by the office of financial management in consultation with the transportation revenue forecast council.

   (21) "Estimated receipts" means the estimated receipt of cash in the most recent official economic and revenue forecast prepared under RCW 82.33.020, and prepared by the office of financial management for those funds, accounts, and sources for which the office of the economic and revenue forecast council does not prepare an official forecast.

    (22) "State budgeting, accounting, and reporting system" means a system that gathers, maintains, and communicates fiscal information. The system links fiscal information beginning with development of agency budget requests through adoption of legislative appropriations to tracking actual receipts and expenditures against approved plans.

    (23) "Allotment of appropriation" means the agency's statement of proposed expenditures, the director of financial management's review of that statement, and the placement of the approved statement into the state budgeting, accounting, and reporting system.

    (24) "Statement of proposed expenditures" means a plan prepared by each agency that breaks each appropriation out into monthly detail representing the best estimate of how the appropriation will be expended.

    (25) "Undesignated fund balance (or deficit)" means unreserved and undesignated current assets or other resources available for expenditure over and above any current liabilities which are expected to be incurred by the close of the fiscal period.

    (26) "Internal audit" means an independent appraisal activity within an agency for the review of operations as a service to management, including a systematic examination of accounting and fiscal controls to assure that human and material resources are guarded against waste, loss, or misuse; and that reliable data are gathered, maintained, and fairly disclosed in a written report of the audit findings.

    (27) "Performance verification" means an analysis that (a) verifies the accuracy of data used by state agencies in quantifying intended results and measuring performance toward those results, and (b) verifies whether or not the reported results were achieved.

    (28) "Performance audit" has the same meaning as it is defined in RCW 44.28.005.

    Sec. 108. RCW 43.88.030 and 2004 c 276 s 908 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, and 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 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;

   (s) 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. 109. RCW 43.88.230 and 1996 c 288 s 40 are each amended to read as follows:

   For the purposes of this chapter, the statute law committee, the joint legislative audit and review committee, ((the legislative transportation committee,)) the legislative evaluation and accountability program committee, the office of state actuary, and all legislative standing committees of both houses shall be deemed a part of the legislative branch of state government.

   Sec. 110. RCW 43.105.160 and 1999 c 80 s 9 are each amended to read as follows:

   (1) The department shall prepare a state strategic information technology plan which shall establish a statewide mission, goals, and objectives for the use of information technology, including goals for electronic access to government records, information, and services. The plan shall be developed in accordance with the standards and policies established by the board and shall be submitted to the board for review, modification as necessary, and approval. The department shall seek the advice of the board in the development of this plan.

    The plan approved under this section shall be updated as necessary and submitted to the governor((,)) and the chairs and ranking minority members of the appropriations committees of the senate and the house of representatives((, and, during the legislative session, to the chairs and ranking minority members of the transportation committees of the senate and the house of representatives. During the legislative interim, the approved plan must be submitted to the legislative transportation committee, instead of the standing transportation committees)).

    (2) The department shall prepare a biennial state performance report on information technology based on agency performance reports required under RCW 43.105.170 and other information deemed appropriate by the department. The report shall include, but not be limited to:

    (a) An analysis, based upon agency portfolios, of the state's information technology infrastructure, including its value, condition, and capacity;

    (b) An evaluation of performance relating to information technology;

    (c) An assessment of progress made toward implementing the state strategic information technology plan, including progress toward electronic access to public information and enabling citizens to have two-way access to public records, information, and services;

    (d) An analysis of the success or failure, feasibility, progress, costs, and timeliness of implementation of major information technology projects under RCW 43.105.190;

    (e) Identification of benefits, cost avoidance, and cost savings generated by major information technology projects developed under RCW 43.105.190; and

    (f) An inventory of state information services, equipment, and proprietary software.

    Copies of the report shall be distributed biennially to the governor((,)) and the chairs and ranking minority members of the appropriations committees of the senate and the house of representatives((, and, during the legislative session, the chairs and ranking minority members of the transportation committees of the senate and the house of representatives. During the legislative interim, the report must be submitted to the legislative transportation committee, instead of the standing transportation committees)).

    Sec. 111. RCW 43.105.190 and 1999 c 80 s 12 are each amended to read as follows:

    (1) The department, with the approval of the board, shall establish standards and policies governing the planning, implementation, and evaluation of major information technology projects, including those proposed by the superintendent of public instruction, in conjunction with educational service districts, or statewide or regional providers of K-12 education information technology services. The standards and policies shall:

    (a) Establish criteria to identify projects which are subject to this section. Such criteria shall include, but not be limited to, significant anticipated cost, complexity, or statewide significance of the project; and

    (b) Establish a model process and procedures which agencies shall follow in developing and implementing projects within their information technology portfolios. Agencies may propose, for approval by the department, a process and procedures unique to the agency. The department may accept or require modification of such agency proposals or the department may reject such agency proposals and require use of the model process and procedures established under this subsection. Any process and procedures developed under this subsection shall require (i) distinct and identifiable phases upon which funding may be based, (ii) user validation of products through system demonstrations and testing of prototypes and deliverables, and (iii) other elements identified by the board.

   The director may terminate a major project if the director determines that the project is not meeting or is not expected to meet anticipated performance standards.

   (2) The office of financial management shall establish policies and standards consistent with portfolio-based information technology management to govern the funding of projects developed under this section. The policies and standards shall provide for:

   (a) Funding of a project under terms and conditions mutually agreed to by the director, the director of financial management, and the head of the agency proposing the project. However, the office of financial management may require incremental funding of a project on a phase-by-phase basis whereby funds for a given phase of a project may be released only when the office of financial management determines, with the advice of the department, that the previous phase is satisfactorily completed;

   (b) Acceptance testing of products to assure that products perform satisfactorily before they are accepted and final payment is made; and

   (c) Other elements deemed necessary by the office of financial management.

   (3) The department shall evaluate projects based on the demonstrated business needs and benefits; cost; technology scope and feasibility; impact on the agency's information technology portfolio and on the statewide infrastructure; and final project implementation plan based upon available funding.

   Copies of project evaluations conducted under this subsection shall be submitted to the office of financial management and the chairs, ranking minority members, and staff coordinators of the appropriations committees of the senate and house of representatives.

   If there are projects that receive funding from a transportation fund or account, copies of those projects' evaluations conducted under this subsection must be submitted((, during the legislative session,)) to the chairs and ranking minority members of the transportation committees of the senate and the house of representatives. ((During the legislative interim, the project evaluations must be submitted to the legislative transportation committee.))

   Sec. 112. RCW 44.04.260 and 2003 c 295 s 12 are each amended to read as follows:

   The joint legislative audit and review committee, ((the legislative transportation committee,)) the select committee on pension policy, the legislative evaluation and accountability program committee, and the joint legislative systems committee are subject to such operational policies, procedures, and oversight as are deemed necessary by the facilities and operations committee of the senate and the executive rules committee of the house of representatives to ensure operational adequacy of the agencies of the legislative branch. As used in this section, "operational policies, procedures, and oversight" includes the development process of biennial budgets, contracting procedures, personnel policies, and compensation plans, selection of a chief administrator, facilities, and expenditures. This section does not grant oversight authority to the facilities and operations committee of the senate over any standing committee of the house of representatives or oversight authority to the executive rules committee of the house of representatives over any standing committee of the senate.

    Sec. 113. RCW 44.28.088 and 2003 c 362 s 14 are each amended to read as follows:

    (1) When the legislative auditor has completed a performance audit authorized in the performance audit work plan, the legislative auditor shall transmit the preliminary performance audit report to the affected state agency or local government and the office of financial management for comment. The agency or local government and the office of financial management shall provide any response to the legislative auditor within thirty days after receipt of the preliminary performance audit report unless a different time period is approved by the joint committee. The legislative auditor shall incorporate the response of the agency or local government and the office of financial management into the final performance audit report.

    (2) Except as provided in subsection (3) of this section, before releasing the results of a performance audit to the legislature or the public, the legislative auditor shall submit the preliminary performance audit report to the joint committee for its review, comments, and final recommendations. Any comments by the joint committee must be included as a separate addendum to the final performance audit report. Upon consideration and incorporation of the review, comments, and recommendations of the joint committee, the legislative auditor shall transmit the final performance audit report to the affected agency or local government, the director of financial management, the leadership of the senate and the house of representatives, and the appropriate standing committees of the house of representatives and the senate and shall publish the results and make the report available to the public. For purposes of this section, "leadership of the senate and the house of representatives" means the speaker of the house, the majority leaders of the senate and the house of representatives, the minority leaders of the senate and the house of representatives, the caucus chairs of both major political parties of the senate and the house of representatives, and the floor leaders of both major political parties of the senate and the house of representatives.

    (3) If contracted to manage a transportation-related performance audit under RCW 44.75.090 (as recodified by this act), before releasing the results of a performance audit originally ((requested)) directed by the ((executive committee of the legislative transportation committee)) transportation accountability commission to the legislature or the public, the legislative auditor shall submit the preliminary performance audit report to the ((executive committee of the joint committee and the executive committee of the legislative transportation committee)) transportation accountability commission for review and comments solely on the management of the audit. Any comments by the ((executive committee of the joint committee and executive committee of the legislative transportation committee)) transportation accountability commission must be included as a separate addendum to the final performance audit report. Upon consideration and incorporation of the review and comments of the ((executive committee of the joint committee and executive committee of the legislative transportation committee)) transportation accountability commission, the legislative auditor shall transmit the final performance audit report to the affected agency or local government, the director of financial management, the leadership of the senate and the house of representatives, and the appropriate standing committees of the house of representatives and the senate and shall publish the results and make the report available to the public.

   Sec. 114. RCW 44.40.025 and 1996 c 288 s 49 are each amended to read as follows:

   ((In addition to the powers and duties authorized in RCW 44.40.020, the committee and)) The standing committees on transportation of the house and senate shall, in coordination with the joint legislative audit and review committee, the legislative evaluation and accountability program committee, and the ways and means committees of the senate and house of representatives, ascertain, study, ((and/or)) and analyze all available facts and matters relating or pertaining to sources of revenue, appropriations, expenditures, and financial condition of the motor vehicle fund and accounts thereof, the highway safety fund, and all other funds or accounts related to transportation programs of the state.

   The joint legislative audit and review committee, the legislative evaluation and accountability program committee, and the ways and means committees of the senate and house of representatives shall coordinate their activities with the ((legislative)) transportation committees of the legislature in carrying out the committees' powers and duties under chapter 43.88 RCW in matters relating to the transportation programs of the state.

   Sec. 115. RCW 46.01.320 and 1996 c 315 s 2 are each amended to read as follows:

   The title and registration advisory committee is created within the department. The committee consists of the director or a designee, who shall serve as chair, the assistant director for vehicle services, the administrator of title and registration services, two members from each of the house and senate transportation committees, two county auditors nominated by the Washington association of county officials, and two representatives of subagents nominated by an association of vehicle subagents. The committee shall meet at least twice a year, and may meet as often as is necessary.

   The committee's purpose is to foster communication between the legislature, the department, county auditors, and subagents. The committee shall make recommendations ((when requested by the legislative transportation committee, or on its own initiative,)) about revisions to fee structures, implications of fee revisions on cost sharing, and the development of standard contracts provided for in RCW 46.01.140(3).

   Sec. 116. RCW 46.01.325 and 1996 c 315 s 3 are each amended to read as follows:

   (1) The director shall prepare, with the advice of the title and registration advisory committee, an annual comprehensive analysis and evaluation of agent and subagent fees. The director shall make recommendations for agent and subagent fee revisions approved by the title and registration advisory committee to the ((legislative)) senate and house transportation committees by January 1st of every third year starting with 1996. Fee revision recommendations may be made more frequently when justified by the annual analysis and evaluation, and requested by the title and registration advisory committee.

   (2) The annual comprehensive analysis and evaluation must consider, but is not limited to:

   (a) Unique and significant financial, legislative, or other relevant developments that may impact fees;

   (b) Current funding for ongoing operating and maintenance automation project costs affecting revenue collection and service delivery;

   (c) Future system requirements including an appropriate sharing of costs between the department, agents, and subagents;

    (d) Beneficial mix of customer service delivery options based on a fee structure commensurate with quality performance standards;

    (e) Appropriate indices projecting state and national growth in business and economic conditions prepared by the United States department of commerce, the department of revenue, and the revenue forecast council for the state of Washington.

    Sec. 117. RCW 46.16.705 and 2003 c 196 s 101 are each amended to read as follows:

    (1) The special license plate review board is created.

    (2) The board will consist of seven members: One member appointed by the governor and who will serve as chair of the board; four members of the legislature, one from each caucus of the house of representatives and the senate; a department of licensing representative appointed by the director; and a Washington state patrol representative appointed by the chief.

    (3) Members shall serve terms of four years, except that four of the members initially appointed will be appointed for terms of two years. No member may be appointed for more than three consecutive terms.

    (4) The ((legislative transportation committee)) respective appointing authority may remove members from the board before the expiration of their terms only for cause based upon a determination of incapacity, incompetence, neglect of duty, or malfeasance in office as ordered by the Thurston county superior court, upon petition and show cause proceedings brought for that purpose in that court and directed to the board member in question.

    Sec. 118. RCW 46.16.715 and 2003 c 196 s 102 are each amended to read as follows:

    (1) The board shall meet periodically at the call of the chair, but must meet at least one time each year within ninety days before an upcoming regular session of the legislature. The board may adopt its own rules and may establish its own procedures. It shall act collectively in harmony with recorded resolutions or motions adopted by a majority vote of the members, and it must have a quorum present to take a vote on a special license plate application.

    (2) The board will be compensated from the general appropriation for the ((legislative transportation committee)) department of licensing in accordance with RCW 43.03.250. Each board member will be compensated in accordance with RCW 43.03.250 and reimbursed for actual necessary traveling and other expenses in going to, attending, and returning from meetings of the board or that are incurred in the discharge of duties requested by the chair. However, in no event may a board member be compensated in any year for more than one hundred twenty days, except the chair may be compensated for not more than one hundred fifty days. Service on the board does not qualify as a service credit for the purposes of a public retirement system.

    (3) The board shall keep proper records and is subject to audit by the state auditor or other auditing entities.

    (4) The department of licensing shall provide administrative support to the board, which must include at least the following:

    (a) Provide general staffing to meet the administrative needs of the board;

    (b) Report to the board on the reimbursement status of any new special license plate series for which the state had to pay the start-up costs;

    (c) Process special license plate applications and confirm that the sponsoring organization has submitted all required documentation. If an incomplete application is received, the department must return it to the sponsoring organization;

   (d) Compile the annual financial reports submitted by sponsoring organizations with active special license plate series and present those reports to the board for review and approval.

   (((5) The legislative transportation committee shall provide general oversight of the board, which must include at least the following:

   (a) Process and approve board member compensation requests;

   (b) Review the annual financial reports submitted to the board by sponsoring organizations;

   (c) Review annually the list of the board's approved and rejected special license plate proposals submitted by sponsoring organizations.))

   Sec. 119. RCW 46.16.725 and 2003 c 196 s 103 are each amended to read as follows:

   (1) The creation of the board does not in any way preclude the authority of the legislature to independently propose and enact special license plate legislation.

   (2) The board must review and either approve or reject special license plate applications submitted by sponsoring organizations.

   (3) Duties of the board include but are not limited to the following:

   (a) Review and approve the annual financial reports submitted by sponsoring organizations with active special license plate series and present those annual financial reports to the ((legislative)) senate and house transportation committees;

   (b) Report annually to the ((legislative)) senate and house transportation committees on the special license plate applications that were considered by the board;

   (c) Issue approval and rejection notification letters to sponsoring organizations, the department, the chairs of the senate and house of representatives transportation committees, and the legislative sponsors identified in each application. The letters must be issued within seven days of making a determination on the status of an application;

   (d) Review annually the number of plates sold for each special license plate series created after January 1, 2003. The board may submit a recommendation to discontinue a special plate series to the chairs of the senate and house of representatives transportation committees.

   Sec. 120. RCW 46.73.010 and 1985 c 333 s 1 are each amended to read as follows:

   The Washington state patrol may adopt rules establishing standards for qualifications and hours of service of drivers for private carriers as defined by RCW 81.80.010(6). Such standards shall correlate with and, as far as reasonable, conform to the regulations contained in Title 49 C.F.R., Chapter 3, Subchapter B, Parts 391 and 395, on July 28, 1985. ((At least thirty days before filing notice of the proposed rules with the code reviser, the state patrol shall submit them to the legislative transportation committee for review.))

   Sec. 121. RCW 47.01.280 and 1999 c 94 s 10 are each amended to read as follows:

   (1) Upon receiving an application for improvements to an existing state highway or highways pursuant to RCW 43.160.074 from the community economic revitalization board, the transportation commission shall, in a timely manner, determine whether or not the proposed state highway improvements:

   (a) Meet the safety and design criteria of the department of transportation;

   (b) Will impair the operational integrity of the existing highway system;

   (c) Will affect any other improvements planned by the department; and

    (d) Will be consistent with its policies developed pursuant to RCW 47.01.071.

    (2) Upon completion of its determination of the factors contained in subsection (1) of this section and any other factors it deems pertinent, the transportation commission shall forward its approval, as submitted or amended or disapproval of the proposed improvements to the board, along with any recommendation it may wish to make concerning the desirability and feasibility of the proposed development. If the transportation commission disapproves any proposed improvements, it shall specify its reasons for disapproval.

    (3) Upon notification from the board of an application's approval pursuant to RCW 43.160.074, the transportation commission shall direct the department of transportation to carry out the improvements in coordination with the applicant.

    (((4) The transportation commission shall notify the legislative transportation committee of all state highway improvements to be carried out pursuant to RCW 43.160.074 and this section.))

    Sec. 122. RCW 47.02.120 and 1990 c 293 s 1 are each amended to read as follows:

    For the purpose of providing funds for the acquisition of headquarters facilities for district 1 of the department of transportation and costs incidental thereto, together with all improvements and equipment required to make the facilities suitable for the department's use, there shall be issued and sold upon the request of the ((Washington transportation commission)) department a total of fifteen million dollars of general obligation bonds of the state of Washington.

    Sec. 123. RCW 47.02.140 and 1990 c 293 s 3 are each amended to read as follows:

    Upon the request of the secretary of transportation ((commission)), the state finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by RCW 47.02.120 through 47.02.190 in accordance with chapter 39.42 RCW. Bonds authorized by RCW 47.02.120 through 47.02.190 shall be sold in such manner, at such time or times, in such amounts, and at such price as the state finance committee shall determine. Except for the purpose of repaying the loan from the motor vehicle fund, no such bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.

    The state finance committee shall consider the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower total interest costs, and increased marketability and for the purpose of retiring the bonds during the life of the project for which they were issued.

    Sec. 124. RCW 47.04.210 and 2001 2nd sp.s. c 14 s 601 are each amended to read as follows:

    Federal funds that are administered by the department of transportation and are passed through to municipal corporations or political subdivisions of the state and moneys that are received as total reimbursement for goods, services, or projects constructed by the department of transportation are removed from the transportation budget. To process and account for these expenditures a new treasury trust account is created to be used for all department of transportation one hundred percent federal and local reimbursable transportation expenditures. This new account is nonbudgeted and nonappropriated. At the same time, federal and private local appropriations and full-time equivalents in subprograms R2, R3, T6, Y6, and Z2 processed through this new account are removed from the department of transportation's 1997-99 budget.

