S-2513

AN ACT Relating to fiscal matters; making appropriations and authorizing expenditures for the operations of state agencies for the fiscal biennium beginning July 1, 1997, and ending June 30, 1999; amending RCW 18.51.060, 43.08.250, 79.24.580, 86.26.007, and 90.56.510; creating new sections; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. (1) A budget is hereby adopted and, subject to the provisions set forth in the following sections, the several amounts specified in the following sections, or so much thereof as shall be sufficient to accomplish the purposes designated, are hereby appropriated and authorized to be incurred for salaries, wages, and other expenses of the agencies and offices of the state and for other specified purposes for the fiscal biennium beginning July 1, 1997, and ending June 30, 1999, except as otherwise provided, out of the several funds of the state hereinafter named.

(2) Unless the context clearly requires otherwise, the definitions in this section apply throughout this act.

(a) "Fiscal year 1998" or "FY 1998" means the fiscal year ending June 30, 1998.

(b) "Fiscal year 1999" or "FY 1999" means the fiscal year ending June 30, 1999.

(d) "Lapse" or "revert" means the amount shall return to an unappropriated status.

(e) "Provided solely" means the specified amount may be spent only for the specified purpose. Unless otherwise specifically authorized in this act, any portion of an amount provided solely for a specified purpose which is unnecessary to fulfill the specified purpose shall lapse.

PART I

GENERAL GOVERNMENT

NEW SECTION. Sec. 101. FOR THE HOUSE OF REPRESENTATIVES

General Fund Appropriation (FY 1998)................ $ 23,778,000

General Fund Appropriation (FY 1999)................ $ 25,575,000

TOTAL APPROPRIATION...................... $ 49,353,000

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

(1) $75,000 of the general fund fiscal year 1998 appropriation and $75,000 of the general fund fiscal year 1999 appropriation are provided solely for the independent operations of the legislative ethics board. Expenditure decisions of the board, including employment of staff, shall be independent of the senate and house of representatives.

(2) $25,000 of the general fund fiscal year 1998 appropriation is provided solely to implement Substitute Senate Concurrent Resolution No. 8408 (water policy report). If the concurrent resolution is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

NEW SECTION. Sec. 102. FOR THE SENATE

General Fund Appropriation (FY 1998)................ $ 19,257,000

General Fund Appropriation (FY 1999)................ $ 20,663,000

TOTAL APPROPRIATION...................... $ 39,920,000

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

NEW SECTION. Sec. 103. FOR THE JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEE

General Fund Appropriation (FY 1998)................ $ 1,474,000

General Fund Appropriation (FY 1999)................ $ 1,837,000

TOTAL APPROPRIATION...................... $ 3,311,000

The appropriations in this section are subject to the following conditions and limitations: $103,000 of the general fund fiscal year 1998 appropriation and $412,000 of the general fund fiscal year 1999 appropriation are provided solely to implement Substitute Senate Bill No. 5633 (performance audit of the department of transportation). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

NEW SECTION. Sec. 104. FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEE

General Fund Appropriation (FY 1998)................ $ 1,263,000

General Fund Appropriation (FY 1999)................ $ 1,332,000

TOTAL APPROPRIATION...................... $ 2,595,000

The appropriations in this section are subject to the following conditions and limitations: The committee shall conduct an inventory and examination of state data processing projects funded in this act and make recommendations to improve the accountability and legislative evaluation and oversight of these projects.

NEW SECTION. Sec. 105. FOR THE OFFICE OF THE STATE ACTUARY

Department of Retirement Systems Expense Account

Appropriation................................... $ 1,681,000

NEW SECTION. Sec. 106. FOR THE JOINT LEGISLATIVE SYSTEMS COMMITTEE

General Fund Appropriation (FY 1998)................ $ 5,430,000

General Fund Appropriation (FY 1999).. ............ $ 5,430,000

TOTAL APPROPRIATION...................... $ 10,860,000

The appropriations in this section are subject to the following conditions and limitations: $800,000 of the general fund fiscal year 1998 appropriation and $800,000 of the general fund fiscal year 1999 appropriation are provided solely for purchasing computers and related equipment on behalf of the senate, house of representatives, and statute law committee. Equipment shall be purchased only at the request of the customer agencies.

NEW SECTION. Sec. 107. FOR THE STATUTE LAW COMMITTEE

General Fund Appropriation (FY 1998)................ $ 3,226,000

General Fund Appropriation (FY 1999)................ $ 3,559,000

TOTAL APPROPRIATION...................... $ 6,785,000

NEW SECTION. Sec. 108. FOR THE SUPREME COURT

General Fund Appropriation (FY 1998)................ $ 4,640,000

General Fund Appropriation (FY 1999)................ $ 4,813,000

TOTAL APPROPRIATION...................... $ 9,453,000

NEW SECTION. Sec. 109. FOR THE LAW LIBRARY

General Fund Appropriation (FY 1998)................ $ 1,769,000

General Fund Appropriation (FY 1999)................ $ 1,785,000

TOTAL APPROPRIATION...................... $ 3,554,000

NEW SECTION. Sec. 110. FOR THE COURT OF APPEALS

General Fund Appropriation (FY 1998)................ $ 10,225,000

General Fund Appropriation (FY 1999)................ $ 10,133,000

TOTAL APPROPRIATION...................... $ 20,358,000

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

(1) $271,000 of the general fund fiscal year 1999 appropriation is provided solely for an additional judge position and related support staff in division I, effective July 1, 1998.

(2) $490,000 of the general fund fiscal year 1998 appropriation is provided solely for remodeling existing space in division I court facilities to house additional staff.

NEW SECTION. Sec. 111. FOR THE COMMISSION ON JUDICIAL CONDUCT

General Fund Appropriation (FY 1998)................ $ 652,000

General Fund Appropriation (FY 1999)................ $ 653,000

TOTAL APPROPRIATION...................... $ 1,305,000

NEW SECTION. Sec. 112. FOR THE ADMINISTRATOR FOR THE COURTS

General Fund Appropriation (FY 1998)................ $ 12,588,000

General Fund Appropriation (FY 1999)................ $ 12,595,000

Public Safety and Education Account

Appropriation................................... $ 31,134,000

Judicial Information Systems Account

Appropriation................................... $ 16,305,000

TOTAL APPROPRIATION...................... $ 72,622,000

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

(1) The judicial information systems account appropriation shall be used for expanding information technology services to the courts and operating and technology improvements for the supreme court, court of appeals, and the office of administrator for the courts.

(2) No moneys appropriated in this section may be expended by the administrator for the courts for payments in excess of fifty percent of the employer contribution on behalf of superior courts judges for insurance and health care plans and federal social security and medicare and medical aid benefits. Consistent with Article IV, section 13 of the state Constitution and 1996 Attorney General's Opinion No. 2, it is the intent of the legislature that the cost of these employer contributions shall be shared equally between the state and county or counties in which the judges serve. The administrator for the courts shall continue to implement procedures for the collection and disbursement of these employer contributions.

(3) $6,510,000 of the public safety and education account appropriation is provided solely for the continuation of treatment alternatives to street crimes (TASC) programs in Pierce, Snohomish, Clark, King, Spokane, and Yakima counties.

(4) $125,000 of the public safety and education account appropriation is provided solely for Thurston county impact costs.

(5) $223,000 of the public safety and education account appropriation is provided solely for the gender and justice commission.

(6) $308,000 of the public safety and education account appropriation is provided solely for the minority and justice commission.

(7) $400,000 of the judicial information technology system account appropriation is provided solely for year 2000 date conversion of judicial information technology systems.

(8) $100,000 of the general fund fiscal year 1998 appropriation and $100,000 of the general fund fiscal year 1999 appropriation are provided solely for judicial program enhancements. Within the funding provided in this subsection, the office of administrator of courts in consultation with the supreme court shall determine the program or programs to receive an enhancement.

NEW SECTION. Sec. 113. FOR THE OFFICE OF PUBLIC DEFENSE

Public Safety and Education Account

Appropriation................................... $ 12,187,000

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

(1) The cost of defending indigent offenders in death penalty cases has escalated significantly over the last four years. The office of public defense advisory committee shall analyze the current methods for reimbursing private attorneys and shall develop appropriate standards and criteria designed to control costs and still provide indigent defendants their constitutional right to representation at public expense. The office of public defense advisory committee shall report its findings and recommendations to the supreme court and the appropriate legislative committees by December 31, 1997.

(2) $688,000 of the public safety and education account appropriation is provided solely to increase the reimbursement for private attorneys providing constitutionally mandated indigent defense in nondeath penalty cases.

NEW SECTION. Sec. 114. FOR THE OFFICE OF THE GOVERNOR

General Fund--State Appropriation (FY 1998)......... $ 4,796,000

General Fund--State Appropriation (FY 1999)......... $ 4,710,000

General Fund--Federal Appropriation.................. $ 188,000

Water Quality Account Appropriation.................. $ 884,000

TOTAL APPROPRIATION...................... $ 10,578,000

The appropriations in this section are subject to the following conditions and limitations: $170,000 of the general fund--state appropriation for fiscal year 1998, $171,000 of the general fund--state appropriation for fiscal year 1999, and $884,000 of the water quality account appropriation are provided solely for the implementation of the Puget Sound work plan and agency action items PSAT-01 and PSAT-03.

NEW SECTION. Sec. 115. FOR THE LIEUTENANT GOVERNOR

General Fund Appropriation (FY 1998)................ $ 282,000

General Fund Appropriation (FY 1999)................ $ 283,000

TOTAL APPROPRIATION...................... $ 565,000

NEW SECTION. Sec. 116. FOR THE PUBLIC DISCLOSURE COMMISSION

General Fund Appropriation (FY 1998)................ $ 1,457,000

General Fund Appropriation (FY 1999)................ $ 1,206,000

TOTAL APPROPRIATION...................... $ 2,663,000

The appropriations in this section are subject to the following conditions and limitations: $306,000 of the general fund fiscal year 1998 appropriation and $72,000 of the general fund fiscal year 1999 appropriation are provided solely for technology for customer service improvements.

NEW SECTION. Sec. 117. FOR THE SECRETARY OF STATE

General Fund Appropriation (FY 1998)................ $ 7,904,000

General Fund Appropriation (FY 1999)................ $ 5,751,000

Archives & Records Management Account--State

Appropriation................................... $ 4,032,000

Archives & Records Management Account--Private/Local

Appropriation................................... $ 2,553,000

Department of Personnel Service Account

Appropriation................................... $ 663,000

TOTAL APPROPRIATION...................... $ 20,903,000

The appropriations in this section are subject to the following conditions and limitations: $45,000 of the general fund fiscal year 1998 appropriation is provided solely for an economic feasibility study of a state horse park.

NEW SECTION. Sec. 118. FOR THE GOVERNOR'S OFFICE OF INDIAN AFFAIRS

General Fund Appropriation (FY 1998)................ $ 265,000

General Fund Appropriation (FY 1999)................ $ 268,000

TOTAL APPROPRIATION...................... $ 533,000

NEW SECTION. Sec. 119. FOR THE COMMISSION ON ASIAN-AMERICAN AFFAIRS

General Fund Appropriation (FY 1998)................ $ 200,000

General Fund Appropriation (FY 1999)................ $ 201,000

TOTAL APPROPRIATION...................... $ 401,000

NEW SECTION. Sec. 120. FOR THE STATE TREASURER

State Treasurer's Service Account

Appropriation................................... $ 11,567,000

NEW SECTION. Sec. 121. FOR THE STATE AUDITOR

General Fund Appropriation (FY 1998)................ $ 678,000

General Fund Appropriation (FY 1999)................ $ 678,000

State Auditing Services Revolving Account

Appropriation................................... $ 11,928,000

TOTAL APPROPRIATION...................... $ 13,284,000

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

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

(2) $420,000 of the general fund appropriation for fiscal year 1998 and $420,000 of the general fund appropriation for fiscal year 1999 are provided solely for staff and related costs to audit special education programs that exhibit unusual rates of growth, extraordinarily high costs, or other characteristics requiring attention of the state safety net committee. The auditor shall consult with the superintendent of public instruction regarding training and other staffing assistance needed to provide expertise to the audit staff.

(3) $250,000 of the general fund fiscal year 1998 appropriation and $250,000 of the general fund fiscal year 1999 appropriation are provided solely for the budget and reporting system (BARS) to improve the reporting of local government fiscal data. Audits of counties and cities by the division of municipal corporations shall include findings regarding the completeness, accuracy, and timeliness of BARS data reported to the state auditor's office.

NEW SECTION. Sec. 122. FOR THE CITIZENS' COMMISSION ON SALARIES FOR ELECTED OFFICIALS

General Fund Appropriation (FY 1998)................ $ 4,000

General Fund Appropriation (FY 1999)................ $ 63,000

TOTAL APPROPRIATION...................... $ 67,000

NEW SECTION. Sec. 123. FOR THE ATTORNEY GENERAL

General Fund--State Appropriation (FY 1998)......... $ 3,721,000

General Fund--State Appropriation (FY 1999)......... $ 3,721,000

General Fund--Federal Appropriation.................. $.................................. 2,248,000

Public Safety and Education Account

Appropriation................................... $ 1,300,000

New Motor Vehicle Arbitration Account

Appropriation................................... $ 1,094,000

Legal Services Revolving Account

Appropriation................................... $ 125,008,000

TOTAL APPROPRIATION...................... $ 137,092,000

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

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

(2) The attorney general shall include, at a minimum, the following information with each bill sent to agencies receiving legal services: (a) The number of hours and cost of attorney services provided during the billing period; (b) cost of support staff services provided during the billing period; (c) attorney general overhead and central support costs charged to the agency for the billing period; (d) direct legal costs, such as filing and docket fees, charged to the agency for the billing period; and (e) other costs charged to the agency for the billing period. The attorney general may, with approval of the office of financial management change its billing system to meet the needs of its user agencies.

(3) $300,000 of the general fund fiscal year 1998 appropriation and $300,000 of the general fund fiscal year 1999 appropriation are provided for environmental damage assessments and other costs related to legal action to remedy mining-related pollution in the Coeur d'Alene river drainage.

NEW SECTION. Sec. 124. FOR THE DEPARTMENT OF FINANCIAL INSTITUTIONS

Securities Regulation Account Appropriation......... $ 5,445,000

The appropriation in this section is subject to the following conditions and limitations: $34,000 of the securities regulation account appropriation is provided solely for the implementation of House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amount provided shall lapse.

NEW SECTION. Sec. 125. FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

General Fund--State Appropriation (FY 1998)......... $ 54,845,000

General Fund--State Appropriation (FY 1999)......... $ 53,759,000

General Fund--Federal Appropriation.................. $.................................. 155,278,000

General Fund--Private/Local Appropriation........... $ 6,903,000

Public Safety and Education Account

Appropriation................................... $ 8,781,000

Drinking Water Assistance Account‑-Federal

Appropriation................................... $ 852,000

Public Works Assistance Account

Appropriation................................... $ 2,223,000

Building Code Council Account Appropriation......... $ 1,318,000

Administrative Contingency Account

Appropriation................................... $ 1,776,000

Low-Income Weatherization Assistance Account

Appropriation................................... $ 923,000

Violence Reduction and Drug Enforcement Account

Appropriation................................... $ 6,042,000

Manufactured Home Installation Training Account

Appropriation................................... $ 250,000

Washington Housing Trust Account

Appropriation................................... $ 7,999,000

Public Facility Construction Loan Revolving Account

Appropriation................................... $ 419,000

TOTAL APPROPRIATION...................... $ 301,368,000

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

(1) $3,032,500 of the general fund--state appropriation for fiscal year 1998 and $3,032,500 of the general fund--state appropriation for fiscal year 1999 are provided solely for a contract with the Washington technology center. For work essential to the mission of the Washington technology center and conducted in partnership with universities, the center shall not pay any increased indirect rate nor increases in other indirect charges above the absolute amount paid during the 1995-97 biennium.

(2) $155,000 of the general fund--state appropriation for fiscal year 1998 and $155,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for a contract with the Washington manufacturing extension partnership.

(3) $9,964,000 of the general fund--federal appropriation is provided solely for the drug control and system improvement formula grant program, to be distributed in state fiscal year 1998 as follows:

(a) $3,603,250 to local units of governments to continue the multi-jurisdictional narcotics task forces;

(b) $500,000 to the department to continue the state-wide drug prosecution assistance program in support of multijurisdictional narcotics task forces;

(c) $1,306,075 to the Washington state patrol for coordination, investigative, and supervisory support to the multijurisdictional narcotics task forces and for methamphetamine education and response;

(d) $240,000 to the department for grants to support tribal law enforcement needs;

(e) $900,000 to drug courts in eastern and western Washington;

(f) $300,000 to the department for grants to provide sentencing alternatives training programs to defenders;

(g) $200,000 for grants to support substance-abuse treatment in county jails;

(h) $517,075 to the department for legal advocacy for victims of domestic violence and for training of local law enforcement officers and prosecutors on domestic violence laws and procedures;

(i) $903,000 to the department to continue youth violence prevention and intervention projects;

(j) $191,000 for the governor's council on substance abuse;

(k) $99,000 for program evaluation and monitoring;

(l) $498,200 for development of a state-wide system to track criminal history records; and

(m) No more than $706,400 to the department for grant administration and reporting.

If any funds are unexpended from prior or current fiscal year Byrne grant distributions, the department shall hold these funds in reserve. These funds shall be applied to the pool of funds available for programs and projects in the succeeding fiscal year. In accordance with federal guidelines, no more than ten percent of Byrne grant funds may be spent on administrative and reporting activities.

(4) $75,000 of the general fund‑-state appropriation for fiscal year 1999 is provided solely for state sponsorship of a biotechnology conference in the Seattle area in 1999.

(5) $121,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for the implementation of Substitute Senate Bill No. 5919 (sex offender sentencing alternative). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(6) $1,371,000 of the general fund--state appropriation for fiscal year 1998 and $1,371,500 of the general fund--state appropriation for fiscal year 1999 are provided solely for contracting with associate development organizations.

(7) $4,804,000 of the public safety and education account appropriation is contingent upon enactment of House Bill No. 2276 (civil legal services for indigent persons). If the bill or substantially similar legislation is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

NEW SECTION. Sec. 126. FOR THE ECONOMIC AND REVENUE FORECAST COUNCIL

General Fund Appropriation (FY 1998)................ $ 452,000

General Fund Appropriation (FY 1999)................ $ 453,000

TOTAL APPROPRIATION...................... $ 905,000

NEW SECTION. Sec. 127. FOR THE OFFICE OF FINANCIAL MANAGEMENT

General Fund--State Appropriation (FY 1998)......... $ 10,052,000

General Fund--State Appropriation (FY 1999)......... $ 9,792,000

General Fund--Federal Appropriation.................. $.................................. 23,331,000

TOTAL APPROPRIATION...................... $ 43,175,000

The appropriations in this section are subject to the following conditions and limitations: Up to $50,000 of the general fund--state appropriation for fiscal year 1998 shall be spent solely on the investigation of the development of funding alternatives for higher education to support curriculum development, instructional coordination, and registration for college courses taught by high school teachers to high school students through college in the high school offerings. The office of financial management shall conduct the investigation with appropriate input from the K-12 and higher education systems. The results of the investigation shall be reported to the governor and the legislature by January 1, 1998.