   The department of transportation may make expenditures from the account before receiving federal and local reimbursements. However, at the end of each biennium, the account must maintain a zero or positive cash balance. In the twenty-fourth month of each biennium the department of transportation shall calculate and transfer sufficient cash from either the motor vehicle fund or the multimodal transportation account to cover any negative cash balances. The amount transferred is calculated based on expenditures from each fund. In addition, any interest charges accruing to the new account must be distributed to the motor vehicle fund and the multimodal transportation account.

   The department of transportation shall provide an annual report to the ((legislative)) senate and house transportation committees and the office of financial management on expenditures and full-time equivalents processed through the new account. The report must also include recommendations for process changes, if needed.

   Sec. 125. RCW 47.04.220 and 2001 2nd sp.s. c 14 s 602 are each amended to read as follows:

   (1) The miscellaneous transportation programs account is created in the custody of the state treasurer.

   (2) Moneys from the account may be used only for the costs of:

   (a) Miscellaneous transportation services provided by the department that are reimbursed by other public and private entities;

   (b) Local transportation projects for which the department is a conduit for federal reimbursement to a municipal corporation or political subdivision; or

   (c) Other reimbursable activities as recommended by the ((legislative)) senate and house transportation committees and approved by the office of financial management.

   (3) Moneys received as reimbursement for expenditures under subsection (2) of this section must be deposited into the account.

   (4) No appropriation is required for expenditures from this account. This fund is not subject to allotment procedures provided under chapter 43.88 RCW.

   (5) Only the secretary of transportation or the secretary's designee may authorize expenditures from the account.

   (6) It is the intent of the legislature that this account maintain a zero or positive cash balance at the end of each biennium. Toward this purpose the department may make expenditures from the account before receiving reimbursements under subsection (2) of this section. 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 miscellaneous transportation programs 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 miscellaneous transportation programs 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 miscellaneous transportation programs account to the motor vehicle fund and the multimodal transportation account. Adjustments for any indirect cost recoveries may also be made at this time.

   (7) The department shall provide an annual report to the ((legislative)) senate and house transportation committees and the office of financial management on the expenditures and full-time equivalents processed through the miscellaneous transportation programs account. The report must also include recommendations for changes to the process, if needed.

    Sec. 126. RCW 47.06.110 and 1996 c 186 s 512 are each amended to read as follows:

    The state-interest component of the statewide multimodal transportation plan shall include a state public transportation plan that:

    (1) Articulates the state vision of an interest in public transportation and provides quantifiable objectives, including benefits indicators;

    (2) Identifies the goals for public transit and the roles of federal, state, regional, and local entities in achieving those goals;

    (3) Recommends mechanisms for coordinating state, regional, and local planning for public transportation;

    (4) Recommends mechanisms for coordinating public transportation with other transportation services and modes;

    (5) Recommends criteria, consistent with the goals identified in subsection (2) of this section and with RCW 82.44.180 (2) and (3), for existing federal authorizations administered by the department to transit agencies; and

    (6) Recommends a statewide public transportation facilities and equipment management system as required by federal law.

    In developing the state public transportation plan, the department shall involve local jurisdictions, public and private providers of transportation services, nonmotorized interests, and state agencies with an interest in public transportation, including but not limited to the departments of community, trade, and economic development, social and health services, and ecology, the office of the superintendent of public instruction, the office of the governor, and the office of financial management.

    The department shall submit ((an initial report)) to the ((legislative)) senate and house transportation committees by December ((1, 1993, and shall provide annual)) 1st of each year, reports summarizing the plan's progress ((each year thereafter)).

    Sec. 127. RCW 47.06A.020 and 1999 c 216 s 1 are each amended to read as follows:

    (1) The board shall:

    (a) Adopt rules and procedures necessary to implement the freight mobility strategic investment program;

    (b) Solicit from public entities proposed projects that meet eligibility criteria established in accordance with subsection (4) of this section; and

    (c) Review and evaluate project applications based on criteria established under this section, and prioritize and select projects comprising a portfolio to be funded in part with grants from state funds appropriated for the freight mobility strategic investment program. In determining the appropriate level of state funding for a project, the board shall ensure that state funds are allocated to leverage the greatest amount of partnership funding possible. After selecting projects comprising the portfolio, the board shall submit them as part of its budget request to the office of financial management and the legislature. The board shall ensure that projects submitted as part of the portfolio are not more appropriately funded with other federal, state, or local government funding mechanisms or programs. The board shall reject those projects that appear to improve overall general mobility with limited enhancement for freight mobility.

    The board shall provide periodic progress reports on its activities to the office of financial management and the ((legislative)) senate and house transportation committees.

    (2) The board may:

    (a) Accept from any state or federal agency, loans or grants for the financing of any transportation project and enter into agreements with any such agency concerning the loans or grants;

    (b) Provide technical assistance to project applicants;

   (c) Accept any gifts, grants, or loans of funds, property, or financial, or other aid in any form from any other source on any terms and conditions which are not in conflict with this chapter;

   (d) Adopt rules under chapter 34.05 RCW as necessary to carry out the purposes of this chapter; and

   (e) Do all things necessary or convenient to carry out the powers expressly granted or implied under this chapter.

   (3) The board shall designate strategic freight corridors within the state. The board shall update the list of designated strategic corridors not less than every two years, and shall establish a method of collecting and verifying data, including information on city and county-owned roadways.

   (4) ((From June 11, 1998, through the biennium ending June 30, 2001,)) The board shall utilize threshold project eligibility criteria that, at a minimum, includes the following:

   (a) The project must be on a strategic freight corridor;

   (b) The project must meet one of the following conditions:

   (i) It is primarily aimed at reducing identified barriers to freight movement with only incidental benefits to general or personal mobility; or

   (ii) It is primarily aimed at increasing capacity for the movement of freight with only incidental benefits to general or personal mobility; or

   (iii) It is primarily aimed at mitigating the impact on communities of increasing freight movement, including roadway/railway conflicts; and

   (c) The project must have a total public benefit/total public cost ratio of equal to or greater than one.

   (5) From June 11, 1998, through the biennium ending June 30, 2001, the board shall use the multicriteria analysis and scoring framework for evaluating and ranking eligible freight mobility and freight mitigation projects developed by the freight mobility project prioritization committee and contained in the January 16, 1998, report entitled "Project Eligibility, Priority and Selection Process for a Strategic Freight Investment Program." The prioritization process shall measure the degree to which projects address important program objectives and shall generate a project score that reflects a project's priority compared to other projects. The board shall assign scoring points to each criterion that indicate the relative importance of the criterion in the overall determination of project priority. After June 30, 2001, the board may supplement and refine the initial project priority criteria and scoring framework developed by the freight mobility project prioritization committee as expertise and experience is gained in administering the freight mobility program.

   (6) It is the intent of the legislature that each freight mobility project contained in the project portfolio submitted by the board utilize the greatest amount of nonstate funding possible. The board shall adopt rules that give preference to projects that contain the greatest levels of financial participation from nonprogram fund sources. The board shall consider twenty percent as the minimum partnership contribution, but shall also ensure that there are provisions allowing exceptions for projects that are located in areas where minimal local funding capacity exists or where the magnitude of the project makes the adopted partnership contribution financially unfeasible.

   (7) The board shall develop and recommend policies that address operational improvements that primarily benefit and enhance freight movement, including, but not limited to, policies that reduce congestion in truck lanes at border crossings and weigh stations and provide for access to ports during nonpeak hours.

    Sec. 128. RCW 47.10.790 and 1985 c 406 s 1 are each amended to read as follows:

    (1) In order to provide funds for the location, design, right of way, and construction of selected interstate highway improvements, there shall be issued and sold upon the request of the Washington state transportation commission, a total of one hundred million dollars of general obligation bonds of the state of Washington to pay the state's share of costs for completion of state route 90 (state route 5 to state route 405) and other related state highway projects eligible for regular federal interstate funding and until December 31, 1989, to temporarily pay the regular federal share of construction of completion projects on state route 90 (state route 5 to state route 405) and other related state highway projects eligible for regular interstate funding in advance of federal-aid apportionments under the provisions of 23 U.S.C. Secs. 115 or 122: PROVIDED, That the total amount of bonds issued to temporarily pay the regular federal share of construction of federal-aid interstate highways in advance of federal-aid apportionments as authorized by this section and RCW 47.10.801 shall not exceed one hundred twenty million dollars: PROVIDED FURTHER, That the transportation commission shall ((consult with the legislative transportation committee prior to the adoption of)) adopt plans for the obligation of federal-aid apportionments received in federal fiscal year 1985 and subsequent years to pay the regular federal share of federal-aid interstate highway construction projects or to convert such apportionments under the provisions of 23 U.S.C. Secs. 115 or 122.

    (2) The transportation commission((, in consultation with the legislative transportation committee,)) may at any time find and determine that any amount of the bonds authorized in subsection (1) of this section, and not then sold, are no longer required to be issued and sold for the purposes described in subsection (1) of this section.

    (3) Any bonds authorized by subsection (1) of this section that the transportation commission determines are no longer required for the purpose of paying the cost of the designated interstate highway improvements described therein shall be issued and sold, upon the request of the Washington state transportation commission, to provide funds for the location, design, right of way, and construction of major transportation improvements throughout the state ((that are identified as category C improvements in RCW 47.05.030)).

    Sec. 129. RCW 47.10.801 and 1999 c 94 s 13 are each amended to read as follows:

    (1) In order to provide funds necessary for the location, design, right of way, and construction of selected interstate and other state highway improvements, there shall be issued and sold, subject to subsections (2), (3), and (4) of this section, upon the request of the Washington state transportation commission a total of four hundred sixty million dollars of general obligation bonds of the state of Washington for the following purposes and specified sums:

    (a) Not to exceed two hundred twenty-five million dollars to pay the state's share of costs for federal-aid interstate highway improvements and until December 31, 1989, to temporarily pay the regular federal share of construction of federal-aid interstate highway improvements to complete state routes 82, 90, 182, and 705 in advance of federal-aid apportionments under the provisions of 23 U.S.C. Secs. 115 or 122: PROVIDED, That the total amount of bonds issued to temporarily pay the regular federal share of construction of federal-aid interstate highways in advance of federal-aid apportionments as authorized by this section and RCW 47.10.790 shall not exceed one hundred twenty million dollars: PROVIDED FURTHER, That the transportation commission shall ((consult with the legislative transportation committee prior to the adoption of)) adopt plans for the obligation of federal-aid apportionments received in federal fiscal year 1985 and subsequent years to pay the regular federal share of federal-aid interstate highway construction projects or to convert such apportionments under the provisions of 23 U.S.C. Secs. 115 or 122;

   (b) Two hundred twenty-five million dollars for major transportation improvements throughout the state that are identified as category C improvements and for selected major non-interstate construction and reconstruction projects that are included as Category A Improvements ((in RCW 47.05.030));

   (c) Ten million dollars for state highway improvements necessitated by planned economic development, as determined through the procedures set forth in RCW 43.160.074 and 47.01.280.

   (2) The amount of bonds authorized in subsection (1)(a) of this section shall be reduced if the transportation commission((, in consultation with the legislative transportation committee,)) determines that any of the bonds that have not been sold are no longer required.

   (3) The amount of bonds authorized in subsection (1)(b) of this section shall be increased by an amount not to exceed, and concurrent with, any reduction of bonds authorized under subsection (1)(a) of this section in the manner prescribed in subsection (2) of this section.

   (4) The transportation commission may decrease the amount of bonds authorized in subsection (1)(c) of this section and increase the amount of bonds authorized in subsection (1)(a) or (b) of this section, or both by an amount equal to the decrease in subsection (1)(c) of this section. The transportation commission may decrease the amount of bonds authorized in subsection (1)(c) of this section only if the legislature appropriates an equal amount of funds from the motor vehicle fund - basic account for the purposes enumerated in subsection (1)(c) of this section.

   Sec. 130. RCW 47.10.802 and 1986 c 290 s 1 are each amended to read as follows:

   Upon request being made by the department of transportation ((commission)), the state finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by RCW 47.10.801 in accordance with chapter 39.42 RCW. The amount of such bonds issued and sold under RCW 47.10.801 through 47.10.809 in any biennium may not exceed the amount of a specific appropriation therefor. Such bonds may be sold from time to time in such amounts as may be necessary for the orderly progress of the state highway improvements specified in RCW 47.10.801. The amount of bonds issued and sold under RCW 47.10.801(1)(a) in any biennium shall not, except as provided in that section, exceed the amount required to match federal-aid interstate funds available to the state of Washington. ((The transportation commission shall give notice of its intent to sell bonds to the legislative transportation committee before requesting the state finance committee to issue and sell bonds authorized by RCW 47.10.801(1)(a).)) The bonds shall be sold in such manner, at such time or times, in such amounts, and at such price or prices as the state finance committee shall determine. The state finance committee may obtain insurance, letters of credit, or other credit facility devices with respect to the bonds and may authorize the execution and delivery of agreements, promissory notes, and other obligations for the purpose of insuring the payment or enhancing the marketability of the bonds. Promissory notes or other obligations issued under this section shall not constitute a debt or the contracting of indebtedness under any constitutional or statutory indebtedness limitation if their payment is conditioned upon the failure of the state to pay the principal of or interest on the bonds with respect to which the promissory notes or other obligations relate. The state finance committee may authorize the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower total interest costs, and increased marketability and for the purposes of retiring the bonds during the life of the project for which they were issued.

    Sec. 131. RCW 47.10.843 and 1998 c 321 s 16 are each amended to read as follows:

    In order to provide funds necessary for the location, design, right of way, and construction of state and local highway improvements, there shall be issued and sold upon the request of the ((Washington state transportation commission)) department a maximum of one billion nine hundred million dollars of general obligation bonds of the state of Washington.

    Sec. 132. RCW 47.10.844 and 1998 c 321 s 17 are each amended to read as follows:

    Upon the request of the ((transportation commission)) department, the state finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by RCW 47.10.843 through 47.10.848 in accordance with chapter 39.42 RCW. Bonds authorized by RCW 47.10.843 through 47.10.848 shall be sold in such manner, at such time or times, in such amounts, and at such price as the state finance committee shall determine. No such bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.

    The state finance committee shall consider the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower total interest costs, and increased marketability and for the purpose of retiring the bonds during the life of the project for which they were issued.

    Sec. 133. RCW 47.12.200 and 1977 ex.s. c 151 s 55 are each amended to read as follows:

    The ((transportation commission)) department may enter into agreements with the state finance committee for financing the acquisition, by purchase or condemnation, of real property together with engineering costs that the ((transportation commission)) department deems will be necessary for the improvement of the state highway system. Such agreements may provide for the acquisition of an individual parcel or for the acquisition of any number of parcels within the limits of a contemplated highway project.

    Sec. 134. RCW 47.12.220 and 1977 ex.s. c 151 s 56 are each amended to read as follows:

    Each such agreement shall include, but shall not be limited to the following:

    (1) A provision stating the term of the agreement which shall not extend more than seven years from the effective date of the agreement;

    (2) A designation of the specific fund or funds to be used to carry out such agreement;

    (3) A provision that the department of transportation may redeem warrants purchased by the state finance committee at any time prior to the letting of a highway improvement contract utilizing the property; and further, during the effective period of each such agreement the department of transportation shall redeem such warrants whenever such a highway improvement contract is let, or upon the expiration of such agreement, whichever date is earlier;

   (4) A provision stating the rate of interest such warrants shall bear commencing at the time of purchase by the state finance committee;

   (5) Any additional provisions agreed upon by the ((transportation commission)) department and the state finance committee which are necessary to carry out the purposes of such agreement as indicated by RCW 47.12.180 through 47.12.240((, as now or hereafter amended)).

   Sec. 135. RCW 47.12.242 and 1991 c 291 s 1 are each amended to read as follows:

   The term "advance right of way acquisition" means the acquisition of property and property rights, generally not more than ten years in advance of programmed highway construction projects, together with the engineering costs necessary for such advance right of way acquisition. Any property or property rights purchased must be in designated highway transportation corridors and be for projects approved ((by the commission)) as part of the state's ((six-year)) ten-year plan or included in the state's route development planning effort.

   Sec. 136. RCW 47.12.330 and 1998 c 181 s 2 are each amended to read as follows:

   For the purpose of environmental mitigation of transportation projects, the department may acquire or develop, or both acquire and develop, environmental mitigation sites in advance of the construction of programmed projects. The term "advanced environmental mitigation" means mitigation of adverse impacts upon the environment from transportation projects before their design and construction. Advanced environmental mitigation consists of the acquisition of property; the acquisition of property, water, or air rights; the development of property for the purposes of improved environmental management; engineering costs necessary for such purchase and development; and the use of advanced environmental mitigation sites to fulfill project environmental permit requirements. Advanced environmental mitigation must be conducted in a manner that is consistent with the definition of mitigation found in the council of environmental quality regulations (40 C.F.R. Sec. 1508.20) and the governor's executive order on wetlands (EO 90-04). Advanced environmental mitigation is for projects approved by the transportation commission as part of the state's ((six-year)) ten-year plan or included in the state highway system plan. Advanced environmental mitigation must give consideration to activities related to fish passage, fish habitat, wetlands, and flood management. Advanced environmental mitigation may also be conducted in partnership with federal, state, or local government agencies, tribal governments, interest groups, or private parties. Partnership arrangements may include joint acquisition and development of mitigation sites, purchasing and selling mitigation bank credits among participants, and transfer of mitigation site title from one party to another. Specific conditions of partnership arrangements will be developed in written agreements for each applicable environmental mitigation site.

   Sec. 137. RCW 47.17.850 and 1984 c 7 s 139 are each amended to read as follows:

   A state highway to be known as state route number 906 is established as follows:

   Beginning at a junction with state route number 90 at the West Summit interchange of Snoqualmie Pass, thence along the alignment of the state route number 90 as it existed on May 11, 1967, in a southeasterly direction to a junction with state route number 90 at the Hyak interchange.

   ((The legislative transportation committee, the house and senate transportation committees, and the department shall undertake appropriate studies to evaluate state route number 906 to determine whether or not it should permanently remain on the state system.))

    Sec. 138. RCW 47.26.167 and 1991 c 342 s 62 are each amended to read as follows:

    The legislature recognizes the need for a multijurisdictional body to review future requests for jurisdictional transfers. The board is hereby directed, beginning September 1, 1991, to receive petitions from cities, counties, or the state requesting any addition or deletion from the state highway system. The board is required to utilize the criteria established in RCW 47.17.001 in evaluating petitions and to adopt rules for implementation of this process. The board shall forward to the ((legislative)) senate and house transportation committees by November 15 each year any recommended jurisdictional transfers.

    Sec. 139. RCW 47.26.170 and 1994 c 179 s 16 are each amended to read as follows:

    Each county having within its boundaries an urban area and cities and towns shall prepare and submit to the transportation improvement board arterial inventory data required to determine the long-range arterial construction needs. The counties, cities, and towns shall revise the arterial inventory data every four years to show the current arterial construction needs through the advanced planning period, and as revised shall submit them to the transportation improvement board during the first week of January every four years beginning in 1996. The inventory data shall be prepared pursuant to guidelines established by the transportation improvement board. As information is updated, it shall be made available to the commission ((and the legislative transportation committee)).