NEW SECTION. Sec. 128. FOR THE OFFICE OF ADMINISTRATIVE HEARINGS

Administrative Hearings Revolving Account

Appropriation................................... $ 19,615,000

The appropriation in this section is subject to the following conditions and limitations: $1,798,000 of the administrative hearings revolving fund appropriation is provided solely to implement the welfare reform act, House Bill No. 3901. If the bill is not enacted by June 30, 1997, the amount provided shall lapse.

NEW SECTION. Sec. 129. FOR THE DEPARTMENT OF PERSONNEL

Department of Personnel Service Account

Appropriation................................... $ 16,493,000

Higher Education Personnel Services Account

Appropriation................................... $ 1,632,000

TOTAL APPROPRIATION...................... $ 18,125,000

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

(1) The department shall reduce its charge for personnel services to the lowest rate possible.

(2) The department of personnel service account appropriation contains sufficient funds to continue the employee exchange program with the Hyogo prefecture in Japan.

(3) $500,000 of the department of personnel service account appropriation is provided solely for the career transition program to assist state employees who are separated or are at risk of lay-off due to reduction-in-force. Services shall include employee retraining and career counseling.

(4) $800,000 of the department of personnel service account appropriation is provided solely for the human resource data warehouse to: Expand the type and amount of information available on the state-wide work force; and to provide the office of financial management, legislature, and state agencies with direct access to the data for policy and planning purposes. The department of personnel shall establish uniform reporting procedures, applicable to all state agencies and higher education institutions, for reporting data to the data warehouse by June 30, 1998. The department of personnel will report quarterly to the legislative fiscal committees, the information services board, and the office of information technology oversight of the department of information services the following items: (a) The number of state agencies that have received access to the data warehouse (it is anticipated that approximately 40 agencies will receive access during the 1997-99 biennium); (b) the change in requests for downloads from the mainframe computer by agencies with access to the data warehouse, to reflect transferring customers use of the mainframe computer to the more economical use of data warehouse information; and (c) a summary of customer feedback from agencies with access to the data warehouse. Authority to expend this amount is conditioned on compliance with section 902 of this act.

(5) The department of personnel has the authority to charge agencies for expenses associated with converting its payroll/personnel computer system to accommodate the year 2000 date change. Funding to cover these expenses shall be realized from the agency FICA savings associated with the pretax benefits contributions plan.

(6) The department of personnel shall charge all administrative services costs incurred by the department of retirement systems for the deferred compensation program. The billings to the department of retirement systems shall be for actual costs only.

NEW SECTION. Sec. 130. FOR THE WASHINGTON STATE LOTTERY

Industrial Insurance Premium Refund

Appropriation................................... $ 9,000

Lottery Administrative Account

Appropriation................................... $ 20,116,000

TOTAL APPROPRIATION...................... $ 20,125,000

The appropriations in this section are subject to the following conditions and limitations: $150,000 of the lottery administrative account appropriation is provided solely for allocation to the gambling commission to implement a program for compulsive gambling education and awareness.

NEW SECTION. Sec. 131. FOR THE COMMISSION ON HISPANIC AFFAIRS

General Fund Appropriation (FY 1998)................ $ 199,000

General Fund Appropriation (FY 1999)................ $ 208,000

TOTAL APPROPRIATION...................... $ 407,000

NEW SECTION. Sec. 132. FOR THE COMMISSION ON AFRICAN-AMERICAN AFFAIRS

General Fund Appropriation (FY 1998)................ $ 170,000

General Fund Appropriation (FY 1999)................ $ 168,000

TOTAL APPROPRIATION...................... $ 338,000

NEW SECTION. Sec. 133. FOR THE PERSONNEL APPEALS BOARD

Department of Personnel Service Account

Appropriation................................... $ 1,539,000

NEW SECTION. Sec. 134. FOR THE DEPARTMENT OF RETIREMENT SYSTEMS--OPERATIONS

Dependent Care Administrative Account

Appropriation................................... $ 357,000

Department of Retirement Systems Expense Account

Appropriation................................... $ 31,514,000

TOTAL APPROPRIATION...................... $ 31,871,000

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

(1) $1,373,000 of the department of retirement systems expense account appropriation is provided solely for the information systems project known as the electronic document image management system. Authority to expend this amount is conditioned on compliance with section 902 of this act.

(2) $1,259,000 of the department of retirement systems expense account appropriation is provided solely for the information systems project known as the receivables management system. Authority to expend this amount is conditioned on compliance with section 902 of this act.

NEW SECTION. Sec. 135. FOR THE STATE INVESTMENT BOARD

State Investment Board Expense Account Appropriation $ 10,303,000

NEW SECTION. Sec. 136. FOR THE DEPARTMENT OF REVENUE

General Fund Appropriation (FY 1998)................ $ 65,045,000

General Fund Appropriation (FY 1999)................ $ 65,335,000

Timber Tax Distribution Account

Appropriation............................... ... $ 4,778,000

Waste Reduction/Recycling/Litter Control

Appropriation................................... $ 200,000

State Toxics Control Account Appropriation.......... $ 67,000

Solid Waste Management Account

Appropriation................................... $ 92,000

Oil Spill Administration Account

Appropriation............................... ... $ 14,000

TOTAL APPROPRIATION...................... $ 135,531,000

NEW SECTION. Sec. 137. FOR THE BOARD OF TAX APPEALS

General Fund Appropriation (FY 1998)................ $ 885,000

General Fund Appropriation (FY 1999)................ $ 889,000

TOTAL APPROPRIATION...................... $ 1,774,000

NEW SECTION. Sec. 138. FOR THE MUNICIPAL RESEARCH COUNCIL

General Fund Appropriation (FY 1998)................ $ 1,651,000

General Fund Appropriation (FY 1999)................ $ 1,743,000

TOTAL APPROPRIATION...................... $ 3,394,000

NEW SECTION. Sec. 139. FOR THE OFFICE OF MINORITY AND WOMEN'S BUSINESS ENTERPRISES

OMWBE Enterprises Account Appropriation............. $ 2,357,000

NEW SECTION. Sec. 140. FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

General Fund--State Appropriation (FY 1998)......... $ 1,302,000

General Fund--State Appropriation (FY 1999)......... $ 1,278,000

General Fund--Federal Appropriation.................. $.................................. 3,802,000

General Fund--Private/Local Appropriation........... $ 400,000

Motor Transport Account Appropriation............... $ 14,120,000

Air Pollution Control Account Appropriation......... $ 391,000

General Administration Facilities and Services

Revolving Account Appropriation.................. $ 22,299,000

Central Stores Revolving Account

Appropriation................................... $ 3,306,000

Energy Efficiency Services Account

Appropriation................................... $ 180,000

Risk Management Account Appropriation............... $ 2,328,000

TOTAL APPROPRIATION...................... $ 49,406,000

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

(1) $1,200,000 of the general fund--state appropriation for fiscal year 1998, $1,200,000 of the general fund--state appropriation for fiscal year 1999, and $2,700,000 of the general fund‑-federal appropriation are provided solely for the purchase of food for distribution to the state's food bank network and related expenses.

(2) $25,000 of the general fund‑-state appropriation for fiscal year 1998 is provided solely for the World War II memorial on the condition that the currently approved design for the World War II memorial be sited on the location selected by the World War II advisory committee and approved and recommended by the capitol campus design advisory committee. This site is immediately south of the Columbia street and 11th avenue axial on the west capitol campus.

(3) Except for the World War II memorial, no additional monuments may be placed on the capitol campus until the completion of the capitol campus monuments and memorial policy by the department of general administration, adoption of the policy by the state capitol committee, and inclusion of the policy in the department of general administration's administrative code.

(4) Using funds provided in this section, the department shall implement Substitute Senate Bill No. 5077 (integrated pest management).

NEW SECTION. Sec. 141. FOR THE DEPARTMENT OF INFORMATION SERVICES

Data Processing Revolving Account

Appropriation................................... $ 3,577,000

K-20 Technology Account Appropriation............... $ 35,728,000

TOTAL APPROPRIATION...................... $ 39,305,000

The appropriation in this section is subject to the following conditions and limitations: The department shall provide a toll-free telephone number and operator service staff for the general public to call for information about state agencies. The department may provide such staff, equipment, and facilities as are necessary for this purpose. The director shall adopt rules to fix terms and charges for these services. All state agencies and the legislature shall participate in the information program and shall reimburse the department of information services in accordance with rules established by the director. The department shall also provide conference calling services for state and other public agencies on a fee-for-service basis.

NEW SECTION. Sec. 142. FOR THE INSURANCE COMMISSIONER

General Fund--Federal Appropriation.................. $ 106,000

Insurance Commissioners Regulatory Account

Appropriation................................... $ 22,181,000

TOTAL APPROPRIATION...................... $ 22,287,000

The appropriations in this section are subject to the following conditions and limitations: $532,000 of the insurance commissioner's regulatory account appropriation is provided solely for the expenditure of funds received under the consent order with the Prudential insurance company. These funds are provided solely for implementing the Prudential remediation process and for examinations of the Prudential company.

NEW SECTION. Sec. 143. FOR THE BOARD OF ACCOUNTANCY

Certified Public Accountants' Account

Appropriation................................... $ 978,000

The appropriation in this section is subject to the following conditions and limitations: $22,000 of the certified public accountants' account appropriation is provided solely for the implementation of House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amount provided shall lapse.