    Sec. 140. RCW 47.46.030 and 2002 c 114 s 3 are each amended to read as follows:

    (1) The secretary or a designee shall solicit proposals from, and negotiate and enter into agreements with, private entities to undertake as appropriate, together with the department and other public entities, all or a portion of the study, planning, design, construction, operation, and maintenance of transportation systems and facilities, using in whole or in part public or private sources of financing.

    The public-private initiatives program may develop up to six demonstration projects. Each proposal shall be weighed on its own merits, and each of the six agreements shall be negotiated individually, and as a stand-alone project.

    (2) If project proposals selected prior to September 1, 1994, are terminated by the public or private sectors, the department shall not select any new projects, including project proposals submitted to the department prior to September 1, 1994, and designated by the transportation commission as placeholder projects, after June 16, 1995, until June 30, 1997.

    The department, in consultation with the legislative transportation committee, shall conduct a program and fiscal audit of the public-private initiatives program for the biennium ending June 30, 1997. The department shall submit a progress report to the legislative transportation committee on the program and fiscal audit by June 30, 1996, with preliminary and final audit reports due December 1, 1996, and June 30, 1997, respectively.

    The department shall develop and submit a proposed public involvement plan to the 1997 legislature to identify the process for selecting new potential projects and the associated costs of implementing the plan. The legislature must adopt the public involvement plan before the department may proceed with any activity related to project identification and selection. Following legislative adoption of the public involvement plan, the department is authorized to implement the plan and to identify potential new projects.

   The public involvement plan for projects selected after June 30, 1997, shall, at a minimum, identify projects that: (a) Have the potential of achieving overall public support among users of the projects, residents of communities in the vicinity of the projects, and residents of communities impacted by the projects; (b) meet a state transportation need; (c) provide a significant state benefit; and (d) provide competition among proposers and maximum cost benefits to users. Prospective projects may include projects identified by the department or submitted by the private sector.

   Projects that meet the minimum criteria established under this section and the requirements of the public involvement plan developed by the department and approved by the legislature shall be submitted to the Washington state transportation commission for its review. ((The commission, in turn, shall submit a list of eligible projects to the legislative transportation committee for its consideration.)) Forty-five days after the submission to the ((legislative transportation committee)) commission of the list of eligible projects, the secretary is authorized to solicit proposals for the eligible project.

   (3) Prior to entering into agreements with private entities under the requirements of RCW 47.46.040 for any project proposal selected before September 1, 1994, or after June 30, 1997, except as provided for in subsections (((12))) (11) and (((13))) (12) of this section, the department shall require an advisory vote as provided under subsections (5) through (((10))) (9) of this section.

   (4) The advisory vote shall apply to project proposals selected prior to September 1, 1994, or after June 30, 1997, that receive public opposition as demonstrated by the submission to the department of original petitions bearing at least five thousand signatures of individuals opposing the project collected and submitted in accordance with the dates established in subsections (((12))) (11) and (((13))) (12) of this section. The advisory vote shall be on the preferred alternative identified under the requirements of chapter 43.21C RCW and, if applicable, the national environmental policy act, 42 U.S.C. 4321 et seq. The execution by the department of the advisory vote process established in this section is subject to the prior appropriation of funds by the legislature for the purpose of conducting environmental impact studies, a public involvement program, local involvement committee activities, traffic and economic impact analyses, engineering and technical studies, and the advisory vote.

   (5) In preparing for the advisory vote, the department shall conduct a comprehensive analysis of traffic patterns and economic impact to define the geographical boundary of the project area that is affected by the imposition of tolls or user fees authorized under this chapter. The area so defined is referred to in this section as the affected project area. In defining the affected project area, the department shall, at a minimum, undertake: (a) A comparison of the estimated percentage of residents of communities in the vicinity of the project and in other communities impacted by the project who could be subject to tolls or user fees and the estimated percentage of other users and transient traffic that could be subject to tolls or user fees; (b) an analysis of the anticipated traffic diversion patterns; (c) an analysis of the potential economic impact resulting from proposed toll rates or user fee rates imposed on residents, commercial traffic, and commercial entities in communities in the vicinity of and impacted by the project; (d) an analysis of the economic impact of tolls or user fees on the price of goods and services generally; and (e) an analysis of the relationship of the project to state transportation needs and benefits.

    (6)(a) After determining the definition of the affected project area, the department shall establish a committee comprised of individuals who represent cities and counties in the affected project area; organizations formed to support or oppose the project; and users of the project. The committee shall be named the public-private local involvement committee, and be known as the local involvement committee.

    (b) The members of the local involvement committee shall be: (i) An elected official from each city within the affected project area; (ii) an elected official from each county within the affected project area; (iii) two persons from each county within the affected project area who represent an organization formed in support of the project, if the organization exists; (iv) two persons from each county within the affected project area who represent an organization formed to oppose the project, if the organization exists; and (v) four public members active in a statewide transportation organization. If the committee makeup results in an even number of committee members, there shall be an additional appointment of an elected official from the county in which all, or the greatest portion of the project is located.

    (c) City and county elected officials shall be appointed by a majority of the members of the city or county legislative authorities of each city or county within the affected project area, respectively. The county legislative authority of each county within the affected project area shall identify and validate organizations officially formed in support of or in opposition to the project and shall make the appointments required under this section from a list submitted by the chair of the organizations. Public members shall be appointed by the governor. All appointments to the local involvement committee shall be made and submitted to the department of transportation no later than January 1, 1996, for projects selected prior to September 1, 1994, and no later than thirty days after the affected project area is defined for projects selected after June 30, 1997. Vacancies in the membership of the local involvement committee shall be filled by the appointing authority under (b)(i) through (v) of this subsection for each position on the committee.

    (d) The local involvement committee shall serve in an advisory capacity to the department on all matters related to the execution of the advisory vote.

    (e) Members of the local involvement committee serve without compensation and may not receive subsistence, lodging expenses, or travel expenses.

    (7) The department shall conduct a minimum thirty-day public comment period on the definition of the geographical boundary of the project area. The department, in consultation with the local involvement committee, shall make adjustments, if required, to the definition of the geographical boundary of the affected project area, based on comments received from the public. Within fourteen calendar days after the public comment period, the department shall set the boundaries of the affected project area in units no smaller than a precinct as defined in RCW ((29.01.120)) 29A.04.121.

    (8) The department, in consultation with the local involvement committee, shall develop a description for selected project proposals. After developing the description of the project proposal, the department shall publish the project proposal description in newspapers of general circulation for seven calendar days in the affected project area. Within fourteen calendar days after the last day of the publication of the project proposal description, the department shall transmit a copy of the map depicting the affected project area and the description of the project proposal to the county auditor of the county in which any portion of the affected project area is located.

   (9) ((The department shall provide the legislative transportation committee with progress reports on the status of the definition of the affected project area and the description of the project proposal.

   (10))) Upon receipt of the map and the description of the project proposal, the county auditor shall, within thirty days, verify the precincts that are located within the affected project area. The county auditor shall prepare the text identifying and describing the affected project area and the project proposal using the definition of the geographical boundary of the affected project area and the project description submitted by the department and shall set an election date for the submission of a ballot proposition authorizing the imposition of tolls or user fees to implement the proposed project within the affected project area, which date may be the next succeeding general election to be held in the state, or at a special election, if requested by the department. The text of the project proposal must appear in a voter's pamphlet for the affected project area. The department shall pay the costs of publication and distribution. The special election date must be the next date for a special election provided under RCW ((29.13.020)) 29A.04.330 that is at least sixty days but, if authorized under RCW ((29.13.020)) 29A.04.330, no more than ninety days after the receipt of the final map and project description by the auditor. The department shall pay the cost of an election held under this section.

   (((11))) (10) Notwithstanding any other provision of law, the department may contract with a private developer of a selected project proposal to conduct environmental impact studies, a public involvement program, and engineering and technical studies funded by the legislature. For projects subject to this subsection, the department shall not enter into an agreement under RCW 47.46.040 prior to the advisory vote on the preferred alternative.

   (((12))) (11) Subsections (5) through (((10))) (9) of this section shall not apply to project proposals selected prior to September 1, 1994, that have no organized public opposition as demonstrated by the submission to the department of original petitions bearing at least five thousand signatures of individuals opposing the project, collected and submitted after September 1, 1994, and by thirty calendar days after June 16, 1995.

   (((13))) (12) Subsections (5) through (((10))) (9) of this section shall not apply to project proposals selected after June 30, 1997, that have no organized public opposition as demonstrated by the submission to the department of original petitions bearing at least five thousand signatures of individuals opposing the project, collected and submitted by ninety calendar days after project selection.

   Sec. 141. RCW 47.46.040 and 2002 c 114 s 16 are each amended to read as follows:

   (1) The secretary or a designee shall consult with legal, financial, and other experts within and outside state government in the negotiation and development of the agreements.

   (2) Agreements may provide for private ownership of the projects during the construction period. After completion and final acceptance of each project or discrete segment thereof, the agreement may provide for state ownership of the transportation systems and facilities and lease to the private entity unless the state elects to provide for ownership of the facility by the private entity during the term of the agreement.

   The state may lease each of the demonstration projects, or applicable project segments, to the private entities for operating purposes for up to fifty years.

   (3) The department may exercise any power possessed by it to facilitate the development, construction, financing operation, and maintenance of transportation projects under this section. Agreements for maintenance services entered into under this section shall provide for full reimbursement for services rendered by the department or other state agencies. Agreements for police services for projects, involving state highway routes, developed under agreements shall be entered into with the Washington state patrol. The agreement for police services shall provide that the state patrol will be reimbursed for costs on a comparable basis with the costs incurred for comparable service on other state highway routes. The department may provide services for which it is reimbursed, including but not limited to preliminary planning, environmental certification, and preliminary design of the demonstration projects.

    (4) The plans and specifications for each project constructed under this section shall comply with the department's standards for state projects. A facility constructed by and leased to a private entity is deemed to be a part of the state highway system for purposes of identification, maintenance, and enforcement of traffic laws and for the purposes of applicable sections of this title. Upon reversion of the facility to the state, the project must meet all applicable state standards. Agreements shall address responsibility for reconstruction or renovations that are required in order for a facility to meet all applicable state standards upon reversion of the facility to the state.

    (5) For the purpose of facilitating these projects and to assist the private entity in the financing, development, construction, and operation of the transportation systems and facilities, the agreements may include provisions for the department to exercise its authority, including the lease of facilities, rights of way, and airspace, exercise of the power of eminent domain, granting of development rights and opportunities, granting of necessary easements and rights of access, issuance of permits and other authorizations, protection from competition, remedies in the event of default of either of the parties, granting of contractual and real property rights, liability during construction and the term of the lease, authority to negotiate acquisition of rights of way in excess of appraised value, and any other provision deemed necessary by the secretary.

    (6) The agreements entered into under this section may include provisions authorizing the state to grant necessary easements and lease to a private entity existing rights of way or rights of way subsequently acquired with public or private financing. The agreements may also include provisions to lease to the entity airspace above or below the right of way associated or to be associated with the private entity's transportation facility. In consideration for the reversion rights in these privately constructed facilities, the department may negotiate a charge for the lease of airspace rights during the term of the agreement for a period not to exceed fifty years. If, after the expiration of this period, the department continues to lease these airspace rights to the private entity, it shall do so only at fair market value. The agreement may also provide the private entity the right of first refusal to undertake projects utilizing airspace owned by the state in the vicinity of the public-private project.

    (7) Agreements under this section may include any contractual provision that is necessary to protect the project revenues required to repay the costs incurred to study, plan, design, finance, acquire, build, install, operate, enforce laws, and maintain toll highways, bridges, and tunnels and which will not unreasonably inhibit or prohibit the development of additional public transportation systems and facilities. Agreements under this section must secure and maintain liability insurance coverage in amounts appropriate to protect the project's viability and may address state indemnification of the private entity for design and construction liability where the state has approved relevant design and construction plans.

   (8) Agreements entered into under this section shall include a process that provides for public involvement in decision making with respect to the development of the projects.

   (9)(a) In carrying out the public involvement process required in subsection (8) of this section, the private entity shall proactively seek public participation through a process appropriate to the characteristics of the project that assesses and demonstrates public support among: Users of the project, residents of communities in the vicinity of the project, and residents of communities impacted by the project.

   (b) The private entity shall conduct a comprehensive public involvement process that provides, periodically throughout the development and implementation of the project, users and residents of communities in the affected project area an opportunity to comment upon key issues regarding the project including, but not limited to: (i) Alternative sizes and scopes; (ii) design; (iii) environmental assessment; (iv) right of way and access plans; (v) traffic impacts; (vi) tolling or user fee strategies and tolling or user fee ranges; (vii) project cost; (viii) construction impacts; (ix) facility operation; and (x) any other salient characteristics.

   (c) If the affected project area has not been defined, the private entity shall define the affected project area by conducting, at a minimum: (i) A comparison of the estimated percentage of residents of communities in the vicinity of the project and in other communities impacted by the project who could be subject to tolls or user fees and the estimated percentage of other users and transient traffic that could be subject to tolls or user fees; (ii) an analysis of the anticipated traffic diversion patterns; (iii) an analysis of the potential economic impact resulting from proposed toll rates or user fee rates imposed on residents, commercial traffic, and commercial entities in communities in the vicinity of and impacted by the project; (iv) an analysis of the economic impact of tolls or user fees on the price of goods and services generally; and (v) an analysis of the relationship of the project to state transportation needs and benefits.

   The agreement may require an advisory vote by users of and residents in the affected project area.

   (d) In seeking public participation, the private entity shall establish a local involvement committee or committees comprised of residents of the affected project area, individuals who represent cities and counties in the affected project area, organizations formed to support or oppose the project, if such organizations exist, and users of the project. The private entity shall, at a minimum, establish a committee as required under the specifications of RCW 47.46.030(6)(b) (ii) and (iii) and appointments to such committee shall be made no later than thirty days after the project area is defined.

   (e) Local involvement committees shall act in an advisory capacity to the department and the private entity on all issues related to the development and implementation of the public involvement process established under this section.

   (f) The department and the private entity shall provide the ((legislative transportation committee and)) local involvement committees with progress reports on the status of the public involvement process including the results of an advisory vote, if any occurs.

   (10) Nothing in this chapter limits the right of the secretary and his or her agents to render such advice and to make such recommendations as they deem to be in the best interests of the state and the public.

    Sec. 142. RCW 79A.05.125 and 1999 c 301 s 3 are each amended to read as follows:

    (1) The department of transportation shall negotiate a franchise with a rail carrier to establish and maintain a rail line over portions of the Milwaukee Road corridor owned by the state between Ellensburg and Lind. The department of transportation may negotiate such a franchise with any qualified rail carrier. Criteria for negotiating the franchise and establishing the right of way include:

    (a) Assurances that resources from the franchise will be sufficient to compensate the state for use of the property, including completion of a cross-state trail between Easton and the Idaho border;

    (b) Types of payment for use of the franchise, including payment for the use of federally granted trust lands in the transportation corridor;

    (c) Standards for maintenance of the line;

    (d) Provisions ensuring that both the conventional and intermodal rail service needs of local shippers are met. Such accommodations may comprise agreements with the franchisee to offer or maintain adequate service or to provide service by other carriers at commercially reasonable rates;

    (e) Provisions requiring the franchisee, upon reasonable request of any other rail operator, to provide rail service and interchange freight over what is commonly known as the Stampede Pass rail line from Cle Elum to Auburn at commercially reasonable rates;

    (f) If any part of the franchise agreement is invalidated by actions or rulings of the federal surface transportation board or a court of competent jurisdiction, the remaining portions of the franchise agreement are not affected;

    (g) Compliance with environmental standards; and

    (h) Provisions for insurance and the coverage of liability.

    (2) The franchise may provide for periodic review of financial arrangements under the franchise.

    (3) The department of transportation, in consultation with the parks and recreation commission and the ((legislative)) senate and house transportation committees, shall negotiate the terms of the franchise, and shall present the agreement to the parks and recreation commission for approval of as to terms and provisions affecting the cross-state trail or affecting the commission.

    (4) This section expires July 1, 2006, if the department of transportation does not enter into a franchise agreement for a rail line over portions of the Milwaukee Road corridor by July 1, 2006.

    Sec. 143. RCW 81.80.395 and 1988 c 138 s 1 are each amended to read as follows:

    The Washington utilities and transportation commission may enter into an agreement or arrangement with a duly authorized representative of the state of Idaho, for the purpose of granting to operators of commercial vehicles that are properly registered in the state of Idaho, the privilege of operating their vehicles in this state within a designated area near the border of their state without the need for registration as required by chapter 81.80 RCW if the state of Idaho grants a similar privilege to operators of commercial vehicles from this state. The initial designated area shall be limited to state route 195 from the Idaho border to Lewiston, and SR 12 from Lewiston to Clarkston. ((The utilities and transportation commission shall submit other proposed reciprocal agreements in designated border areas to the legislative transportation committee for approval.))

    Sec. 144. RCW 81.104.110 and 1998 c 245 s 165 are each amended to read as follows:

   The legislature recognizes that the planning processes described in RCW 81.104.100 provide a recognized framework for guiding high capacity transportation studies. However, the process cannot guarantee appropriate decisions unless key study assumptions are reasonable.

   To assure appropriate system plan assumptions and to provide for review of system plan results, an expert review panel shall be appointed to provide independent technical review for development of any system plan which is to be funded in whole or in part by the imposition of any voter-approved local option funding sources enumerated in RCW 81.104.140.

   (1) The expert review panel shall consist of five to ten members who are recognized experts in relevant fields, such as transit operations, planning, emerging transportation technologies, engineering, finance, law, the environment, geography, economics, and political science.

   (2) The expert review panel shall be selected cooperatively by the chairs of the ((legislative)) senate and house transportation committees, the secretary of the department of transportation, and the governor to assure a balance of disciplines. In the case of counties adjoining another state or Canadian province the expert review panel membership shall be selected cooperatively with representatives of the adjoining state or Canadian province.

   (3) The chair of the expert review panel shall be designated by the appointing authorities.

   (4) The expert review panel shall serve without compensation but shall be reimbursed for expenses according to ((chapter 43.03)) RCW 43.03.050 and 43.03.060. Reimbursement shall be paid from within the existing resources of the local authority planning under this chapter.

   (5) The panel shall carry out the duties set forth in subsections (6) and (7) of this section until the date on which an election is held to consider the high capacity transportation system and financing plans. ((Funds appropriated for expenses of the expert panel shall be administered by the department of transportation.))

   (6) The expert panel shall review all reports required in RCW 81.104.100(2) and shall concentrate on service modes and concepts, costs, patronage and financing evaluations.

   (7) The expert panel shall provide timely reviews and comments on individual reports and study conclusions to the department of transportation, the regional transportation planning organization, the joint regional policy committee, and the submitting lead transit agency. In the case of counties adjoining another state or Canadian province, the expert review panel shall provide its reviews, comments, and conclusions to the representatives of the adjoining state or Canadian province.

   (8) The ((legislative transportation committee)) local authority planning under this chapter shall contract for consulting services for expert review panels. The amount of consultant support shall be negotiated with each expert review panel by the ((legislative transportation committee)) local authority and shall be paid from ((appropriations for that purpose from the high capacity transportation account)) within the local authority's existing resources.