NEW SECTION. Sec. 144. FOR THE DEATH INVESTIGATION COUNCIL

Death Investigations Account Appropriation.......... $ 12,000

NEW SECTION. Sec. 145. FOR THE HORSE RACING COMMISSION

Horse Racing Commission Account Appropriation........ $........................................... 4,828,000

NEW SECTION. Sec. 146. FOR THE LIQUOR CONTROL BOARD

General Fund Appropriation (FY 1998)................ $ 1,728,000

General Fund Appropriation (FY 1999)................ $ 1,367,000

Liquor Control Board Construction and Maintenance

Account Appropriation........................... $ 9,919,000

Liquor Revolving Account Appropriation.............. $ 122,456,000

TOTAL APPROPRIATION...................... $ 135,470,000

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

(1) $1,250,000 of the liquor revolving account appropriation is provided solely for the agency information technology upgrade. This item is conditioned on satisfying the requirements of section 902 of this act, including the development of a project management plan, a project schedule, a project budget, a project agreement, and incremental funding based on completion of key milestones.

(2) $1,728,000 of the general fund fiscal year 1998 appropriation and $1,367,000 of the general fund fiscal year 1999 appropriation are provided solely to implement Senate Bill No. 6073 or House Bill No. 2218 (transferring enforcement provisions regarding cigarette and tobacco taxes to the liquor control board). If neither bill is enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(3) $387,000 of the liquor revolving account appropriation is provided solely for the implementation of Substitute Senate Bill No. 5791 (restricted liquor zones). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(4) $459,000 of the liquor revolving account appropriation is provided solely for implementation of Substitute Senate Bill No. 5664 (credit and debit cards purchases in state liquor stores). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(5) $154,000 of the liquor revolving account appropriation is provided solely for the implementation of House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

NEW SECTION. Sec. 147. FOR THE UTILITIES AND TRANSPORTATION COMMISSION

Public Service Revolving Account--State

Appropriation................................... $ 24,313,000

Public Service Revolving Account--Federal

Appropriation................................... $ 292,000

TOTAL APPROPRIATION...................... $ 24,605,000

NEW SECTION. Sec. 148. FOR THE BOARD FOR VOLUNTEER FIREFIGHTERS

Volunteer Firefighters' Relief & Pension Administrative

Account Appropriation........................... $ 529,000

NEW SECTION. Sec. 149. FOR THE MILITARY DEPARTMENT

General Fund--State Appropriation (FY 1998)......... $ 8,051,000

General Fund--State Appropriation (FY 1999)......... $ 18,002,000

General Fund--Federal Appropriation.................. $.................................. 28,117,000

General Fund--Private/Local Appropriation........... $ 238,000

Flood Control Assistance Account Appropriation...... $ 3,000,000

Enhanced 911 Account--State Appropriation........... $ 26,782,000

Disaster Response Account‑-State Appropriation...... $ 23,707,000

Disaster Response Account‑-Federal Appropriation.... $ 93,829,000

TOTAL APPROPRIATION...................... $ 201,726,000

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

(1) $9,948,000 of the general fund‑‑state appropriation for fiscal year 1999 and $3,000,000 of the flood control assistance account appropriation are appropriated to the disaster response account to cover costs pursuant to subsection (2) of this section.

(2) $23,707,000 of the disaster response account--state appropriation is provided solely for the state share of response and recovery costs associated with federal emergency management agency (FEMA) disaster number 1079 (November/December 1995 storms), FEMA disaster 1100 (February 1996 floods), FEMA disaster 1152 (November 1996 ice storm), FEMA disaster 1159 (December 1996 holiday storm), and to assist local governmental entities with the matching funds necessary to earn FEMA funds for FEMA disaster 1100 (February 1996 floods).

(3) $100,000 of the general fund‑-state fiscal year 1998 appropriation and $100,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the implementation of a conditional scholarship program pursuant to chapter 28B.103 RCW.

(4) $35,000 of the general fund‑-state fiscal year 1998 appropriation and $35,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the north county emergency medical service.

NEW SECTION. Sec. 150. FOR THE PUBLIC EMPLOYMENT RELATIONS COMMISSION

General Fund Appropriation (FY 1998)................ $ 1,768,000

General Fund Appropriation (FY 1999)................ $ 1,764,000

TOTAL APPROPRIATION...................... $ 3,532,000

NEW SECTION. Sec. 151. FOR THE GROWTH PLANNING HEARINGS BOARD

General Fund Appropriation (FY 1998)................ $ 1,384,000

General Fund Appropriation (FY 1999)................ $ 1,389,000

TOTAL APPROPRIATION...................... $ 2,773,000

NEW SECTION. Sec. 152. FOR THE STATE CONVENTION AND TRADE CENTER

State Convention and Trade Center Operating Account

Appropriation................................... $ 26,931,000

NEW SECTION. Sec. 153. FOR THE CASELOAD FORECAST COUNCIL

General Fund Appropriation (FY 1998)................ $ 489,000

General Fund Appropriation (FY 1999)................ $ 390,000

TOTAL APPROPRIATION...................... $ 879,000

The appropriations in this section are subject to the following conditions and limitations: The appropriations are provided solely to implement Substitute Senate Bill No. 5472 (caseload forecast council). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(End of part)

PART II

HUMAN SERVICES

NEW SECTION. Sec. 201. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES. (1) Appropriations made in this act to the department of social and health services shall initially be allotted as required by this act. Subsequent allotment modifications shall not include transfers of moneys between sections of this act except as expressly provided in this act, nor shall allotment modifications permit moneys that are provided solely for a specified purpose to be used for other than that purpose.

(2) The department of social and health services shall not initiate any services that will require expenditure of state general fund moneys unless expressly authorized in this act or other law. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation providing appropriation authority, and an equal amount of appropriated state general fund moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.

(3) The appropriations in sections 202 through 213 of this act shall be expended for the programs and in the amounts listed in those sections.

NEW SECTION. Sec. 202. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-CHILDREN AND FAMILY SERVICES PROGRAM

General Fund‑-State Appropriation (FY 1998)......... $ 193,366,000

General Fund‑-State Appropriation (FY 1999)......... $ 201,405,000

General Fund‑-Federal Appropriation.................. $.................................. 245,794,000

General Fund‑-Private/Local Appropriation........... $ 400,000

Violence Reduction and Drug Enforcement Account

Appropriation................................... $ 9,363,000

TOTAL APPROPRIATION...................... $ 650,328,000

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

(1) $18,242,000 of the general fund‑-state appropriation for fiscal year 1998 and $20,444,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for purposes consistent with the maintenance of effort requirements under the federal temporary assistance for needy families program established under P.L. 104-193.

(2) $8,497,000 of the violence reduction and drug enforcement account appropriation and $5,057,000 of the general fund--federal appropriation are provided solely for the operation of the family policy council, the community public health and safety networks, and delivery of services authorized under the federal family preservation and support act. Within the funds provided, the family policy council shall contract for an evaluation of the community networks with the institute for public policy and shall provide for audits of ten networks. Within the funds provided, the family policy council may build and maintain a geographic information system database tied to community network geography.

(3) $854,000 of the general fund--federal appropriation, $150,000 of the general fund--state fiscal year 1998 appropriation, and $150,000 of the general fund--state fiscal year 1999 appropriation are provided solely to contract for the operation of one pediatric interim care facility. The facility shall provide residential care for up to twelve children through two years of age. Seventy-five percent of the children served by the facility must be in need of special care as a result of substance abuse by their mothers. The facility also shall provide on-site training to biological, adoptive, or foster parents. The facility shall provide at least three months of consultation and support to parents accepting placement of children from the facility. The facility may recruit new and current foster and adoptive parents for infants served by the facility. The department shall not require case management as a condition of the contract.

(4) $350,000 of the general fund‑-state fiscal year 1998 appropriation, $350,000 of the general fund‑-state fiscal year 1999 appropriation, and $262,000 of the general fund--federal appropriation are provided solely for up to three nonfacility-based programs for the training, consultation, support, and recruitment of biological, foster, and adoptive parents of children through age three in need of special care as a result of substance abuse by their mothers, except that each program may serve up to three medically fragile nonsubstance-abuse-affected children. In selecting nonfacility-based programs, preference shall be given to programs whose federal or private funding sources have expired or that have successfully performed under the existing pediatric interim care program.

(5) $2,400,000 of the general fund--state fiscal year 1998 appropriation and $2,400,000 of the general fund--state fiscal year 1999 appropriation are provided solely to implement Second Substitute Senate Bill No. 5710 (juvenile care and treatment). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(6) $55,000 of the general fund--state fiscal year 1998 appropriation, $64,000 of the general fund--state fiscal year 1999 appropriation, and $231,000 of the general fund‑-federal appropriation are provided solely to implement House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(7) $450,000 of the fiscal year 1998 general fund‑-state appropriation, $450,000 of the fiscal year 1999 general fund‑-state appropriation, and $975,000 of the general fund‑-federal appropriation are provided solely to increase the rate paid to private child-placing agencies.

(8) $452,000 of the fiscal year 1998 general fund‑-state appropriation, $453,000 of the fiscal year 1999 general fund‑-state appropriation, and $407,000 of the general fund‑-federal appropriation are provided solely for contracts with nonprofit agencies for foster parent liaisons to work with foster parents in dealing with the department and for contracted recruitment and retention services for foster parents.