   Sec. 145. RCW 82.33.020 and 1992 c 231 s 34 are each amended to read as follows:

   (1) Four times each year the supervisor shall prepare, subject to the approval of the economic and revenue forecast council under RCW 82.33.010:

   (a) An official state economic and revenue forecast;

   (b) An unofficial state economic and revenue forecast based on optimistic economic and revenue projections; and

    (c) An unofficial state economic and revenue forecast based on pessimistic economic and revenue projections.

    (2) The supervisor shall submit forecasts prepared under this section, along with any unofficial forecasts provided under RCW 82.33.010, to the governor and the members of the committees on ways and means and the chairs of the committees on transportation of the senate and house of representatives ((and the chair of the legislative transportation committee)), including one copy to the staff of each of the committees, on or before November 20th, February 20th in the even-numbered years, March 20th in the odd-numbered years, June 20th, and September 20th. All forecasts shall include both estimated receipts and estimated revenues in conformance with generally accepted accounting principles as provided by RCW 43.88.037.

    (3) All agencies of state government shall provide to the supervisor immediate access to all information relating to economic and revenue forecasts. Revenue collection information shall be available to the supervisor the first business day following the conclusion of each collection period.

    (4) The economic and revenue forecast supervisor and staff shall co-locate and share information, data, and files with the tax research section of the department of revenue but shall not duplicate the duties and functions of one another.

    (5) As part of its forecasts under subsection (1) of this section, the supervisor shall provide estimated revenue from tuition fees as defined in RCW 28B.15.020.

    Sec. 146. RCW 82.70.060 and 2003 c 364 s 6 are each amended to read as follows:

    The commute trip reduction task force shall determine the effectiveness of the tax credit under RCW 82.70.020, the grant program in RCW 70.94.996, and the relative effectiveness of the tax credit and the grant program as part of its ongoing evaluation of the commute trip reduction law and report to the ((legislative)) senate and house transportation committees and to the fiscal committees of the house of representatives and the senate. The report must include information on the amount of tax credits claimed to date and recommendations on future funding between the tax credit program and the grant program. The report must be incorporated into the recommendations required in RCW 70.94.537(5).

    Sec. 147. RCW 82.80.070 and 2002 c 56 s 413 are each amended to read as follows:

    (1) The proceeds collected pursuant to the exercise of the local option authority of RCW 82.80.010, ((82.80.020,)) 82.80.030, and 82.80.050 (hereafter called "local option transportation revenues") shall be used for transportation purposes only, including but not limited to the following: The operation and preservation of roads, streets, and other transportation improvements; new construction, reconstruction, and expansion of city streets, county roads, and state highways and other transportation improvements; development and implementation of public transportation and high-capacity transit improvements and programs; and planning, design, and acquisition of right of way and sites for such transportation purposes. The proceeds collected from excise taxes on the sale, distribution, or use of motor vehicle fuel and special fuel under RCW 82.80.010 shall be used exclusively for "highway purposes" as that term is construed in Article II, section 40 of the state Constitution.

    (2) The local option transportation revenues shall be expended for transportation uses consistent with the adopted transportation and land use plans of the jurisdiction expending the funds and consistent with any applicable and adopted regional transportation plan for metropolitan planning areas.

   (3) Each local government with a population greater than eight thousand that levies or expends local option transportation funds, is also required to develop and adopt a specific transportation program that contains the following elements:

   (a) The program shall identify the geographic boundaries of the entire area or areas within which local option transportation revenues will be levied and expended.

   (b) The program shall be based on an adopted transportation plan for the geographic areas covered and shall identify the proposed operation and construction of transportation improvements and services in the designated plan area intended to be funded in whole or in part by local option transportation revenues and shall identify the annual costs applicable to the program.

   (c) The program shall indicate how the local transportation plan is coordinated with applicable transportation plans for the region and for adjacent jurisdictions.

   (d) The program shall include at least a six-year funding plan, updated annually, identifying the specific public and private sources and amounts of revenue necessary to fund the program. The program shall include a proposed schedule for construction of projects and expenditure of revenues. The funding plan shall consider the additional local tax revenue estimated to be generated by new development within the plan area if all or a portion of the additional revenue is proposed to be earmarked as future appropriations for transportation improvements in the program.

   (4) Local governments with a population greater than eight thousand exercising the authority for local option transportation funds shall periodically review and update their transportation program to ensure that it is consistent with applicable local and regional transportation and land use plans and within the means of estimated public and private revenue available.

   (5) In the case of expenditure for new or expanded transportation facilities, improvements, and services, priorities in the use of local option transportation revenues shall be identified in the transportation program and expenditures shall be made based upon the following criteria, which are stated in descending order of weight to be attributed:

   (a) First, the project serves a multijurisdictional function;

   (b) Second, it is necessitated by existing or reasonably foreseeable congestion;

   (c) Third, it has the greatest person-carrying capacity;

   (d) Fourth, it is partially funded by other government funds, such as from the state transportation improvement board, or by private sector contributions, such as those from the local transportation act, chapter 39.92 RCW; and

   (e) Fifth, it meets such other criteria as the local government determines is appropriate.

   (6) It is the intent of the legislature that as a condition of levying, receiving, and expending local option transportation revenues, no local government agency use the revenues to replace, divert, or loan any revenues currently being used for transportation purposes to nontransportation purposes. ((The association of Washington cities and the Washington state association of counties, in consultation with the legislative transportation committee, shall study the issue of nondiversion and make recommendations to the legislative transportation committee for language implementing the intent of this section by December 1, 1990.))

   (7) Local governments are encouraged to enter into interlocal agreements to jointly develop and adopt with other local governments the transportation programs required by this section for the purpose of accomplishing regional transportation planning and development.

    (8) Local governments may use all or a part of the local option transportation revenues for the amortization of local government general obligation and revenue bonds issued for transportation purposes consistent with the requirements of this section.

    (9) Subsections (1) through (8) of this section do not apply to a regional transportation investment district imposing a tax or fee under the local option authority of this chapter. Proceeds collected under the exercise of local option authority under this chapter by a district must be used in accordance with chapter 36.120 RCW.

    Sec. 148. RCW 90.03.525 and 1996 c 285 s 1 and 1996 c 230 s 1617 are each reenacted and amended to read as follows:

    (1) The rate charged by a local government utility to the department of transportation with respect to state highway right of way or any section of state highway right of way for the construction, operation, and maintenance of storm water control facilities under chapters 35.67, 35.92, 36.89, 36.94, 57.08, and 86.15 RCW, shall be thirty percent of the rate for comparable real property, except as otherwise provided in this section. The rate charged to the department with respect to state highway right of way or any section of state highway right of way within a local government utility's jurisdiction shall not, however, exceed the rate charged for comparable city street or county road right of way within the same jurisdiction. The legislature finds that the aforesaid rates are presumptively fair and equitable because of the traditional and continuing expenditures of the department of transportation for the construction, operation, and maintenance of storm water control facilities designed to control surface water or storm water runoff from state highway rights of way.

    (2) Charges paid under subsection (1) of this section by the department of transportation must be used solely for storm water control facilities that directly reduce state highway runoff impacts or implementation of best management practices that will reduce the need for such facilities. By January 1st of each year, beginning with calendar year 1997, the local government utility, in coordination with the department, shall develop a plan for the expenditure of the charges for that calendar year. The plan must be consistent with the objectives identified in RCW 90.78.010. In addition, beginning with the submittal for 1998, the utility shall provide a progress report on the use of charges assessed for the prior year. No charges may be paid until the plan and report have been submitted to the department.

    (3) The utility imposing the charge and the department of transportation may, however, agree to either higher or lower rates with respect to the construction, operation, or maintenance of any specific storm water control facilities based upon the annual plan prescribed in subsection (2) of this section. ((If a different rate is agreed to, a report so stating shall be submitted to the legislative transportation committee.)) If, after mediation, the local government utility and the department of transportation cannot agree upon the proper rate, ((and after a report has been submitted to the legislative transportation committee and after ninety days from submission of such report,)) either may commence an action in the superior court for the county in which the state highway right of way is located to establish the proper rate. The court in establishing the proper rate shall take into account the extent and adequacy of storm water control facilities constructed by the department and the actual benefits to the sections of state highway rights of way from storm water control facilities constructed, operated, and maintained by the local government utility. Control of surface water runoff and storm water runoff from state highway rights of way shall be deemed an actual benefit to the state highway rights of way. The rate for sections of state highway right of way as determined by the court shall be set forth in terms of the percentage of the rate for comparable real property, but shall in no event exceed the rate charged for comparable city street or county road right of way within the same jurisdiction.

   (4) The legislature finds that the federal clean water act (national ((pollution [pollutant])) pollutant discharge elimination system, 40 C.F.R. parts 122-124), the state water pollution control act, chapter 90.48 RCW, and the highway runoff program under chapter ((90.70)) 90.71 RCW, mandate the treatment and control of storm water runoff from state highway rights of way owned by the department of transportation. Appropriations made by the legislature to the department of transportation for the construction, operation, and maintenance of storm water control facilities are intended to address applicable federal and state mandates related to storm water control and treatment. This section is not intended to limit opportunities for sharing the costs of storm water improvements between cities, counties, and the state.

Technical

   NEW SECTION. Sec. 149. RCW 44.75.010, 44.75.020, 44.75.030, 44.75.040, 44.75.050, 44.75.060, 44.75.070, 44.75.080, 44.75.090, 44.75.100, 44.75.110, 44.75.120, 44.75.800, 44.75.900, and 44.75.901 and section 20 of this act are codified or recodified as a new chapter in Title 47 RCW.

   NEW SECTION. Sec. 150. The following acts or parts of acts are each repealed:

   (1) RCW 44.40.010 (Creation--Composition--Appointments--Vacancies--Rules) and 1999 sp.s. c 1 s 616, 1980 c 87 s 39, 1971 ex.s. c 195 s 1, 1967 ex.s. c 145 s 68, 1965 ex.s. c 170 s 64, & 1963 ex.s. c 3 s 35;

   (2) RCW 44.40.013 (Administration) and 2001 c 259 s 5;

   (3) RCW 44.40.015 (Executive committee--Selection--Duties) and 2001 c 259 s 6 & 1999 sp.s. c 1 s 617;

   (4) RCW 44.40.030 (Participation in activities of other organizations) and 1982 c 227 s 17, 1977 ex.s. c 235 s 7, 1971 ex.s. c 195 s 3, & 1963 ex.s. c 3 s 38;

   (5) RCW 44.40.040 (Members' allowances--Procedure for payment of committee's expenses) and 2001 c 259 s 7, 1979 c 151 s 157, 1977 ex.s. c 235 s 8, 1975 1st ex.s. c 268 s 3, 1971 ex.s. c 195 s 4, & 1963 ex.s. c 3 s 39;

   (6) RCW 44.40.090 (Delegation of powers and duties to senate and house transportation committees) and 2001 c 259 s 8, 1977 ex.s. c 235 s 10, & 1973 1st ex.s. c 210 s 2;

   (7) RCW 44.40.140 (Review of policy on fees imposed on nonpolluting fuels--Report) and 1983 c 212 s 2;

   (8) RCW 44.40.150 (Study--Recommendations for consideration--Staffing) and 1998 c 245 s 88 & 1989 1st ex.s. c 6 s 14;

   (9) RCW 44.40.161 (Audit review of transportation-related agencies) and 2003 c 362 s 16;

   (10) RCW 53.08.350 (Moratorium on runway construction or extension, or initiation of new service--Certain counties affected) and 1992 c 190 s 2;

   (11) RCW 44.40.020 (Powers, duties, and studies) and 1996 c 129 s 9, 1977 ex.s. c 235 s 5, 1975 1st ex.s. c 268 s 1, & 1963 ex.s. c 3 s 36;

   (12) RCW 44.40.070 (State transportation agencies--Comprehensive programs and financial plans) and 1998 c 245 s 87, 1988 c 167 s 10, 1979 ex.s. c 192 s 3, 1979 c 158 s 112, 1977 ex.s. c 235 s 9, & 1973 1st ex.s. c 201 s 1;

    (13) RCW 44.40.080 (State transportation agencies--Recommended budget--Preparation and presentation--Contents) and 1973 1st ex.s. c 201 s 2;

    (14) RCW 44.40.100 (Contracts and programs authorized) and 2001 c 259 s 9, 1977 ex.s. c 235 s 11, 1975 1st ex.s. c 268 s 7, & 1973 1st ex.s. c 210 s 3;

    (15) RCW 46.23.040 (Review of agreement by legislative transportation committee) and 1982 c 212 s 4;

    (16) RCW 47.01.145 (Study reports available to legislators upon request) and 1984 c 7 s 76, 1971 ex.s. c 195 s 6, & 1967 ex.s. c 145 s 78;

    (17) RCW 47.05.090 (Application of 1993 c 490--Deviations) and 1993 c 490 s 6;

    (18) RCW 47.12.360 (Advanced environmental mitigation--Reports) and 1997 c 140 s 5; and

    (19) RCW 47.76.340 (Evaluating program performance) and 1993 c 224 s 13 & 1990 c 43 s 8.

    NEW SECTION. Sec. 151. (1) RCW 44.40.120 is recodified as a section in chapter 44.04 RCW.

    (2) RCW 44.40.025 is recodified as a section in chapter 43.88 RCW.

    NEW SECTION. Sec. 152. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2005, except for section 103 of this act which takes effect July 1, 2006.

    NEW SECTION. Sec. 153. Section 146 of this act expires July 1, 2013.

    NEW SECTION. Sec. 154. Subheadings used in this act are no part of the law."

    Correct the title.

and the same are herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

      Senator Haugen moved that the Senate refuse to concur in the House amendment(s) to Engrossed Senate Bill No. 5513 and ask the House to recede therefrom.

      Senators Haugen spoke in favor of the motion.

      The President declared the question before the Senate to be the motion by Senator Haugen that the Senate refuse to concur in the House amendment(s) to Engrossed Senate Bill No. 5513 and ask the House to recede therefrom.

      The motion by Senator Haugen carried and the Senate refused to concur in the House amendment(s) to Engrossed Senate Bill No. 5513 and asked the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 14, 2005

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5602, with the following amendment{s}:

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. (1) This chapter applies to all operations that meet the definition of an animal feeding operation.

      (2)(a) This chapter creates specific permit requirements consistent with state and federal water quality laws for concentrated animal feeding operations.

      (b) All dairies are required to implement nutrient management plans and perform certain reporting.

      (c) AFOs that are not CAFOs or dairies are not required to have a plan under this chapter and are only required to obtain a permit if it has been determined by the department that they are discharging to the waters of the state. However, no AFO is allowed to pollute waters of the state, and all AFOs may be inspected by the department under this chapter.

      Sec. 2. RCW 90.64.005 and 1998 c 262 s 1 are each amended to read as follows:

      The legislature finds that there is a need ((to establish a clear and understandable process that provides for the proper and effective management of dairy nutrients that affect the quality of surface or ground waters in the state of Washington. The legislature finds that there is a need for a program that will provide a stable and predictable business climate upon which dairy farms may base future investment decisions.

      The legislature finds that federal regulations require a permit program for dairies with over seven hundred head of mature cows and, other specified dairy farms that directly discharge into waters or are otherwise significant contributors of pollution. The legislature finds that significant work has been ongoing over a period of time and that the intent of this chapter is to take the consensus that has been developed and place it into statutory form.

      It is also the intent of this chapter to establish an inspection and technical assistance program for dairy farms to address the discharge of pollution to surface and ground waters of the state that will lead to water quality compliance by the industry. A further purpose is to create a balanced program involving technical assistance, regulation, and enforcement with coordination and oversight of the program by a committee composed of industry, agency, and other representatives. Furthermore, it is the objective of this chapter to maintain the administration of the water quality program as it relates to dairy operations at the state level.

      It is also the intent of this chapter to recognize the existing working relationships between conservation districts, the conservation commission, and the department of ecology in protecting water quality of the state. A further purpose of this chapter is to provide statutory recognition of the coordination of the functions of conservation districts, the conservation commission, and the department of ecology pertaining to development of dairy waste management plans for the protection of water quality)) for an effective livestock nutrient management program for all AFOs that meets federal and state water quality rules. The goals of the program are to provide clear guidance to animal feeding operations about their responsibilities under state and federal water quality laws and to implement the necessary program requirements in a consistent manner that will maintain a healthy and productive livestock industry in Washington state while preventing degradation of water quality. It is the intent of the legislature that the department of agriculture continues the existing program for all licensed dairies, implements the revised program for CAFOs and AFOs, and carries out effective, fair, and equitable enforcement.

      Sec. 3. RCW 90.64.010 and 1998 c 262 s 2 are each amended to read as follows:

      Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

      (1) (("Advisory and oversight committee" means a balanced committee of agency, dairy farm, and interest group representatives convened to provide oversight and direction to the dairy nutrient management program.

      (2) "Bypass" means the intentional diversion of waste streams from any portion of a treatment facility.

      (3) "Catastrophic" means a tornado, hurricane, earthquake, flood, or other extreme condition that causes an overflow from a required waste retention structure.

      (4))) "Department" means the department of agriculture of the state of Washington.

      (2) "Director" means the director of the department or the director's designee.

      (3) "Animal feeding operation" or "AFO" means a lot or facility, other than an aquatic animal production facility, where the following conditions are met:

      (a) Animals, other than aquatic animals, have been, are, or will be stabled or confined and fed or maintained for a total of forty-five days or more in any twelve-month period; and

      (b) Crops, vegetation, forage growth, or postharvest residues are not sustained in the normal growing season over any portion of the lot or facility.

      (4) "Certification" means:

      (a) The acknowledgment by ((a local conservation district)) the department that a ((dairy)) livestock producer has constructed or otherwise put in place the elements and management necessary to implement his or her ((dairy)) livestock nutrient management plan; and

      (b) The acknowledgment by a ((dairy)) livestock producer that he or she is managing ((dairy)) livestock nutrients and maintaining records as specified in his or her approved ((dairy)) livestock nutrient management plan.

      (5) (("Chronic" means a series of wet weather events that precludes the proper operation of a dairy nutrient management system that is designed for the current herd size.

      (6))) "Conservation commission" or "commission" means the conservation commission under chapter 89.08 RCW.

      (((7))) (6) "Conservation districts" or "district" means a subdivision of state government organized under chapter 89.08 RCW.

      (((8))) (7) "Concentrated ((dairy)) animal feeding operation" or "CAFO" means ((a dairy animal feeding operation subject to regulation under this chapter which the director designates)) an AFO that is defined as a large CAFO or as a medium CAFO under this section, or that is designated as a CAFO under RCW 90.64.020 ((or meets the following criteria:

      (a) Has more than seven hundred mature dairy cows, whether milked or dry cows, that are confined; or

      (b) Has more than two hundred head of mature dairy cattle, whether milked or dry cows, that are confined and either:

      (i) From which pollutants are discharged into navigable waters through a manmade ditch, flushing system, or other similar manmade device; or

      (ii) From which pollutants are discharged directly into surface or ground waters of the state that originate outside of and pass over, across, or through the facility or otherwise come into direct contact with the animals confined in the operation.