(9) $2,745,000 of the fiscal year 1998 general fund--state appropriation, $2,745,000 of the fiscal year 1999 general fund--state appropriation, and $1,944,000 of the general fund--federal appropriation are provided solely for the category of services titled "intensive family preservation services."

(10) $760,000 of the fiscal year 1998 general fund--state appropriation and $760,000 of the fiscal year 1999 general fund--state appropriation are provided solely to fund a program serving mothers of children affected by fetal alcohol syndrome and related conditions, known as the birth-to-three program. The program may be operated in two cities in the state.

NEW SECTION. Sec. 203. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-JUVENILE REHABILITATION PROGRAM

(1) COMMUNITY SERVICES

General Fund‑-State Appropriation (FY 1998)......... $ 34,908,000

General Fund‑-State Appropriation (FY 1999)......... $ 34,154,000

General Fund‑-Federal Appropriation.................. $.................................. 16,079,000

General Fund‑-Private/Local Appropriation........... $ 378,000

Violence Reduction and Drug Enforcement Account

Appropriation................. ................. $ 6,311,000

TOTAL APPROPRIATION...................... $ 91,830,000

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

(a) $1,235,000 of the general fund‑-state fiscal year 1998 appropriation and $1,618,000 of the general fund‑-state fiscal year 1999 appropriation are appropriated to the county criminal justice assistance account solely for the implementation of section 6 of Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If section 6 of the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse. The amount provided in this subsection is intended to provide funding for county adult court and jail costs associated with the implementation of Third Substitute House Bill No. 3900, and shall be distributed in accordance with RCW 82.14.310.

(b) $4,490,000 of the general fund‑-state fiscal year 1998 and $4,922,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the implementation of Engrossed Third Substitute Senate Bill No. 3900 (revising the juvenile code). The amount provided in this subsection is intended to provide funding for county impacts associated with implementation of Third Substitute Senate Bill No. 3900, and shall be distributed to counties as proscribed in the current consolidated juvenile services (CJS) formula. If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(c) $2,350,000 of the general fund‑-state fiscal year 1998 appropriation and $2,350,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for an early intervention program to be administered at the county level. Funds shall be awarded on a competitive basis to counties that have submitted plans for implementation of an early intervention program consistent with proven methodologies currently in place in the state. The juvenile rehabilitation administration shall develop criteria for evaluation of plans submitted and a timeline for awarding funding and shall assist counties in creating and submitting plans for evaluation.

(2) INSTITUTIONAL SERVICES

General Fund‑-State Appropriation (FY 1998)......... $ 46,938,000

General Fund‑-State Appropriation (FY 1999)......... $ 44,170,000

General Fund‑-Private/Local Appropriation........... $ 719,000

Violence Reduction and Drug Enforcement Account

Appropriation................................... $ 11,601,000

TOTAL APPROPRIATION...................... $ 103,428,000

(3) PROGRAM SUPPORT

General Fund‑-State Appropriation (FY 1998)......... $ 1,917,000

General Fund‑-State Appropriation (FY 1999)......... $ 1,562,000

General Fund‑-Federal Appropriation.................. $ 153,000

Violence Reduction and Drug Enforcement Account

Appropriation................................... $ 421,000

TOTAL APPROPRIATION.... ................. $ 4,053,000

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

(a) $92,000 of the general fund‑-state fiscal year 1998 appropriation and $36,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the implementation of Substitute Senate Bill No. 5759 (risk classification). If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(b) $206,000 of the general fund‑-state fiscal year 1998 appropriation is provided solely for the implementation of Second Substitute Senate Bill No. 5123 (placement of sexually aggressive youth). If the bill is not enacted by June 30, 1997, the amount provided shall lapse.

NEW SECTION. Sec. 204. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-MENTAL HEALTH PROGRAM

(1) COMMUNITY SERVICES/REGIONAL SUPPORT NETWORKS

General Fund‑-State Appropriation (FY 1998)......... $ 171,873,000

General Fund‑-State Appropriation (FY 1999)......... $ 175,136,000

General Fund‑-Federal Appropriation.................. $.................................. 302,967,000

General Fund‑-Private/Local Appropriation........... $ 4,000,000

TOTAL APPROPRIATION...................... $ 653,976,000

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

(a) Regional support networks shall use portions of the general fund‑-state appropriation for implementation of working agreements with the vocational rehabilitation program which will maximize the use of federal funding for vocational programs.

(b) From the general fund--state appropriations in this subsection, the secretary of social and health services shall assure that regional support networks reimburse the aging and adult services program for the general fund--state cost of medicaid personal care services which enrolled regional support network consumers use because of their psychiatric disability.

(c) $2,400,000 of the general fund--state appropriation for fiscal year 1998 and $2,400,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to directly reimburse eligible providers for the medicaid share of mental health services provided to persons eligible for both medicaid and medicare. To be reimbursed, the service must be covered by and provided in accordance with the state medicaid plan.

(2) INSTITUTIONAL SERVICES

General Fund‑-State Appropriation (FY 1998)......... $ 59,488,000

General Fund‑-State Appropriation (FY 1999)......... $ 59,488,000

General Fund‑-Federal Appropriation.................. $.................................. 127,110,000

General Fund‑-Private/Local Appropriation........... $ 30,940,000

TOTAL APPROPRIATION...................... $ 277,026,000

The appropriations in this subsection are subject to the following conditions and limitations: The state mental hospitals may use funds appropriated in this subsection to purchase goods and supplies through hospital group purchasing organizations, when it is cost-effective to do so.

(3) CIVIL COMMITMENT

General Fund Appropriation (FY 1998)................ $ 5,423,000

General Fund Appropriation (FY 1999)................ $ 6,082,000

TOTAL APPROPRIATION...................... $ 11,505,000

(4) SPECIAL PROJECTS

General Fund--State Appropriation (FY 1998)......... $ 50,000

General Fund--State Appropriation (FY 1999)......... $ 450,000

General Fund‑-Federal Appropriation.................. $.................................. 3,826,000

TOTAL APPROPRIATION...................... $ 4,326,000

The appropriations in this subsection are subject to the following conditions and limitations: $50,000 of the general fund--state appropriation for fiscal year 1998 and $450,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for development and operation of the pilot project for mentally ill offenders described in Substitute Senate Bill No. 6002. If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(5) PROGRAM SUPPORT

General Fund‑-State Appropriation (FY 1998)......... $ 2,500,000

General Fund‑-State Appropriation (FY 1999)......... $ 2,395,000

General Fund‑-Federal Appropriation.................. $.................................. 3,111,000

TOTAL APPROPRIATION...................... $ 8,006,000

NEW SECTION. Sec. 205. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-DEVELOPMENTAL DISABILITIES PROGRAM

(1) COMMUNITY SERVICES

General Fund‑-State Appropriation (FY 1998)......... $ 144,030,000

General Fund‑-State Appropriation (FY 1999)......... $ 146,539,000

General Fund‑-Federal Appropriation.................. $.................................. 194,332,000

Health Services Account Appropriation............... $ 1,695,000

TOTAL APPROPRIATION...................... $ 486,596,000

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

(a) $1,695,000 of the health services account appropriation and the associated general fund‑-federal match are provided solely for the enrollment in the basic health plan of home care workers with family incomes below 200 percent of the federal poverty level who are employed through state contracts. Enrollment in the basic health plan for workers with family incomes at or above 200 percent of poverty shall be covered with general fund‑-state and matching general fund‑-federal revenues that were identified by the department to have been previously appropriated for health benefits coverage, to the extent that these funds had not been contractually obligated for worker wage increases prior to March 1, 1996.

(b) $365,000 of the general fund--state appropriation for fiscal year 1998 and $1,543,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for employment, or other day activities and training programs, for young people who complete their high school curriculum in 1997 or 1998.

(c) $23,751,000 of the general fund--state appropriation for fiscal year 1998 and $25,959,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to deliver personal care services to an average of 6,250 children and adults in fiscal year 1998 and an average of 7,100 children and adults in fiscal year 1999. If the secretary of social and health services determines that either total expenditures or the average expenditure per recipient are likely to exceed these appropriated amounts, the secretary shall take action as required by RCW 74.09.520 to adjust functional eligibility standards and/or service levels sufficiently to maintain expenditures within appropriated levels. Such action may include the adoption of emergency rules and shall not be taken to the extent that projected over-expenditures are offset by under-expenditures elsewhere within the program's general fund--state appropriation.

(d) $453,000 of the general fund‑-state appropriation for fiscal year 1998, $214,000 of the general fund‑-state appropriation for fiscal year 1999, and $719,000 of the general fund‑-federal appropriation are provided solely to continue operation of the united cerebral palsy residential center during the period its residents are phasing into new community residences.

(2) INSTITUTIONAL SERVICES

General Fund‑-State Appropriation (FY 1998)......... $ 63,982,000

General Fund‑-State Appropriation (FY 1999)......... $ 63,206,000

General Fund‑-Federal Appropriation.................. $.................................. 142,955,000

General Fund‑-Private/Local Appropriation........... $ 9,729,000

TOTAL APPROPRIATION...................... $ 279,872,000

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

(a) With the funds appropriated in this subsection, the secretary of social and health services shall develop an eight-bed program at Yakima valley school specifically for the purpose of providing respite services to all eligible individuals on a state-wide basis, with an emphasis on those residing in central Washington.

(b) $112,000 of the general fund--state appropriation for fiscal year 1998, $113,000 of the general fund--state appropriation for fiscal year 1999, and $75,000 of the general fund--federal appropriation are provided solely for a nursing community outreach project at Yakima valley school. Registered nursing staff are to provide nursing assessments, consulting services, training, and quality assurance on behalf of individuals residing in central Washington.

(c) $200,000 of the general fund--state appropriation for fiscal year 1998, $200,000 of the general fund--state appropriation for fiscal year 1999, and $400,000 of the general fund--federal appropriation are provided solely for the development of a sixteen-bed program at Yakima valley school specifically for the purpose of providing respite services to all eligible individuals on a state-wide basis, with an emphasis on those residing in central Washington.

(3) PROGRAM SUPPORT

General Fund‑-State Appropriation (FY 1998)......... $ 2,543,000

General Fund‑-State Appropriation (FY 1999)......... $ 2,517,000

General Fund‑-Federal Appropriation.................. $.................................. 1,645,000

TOTAL APPROPRIATION...................... $ 6,705,000

(4) SPECIAL PROJECTS

General Fund‑-Federal Appropriation.................. $.................................. 12,030,000

NEW SECTION. Sec. 206. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-AGING AND ADULT SERVICES PROGRAM

General Fund‑-State Appropriation (FY 1998)......... $ 399,306,000

General Fund‑-State Appropriation (FY 1999)......... $ 427,355,000

General Fund‑-Federal Appropriation.................. $.................................. 896,527,000

Health Services Account Appropriation............... $ 6,087,000

Nursing Home Civil Penalty Account Appropriation.... $ 454,000

TOTAL APPROPRIATION...................... $ 1,729,729,000

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

(1) The entire health services account appropriation and the associated general fund‑-federal match are provided solely for the enrollment in the basic health plan of home care workers with family incomes below 200 percent of the federal poverty level who are employed through state contracts. Enrollment in the basic health plan for workers with family incomes at or above 200 percent of poverty shall be covered with general fund‑-state and matching general fund‑-federal revenues that were identified by the department to have been previously appropriated for health benefits coverage, to the extent that these funds had not been contractually obligated for worker wage increases prior to March 1, 1996.

(2) $1,277,000 of the general fund--state appropriation for fiscal year 1998 and $1,277,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for operation of the volunteer chore program.

(3) $111,274,000 of the general fund--state appropriation for fiscal year 1998 and $125,773,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to deliver chore, COPES, and medicaid personal care services to an average of 25,900 persons in fiscal year 1998 and an average of 29,200 persons in fiscal year 1999. If the secretary of social and health services determines that either total expenditures or the average expenditure per recipient are likely to exceed these appropriated amounts, the secretary shall take action as required by RCW 74.09.520, 74.39A.120, and 74.09.530 to adjust functional eligibility standards and/or service levels sufficiently to maintain expenditures within appropriated levels. Such action may include the adoption of emergency rules.

(4) $41,000 of the general fund--state appropriation for fiscal year 1998, $93,000 of the general fund--state appropriation for fiscal year 1999, and $134,000 of the general fund--federal appropriation are provided solely to employ registered nurses rather than social workers to fill nine of the new field positions to be filled in fiscal year 1998 and twelve more of the new positions to be filled in fiscal year 1999. These registered nurses shall conduct assessments, develop and monitor service plans, and consult with social work staff to assure that persons with medical needs are placed in and receive the appropriate level of care.

(5) $475,000 of the general fund--state appropriation for fiscal year 1998 and $718,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Second Substitute Senate Bill No. 5179 (nursing facility reimbursement). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(6) A maximum of $2,234,000 of the general fund--state appropriation for fiscal year 1998 and $2,395,000 of the general fund--federal appropriation for fiscal year 1998 are provided to fund the medicaid share of any new prospective payment rate adjustments as may be necessary in accordance with RCW 74.46.460.

NEW SECTION. Sec. 207. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-ECONOMIC SERVICES PROGRAM

(1) GRANTS AND SERVICES TO CLIENTS

General Fund‑-State Appropriation (FY 1998)......... $ 423,595,000

General Fund‑-State Appropriation (FY 1999)......... $ 424,092,000

General Fund‑-Federal Appropriation.................. $.................................. 748,651,000

TOTAL APPROPRIATION...................... $ 1,596,338,000

The appropriations in this subsection are subject to the following conditions and limitations: $3,769,000 of the general fund--state fiscal year 1998 appropriation, $23,986,000 of the general fund--state fiscal year 1999 appropriation, and $36,186,000 of the general fund--federal appropriation are provided solely to implement House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided shall lapse. The department may transfer appropriation authority between categories in the economic services administration to the extent necessary to implement House Bill No. 3901. The department shall report to the fiscal committees of the legislature the amount of transfer made and the reasons why the transfer was necessary. The report shall be made in the budget request submittal each year.

(2) PROGRAM SUPPORT

General Fund‑-State Appropriation (FY 1998)......... $ 117,214,000

General Fund‑-State Appropriation (FY 1999)......... $ 117,075,000

General Fund‑-Federal Appropriation.................. $.................................. 209,643,000

TOTAL APPROPRIATION...................... $ 443,932,000

The appropriations in this subsection are subject to the following conditions and limitations: $485,000 of the general fund--state fiscal year 1998 appropriation, $3,186,000 of the general fund--state fiscal year 1999 appropriation, and $3,168,000 of the general fund--federal appropriation are provided solely for the competitive procurement of an electronic benefits transfer system for public assistance benefits and for implementation of an electronic benefits transfer system that meets the requirements of P.L. 104-193 but that does not include enhancements beyond the requirements of federal law. The department shall provide reports on a quarterly basis to the fiscal committees of the legislature that document the progress of the competitive procurement, the components of the system being developed, and the expenditures made under this subsection. Reports shall be due each quarter beginning with the period ending September 30, 1997, and ending with the completion and implementation of the electronic benefit transfer system.

NEW SECTION. Sec. 208. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-ALCOHOL AND SUBSTANCE ABUSE PROGRAM

General Fund‑-State Appropriation (FY 1998)......... $ 15,946,000

General Fund‑-State Appropriation (FY 1999)......... $ 15,847,000

General Fund‑-Federal Appropriation.................. $.................................. 82,013,000

General Fund‑-Private/Local Appropriation........... $ 630,000

Violence Reduction and Drug Enforcement Account

Appropriation................................... $ 68,188,000

TOTAL APPROPRIATION...................... $ 182,624,000

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

(1) $2,062,000 of the general fund‑-federal appropriation and $7,482,000 of the violence reduction and drug enforcement account appropriation are provided solely for the grant programs for school districts and educational service districts set forth in RCW 28A.170.080 through 28A.170.100, including state support activities, as administered through the office of the superintendent of public instruction.

(2) $1,902,000 of the general fund--state fiscal year 1998 appropriation, $1,902,000 of the general fund--state fiscal year 1999 appropriation, and $1,592,000 of the general fund‑-federal appropriation are provided solely for alcohol and substance abuse assessment, treatment, and child care services for clients of the division of children and family services. Assessment shall be provided by approved chemical dependency treatment programs as requested by child protective services personnel in the division of children and family services. Treatment shall be outpatient treatment for parents of children who are under investigation by the division of children and family services. Child care shall be provided as deemed necessary by the division of children and family services while parents requiring alcohol and substance abuse treatment are attending treatment programs.

(3) $760,000 of the fiscal year 1998 general fund--state appropriation and $760,000 of the fiscal year 1999 general fund--state appropriation are provided solely to fund a program serving mothers of children affected by fetal alcohol syndrome and related conditions, known as the birth-to-three program. The program may be operated in two cities in the state.

NEW SECTION. Sec. 209. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-MEDICAL ASSISTANCE PROGRAM

General Fund‑-State Appropriation (FY 1998)......... $ 694,870,000

General Fund‑-State Appropriation (FY 1999)......... $ 699,759,000

General Fund‑-Federal Appropriation.................. $.................................. 2,053,022,000

General Fund‑-Private/Local Appropriation........... $ 223,900,000

Health Services Account Appropriation............... $ 253,004,000

TOTAL APPROPRIATION...................... $ 3,924,555,000

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

(1) The department shall continue to make use of the special eligibility category created for children through age 18 and in households with incomes below 200 percent of the federal poverty level made eligible for medicaid as of July 1, 1994.

(2) It is the intent of the legislature that Harborview medical center continue to be an economically viable component of the health care system and that the state's financial interest in Harborview medical center be recognized.

(3) Funding is provided in this section for the adult dental program for Title XIX categorically eligible and medically needy persons and to provide foot care services by podiatric physicians and surgeons.

(4) $1,622,000 of the general fund--state appropriation for fiscal year 1998 and $1,622,000 of the general fund--state appropriation for fiscal year 1999 are provided for treatment of low-income kidney dialysis patients.

(5) $80,000 of the general fund--state appropriation for fiscal year 1998, $80,000 of the general fund--state appropriation for fiscal year 1999, and $160,000 of the general fund--federal appropriation are provided solely for the prenatal triage clearinghouse to provide access and outreach to reduce infant mortality.

(6) The department shall employ the managed care contracting and negotiation strategies defined in Substitute Senate Bill No. 5125 to assure that the average per-recipient cost of managed care services for the AFDC, expansion, and supplemental security income populations increases by no more than two percent per year in calendar years 1998 and 1999.

(7) The department shall seek federal approval to require adult medicaid recipients who are not elderly or disabled to contribute ten dollars per month toward the cost of their medical assistance coverage. The department shall report on the progress of this effort to the house of representatives and senate health care and fiscal committees by September 1 and November 15, 1997.

(8) $325,000 of the general fund--state appropriation for fiscal year 1998 and $325,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to increase rates paid for air ambulance services.