      (9) "Dairy animal feeding operation" means a lot or facility where the following conditions are met:

      (a) Dairy animals that have been, are, or will be stabled or confined and fed for a total of forty-five days or more in any twelve-month period; and

      (b) Crops, vegetation forage growth, or postharvest residues are not sustained in the normal growing season over any portion of the lot or facility. Two or more dairy animal feeding operations under common ownership are considered, for the purposes of this chapter, to be a single dairy animal feeding operation if they adjoin each other or if they use a common area for land application of wastes.

      (10))) (as recodified by this act). Two or more AFOs under common ownership are considered to be a single AFO for the purposes of determining the number of animals at an operation, if they adjoin each other or if they use a common area or system for the disposal of livestock nutrients.

      (8) "Dairy ((farm))" means any farm that is licensed to produce milk under chapter 15.36 RCW.

      (((11) "Dairy nutrient" means any organic waste produced by dairy cows or a dairy farm operation.

      (12) "Dairy nutrient management plan" means a plan meeting the requirements established under RCW 90.64.026.

      (13) "Dairy nutrient management technical assistance team" means one or more professional engineers and local conservation district employees convened to serve one of four distinct geographic areas in the state.

      (14) "Dairy producer" means a person who owns or operates a dairy farm.

      (15) "Department" means the department of ecology under chapter 43.21A RCW.

      (16) "Director" means the director of the department of ecology, or his or her designee.

      (17) "Upset" means an exceptional incident in which there is an unintentional and temporary noncompliance with technology-based permit effluent limitations because of factors beyond the reasonable control of the dairy. An upset does not include noncompliance to the extent caused by operational error, improperly designed treatment facilities, inadequate treatment facilities, lack of preventive maintenance, or careless or improper operation.

      (18) "Violation" means the following acts or omissions: (a) A discharge of pollutants into the waters of the state, except those discharges that are due to a chronic or catastrophic event, or to an upset as provided in 40 C.F.R. Sec. 122.41, or to a bypass as provided in 40 C.F.R. Sec. 122.41, and that occur when:

      (i) A dairy producer has a current national pollutant discharge elimination system permit with a wastewater system designed, operated, and maintained for the current herd size and that contains all process-generated wastewater plus average annual precipitation minus evaporation plus contaminated storm water runoff from a twenty-five year, twenty-four hour rainfall event for that specific location, and the dairy producer has complied with all permit conditions, including dairy nutrient management plan conditions for appropriate land application practices; or

      (ii) A dairy producer does not have a national pollutant discharge elimination system permit, but has complied with all of the elements of a dairy nutrient management plan that: Prevents the discharge of pollutants to waters of the state, is commensurate with the dairy producer's current herd size, and is approved and certified under RCW 90.64.026;

      (b) Failure to register as required under RCW 90.64.017; or

      (c) The lack of an approved dairy nutrient management plan by July 1, 2002; or

      (d) The lack of a certified dairy nutrient management plan for a dairy farm after December 31, 2003.))

      (9) "Large concentrated animal feeding operation" or "large CAFO" means an AFO that stables or confines as many as or more than the numbers of animals specified in any of the following categories:

      (a) 700 mature dairy cows, whether milked or dry;

      (b) 1,000 veal calves;

      (c) 1,000 cattle other than mature dairy cows or veal calves. Cattle includes but is not limited to heifers, steers, bulls, and cow/calf pairs;

      (d) 2,500 swine each weighing 55 pounds or more;

      (e) 10,000 swine each weighing less than 55 pounds;

      (f) 500 horses;

      (g) 10,000 sheep or lambs;

      (h) 55,000 turkeys;

      (i) 30,000 laying hens or broilers, if the AFO uses a liquid manure handling system;

      (j) 125,000 chickens, other than laying hens, if the AFO uses other than a liquid manure handling system;

      (k) 82,000 laying hens, if the AFO uses other than a liquid manure handling system;

      (l) 30,000 ducks, if the AFO uses other than a liquid manure handling system; or

      (m) 5,000 ducks, if the AFO uses a liquid manure handling system.

      (10) "Livestock nutrient" means manure, bedding, compost, and raw materials or other materials commingled with manure or set aside for disposal or process wastewater, which means water directly or indirectly used in the operation of the AFO for any or all of the following: Spillage or overflow from animal or poultry watering systems; washing, cleaning, or flushing pens, barns, manure pits, or other AFO facilities; direct contact swimming, washing, or spray cooling of animals; or dust control. Process wastewater also includes any water which comes into contact with any raw materials, products, or byproducts including manure, litter, feed, milk, eggs, or bedding.

      (11) "Livestock producer" means an owner or operator of an AFO, CAFO, or dairy.

      (12) "Medium concentrated animal feeding operation" or "medium CAFO" means any AFO with the type and number of animals that fall within any of the ranges listed below and which has been defined or designated as a CAFO. An AFO is defined as a medium CAFO if:

      (a) The type and number of animals that it stables or confines falls within any of the following ranges:

      (i) 200 to 699 mature dairy cows, whether milked or dry;

      (ii) 300 to 999 veal calves;

      (iii) 300 to 999 cattle other than mature dairy cows or veal calves. Cattle includes but is not limited to heifers, steers, bulls, and cow/calf pairs;

      (iv) 750 to 2,499 swine each weighing 55 pounds or more;

      (v) 3,000 to 9,999 swine each weighing less than 55 pounds;

      (vi) 150 to 499 horses;

      (vii) 3,000 to 9,999 sheep or lambs;

      (viii) 16,500 to 54,999 turkeys;

      (ix) 9,000 to 29,999 laying hens or broilers, if the AFO uses a liquid manure handling system;

      (x) 37,500 to 124,999 chickens, other than laying hens, if the AFO uses other than a liquid manure handling system;

      (xi) 25,000 to 81,999 laying hens, if the AFO uses other than a liquid manure handling system;

      (xii) 10,000 to 29,999 ducks, if the AFO uses other than a liquid manure handling system; or

      (xiii) 1,500 to 4,999 ducks, if the AFO uses a liquid manure handling system; and

      (b) Either one of the following conditions are met:

      (i) Pollutants are discharged into waters of the state through a man-made ditch, flushing system, or other similar man-made device; or

      (ii) Pollutants are discharged directly into waters of the state which originate outside of and pass over, across, or through the facility or otherwise come into direct contact with the animals confined in the operation.

      (13) "Permit" means either a state waste discharge permit or a national pollutant discharge elimination system (NPDES) permit, or both.

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

      (15) "Plan" means a livestock nutrient management plan.

      (16) "Pollution" means contamination, or other alteration of the physical, chemical, or biological properties, of any waters of the state, including change in temperature, taste, color, turbidity, or odor of the waters, or such discharge of any liquid, gaseous, solid, radioactive, or other substance into any waters of the state as will or is likely to create a nuisance or render the waters harmful, detrimental, or injurious to the public health, safety, or welfare, or to domestic, commercial, industrial, agricultural, recreational, or other legitimate beneficial uses, or to livestock, wild animals, birds, fish, or other aquatic life.

      (17) "Small concentrated animal feeding operation" or "small CAFO" means an AFO that is designated as a CAFO and is not a medium CAFO.

      (18) "Waters" or "waters of the state" means lakes, rivers, ponds, streams, inland waters, underground waters, saltwaters, and all other surface waters and watercourses within the jurisdiction of the state of Washington.

      Sec. 4. RCW 90.64.020 and 1993 c 221 s 3 are each amended to read as follows:

      (1) The director ((of the department of ecology may)) shall designate any ((dairy animal feeding operation as a concentrated dairy animal feeding operation)) AFO as a CAFO upon determining that it is a significant contributor of pollution to the ((surface or ground)) waters of the state.

      (2) The director may designate any AFO as a CAFO upon determining that it is discharging to the waters of the state.

      (3) In making ((this)) a designation, the director shall consider the following factors:

      (a) The size of the ((animal feeding operation)) AFO and the amount of ((wastes)) livestock nutrients reaching waters of the state;

      (b) The location of the ((animal feeding operation)) AFO relative to waters of the state;

      (c) The means of conveyance of ((animal wastes and process waters)) livestock nutrients into the waters of the state;

      (d) The slope, vegetation, rainfall, and other factors affecting the likelihood or frequency of discharge of ((animal wastes and process wastewaters)) livestock nutrients into the waters of the state; ((and))

      (e) The effort by the AFO to stop the discharge; and

      (f) Other relevant factors as established by the department by rule.

      (((2) A notice of intent to apply for a permit shall not be required from a concentrated dairy animal feeding operation designated under this section until the director has conducted an on-site inspection of the operation and determined that the operation should and could be regulated under the permit program.))

      (4) An AFO shall not be designated as a CAFO under this section unless the director has conducted an on-site inspection of the operation and determined that the operation should be regulated under the permit program. In addition, no AFO with numbers of animals below those for a medium CAFO may be designated as a CAFO unless:

      (a) Pollutants are discharged into waters of the state through a man-made ditch, flushing system, or other similar man-made device; or

      (b) Pollutants are discharged directly into waters of the state which originate outside of the facility and pass over, across, or through the facility or otherwise come into direct contact with the animals confined in the operation.

      (5) Any AFO designated as a CAFO shall apply for a permit as described in section 22 of this act.

      Sec. 5. RCW 90.64.023 and 1998 c 262 s 5 are each amended to read as follows:

      (1) ((By October 1, 1998, the department shall initiate an inspection program of all dairy farms in the state. The purpose of the inspections is to:

      (a))) The department has the authority to conduct inspections under this chapter to:

      (a) Determine if an animal feeding operation meets the definition of a CAFO under this chapter;

      (b) Ensure compliance by AFOs, CAFOs, and dairies with state and federal water quality laws and rules, including those adopted under chapter 90.48 RCW;

      (c) Determine whether a permitted CAFO is complying with the terms and conditions of its permit;

      (d) Survey for evidence of violations;

      (((b))) (e) Identify corrective actions for actual or imminent discharges that violate or could violate the state's water quality standards or this chapter;

      (((c))) (f) Monitor the development and implementation of ((dairy)) livestock nutrient management plans; and

      (((d))) (g) Identify ((dairy producers who would benefit from)) AFOs, CAFOs, and dairies that are eligible for technical assistance or education programs.

      (2) ((Local conservation district employees may, at their discretion, accompany department inspectors on any scheduled inspection of dairy farms except random, unannounced inspections.

      (3) Follow-up inspections shall be conducted by the department to ensure that corrective and other actions as identified in the course of initial inspections are being carried out. The department shall also conduct such additional inspections as are necessary to ensure compliance with state and federal water quality requirements, provided that all licensed dairy farms shall be inspected once within two years of the start of this program. The department, in consultation with the advisory and oversight committee established in section 8 of this act, shall develop performance-based criteria to determine the frequency of inspections.

      (4) Dairy farms)) The department shall inspect all dairies and permitted CAFOs at least once every two years.

      (3) Dairies and permitted CAFOs shall be prioritized for inspection based on ((the development of)) criteria that include, but are not limited to, the following factors:

      (a) Existence or implementation of a ((dairy)) livestock nutrient management plan;

      (b) Proximity to impaired waters of the state; ((and))

      (c) Proximity to all other waters of the state((. The criteria developed to implement this subsection (4) shall be reviewed by the advisory and oversight committee.));

      (d) Proximity to shellfish beds;

      (e) Permit status;

      (f) Compliance history; and

      (g) Other relevant factors as may be determined by the department.

      (4)(a) All permitted CAFOs must make available during inspection those records required to be kept by the permit.

      (b) Dairies not covered by a permit and AFOs shall make available during inspection records including, but not limited to, animal inventories for purposes of determining if the dairy or AFO is subject to regulation as a CAFO, to assess compliance with state and federal water quality laws, and to verify qualification for technical assistance programs, education programs, or any tax exemptions available under state law.

      (5) The department may conduct follow-up inspections to ensure that corrective actions identified in the course of an inspection are being carried out. The department may conduct such additional inspections as are necessary to ensure compliance with administrative orders issued by the department and compliance with permit conditions and state and federal water quality laws and rules.

      NEW SECTION. Sec. 6. (1) All CAFOs required to apply for a permit and all dairies are required to develop a livestock nutrient management plan. These plans must be approved by the department and certified as fully implemented by the department and the livestock producer. If at any time compliance with a livestock nutrient management plan fails to prevent the discharge of pollutants or if complying with the plan would still pose a significant potential to discharge pollutants to waters of the state, the livestock producer must revise the plan as directed by the department.

      (2) Plans must be developed using natural resource conservation service (NRCS) practice standards. Equivalent practices and standards may be used if the department determines they meet or exceed NRCS standards and there is a substantial likelihood that, once implemented, the alternative practices and standards would meet state and federal water quality standards. The department shall establish by rule a technical review process to make determinations on proposed equivalent practices and standards.

      (3) Prior to approval and certification, a nutrient management plan must be verified by a conservation district as meeting the NRCS standards except that, at the request of the producer, verification may be by a technical review team convened by the director. The team must include a representative of a conservation district.

      NEW SECTION. Sec. 7. The following requirements apply to all CAFOs required to apply for a permit.

      (1) All CAFOs required to apply for a permit must meet livestock nutrient management plan deadlines for development and implementation required by this chapter, permit, or rule.

      (2) At a minimum, a livestock nutrient management plan for a CAFO required to apply for a permit must include site-appropriate best management practices including those set out in 40 C.F.R. Sec. 412.4 (April 14, 2003), and procedures necessary to implement applicable effluent limitations including those set out in 40 C.F.R. Part 412 (April 14, 2003), and standards. The plan must, to the extent applicable:

      (a) Ensure adequate storage of livestock nutrients, including procedures to ensure proper operation and maintenance of the storage facilities;

      (b) Ensure proper management of dead animals to ensure that they are not disposed of in a liquid manure, storm water, or process wastewater storage or treatment system that is not specifically designed to treat animal mortalities;

      (c) Ensure that clean water is diverted, as appropriate, from the production area;

      (d) Prevent direct contact of confined animals with waters of the state;

      (e) Ensure that chemicals and other contaminants handled on-site are not disposed of in any livestock nutrients or storm water storage or treatment system unless specifically designed to treat such chemicals and other contaminants;

      (f) Identify appropriate site-specific conservation practices to be implemented, including as appropriate buffers or equivalent practices, to control runoff of pollutants to waters of the state;

      (g) Identify protocols for appropriate testing of livestock nutrients and soil;

      (h) Establish protocols to apply livestock nutrients in accordance with site-specific nutrient management practices that ensure appropriate agricultural utilization of the nutrients in the livestock nutrients; and

      (i) Identify specific records that will be maintained to document the implementation and management of the minimum elements described in (a) through (h) of this subsection.

      (3) Review and approval of a plan by the department is part of the permit application and issuance process. The department shall determine whether a plan contains the elements identified in subsection (2) of this section, meets the permit requirements, and is adequate to meet applicable state and federal water quality laws, including chapter 90.48 RCW.

      (4)(a) An approved plan shall be certified by the department and the livestock producer when the plan is fully implemented and is being used as designed and intended.

      (b) A certification form shall be developed by the department and shall provide for a signature by both the director and the livestock producer. The livestock producer must submit to the department a signed certification form.

      (c) Upon receipt of the completed certification form, the department shall determine within one hundred twenty days whether the approved plan has been fully implemented. If the department finds the plan is not fully implemented, the department shall deny certification. The department shall notify the livestock producer in writing of the reasons for the denial of certification.

      NEW SECTION. Sec. 8. The following requirements apply to all dairies not required to apply for a permit.

      (1) A dairy that is not a CAFO required to apply for a permit has six months from the date of obtaining a license under chapter 15.36 RCW to submit its livestock nutrient management plan to the department and eighteen months from the date of plan approval to submit the plan to the department for certification.

      (2) The plan for a dairy that is not a CAFO required to apply for a permit shall include the minimum elements as defined by the department by rule.

      (3) The department shall review and determine whether a plan contains the minimum elements. The department shall approve or deny approval of the plan no later than ninety days after receiving the plan. If the department denies approval, the department shall notify the livestock producer in writing of the denial and of modifications needed for plan compliance no later than ninety days after receiving the plan. The livestock producer must provide a revised plan that includes the needed modifications within ninety days of the date of the department's notification.

      (4)(a) An approved plan shall be certified by the department and the livestock producer when the plan is fully implemented and is being used as designed and intended.

      (b) A certification form shall be developed by the department and shall provide for a signature by both the director and the livestock producer. The livestock producer must submit to the department a signed certification form within eighteen months of plan approval.

      (c) Upon receipt of the completed certification form, the department shall determine within one hundred twenty days whether the approved plan has been fully implemented. If the department finds the plan is not fully implemented, the department shall deny certification. The department shall notify the livestock producer in writing of the reasons for the denial of certification and set a date by which full implementation must occur.

      (5) A dairy that is not a CAFO required to apply for a permit that fails to have an approved or a certified livestock nutrient management plan in place by the timelines specified in this section is in violation of this chapter. Each month beyond these deadlines that the dairy is out of compliance with the requirement for either plan approval or plan certification is considered a separate violation that may subject the dairy to penalties. The penalties are one hundred dollars per month for each violation up to a combined total of one thousand two hundred dollars and then the penalty is two hundred dollars per month for each violation up to a combined maximum of five thousand dollars.

      NEW SECTION. Sec. 9. AFOs that are not dairies may voluntarily develop and implement livestock nutrient management plans. If an AFO requests that the department approve and certify the plan, then the plan must meet the minimum elements required in section 8 of this act. Plan approval and certification shall follow the same process as identified in section 8 of this act.

      Sec. 10. RCW 90.64.028 and 1998 c 262 s 7 are each amended to read as follows:

      (1) ((Conservation district)) (a) Department decisions pertaining to denial of approval or denial of certification of a ((dairy)) livestock nutrient management plan for a facility not required to have a permit, including a denial of the use of alternative standards and practices; modification or amendment of a plan; conditions contained in a plan; application of any ((dairy)) livestock nutrient management practices, standards, methods, and technologies to a particular AFO, CAFO, or dairy ((farm)); and the failure to adhere to plan review and approval timelines identified in ((RCW 90.64.026)) section 8 of this act are appealable under this chapter. ((Department actions pertaining to water quality violations are appealable under chapter 90.48 RCW.

      In addition, a dairy producer who is constrained from complying with the planning requirements of this chapter because of financial hardship or local permitting delays may request a hearing before the conservation commission and may request an extension of up to one year beyond the approval and certification dates prescribed in this chapter for plan approval and certification.

      (2))) (b) Within thirty days of receiving ((a local conservation district)) notification regarding any of the decisions identified in (a) of this subsection (((1) of this section)), a ((dairy)) livestock producer who disagrees with any of these decisions ((may request an informal hearing before the conservation commission or)) may appeal ((directly)) to the pollution control hearings board. ((The commission shall issue a written decision no later than thirty days after the informal hearing.

      (3) If the conservation commission reverses the decision of the conservation district, the conservation district may appeal this reversal to the pollution control hearings board according to the procedure in chapter 43.21B RCW within thirty days of receipt of the commission's decision.

      (4))) (c) When an appeals process is initiated under this section, the length of time extending from the start of the appeals process to its conclusion shall be added onto the timelines provided in this chapter for plan development, approval, and certification ((only if an appeal is heard by the pollution control hearings board)).

      (2) For facilities applying for a permit, department decisions pertaining to those elements of a livestock nutrient management plan that are conditions of a permit are made as part of the permit application and issuance process and are appealable by any person to the pollution control hearings board under RCW 43.21B.110.

      Sec. 11. RCW 90.64.030 and 2003 c 325 s 3 are each amended to read as follows:

      (1) ((Under the inspection program established in RCW 90.64.023, the department may investigate a dairy farm to determine whether the operation is discharging pollutants or has a record of discharging pollutants into surface or ground waters of the state. Upon concluding an investigation, the department shall make a written report of its findings, including the results of any water quality measurements, photographs, or other pertinent information, and provide a copy of the report to the dairy producer within twenty days of the investigation.

      (2))) (a) The department shall investigate a ((written)) complaint filed with the department within three working days and shall make a written report of its findings including the results of any water quality measurements, photographs, or other pertinent information. Within twenty days of receiving a ((written)) complaint, a copy of the findings shall be provided to the ((dairy)) livestock producer subject to the complaint, and, if requested, to the complainant if the person gave his or her name and address to the department at the time the complaint was filed.

      (((3))) (b) The department may consider past complaints against the same AFO, CAFO, or dairy ((farm)) from the same person and the results of its previous inspections, and has the discretion to decide whether to conduct an inspection if:

      (((a))) (i) The same or a similar complaint or complaints have been filed against the same AFO, CAFO, or dairy ((farm)) within the immediately preceding six-month period; and

      (((b))) (ii) The department made a determination that the activity that was the subject of the prior complaint was not a violation.

      (((4))) (c) If the decision of the department is not to conduct an inspection, it shall document the decision and the reasons for the decision within twenty days. The department shall provide the decision to the complainant if the name and address were provided to the department, and to the ((dairy)) livestock producer subject to the complaint, and the department shall place the decision in the department's administrative records.

      (((5))) (2) The report of findings of any inspection conducted as the result of ((either an oral or a written)) a complaint shall be placed in the department's administrative records. ((Only findings of violations shall be entered into the data base identified in RCW 90.64.130.

      (6) A)) (3) An AFO, CAFO, or dairy ((farm)) that is determined to be a significant contributor of pollution based on actual water quality tests, photographs, or other pertinent information, or that violates the terms and conditions of a permit is subject to the provisions of this chapter and to the enforcement provisions of chapters 43.05 and 90.48 RCW, including civil penalties levied under RCW 90.48.144 or this chapter.

      (((7))) (4) If the department determines that an unresolved water quality problem from ((a)) an AFO, CAFO, or dairy ((farm)) requires immediate corrective action, the department shall notify the livestock producer ((and the district in which the problem is located)). When corrective actions are required to address such unresolved water quality problems, the department shall provide copies of all final ((dairy farm)) inspection reports and documentation of all formal regulatory and enforcement actions taken by the department against that particular ((dairy farm to the local conservation district and to the appropriate dairy farm)) facility to the livestock producer within twenty days.

      (((8) For a violation of water quality laws that is a first offense for a dairy producer, the penalty may be waived to allow the producer to come into compliance with water quality laws)) (5) The penalty may be waived for the first violation of water quality laws on an AFO, CAFO, or dairy to allow the livestock producer to promptly come into compliance. The department shall record all ((legitimate)) violations and subsequent enforcement actions.

      (((9))) (6) A discharge of pollutants, including ((a)) an agricultural storm water discharge, ((to surface)) into waters of the state by an AFO, CAFO, or dairy shall not be considered a violation of this chapter((, chapter 90.48 RCW, or chapter 173-201A WAC,)) and shall therefore not be enforceable by the department, the department of ecology, or a third party, if at the time of the discharge, a violation is not occurring under ((RCW 90.64.010(18))) section 34 of this act. In addition, a ((dairy)) livestock producer shall not be held liable for violations of this chapter((, chapter 90.48 RCW, chapter 173-201A WAC, or the federal clean water act)) due to the discharge of ((dairy)) livestock nutrients to waters of the state resulting from spreading these materials on lands other than where the nutrients were generated, when the nutrients are spread by persons other than the ((dairy)) livestock producer or the ((dairy)) producer's agent.

      (((10))) (7) As provided under RCW 7.48.305, agricultural activities associated with the management of ((dairy)) livestock nutrients are presumed to be reasonable and shall not be found to constitute a nuisance unless the activity has a substantial adverse effect on public health and safety.

      (((11))) (8) This section specifically acknowledges that if a holder of a general or individual national pollutant discharge elimination system permit complies with the permit and the ((dairy)) livestock nutrient management plan conditions for appropriate land application practices, the permit provides compliance with the federal clean water act and acts as a shield against citizen or agency enforcement for any additions of pollutants to waters ((of the state or)) of the United States as authorized by the permit.

      (((12) A dairy producer who fails to have an approved dairy nutrient management plan by July 1, 2002, or a certified dairy nutrient management plan by December 31, 2003, and for which no appeals have been filed with the pollution control hearings board, is in violation of this chapter. Each month beyond these deadlines that a dairy producer is out of compliance with the requirement for either plan approval or plan certification shall be considered separate violations of chapter 90.64 RCW that may be subject to penalties. Such penalties may not exceed one hundred dollars per month for each violation up to a combined total of five thousand dollars. The department has discretion in imposing penalties for failure to meet deadlines for plan approval or plan certification if the failure to comply is due to lack of state funding for implementation of the program. Failure to register as required in RCW 90.64.017 shall subject a dairy producer to a maximum penalty of one hundred dollars. Penalties shall be levied by the department.))

      Sec. 12. RCW 90.64.040 and 1993 c 221 s 5 are each amended to read as follows:

      Enforcement actions and administrative orders issued by the department ((of ecology)) may be appealed to the pollution control hearings board in accordance with the provisions of chapter 43.21B RCW.

      Sec. 13. RCW 90.64.050 and 1998 c 262 s 12 are each amended to read as follows:

      (1) The department has the ((following duties)) duty to implement and administer a livestock nutrient management program including the duty to:

      (a) Enforce this chapter including carrying out inspections and enforcement actions, and assessing penalties;

      (b) Identify existing or potential water quality problems resulting from a dairy farm((s)) or CAFO through implementation of the inspection program in ((RCW 90.64.023)) this chapter;

      (((b) Inspect a dairy farm upon the request of a dairy producer;))

      (c) Receive, process, and verify complaints concerning discharge of pollutants from ((all dairy farms)) any AFO, CAFO, or dairy;

      (d) ((Determine if a dairy-related water quality problem requires immediate corrective action under the Washington state water pollution control laws, chapter 90.48 RCW, or the Washington state water quality standards adopted under chapter 90.48 RCW. The department shall maintain the lead enforcement responsibility;

      (e))) Upon delegation, administer and enforce ((national pollutant discharge elimination system)) permits for ((operators of)) concentrated ((dairy)) animal feeding operations, where required by federal regulations and state laws or upon request of a ((dairy)) livestock producer;

      (((f) Participate on the advisory and oversight committee;

      (g) Encourage communication and cooperation between local department personnel and the appropriate conservation district personnel;

      (h))) (e) Require the ((use of dairy)) development of livestock nutrient management plans as required under this chapter ((for entities required to plan under this chapter)); and

      (((i) Provide to the commission and the advisory and oversight committee an annual report of dairy farm inspection and enforcement activities)) (f) Approve and certify livestock nutrient management plans that meet the minimum standards developed under this chapter.

      (2) The department ((may not delegate its responsibilities in enforcement)) has the authority to:

      (a) Inspect a facility upon the request of the livestock producer;

      (b) Provide technical assistance to AFOs, CAFOs, and dairies in gaining compliance with this chapter and in implementing livestock nutrient management plans to protect water quality;

      (c) Maintain and manage data necessary to administer the program effectively and to track compliance activity;

      (d) Provide communication and outreach to representatives of agricultural and environmental organizations; and

      (e) Coordinate with conservation districts or other agencies and organizations that provide education and technical or financial assistance programs for AFOs, CAFOs, and dairies.

      Sec. 14. RCW 90.64.110 and 1993 c 221 s 12 are each amended to read as follows:

      (1) In addition to the specific grants of rule-making authority in this chapter, the department may adopt rules as necessary to implement this chapter, including rules concerning the administration of permit programs.

      (2) The department has the authority to adopt in rule any provisions in the following federal regulations: 40 C.F.R. parts 9, 122, 123, 124, and 412 (April 14, 2003). The department is authorized to adopt rules to accommodate changes to federal regulations that are subsequently adopted by the United States environmental protection agency.

      Sec. 15. RCW 90.64.150 and 2003 c 325 s 5 are each amended to read as follows:

      ((The livestock nutrient management account is created in the custody of the state treasurer.)) All receipts from monetary penalties levied pursuant to violations of this chapter must be deposited into the livestock nutrient management grant account hereby created within the agricultural local fund. Expenditures from the account may be used only to provide grants for research or education proposals that assist livestock operations to achieve compliance with state and federal water quality laws. The director ((of agriculture)) shall accept and prioritize research proposals and education proposals. Only the director or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

      NEW SECTION. Sec. 16. Any residual balance of funds remaining in the livestock nutrient management account on the effective date of this section shall be transferred to the livestock nutrient management grant account within the agricultural local fund.

      NEW SECTION. Sec. 17. (1) Permitted CAFOs shall maintain and make available to the department the records and annual reports as described in 40 C.F.R. Sec. 122.42(e) (2), (3), and (4) (April 14, 2003). The department shall develop a standard annual reporting form and a submittal date by rule for the annual report from CAFOs.

      (2) Dairies that are not a CAFO required to apply for a permit shall maintain and make available to the department all records required by their livestock nutrient management plans. These dairies must also submit a completed summary report to the department every two years beginning in 2006. The department shall develop and send out a standard reporting form and designate a submittal date by rule for the report. If the producer fails to submit a completed summary report by the submittal date, the department shall levy a penalty of one hundred dollars.

      NEW SECTION. Sec. 18. The department may coordinate with Washington State University, the conservation commission, conservation districts, the department of ecology, other federal, state, and local agencies, and private organizations and individuals in implementing an education program for improvement of nutrient management by dairies, AFOs, and CAFOs and to prevent livestock nutrients from degrading the quality of waters of the state. The department may refer livestock producers to conservation districts, Washington State University, and other entities for educational programs, technical assistance, or financial assistance.

      NEW SECTION. Sec. 19. (1) Conservation districts may, at the request of a livestock producer, provide technical or financial assistance in developing or revising and implementing the producer's livestock nutrient management plan.

      (2) The conservation commission and conservation districts shall, to the extent practical and to the extent that funding allows, provide technical and financial assistance to livestock producers to assist them in complying with this chapter.

      NEW SECTION. Sec. 20. When the environmental protection agency delegates authority under the federal clean water act to the department and the department of ecology relinquishes its authority under RCW 90.48.260 to administer its national pollutant discharge elimination permit system authority and other duties regarding animal feeding operations and concentrated animal feeding operations, the department is hereby authorized to participate fully in the programs of the federal clean water act as well as to take all action necessary to secure to the state the benefits and to meet the requirements of that act for AFOs and CAFOs. Implementation shall be accomplished so that compliance with AFO and CAFO rules, permits, programs, and directives will achieve compliance with all federal and state water pollution control laws. The powers granted in this section include, among others, and notwithstanding any provisions of chapter 90.48 RCW or otherwise, the following:

      (1) Complete authority to establish and administer a livestock nutrient management program, including a pollution discharge elimination permit program which will allow the department to be the sole agency issuing permits required by such national system operating in the state of Washington. Program elements authorized may include, but are not limited to: (a) Issuance of permits; (b) termination and modification of permits for cause; (c) requirements for public notices and opportunities for public hearings; (d) requirements for inspection, monitoring, entry, and reporting; (e) enforcement of the program through penalties, emergency powers, and criminal sanctions; (f) a continuing planning process; and (g) user charges.

      (2) The power to establish and administer a state program in a manner which will ensure the procurement of moneys, whether in the form of grants, loans, or otherwise, to assist in the construction, operation, and maintenance of various water pollution control facilities and works.

      (3) The power to develop and implement appropriate programs pertaining to continuing planning processes.

      NEW SECTION. Sec. 21. Until the department receives federal delegation for the NPDES CAFO program, the department of ecology shall remain responsible for NPDES permit administration as described under a memorandum of understanding between the department and the department of ecology. Sections 22 through 26 of this act are not effective until federal delegation occurs.

      NEW SECTION. Sec. 22. (1) Any person who owns or operates a dairy or CAFO that is required to apply for a permit under RCW 90.64.020 (as recodified by this act) or under the federal CAFO rule shall obtain a permit from the department. Any AFO that is determined by the department to be discharging into the waters of the state is required to obtain a state waste discharge permit from the department.

      (2) The permit issued by the department shall meet the requirements of either the NPDES or the state waste discharge permit system, or both.

      (3) A livestock operation meeting the definition of large CAFO may seek a determination from the department that the large CAFO has no potential to discharge to the waters of the state. Within sixty days of such a request, the director will make a determination using the process and criteria of 40 C.F.R. Sec. 122.23(f) (April 14, 2003). A livestock operation that receives a determination that it has no potential to discharge is not required to apply for permit coverage. Such a livestock operation is not relieved from liability under this chapter for actual discharges.

      NEW SECTION. Sec. 23. (1) Applications for permits or modifications of a permit must be made on forms prescribed by the department, which shall be consistent with the federal CAFO permit application form. A copy of the nutrient management plan must be submitted with the application. An application for a permit shall be made:

      (a) At least one hundred eighty days prior to commencement of operation of any new source CAFO required to apply for a permit;

      (b) At least one hundred eighty days prior to the permit expiration date;

      (c) Within ninety days of designation as a newly designated CAFO; or

      (d) Within ninety days of the change in circumstance that causes a facility not covered by a permit to become defined as a CAFO required to apply for a permit.

      (2) The department shall establish by rule public notice and public hearing requirements pertaining to department decisions on applications and permits in conformance with the requirements of 40 C.F.R. Secs. 124.10, 124.11, and 124.12 (April 14, 2003) and any other applicable federal regulation. At a minimum, the department's rules shall include providing notice of permit application. These rules shall also define the methods of public notice including, but not limited to, electronic means.

      (3) When an application has been filed with the department that complies with this chapter and its rules, the department shall determine whether the management of livestock nutrients as proposed will pollute waters of the state in violation of the public policy of the state.

      NEW SECTION. Sec. 24. The department shall issue a permit under section 22 of this act unless it finds that the disposal of livestock nutrients as proposed in the application will pollute or present a substantial potential to pollute the waters of the state in violation of state or federal law. The department shall have authority to specify conditions necessary to avoid such pollution in each permit under which livestock nutrients may be disposed of by the permittee. Permits, whether individual or general, shall not be valid for more than five years from the date of issuance.

      NEW SECTION. Sec. 25. A permit under section 22 of this act shall be subject to termination upon thirty days' notice in writing if the department finds:

      (1) That it was procured by misrepresentation of any material fact or by lack of full disclosure in the application;

      (2) That there has been a violation of the conditions thereof;

      (3) That a material change in quantity or type of livestock nutrient disposal exists.

      NEW SECTION. Sec. 26. In the event that a material change in the condition of the waters occurs, the department may, by appropriate order, modify permit conditions or specify additional conditions in permits previously issued. The department may modify or revoke and reissue permits in accordance with 40 C.F.R. Sec. 122.62 and 63 (April 14, 2003). Reissued permits or permits with major modifications shall be issued in accordance with section 23 of this act and subject to appeal in accordance with RCW 43.21B.110. Modification of the terms and conditions of the nutrient management plan included in a permit constitutes a modification of the permit.

      NEW SECTION. Sec. 27. It is unlawful for any person regulated by this chapter to throw, drain, run, or otherwise discharge into any of the waters of this state, or to cause, permit, or suffer to be thrown, run, drained, allowed to seep, or otherwise discharged into such waters any organic or inorganic matter, including livestock nutrients, that shall cause or tend to cause pollution of such waters according to the determination of the department, as provided for in this chapter.

      NEW SECTION. Sec. 28. If any discharge to waters of the state occurs, a permitted CAFO shall notify the department as specified in the permit. A dairy or CAFO that is not a permitted CAFO shall notify the department within twenty-four hours and submit a written report within five days describing at a minimum: The discharge, receiving water, cause, dates, estimated quantities, corrective steps taken to repair impacts, and how it will prevent any future discharge.

      NEW SECTION. Sec. 29. (1) The director has the authority to enter any AFO, CAFO, or dairy at any reasonable time and inspect property or facilities and records required under this chapter. Upon arrival at an AFO, CAFO, or dairy, the department shall present identification and give verbal notification of the purpose of the inspection, which may include sampling and testing, to the livestock producer or his or her agent.

      (2) If the director is denied access to property, facility, or records, the director may apply to a court of competent jurisdiction for a search warrant authorizing access to property, facilities, or records for purposes of inspections, sampling, or testing as authorized in this chapter. The court may upon the application issue a search warrant for the purposes requested.

      NEW SECTION. Sec. 30. The department, with the assistance of the attorney general, is authorized to bring any appropriate action at law or in equity, including action for injunctive relief, in the name of the people of the state of Washington as may be necessary to carry out this chapter.

      NEW SECTION. Sec. 31. (1) Whenever, in the opinion of the department, any person violates or creates a substantial potential to violate this chapter, or fails to control the polluting content of waste discharged or to be discharged into any waters of the state, the department shall notify the person of its determination by registered or certified mail. Such determination shall not constitute an order or directive under chapter 43.21B or 34.05 RCW. Within thirty days from the receipt of notice of the determination, the person must file with the department a full report stating what steps have been and are being taken to control the waste or pollution or to otherwise comply with the determination of the department. The department then shall issue such order or directive as it deems appropriate under the circumstances, and shall notify the person by registered or certified mail.

      (2) Whenever the department deems immediate action is necessary to accomplish the purposes of this chapter, it may issue such order or directive, as appropriate under the circumstances, without first issuing a notice or determination pursuant to subsection (1) of this section. An order or directive issued pursuant to this subsection shall be served by registered or certified mail or personally upon any person to whom it is directed.

      NEW SECTION. Sec. 32. Any person found guilty of willfully violating this chapter, or any final written orders or directive of the department or a court in pursuance thereof, is guilty of a gross misdemeanor, and upon conviction thereof shall be punished by a fine of up to ten thousand dollars and costs of prosecution, or by imprisonment in the county jail for not more than one year, or by both such fine and imprisonment in the discretion of the court. Each day upon which a willful violation of this chapter occurs may be deemed a separate and additional violation.

      NEW SECTION. Sec. 33. (1) Any person who:

      (a)(i) Violates this chapter;

      (ii) Fails to perform any duty imposed by this chapter;

      (iii) Violates an order or other determination of the department or the director made under this chapter;

      (iv) Violates the conditions of a permit issued under this chapter; or

      (v) Otherwise causes a reduction in the quality of the state's waters below the standards set under chapter 90.48 RCW or, if no standards have been set, causes significant degradation of water quality, thereby damaging the state's waters; and

      (b) Causes the death of, or injury to, fish, animals, vegetation, or other resources of the state;

shall be liable to pay the state and affected counties and cities damages in an amount determined under RCW 90.48.367.

      (2) An action is not authorized under this section against any person operating in compliance with the conditions of a permit issued under this chapter.