(9) The department shall adopt measures to realize savings of at least $2,149,000 general fund--state in fiscal year 1998, and at least $2,441,000 general fund--state in fiscal year 1999, from the prescription drug expenditures projected in the November 1996 medical assistance forecast. Such measures may include but need not be limited to actions such as reducing drug ingredient payments, or implementing trial prescription or step care programs. These measures shall be developed in consultation with representatives of affected pharmacies, pharmaceutical manufacturers, and medical care providers, and shall be implemented only after thirty days prior notification to the fiscal committees of the house of representatives and the senate.

NEW SECTION. Sec. 210. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-VOCATIONAL REHABILITATION PROGRAM

General Fund‑-State Appropriation (FY 1998)......... $ 8,669,000

General Fund‑-State Appropriation (FY 1999)......... $ 8,605,000

General Fund‑-Federal Appropriation.................. $.................................. 79,512,000

General Fund‑-Private/Local Appropriation........... $ 2,904,000

TOTAL APPROPRIATION...................... $ 99,690,000

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

(1) The division of vocational rehabilitation shall negotiate cooperative interagency agreements with local organizations, including higher education institutions, mental health regional support networks, and county developmental disabilities programs to improve and expand employment opportunities for people with severe disabilities served by those local agencies.

(2) $363,000 of the general fund--state appropriation for fiscal year 1998, $647,000 of the general fund--state appropriation for fiscal year 1999, and $3,208,000 of the general fund--federal appropriation are provided solely for vocational rehabilitation services for individuals enrolled for services with the developmental disabilities program who complete their high school curriculum in 1997 or 1998.

NEW SECTION. Sec. 211. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-ADMINISTRATION AND SUPPORTING SERVICES PROGRAM

General Fund‑-State Appropriation (FY 1998)......... $ 25,109,000

General Fund‑-State Appropriation (FY 1999)......... $ 25,149,000

General Fund‑-Federal Appropriation.................. $.................................. 41,880,000

General Fund‑-Private/Local Appropriation........... $ 270,000

TOTAL APPROPRIATION...................... $ 92,408,000

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

(1) The department may transfer up to $1,211,000 of the general fund--state appropriation for fiscal year 1998, $1,140,000 of the general fund--state appropriation for fiscal year 1999, and $1,834,000 of the general fund--federal appropriation to the administration and supporting services program from various other programs to implement administrative reductions.

(2) The secretary of social and health services and the director of labor and industries shall report to the appropriate fiscal and policy committees of the legislature by July 1, 1997, and every six months thereafter on the measurable changes in employee injury and time-loss rates that have occurred in the state developmental disabilities, juvenile rehabilitation, and mental health institutions as a result of the upfront loss-control discount agreement between the agencies.

(3) $47,000 of the general fund--state fiscal year 1998 appropriation, $175,000 of the general fund--state fiscal year 1999 appropriation, and $99,000 of the general fund--federal appropriation are provided solely to implement Second Substitute Senate Bill No. 5528 (background checks). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(4) $211,000 of the fiscal year 1998 general fund--state appropriation, $211,000 of the fiscal year 1999 general fund--state appropriation and $190,000 of the general fund--federal appropriation are provided solely for payment of background checks for child care providers as specified in Second Substitute Senate Bill No. 5528 (background checks). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

NEW SECTION. Sec. 212. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-CHILD SUPPORT PROGRAM

General Fund‑-State Appropriation (FY 1998)......... $ 21,098,000

General Fund‑-State Appropriation (FY 1999)......... $ 20,816,000

General Fund‑-Federal Appropriation.................. $.................................. 145,434,000

General Fund‑-Private/Local Appropriation........... $ 33,207,000

TOTAL APPROPRIATION...................... $ 220,555,000

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

(1) The department shall contract with private collection agencies to pursue collection of AFDC child support arrearages in cases that might otherwise consume a disproportionate share of the department's collection efforts. The department's child support collection staff shall determine which cases are appropriate for referral to private collection agencies. In determining appropriate contract provisions, the department shall consult with other states that have successfully contracted with private collection agencies to the extent allowed by federal support enforcement regulations.

(2) The department shall request a waiver from federal support enforcement regulations to replace the current program audit criteria, which is process-based, with performance measures based on program outcomes.

(3) The amounts appropriated in this section for child support legal services shall be expended only by means of contracts with local prosecutor's offices.

(4) $305,000 of the general fund--state fiscal year 1998 appropriation, $494,000 of the general fund--state fiscal year 1999 appropriation, and $1,408,000 of the general fund--federal appropriation are provided solely to implement House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

NEW SECTION. Sec. 213. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-PAYMENTS TO OTHER AGENCIES PROGRAM

General Fund‑-State Appropriation (FY 1998)......... $ 24,542,000

General Fund‑-State Appropriation (FY 1999)......... $ 24,679,000

General Fund‑-Federal Appropriation.................. $.................................. 18,935,000

TOTAL APPROPRIATION...................... $ 68,156,000

NEW SECTION. Sec. 214. FOR THE STATE HEALTH CARE AUTHORITY

General Fund‑-State Appropriation (FY 1998)......... $ 6,316,000

General Fund‑-State Appropriation (FY 1999)......... $ 6,317,000

State Health Care Authority Administration

Account Appropriation........................... $ 14,719,000

Health Services Account Appropriation............... $ 301,668,000

TOTAL APPROPRIATION...................... $ 329,020,000

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

(1) The general fund‑-state appropriations are provided solely for health care services provided through local community clinics.

(2) The health care authority shall utilize competitive contracting strategies, revise the schedule of covered benefits, increase co-pay requirements, adjust state subsidy levels, and take other actions it deems necessary to assure that the funds appropriated in this section are sufficient to subsidize basic health plan enrollment for a monthly average of 135,000 persons during fiscal years 1998 and 1999.

(3) Within funds appropriated in this section and sections 205 and 206 of this act, the health care authority shall continue to provide an enhanced basic health plan subsidy option for foster parents licensed under chapter 74.15 RCW and workers in state-funded homecare programs. Under this enhanced subsidy option, foster parents and homecare workers with family incomes below 200 percent of the federal poverty level shall be allowed to enroll in the basic health plan at a cost of ten dollars per covered worker per month.

(4) The health care authority shall require organizations and individuals that are paid to deliver basic health plan services to contribute a minimum of fifty dollars per enrollee per month if the organization or individual chooses to sponsor an individual's enrollment in the subsidized basic health plan.

NEW SECTION. Sec. 215. FOR THE HUMAN RIGHTS COMMISSION

General Fund‑-State Appropriation (FY 1998)......... $ 2,019,000

General Fund‑-State Appropriation (FY 1999)......... $ 2,036,000

General Fund‑-Federal Appropriation.................. $.................................. 1,444,000

General Fund‑-Private/Local Appropriation........... $ 259,000

TOTAL APPROPRIATION...................... $ 5,758,000

NEW SECTION. Sec. 216. FOR THE BOARD OF INDUSTRIAL INSURANCE APPEALS

Worker and Community Right-to-Know Account

Appropriation................................... $ 20,000

Accident Account Appropriation....................... $............................. 10,785,000

Medical Aid Account Appropriation................... $ 10,787,000

TOTAL APPROPRIATION...................... $ 21,592,000

NEW SECTION. Sec. 217. FOR THE CRIMINAL JUSTICE TRAINING COMMISSION

Death Investigations Account Appropriation.......... $ 38,000

Public Safety and Education Account

Appropriation................................... $ 13,394,000

Violence Reduction and Drug Enforcement Account

Appropriation................................... $ 346,000

TOTAL APPROPRIATION...................... $ 13,778,000

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

(1) $80,000 of the public safety and education account appropriation is provided solely to continue the study of law enforcement training begun in 1996. The criminal justice training commission and the appropriate policy and fiscal committees of the legislature shall convene a study group. Specific elements to be addressed in the study include: (a) The feasibility and the rationale for increasing basic law enforcement training from 440 to 600 hours; (b) the feasibility and rationale for creating a certification process for law enforcement officers; (c) the feasibility and rationale for expanding the correctional officers academy; (d) the feasibility and rationale for expanding the juvenile service workers academy and/or the adult services academy; and (e) the feasibility and rationale for making other changes to current course offerings. The final report shall be completed by October 1, 1997.

(2) $50,000 of the public safety and education account appropriation is provided solely to prepare a cost and fee study of the current and proposed criminal justice course offerings. The analysis shall identify total costs and major cost components for: (a) Any current training classes which are considered mandatory; and (b) any proposed or modified training courses which are considered mandatory. Mandatory classes include, but are not limited to, the following: Basic law enforcement academy, correctional officers academy, supervisory and management training of law enforcement officers, supervisory and management training of correctional officers, juvenile service workers academy and the adult service academy. The study shall also recommend a methodology for estimating the future demand for these classes. The study shall also estimate the cost of implementing any recommendations made pursuant to subsection (1) of this section. The study shall be conducted by a private sector consultant selected by the office of financial management in consultation with the executive director of the criminal justice training commission. The final report shall be completed by October 1, 1997.