      NEW SECTION. Sec. 34. (1) Except as provided in chapter 43.05 RCW, every person who:

      (a) Violates the terms or conditions of a permit issued under this chapter or chapter 90.48 RCW for an AFO or a CAFO;

      (b) Operates a CAFO without a permit as required by this chapter or chapter 90.48 RCW; or

      (c) Discharges livestock nutrients in violation of this chapter, or rules or orders adopted or issued under this chapter or chapter 90.48 RCW,

shall incur, in addition to any other penalty as provided by law, a penalty in an amount of up to ten thousand dollars a day for every such violation. Each and every such violation shall be a separate and distinct offense, and in case of a continuing violation, every day's continuance shall be and be deemed to be a separate and distinct violation. Every act of commission or omission which procures, aids, or abets in the violation shall be considered a violation under this section and subject to the penalty provided for in this section. The penalty amount shall be set in consideration of the previous history of the violator and the severity of the violation's impact on public health or the environment in addition to other relevant factors. The department is authorized to set forth the procedures and the criteria for setting the penalty in rule.

      (2) A discharge of pollutants into the waters of the state is a violation of this chapter, except those discharges that occur when a livestock producer has a current national pollutant discharge elimination system permit with a wastewater system designed, constructed, operated, and maintained for the current herd size and that contains all process-generated wastewater plus average annual precipitation minus evaporation plus contaminated storm water runoff from a rainfall event as specified for the type of facility in 40 C.F.R. Part 412 (April 14, 2003) for that specific location, the discharge is the result of a rainfall event as specified for the type of facility in 40 C.F.R. Part 412 (April 14, 2003), and the livestock producer has complied with all permit conditions, including livestock nutrient management plan conditions for appropriate land application practices.

      (3) A livestock producer may assert upset as an affirmative defense to allegations of discharge in violation of a permit. "Upset" means an exceptional incident in which there is an unintentional and temporary noncompliance with technology-based permit effluent limitations because of factors beyond the reasonable control of the producer. An upset does not include noncompliance to the extent caused by operational error, improperly designed treatment facilities, inadequate treatment facilities, lack of preventive maintenance, or careless or improper operation. In any enforcement proceeding the permittee seeking to establish the occurrence of an upset has the burden of proof.

      NEW SECTION. Sec. 35. (1) Notwithstanding any other provisions of this chapter, whenever it appears to the director that a person regulated by this chapter is causing water quality conditions to exist which require immediate action to protect the public health or welfare, the director may issue a written temporary order to cease and desist to the person responsible without prior notice or hearing, directing the person to either: (a) Immediately discontinue or modify the discharge into the waters of the state; or (b) appear before the department at the time and place specified in the order to provide the department information pertaining to the violations and conditions alleged in the order. The temporary order to cease and desist is effective upon service on the responsible person and will remain in effect until ten days after the informational meeting. The responsible person shall be given not less than twenty-four hours' notice of the informational meeting.

      (2) Following the informational meeting or if the responsible person fails to attend the informational meeting, if the department determines that water quality conditions exist which require immediate action to protect the public health or welfare, the department may issue a written permanent order to cease and desist requiring the person to immediately discontinue or modify the discharge into waters. The permanent order to cease and desist is effective upon service. If this order is not immediately complied with, the attorney general, upon request of the department, may seek enforcement of the order in the superior court of the county in which the violation took place. Permanent orders to cease and desist issued by the department are appealable under chapter 43.21B RCW.

      NEW SECTION. Sec. 36. (1) The department shall establish by rule annual fees for administering permits issued under this chapter. Fees shall be used for costs incurred by the department in processing permit applications and modifications, monitoring and evaluating compliance with permits, conducting inspections, securing laboratory analysis of samples taken during inspections, reviewing plans and documents directly related to operations of permittees, overseeing performance of delegated pretreatment programs, and supporting the overhead expenses that are directly related to these activities.

      (2) The initial fee schedule adopted after delegation of national pollutant discharge elimination system permit authority from the environmental protection agency shall be the same as the fee schedule established by the department of ecology except that fees may rise in accordance with the fiscal growth factor as provided in chapter 43.135 RCW. Until the initial fee schedule is adopted, the fees established by the department of ecology shall be in effect.

      (3) All fees collected under this section shall be deposited in the livestock nutrient management permit account within the agricultural local fund and used only for purposes of administering permits under this chapter.

      NEW SECTION. Sec. 37. (1) Prior to issuing an order related to discharges from agricultural activity on agricultural land, the department shall consider whether an enforcement action would contribute to the conversion of agricultural land to nonagricultural uses. Any enforcement action shall attempt to minimize the possibility of such conversion.

      (2) As used in this section:

      (a) "Agricultural activity" means the growing, raising, or production of horticultural or viticultural crops, berries, poultry, livestock, grain, mint, hay, and dairy products.

      (b) "Agricultural land" means at least five acres of land devoted primarily to the commercial production of livestock or agricultural commodities.

      NEW SECTION. Sec. 38. (1) The department of ecology shall develop and maintain a standard protocol for water quality monitoring of the waters of the state within the vicinity of dairies and CAFOs. The protocol shall include sampling methods and procedures and identify the water quality constituents to be monitored.

      (2) The department of ecology shall submit the initial protocol developed according to this section to the appropriate committees of the legislature by December 1, 2005.

      Sec. 39. RCW 43.21B.001 and 2004 c 204 s 1 are each amended to read as follows:

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

      (1) "Business days" means Monday through Friday exclusive of any state or federal holiday.

      (2) "Date of receipt" means:

      (a) Five business days after the date of mailing; or

      (b) The date of actual receipt, when the actual receipt date can be proven by a preponderance of the evidence. The recipient's sworn affidavit or declaration indicating the date of receipt, which is unchallenged by the agency, shall constitute sufficient evidence of actual receipt. The date of actual receipt, however, may not exceed forty-five days from the date of mailing.

      (3) "Department" means the department of ecology, except for references pertaining to chapter 16.-- RCW (created by section 48 of this act), in which case "department" means the department of agriculture.

      (4) "Director" means the director of ecology, except for references pertaining to chapter 16.-- RCW (created by section 48 of this act), in which case "director" means the director of the department of agriculture or a duly authorized representative.

      Sec. 40. RCW 43.21B.110 and 2003 c 393 s 19 are each amended to read as follows:

      (1) The hearings board shall only have jurisdiction to hear and decide appeals from the following decisions of the department, the department of agriculture, the director, local conservation districts, and the air pollution control boards or authorities as established pursuant to chapter 70.94 RCW, or local health departments:

      (a) Civil penalties imposed pursuant to section 17 of this act, section 34 of this act, RCW 18.104.155, 70.94.431, 70.105.080, 70.107.050, 88.46.090, 90.03.600, 90.48.144, 90.56.310, ((and)) 90.56.330, and section 8 of this act.

      (b) Orders issued pursuant to section 31 of this act, section 35 of this act, RCW 18.104.043, 18.104.060, 43.27A.190, 70.94.211, 70.94.332, 70.105.095, 86.16.020, 88.46.070, 90.14.130, 90.48.120, and 90.56.330.

      (c) Except as provided in RCW 90.03.210(2), the issuance, modification, or termination of any permit, certificate, or license by the department or any air authority in the exercise of its jurisdiction, including the issuance or termination of a waste disposal permit, the denial of an application for a waste disposal permit, the modification of the conditions or the terms of a waste disposal permit, or a decision to approve or deny an application for a solid waste permit exemption under RCW 70.95.300.

      (d) Decisions of local health departments regarding the grant or denial of solid waste permits pursuant to chapter 70.95 RCW.

      (e) Decisions of local health departments regarding the issuance and enforcement of permits to use or dispose of biosolids under RCW 70.95J.080.

      (f) Decisions of the department regarding waste-derived fertilizer or micronutrient fertilizer under RCW 15.54.820, and decisions of the department regarding waste-derived soil amendments under RCW 70.95.205.

      (g) Decisions of ((local conservation districts)) the department of agriculture related to the denial of approval or denial of certification of a ((dairy)) livestock nutrient management plan; conditions contained in a plan; application of any ((dairy)) livestock nutrient management practices, standards, methods, and technologies to a particular ((dairy farm)) facility; and failure to adhere to the plan review and approval timelines in ((RCW 90.64.026)) section 8 of this act.

      (h) Any other decision by the department or an air authority which pursuant to law must be decided as an adjudicative proceeding under chapter 34.05 RCW.

      (2) The following hearings shall not be conducted by the hearings board:

      (a) Hearings required by law to be conducted by the shorelines hearings board pursuant to chapter 90.58 RCW.

      (b) Hearings conducted by the department pursuant to RCW 70.94.332, 70.94.390, 70.94.395, 70.94.400, 70.94.405, 70.94.410, and 90.44.180.

      (c) Proceedings conducted by the department, or the department's designee, under RCW 90.03.160 through 90.03.210 or 90.44.220.

      (d) Hearings conducted by the department to adopt, modify, or repeal rules.

      (e) Appeals of decisions by the department as provided in chapter 43.21L RCW.

      (3) Review of rules and regulations adopted by the hearings board shall be subject to review in accordance with the provisions of the Administrative Procedure Act, chapter 34.05 RCW.

      Sec. 41. RCW 43.21B.300 and 2004 c 204 s 4 are each amended to read as follows:

      (1) Any civil penalty provided in section 8 of this act, section 17 of this act, section 34 of this act, RCW 18.104.155, 70.94.431, 70.105.080, 70.107.050, 88.46.090, 90.03.600, 90.48.144, 90.56.310, and 90.56.330 shall be imposed by a notice in writing, either by certified mail with return receipt requested or by personal service, to the person incurring the penalty from the department, the department of agriculture, or the local air authority, describing the violation with reasonable particularity. Within thirty days after the notice is received, the person incurring the penalty may apply in writing to the department, the department of agriculture, or the authority, as appropriate, for the remission or mitigation of the penalty. Upon receipt of the application, the department, the department of agriculture, or authority may remit or mitigate the penalty upon whatever terms the department, the department of agriculture, or the authority in its discretion deems proper. The department, the department of agriculture, or the authority may ascertain the facts regarding all such applications in such reasonable manner and under such rules as it may deem proper and shall remit or mitigate the penalty only upon a demonstration of extraordinary circumstances such as the presence of information or factors not considered in setting the original penalty.

      (2) Any penalty imposed under this section may be appealed to the pollution control hearings board in accordance with this chapter if the appeal is filed with the hearings board and served on the department, the department of agriculture, or authority thirty days after the date of receipt by the person penalized of the notice imposing the penalty or thirty days after the date of receipt of the notice of disposition of the application for relief from penalty.

      (3) A penalty shall become due and payable on the later of:

      (a) Thirty days after receipt of the notice imposing the penalty;

      (b) Thirty days after receipt of the notice of disposition on application for relief from penalty, if such an application is made; or

      (c) Thirty days after receipt of the notice of decision of the hearings board if the penalty is appealed.

      (4) If the amount of any penalty is not paid to the department or the department of agriculture, as appropriate, within thirty days after it becomes due and payable, the attorney general, upon request of the department or the department of agriculture, shall bring an action in the name of the state of Washington in the superior court of Thurston county, or of any county in which the violator does business, to recover the penalty. If the amount of the penalty is not paid to the authority within thirty days after it becomes due and payable, the authority may bring an action to recover the penalty in the superior court of the county of the authority's main office or of any county in which the violator does business. In these actions, the procedures and rules of evidence shall be the same as in an ordinary civil action.

      (5) All penalties recovered shall be paid into the state treasury and credited to the general fund except those penalties imposed pursuant to RCW 18.104.155, which shall be credited to the reclamation account as provided in RCW 18.104.155(7), RCW 70.94.431, the disposition of which shall be governed by that provision, RCW 70.105.080, which shall be credited to the hazardous waste control and elimination account, created by RCW 70.105.180, ((and)) RCW 90.56.330, which shall be credited to the coastal protection fund created by RCW 90.48.390 and chapter 16.-- RCW (created by section 48 of this act) which shall be credited to the livestock nutrient management grant account created by RCW 90.64.150 (as recodified by this act).

      Sec. 42. RCW 43.21B.310 and 2004 c 204 s 5 are each amended to read as follows:

      (1) Except as provided in RCW 90.03.210(2), any order issued by the department, the department of agriculture, or local air authority pursuant to section 31 of this act, section 35 of this act, RCW 70.94.211, 70.94.332, 70.105.095, 43.27A.190, 86.16.020, 88.46.070, or 90.48.120(2) or any provision enacted after July 26, 1987, or any permit, certificate, or license issued by the department may be appealed to the pollution control hearings board if the appeal is filed with the board and served on the department, the department of agriculture, or authority within thirty days after the date of receipt of the order. Except as provided under chapter 70.105D RCW and RCW 90.03.210(2), this is the exclusive means of appeal of such an order.

      (2) The department, the department of agriculture, or the authority in its discretion may stay the effectiveness of an order during the pendency of such an appeal.

      (3) At any time during the pendency of an appeal of such an order to the board, the appellant may apply pursuant to RCW 43.21B.320 to the hearings board for a stay of the order or for the removal thereof.

      (4) Any appeal must contain the following in accordance with the rules of the hearings board:

      (a) The appellant's name and address;

      (b) The date and docket number of the order, permit, or license appealed;

      (c) A description of the substance of the order, permit, or license that is the subject of the appeal;

      (d) A clear, separate, and concise statement of every error alleged to have been committed;

      (e) A clear and concise statement of facts upon which the requester relies to sustain his or her statements of error; and

      (f) A statement setting forth the relief sought.

      (5) Upon failure to comply with any final order of the department or the department of agriculture, the attorney general, on request of the department or the department of agriculture, may bring an action in the superior court of the county where the violation occurred or the potential violation is about to occur to obtain such relief as necessary, including injunctive relief, to insure compliance with the order. The air authorities may bring similar actions to enforce their orders.

      (6) An appealable decision or order shall be identified as such and shall contain a conspicuous notice to the recipient that it may be appealed only by filing an appeal with the hearings board and serving it on the department or the department of agriculture within thirty days of the date of receipt.

      Sec. 43. RCW 90.64.813 and 2003 c 325 s 2 are each amended to read as follows:

      (1) A livestock nutrient management program development and oversight committee is created comprised of the following members, appointed as follows:

      (a) The director of the department of agriculture, or the director's designee, who shall serve as committee chair;

      (b) The director of the department of ecology, or the director's designee;

      (c) A representative of the United States environmental protection agency, appointed by the regional director of the agency unless the agency chooses not to be represented on the committee;

      (d) One member from each of the two major caucuses of the house of representatives, appointed by the speaker of the house of representatives, and one member from each of the two major caucuses of the senate, appointed by the president of the senate;

      (e) A representative of commercial shellfish growers, nominated by an organization representing these growers, appointed by the ((governor)) director;

      (((e))) (f) A representative of an environmental interest organization with familiarity and expertise in water quality issues as nominated by a statewide environmental organization, appointed by the ((governor)) director;

      (((f))) (g) A representative of tribal governments as nominated by an organization representing tribal governments((, appointed by the governor));

      (((g))) (h) A representative of Washington State University appointed by the dean of the college of agriculture and home economics;

      (((h))) (i) A representative of the Washington association of conservation districts, appointed by the association's board of officers;

      (((i))) (j) Three representatives of dairy producers nominated by a statewide organization representing dairy producers in the state, appointed by the ((governor)) director;

      (((j))) (k) Two representatives of beef cattle producers nominated by a statewide organization representing beef cattle producers in the state, appointed by the ((governor)) director;

      (((k))) (l) One representative of poultry producers nominated by a statewide organization representing poultry producers in the state, appointed by the ((governor)) director;

      (((l))) (m) One representative of the commercial cattle feedlots nominated by a statewide organization representing commercial cattle feedlots in the state, appointed by the ((governor)) director; and

      (((m))) (n) A representative of any other segment of the livestock industry determined by the director of agriculture to be subject to federal rules regulating animal feeding or concentrated animal feeding operations.

      (2) The state department of agriculture shall provide staff for the committee. The department of agriculture may request staff assistance be assigned by the United States environmental protection agency to assist the director in staffing the committee.

      (3) The committee shall establish a work plan that includes a list of tasks and a projected completion date for each task.

      (4) The committee may establish a subcommittee for each of the major industry segments that is covered by the recently adopted federal regulations that pertain to animal feeding operations and concentrated animal feeding operations. The subcommittee shall be composed of selected members of the full committee and additional representatives from that major segment of the livestock industry as determined by the director. The committee shall assign tasks to the subcommittees and shall establish dates for each subcommittee to report back to the full committee.

      (5) The committee shall examine the recently adopted federal regulations that provide for the regulation of animal feeding operations and concentrated animal feeding operations and develop a program to be administered by the department of agriculture that meets the requirements and time frames contained in the federal rules. Elements that the committee shall evaluate include:

      (a) A process for adopting standards and for developing plans for each operation that meet these standards;

      (b) A process for revising current national pollution discharge elimination system permits currently held by livestock operations and to transition these permits into the new system; and

      (c) In consultation with the director, a determination of what other work is needed and what other institutional relationships are needed or desirable. The committee shall consult with representatives of the statewide association of conservation districts regarding any functions or activities that are proposed to be provided through local conservation districts.

      (6) The committee shall review and comment on proposals for grants from the livestock nutrient management account created in RCW 90.64.150.

      (7) The committee shall develop draft proposed legislation that includes:

      (a) Statutory changes, including a timeline to achieve the phased-in levels of regulation under federal law, to comply with the minimum requirements under federal law and the minimum requirements under chapter 90.48 RCW. These changes must meet the requirements necessary to enable the department of agriculture and the department of ecology to pursue the United States environmental protection agency's approval of the transfer of the permitting program as it relates to the concentrated animal feeding operations from the department of ecology to the department of agriculture;

      (b) Statutory changes necessitated by the transfer of functions under chapter 90.64 RCW from the department of ecology to the department of agriculture;

      (c) Continued inspection of dairy operations at least once every two years;

      (d) An outreach and education program to inform the various animal feeding operations and concentrated animal feeding operations of the program's elements; and

      (e) Annual reporting to the legislature on the progress of the state strategy for implementing the animal feeding operation and concentrated animal feeding operation.

      (8) The committee shall provide a report by December 1, 2003, to appropriate committees of the legislature that includes the results of the committee's evaluation under subsection (5) of this section and draft legislation to initiate the program.

      (9) The committee shall evaluate simplified nutrient management planning tools and systematic practices that can be offered to those livestock operations not required to have permits or farm plans. The goal shall be to introduce these practical models through technical assistance, education, and outreach so that all livestock owners will have clear guidance on how to meet basic responsibilities to protect water quality. The committee shall report its recommendations on tools and service delivery options to appropriate committees of the legislature during the September 2005 assembly.

      (10) With respect to the federal requirement that livestock nutrient management plans contain a component ensuring proper management of dead animals, the committee shall review issues concerning routine animal carcass disposal in Washington, including composting, rendering, burying, landfills, and incineration. The committee may appoint a subcommittee including appropriate technical staff from state agencies to undertake this task and make recommendations back to the full committee. At the legislative assembly in September 2005, the department of agriculture, the department of ecology, the state board of health, and committee representatives shall present reports as follows to the appropriate legislative committees:

      (a) The department of ecology shall report on the status of off-site animal composting options that meet the livestock industry's need for disposal alternatives while assuring consumer protection and equity with other composters;

      (b) The department of agriculture shall report on the status of a comprehensive, clearly written guidance document for the livestock industry on alternatives currently available for routine disposal of animal carcasses. The guidance document shall include, at a minimum, the disposal alternatives of rendering, burying, landfills, and composting; and

      (c) The state board of health shall report on the status of rule making that clarifies burial depth, location of burial sites in relation to drinking water wells, and incineration.

      (11) The committee shall evaluate the use of ranges as a means for state and local agencies to respond to public records requests made under chapter 42.17 RCW for information obtained from dairies and AFOs not required to apply for a permit. The ranges must provide meaningful information while ensuring confidentiality of business information regarding the following characteristics of livestock operations: (a) Number of animals; (b) volume of livestock nutrients generated; (c) number of acres covered by the plan or used for land application of livestock nutrients; (d) livestock nutrients transferred to other persons; and (e) crop yields. The committee shall make recommendations and provide draft legislation regarding the use of ranges to the appropriate committees of the legislature by December 1, 2005.

      (12) This section expires ((June 30, 2006)) when the federal environmental protection agency delegates authority for the NPDES CAFO program to the department. The department shall provide notice to the legislature of the date of any such delegation of authority.

      NEW SECTION. Sec. 44. (1) By July 1, 2005, the department and the department of agriculture, in consultation with the department of health, shall make available to livestock producers clearly written guidelines for the composting of bovine and equine carcasses for routine animal disposal.

      (2) Composters of bovine and equine carcasses are exempt from the metals testing and permit requirements under the solid waste handling rules for compost that is distributed off-site if the following conditions are met:

      (a) The carcasses to be composted are not known or suspected to be affected with a prion-protein disease such as bovine spongiform encephalopathy, a spore-forming disease such as anthrax or other diseases designated by the state veterinarian;

      (b) The composter follows the written guidelines provided for in subsection (1) of this section;

      (c) The composter does not accept for composting animal mortalities from other sources not directly affiliated with the composter's operation;

      (d) The composter provides information to the end-user that includes the source of the material; the quality of the compost as to its nutrient content, pathogens, and stability; and the restrictions on use of the compost as stated in (f) of this subsection;

      (e) The composter reports annually to the department the number of bovines and equines and the amounts of other material composted, including the composter's best estimate of the tonnage or yardage involved; and

      (f) The end-user applies the compost only to agricultural lands that are not used for the production of root crops except as prescribed in the guidelines and ensures no compost comes into contact with the crops harvested from the lands where the compost is applied.

      (3) If a compost production facility does not operate in compliance with the terms and conditions established for an exemption in this section, the facility shall be subject to the permitting requirements for solid waste handling under this chapter.

      Sec. 45. RCW 70.95.315 and 1998 c 156 s 7 are each amended to read as follows:

      The department may assess a civil penalty in an amount not to exceed one thousand dollars per day per violation to any person exempt from solid waste permitting in accordance with RCW 70.95.300 ((or)), 70.95.305, or section 44 of this act who fails to comply with the terms and conditions of the exemption. Each such violation shall be a separate and distinct offense, and in the case of a continuing violation, each day's continuance shall be a separate and distinct violation.

      NEW SECTION. Sec. 46. The following acts or parts of acts are each repealed:

      (1) RCW 90.64.015 (Environmental excellence program agreements--Effect on chapter) and 1997 c 381 s 29;

      (2) RCW 90.64.017 (Registration of dairy producers--Information required--Information to producers regarding chapter) and 1998 c 262 s 3;

      (3) RCW 90.64.026 (Dairy nutrient management plans--Elements--Approval--Timelines--Certification) and 1998 c 262 s 6;

      (4) RCW 90.64.070 (Duties of conservation district) and 1998 c 262 s 13 & 1993 c 221 s 8;

      (5) RCW 90.64.080 (Duties of conservation commission) and 1998 c 262 s 14 & 1993 c 221 s 9;

      (6) RCW 90.64.130 (Data base) and 1998 c 262 s 9;

      (7) RCW 90.64.140 (Technical assistance teams--Standards and specifications for dairy nutrient management plans) and 1998 c 262 s 10;

      (8) RCW 90.64.160 (Grants for dairy producers--Statement of environmental benefits--Development of outcome-focused performance measures) and 2001 c 227 s 4; and

      (9) RCW 90.64.800 (Reports to the legislature) and 1998 c 262 s 17.

      NEW SECTION. Sec. 47. RCW 90.64.900 and 90.64.901 are decodified.

      NEW SECTION. Sec. 48. The following sections are codified or recodified in the following order as a new chapter in Title 16 RCW:

      (1) Intent and overview/authority

      RCW 90.64.005

      RCW 90.64.010

      Section 1 of this act

      RCW 90.64.050

      RCW 90.64.110

      (2) Permits

      RCW 90.64.120

      Section 20 of this act

      Section 21 of this act

      Section 22 of this act

      RCW 90.64.020

      Section 23 of this act

      Section 24 of this act

      Section 26 of this act

      Section 25 of this act

      Section 36 of this act

      (3) Nutrient management plans

      Section 6 of this act

      Section 7 of this act

      Section 8 of this act

      Section 9 of this act

      RCW 90.64.028

      Section 17 of this act

      (4) Field inspection and compliance

      Section 27 of this act

      Section 28 of this act

      RCW 90.64.023

      Section 29 of this act

      RCW 90.64.030

      Section 31 of this act

      Section 35 of this act

      Section 34 of this act

      Section 32 of this act

      RCW 90.64.040

      Section 30 of this act

      Section 33 of this act

      Section 37 of this act

      RCW 90.64.100

      (5) Miscellaneous

      Section 18 of this act

      Section 19 of this act

      RCW 90.64.813

      RCW 90.64.150

      Section 38 of this act

      Section 50 of this act

      NEW SECTION. Sec. 49. Section 44 of this act is added to chapter 70.95 RCW to be codified after RCW 70.95.305.

      NEW SECTION. Sec. 50. 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."

      On page 1, line 1 of the title, after "nutrients;" strike the remainder of the title and insert "amending RCW 90.64.005, 90.64.010, 90.64.020, 90.64.023, 90.64.028, 90.64.030, 90.64.040, 90.64.050, 90.64.110, 90.64.150, 43.21B.001, 43.21B.110, 43.21B.300, 43.21B.310, 90.64.813, and 70.95.315; adding a new section to chapter 70.95 RCW; adding a new chapter to Title 16 RCW; creating a new section; recodifying RCW 90.64.005, 90.64.010, 90.64.050, 90.64.110, 90.64.120, 90.64.020, 90.64.028, 90.64.023, 90.64.030, 90.64.040, 90.64.100, 90.64.813, and 90.64.150; decodifying RCW 90.64.900 and 90.64.901; repealing RCW 90.64.015, 90.64.017, 90.64.026, 90.64.070, 90.64.080, 90.64.130, 90.64.140, 90.64.160, and 90.64.800; prescribing penalties; and providing a contingent expiration date."

and the same are herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

      Senator Rasmussen moved that the Senate refuse to concur in the House amendment(s) to Substitute Senate Bill No. 5602 and ask the House to recede therefrom.

      Senators Rasmussen and Schoesler spoke in favor of the motion.

      The President declared the question before the Senate to be the motion by Senator Rasmussen that the Senate refuse to concur in the House amendment(s) to Substitute Senate Bill No. 5602 and ask the House to recede therefrom.

      The motion by Senator Rasmussen carried and the Senate refused to concur in the House amendment(s) to Substitute Senate Bill No. 5602 and asked the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 13, 2005

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5620, with the following amendment{s}:

      On page 2, beginning on line 12, strike all of subsection (d)

      Reletter the remaining subsection consecutively.

and the same are herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

      Senator Berkey moved that the Senate refuse to concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5620 and ask the House to recede therefrom.

      Senators Berkey spoke in favor of the motion.

      The President declared the question before the Senate to be the motion by Senator Berkey that the Senate refuse to concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5620 and ask the House to recede therefrom.

      The motion by Senator Berkey carried and the Senate refused to concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5620 and asked the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 11, 2005

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5719, with the following amendment{s}:

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 13.40.169 and 2003 c 378 s 5 are each amended to read as follows:

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

      (1) ((When)) Any county or group of cooperating counties within close proximity may establish a program to implement the community commitment disposition alternative under this section. A program established by a county or group of cooperating counties shall be limited to ten beds. A court in a county that has established a program under this section or has entered an agreement with other counties to establish such a program may impose a community commitment disposition alternative as provided in this section.

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

      (a) The offender is subject to a standard range commitment of 15 to 36 weeks ((and));

      (b) The offender is ineligible for a suspended disposition alternative, a manifest injustice disposition below the standard range, special sex offender disposition alternative, chemical dependency disposition alternative, or mental health disposition alternative((, the court in a county with a pilot program under this section may impose a community commitment disposition alternative and:));

      (c) The offender is appropriate for the community commitment disposition alternative considering the youth's offense, prior criminal history, security classification, risk level, treatment needs, and history; and

      (d) One of the following factors exists:

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

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

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

      (3) If the court imposes a community commitment disposition alternative sentence, the court may:

      (a) ((Retain juvenile court jurisdiction over the youth;

      (b))) Confine the youth in a secure county detention facility ((for a period of time not to exceed thirty days)), or an alternative to secure county detention pursuant to subsection (5) of this section; and

      (((c))) (b) Impose a term of postrelease community supervision for up to one year that includes a reintegration program as defined in subsection (4) of this section.

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

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

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

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

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

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

      (4) ((Upon approval of the treatment and community reintegration plan)) (a) The community commitment disposition alternative sentence shall include a treatment and community reintegration plan designed to address the needs of the juvenile that is approved by the court. The reintegration plan under this section shall include delivery of programs which meet the Washington state institute for public policy's effectiveness standards for juvenile accountability programs; and

      (b) If the court finds that a community commitment disposition alternative is appropriate, the court shall order the youth into secure county detention while the details of the reintegration program are developed.

      (5) If the court orders a sentence under this section, the court may order the youth to serve the term of confinement in one or more of the following placements or combination of placements: Secure county detention, an alternative to secure county detention such as electronic home monitoring, county group care, day or evening reporting, or home detention. The court may order the youth to serve time in detention on weekends or intermittently. The court shall set periodic reviews to review the youth's progress in the program. ((At least fifty percent)) No more than a total of thirty days of the term of confinement shall be served in secure county detention.

      (((5))) (6)(a) If the youth violates the conditions of the community commitment program, the court may impose sanctions under RCW 13.40.200 or modify the terms of the reintegration plan and order the youth to serve all or a portion of ((the remaining confinement term)) any remaining thirty total days of confinement permitted under the disposition alternative in secure county detention or another alternative to secure county detention as described in subsection (5) of this section.

      (b) If the youth violates the terms of the disposition alternative a second time, the court shall revoke the community commitment disposition alternative and order the disposition's execution, with credit for time served, at a facility operated by the juvenile rehabilitation administration of the department of social and health services.

      (c) Except for a youth transferred to a facility operated by the juvenile rehabilitation administration, time not spent in secure county detention may be served in one of the alternative placements described in subsection (5) of this section. The court shall consider the youth's risk level in selecting alternative placements.

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

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

      (9) Each county or group of cooperating counties establishing a program to implement the community commitment disposition alternative under this act shall provide an interim report on a program to the Washington association of juvenile court administrators by November 1, 2006, and a final report by May 1, 2007. Each report shall include, but is not limited to, the number of offenders eligible for the program, the number of offenders sentenced to the program, evaluation and treatment costs for each participant, administrative costs, costs of detention, supervision, and other related costs, and whether an offender has reoffended after participation in the program. The Washington association of juvenile court administrators shall submit an interim report ((on)) analyzing the data submitted by each of the ((pilot)) programs established in this section to the legislature and appropriate committees by December 31, ((2004)) 2006, and submit a final report to the legislature and the appropriate committees by June 30, ((2005)) 2007.

      ((This section expires July 1, 2005.))

      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 July 1, 2005."

      Correct the title.

and the same are herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

      Senator Hargrove moved that the Senate refuse to concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5719 and ask the House to recede therefrom.

      Senators Hargrove and Stevens spoke in favor of the motion.

      The President declared the question before the Senate to be the motion by Senator Hargrove that the Senate refuse to concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5719 and ask the House to recede therefrom.

      The motion by Senator Hargrove carried and the Senate refused to concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5719 and asked the House to recede therefrom.

MESSAGE FROM THE HOUSE

April 14, 2005

MR. PRESIDENT:

      The House has passed ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5763, with the following amendment{s}:

      Strike everything after the enacting clause and insert the following:

"PART I

GENERAL PROVISIONS

      NEW SECTION. Sec. 101. The legislature finds that persons with mental disorders, chemical dependency disorders, or co-occurring mental and substance abuse disorders are disproportionately more likely to be confined in a correctional institution, become homeless, become involved with child protective services or involved in a dependency proceeding, or lose those state and federal benefits to which they may be entitled as a result of their disorders. The legislature finds that prior state policy of addressing mental health and chemical dependency in isolation from each other has not been cost-effective and has often resulted in longer-term, more costly treatment that may be less effective over time. The legislature finds that a substantial number of persons have co-occurring mental and substance abuse disorders and that identification and integrated treatment of co-occurring disorders is critical to successful outcomes and recovery. Consequently, the legislature intends, to the extent of available funding, to:

      (1) Establish a process for determining which persons with mental disorders and substance abuse disorders have co-occurring disorders;

      (2) Reduce the gap between available chemical dependency treatment and the documented need for treatment;

      (3) Improve treatment outcomes by shifting treatment, where possible, to evidence-based, research-based, and consensus-based treatment practices and by removing barriers to the use of those practices;

      (4) Expand the authority for and use of therapeutic courts including drug courts, mental health courts, and therapeutic courts for dependency proceedings;

      (5) Improve access to treatment for persons who are not enrolled in medicaid by improving and creating consistency in the application processes, and by minimizing the numbers of eligible confined persons who leave confinement without medical assistance;

      (6) Improve access to inpatient treatment by creating expanded services facilities for persons needing intensive treatment in a secure setting who do not need inpatient care, but are unable to access treatment under current licensing restrictions in other settings;

      (7) Establish secure detoxification centers for persons involuntarily detained as gravely disabled or presenting a likelihood of serious harm due to chemical dependency and authorize combined crisis responders for both mental disorders and chemical dependency disorders on a pilot basis and study the outcomes;

      (8) Slow or stop the loss of inpatient and intensive residential beds and children's long-term inpatient placements and refine the balance of state hospital and community inpatient and residential beds;

      (9) Improve cross-system collaboration including collaboration with first responders and hospital emergency rooms, schools, primary care, developmental disabilities, law enforcement and corrections, and federally funded and licensed programs;

      (10) Following the receipt of outcomes from the pilot programs in Part II of this act, if directed by future legislative enactment, implement a single, comprehensive, involuntary treatment act with a unified set of standards, rights, obligations, and procedures for adults and children with mental disorders, chemical dependency disorders, and co-occurring disorders; and

      (11) Amend existing state law to address organizational and structural barriers to effective use of state funds for treating persons with mental and substance abuse disorders, minimize internal inconsistencies, clarify policy and requirements, and maximize the opportunity for effective and cost-effective outcomes.

      NEW SECTION. Sec. 102. (1) The department of social and health services shall explore and report to the appropriate committees of the legislature by December 1, 2005, on the feasibility, costs, benefits, and time frame to access federal medicaid funds for mental health and substance abuse treatment under the following provisions:

      (a) The optional clinic provisions;

      (b) Children's mental health treatment or co-occurring disorders treatment under the early periodic screening, diagnosis, and treatment provisions.

      (2) The department shall provide the appropriate committees of the legislature with a clear and concise explanation of the reasons for reducing state hospital capacity and the differences in costs and benefits of treatment in state and community hospital treatment.

      (3) The department may not reduce the capacity of either state hospital until at least an equal number of skilled nursing, residential, expanded services facility, or supported housing placements are available in the community to the persons displaced by the capacity reduction.

Mental Health Treatment

    NEW SECTION. Sec. 103. A new section is added to chapter 71.05 RCW to read as follows:

    (1) Not later than January 1, 2007, all persons providing treatment under this chapter shall also implement the integrated comprehensive screening and assessment process for chemical dependency and mental disorders adopted pursuant to section 601 of this act and shall document the numbers of clients with co-occurring mental and substance abuse disorders based on a quadrant system of low and high needs. 

    (2) Treatment providers and regional support networks who fail to implement the integrated comprehensive screening and assessment process for chemical dependency and mental disorders by July 1, 2007, shall be subject to contractual penalties established under section 601 of this act.

    Sec. 104. RCW 71.05.020 and 2000 c 94 s 1 are each amended to read as follows:

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

    (1) "Admission" or "admit" means a decision by a physician that a person should be examined or treated as a patient in a hospital;

    (2) "Antipsychotic medications" means that class of drugs primarily used to treat serious manifestations of mental illness associated with thought disorders, which includes, but is not limited to atypical antipsychotic medications;

    (3) "Attending staff" means any person on the staff of a public or private agency having responsibility for the care and treatment of a patient;

    (4) "Commitment" means the determination by a court that a person should be detained for a period of either evaluation or treatment, or both, in an inpatient or a less restrictive setting;

    (5) "Conditional release" means a revocable modification of a commitment, which may be revoked upon violation of any of its terms;

    (6) (("County designated mental health professional" means a mental health professional appointed by the county to perform the duties specified in this chapter;

    (7))) "Custody" means involuntary detention under the provisions of this chapter or chapter 10.77 RCW, uninterrupted by any period of unconditional release from commitment from a facility providing involuntary care and treatment;

    (((8))) (7) "Department" means the department of social and health services;

    (((9))) (8) "Designated chemical dependency specialist" means a person designated by the county alcoholism and other drug addiction program coordinator designated under RCW 70.96A.310 to perform the commitment duties described in chapter 70.96A RCW and sections 202 through 216 of this act;

   (9) "Designated crisis responder" means a mental health professional appointed by the county or the regional support network to perform the duties specified in this chapter;

   (10) "Designated mental health professional" means a mental health professional certified by the department per rules adopted by the secretary and employed by or contracted with a regional support network established under chapter 71.24 RCW to perform duties specified in this chapter;

   (11) "Detention" or "detain" means the lawful confinement of a person, under the provisions of this chapter;

   (((10))) (12) "Developmental disabilities professional" means a person who has specialized training and three years of experience in directly treating or working with persons with developmental disabilities and is a psychiatrist, psychologist, or social worker, and such other developmental disabilities professionals as may be defined by rules adopted by the secretary;

   (((11))) (13) "Developmental disability" means that condition defined in RCW 71A.10.020(3);

   (((12))) (14) "Discharge" means the termination of hospital medical authority. The commitment may remain in place, be terminated, or be amended by court order;

   (((13))) (15) "Evaluation and treatment facility" means any facility which can provide directly, or by direct arrangement with other public or private agencies, emergency evaluation and treatment, outpatient care, and timely and appropriate inpatient care to persons suffering from a mental disorder, and which is certified as such by the department. A physically separate and separately operated portion of a state hospital may be designated as an evaluation and treatment facility. A facility which is part of, or operated by, the department or any federal agency will not require certification. No correctional institution or facility, or jail, shall be an evaluation and treatment facility within the meaning of this chapter;