NEW SECTION. Sec. 218. FOR THE DEPARTMENT OF LABOR AND INDUSTRIES

General Fund Appropriation (FY 1998)................ $ 6,805,000

General Fund Appropriation (FY 1999)................ $ 6,848,000

Public Safety and Education Account‑-

State Appropriation............................. $ 16,246,000

Public Safety and Education Account‑-

Federal Appropriation........................... $ 6,002,000

Public Safety and Education Account‑-

Private/Local Appropriation..................... $ 2,014,000

Electrical License Account Appropriation............. $...................................... 22,542,000

Farm Labor Revolving Account Appropriation.......... $ 28,000

Worker and Community Right-to-Know Account

Appropriation................................... $ 2,187,000

Public Works Administration Account Appropriation.... $................................................ 1,975,000

Accident Account‑-State Appropriation............... $ 146,849,000

Accident Account‑-Federal Appropriation............. $ 9,112,000

Medical Aid Account‑-State Appropriation............. $...................................... 155,220,000

Medical Aid Account‑-Federal Appropriation.......... $ 1,592,000

Plumbing Certificate Account Appropriation.......... $ 846,000

Pressure Systems Safety Account Appropriation........ $........................................... 2,106,000

TOTAL APPROPRIATION...................... $ 380,372,000

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

(1) Expenditures of funds appropriated in this section for the information systems projects identified in agency budget requests as "claims service delivery", "electrical permitting and inspection system", and "credentialing information system" are conditioned upon compliance with section 902 of this act. In addition, funds for the "claims service delivery" project shall not be released until the required components of a feasibility study are completed and approved by the department of information services.

(2) Pursuant to RCW 7.68.015, the department shall operate the crime victims compensation program within the public safety and education account funds appropriated in this section. In the event that cost containment measures are necessary, the department may (a) institute copayments for services; (b) develop preferred provider and managed care contracts; (c) coordinate with the department of social and health services to use the public safety and education account as matching funds for federal Title XIX reimbursement, to the extent this maximizes total funds available for services to crime victims.

(3) $54,000 of the general fund appropriation for fiscal year 1998 and $54,000 of the general fund appropriation for fiscal year 1999 are provided solely for an interagency agreement to reimburse the board of industrial insurance appeals for crime victims appeals.

(4) The secretary of social and health services and the director of labor and industries shall continue to work on the measurable changes in employee injury and time-loss rates that have occurred in the state developmental disabilities, juvenile rehabilitation, and mental health institutions as a result of the upfront loss-control discount agreement between the agencies.

(5) The expenditures of the elevator, factory assembled structures, and contractors' registration and compliance programs may not exceed the revenues generated by these programs.

NEW SECTION. Sec. 219. FOR THE INDETERMINATE SENTENCE REVIEW BOARD

General Fund Appropriation (FY 1998)................ $ 1,173,000

General Fund Appropriation (FY 1999)................ $ 1,072,000

TOTAL APPROPRIATION.... ................. $ 2,245,000

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

(1) $32,000 of the general fund fiscal year 1998 appropriation and $32,000 of the general fund fiscal year 1999 appropriation are provided solely for the implementation of Substitute Senate Bill No. 5759 (risk classification). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(2) $1,056,000 of the general fund fiscal year 1999 appropriation is provided solely for the implementation of Substitute Senate Bill No. 5006 (enhancing the supervision and sentences of sex offenders). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

NEW SECTION. Sec. 220. FOR THE DEPARTMENT OF VETERANS AFFAIRS

(1) HEADQUARTERS

General Fund Appropriation (FY 1998)................ $ 1,347,000

General Fund Appropriation (FY 1999)................ $ 1,346,000

Industrial Insurance Premium Refund Account

Appropriation................................... $ 80,000

Charitable, Educational, Penal, and Reformatory

Institutions Account Appropriation.............. $ 4,000

TOTAL APPROPRIATION...................... $ 2,777,000

(2) FIELD SERVICES

General Fund‑-State Appropriation (FY 1998)......... $ 2,418,000

General Fund‑-State Appropriation (FY 1999)......... $ 2,420,000

General Fund‑-Federal Appropriation.................. $ 26,000

General Fund‑-Private/Local Appropriation........... $ 85,000

TOTAL APPROPRIATION...................... $ 4,949,000

(3) INSTITUTIONAL SERVICES

General Fund‑-State Appropriation (FY 1998)......... $ 6,101,000

General Fund‑-State Appropriation (FY 1999)......... $ 5,369,000

General Fund‑-Federal Appropriation.................. $.................................. 19,556,000

General Fund‑-Private/Local Appropriation........... $ 14,583,000

TOTAL APPROPRIATION...................... $ 45,609,000

NEW SECTION. Sec. 221. FOR THE DEPARTMENT OF HEALTH

General Fund‑-State Appropriation (FY 1998)......... $ 54,735,000

General Fund‑-State Appropriation (FY 1999)......... $ 56,995,000

General Fund‑-Federal Appropriation.................. $.................................. 263,672,000

General Fund‑-Private/Local Appropriation........... $ 24,351,000

Hospital Commission Account Appropriation........... $ 3,089,000

Medical Disciplinary Account Appropriation.......... $ 3,969,000

Health Professions Account Appropriation............. $...................................... 33,434,000

Emergency Medical and Trauma Care Services Account

Appropriation................................... $ 25,642,000

Safe Drinking Water Account Appropriation........... $ 2,494,000

Waterworks Operator Certification Appropriation..... $ 588,000

Water Quality Account Appropriation.................. $.................................. 3,065,000

Violence Reduction and Drug Education Account

Appropriation................................... $ 469,000

State Toxics Control Account Appropriation.......... $ 2,854,000

Medical Test Site Licensure Account Appropriation.... $................................................ 1,624,000

Youth Tobacco Prevention Account Appropriation...... $ 1,812,000

Health Services Account Appropriation............... $ 24,224,000

TOTAL APPROPRIATION...................... $ 503,017,000

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

(1) $2,134,000 of the medical disciplinary account appropriation is provided solely for the development and implementation of a licensing and disciplinary management system. Expenditures are conditioned upon compliance with section 902 of this act. These funds shall not be expended without appropriate project approval by the department of information systems.

(2) Funding provided in this section for the drinking water program data management system shall not be expended without appropriate project approval by the department of information systems. Expenditures are conditioned upon compliance with section 902 of this act.

(3) The department is authorized to raise existing fees charged to the nursing professions and midwives, by the pharmacy board, and for boarding home licenses, in excess of the fiscal growth factor established by Initiative Measure No. 601, if necessary, to meet the actual costs of conducting business.

(4) $1,233,000 of the general fund‑-state fiscal year 1998 appropriation and $1,233,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the implementation of the Puget Sound water work plan and agency action items.

(5) $10,000,000 of the public health services account appropriation is provided solely for distribution to local health departments for distribution on a per capita basis. Prior to distributing these funds, the department shall adopt rules and procedures to ensure that these funds are not used to replace current local support for public health programs.

(6) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for operation of a youth suicide prevention program at the state level, including a state-wide public educational campaign to increase knowledge of suicide risk and ability to respond and provision of twenty-four hour crisis hotlines, staffed to provide suicidal youth and caregivers a source of instant help.

(7) The department of health shall not initiate any services that will require expenditure of state general fund moneys unless expressly authorized in this act or other law. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation that provides appropriation authority, and an equal amount of appropriated state moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.

(8) $260,000 of the general fund--state fiscal year 1998 appropriation and $240,000 of the general fund--state fiscal year 1999 appropriation are provided solely to implement Substitute Senate Bill No. 5409 (child death reviews). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(9) $29,000 of the general fund--state fiscal year 1998 appropriation, $2,000 of the general fund--state fiscal year 1999 appropriation, and $259,000 of the health professions account appropriation are provided solely to implement House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(10) $150,000 of the general fund--state fiscal year 1998 appropriation and $150,000 of the general fund--state fiscal year 1999 appropriation are provided solely for community‑based oral health grants that may fund sealant programs, education, prevention, and other oral health interventions. The grants may be awarded to state or federally funded community and migrant health centers, tribal clinics, or public health jurisdictions. Priority shall be given to communities with established oral health coalitions. Grant applications for oral health education and prevention grants shall include (a) an assessment of the community's oral health education and prevention needs; (b) identification of the population to be served; and (c) a description of the grant program's predicted outcomes.

(11) $25,642,000 of the emergency medical and trauma care services account appropriation is provided solely for implementation of Substitute Senate Bill No. 5127 (trauma care services). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(12) $300,000 of the general fund--state appropriation for fiscal year 1998 and $300,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for family support and provider training services for children with special health care needs.

(13) $450,000 of the fiscal year 1998 general fund--state appropriation and $700,000 of the general fund--federal appropriation are provided solely to implement Engrossed Substitute Senate Bill No. 5592 (abstinence education). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(14) $750,000 of the fiscal year 1998 general fund--state appropriation is provided solely for operation during fiscal year 1998 of a natural medicine clinic that was constructed in 1996.

(15) $131,000 of the fiscal year 1998 general fund--state appropriation, $131,000 of the fiscal year 1999 general fund--state appropriation, and $1,365,000 of the health professions account appropriation are provided solely to implement the background check provisions related to health professionals in Second Substitute Senate Bill No. 5528 (background checks). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse. The department is authorized to raise existing fees to professions subject to background checks as provided in Second Substitute Senate Bill No. 5528 (background checks) in excess of the fiscal growth factor established by Initiative Measure No. 601, if necessary, to meet the actual costs of implementing background checks.

NEW SECTION. Sec. 222. FOR THE DEPARTMENT OF CORRECTIONS

(1) ADMINISTRATION AND PROGRAM SUPPORT

General Fund Appropriation (FY 1998)................ $ 13,926,000

General Fund Appropriation (FY 1999)................ $ 13,910,000

TOTAL APPROPRIATION...................... $ 27,836,000

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

(a) The department may expend funds generated by contractual agreements entered into for mitigation of severe overcrowding in local jails. If any funds are generated in excess of actual costs, they shall be deposited in the state general fund. Expenditures shall not exceed revenue generated by such agreements and shall be treated as recovery of costs.

(b) $187,000 of the general fund fiscal year 1998 appropriation and $155,000 of the general fund fiscal year 1999 appropriation are provided solely for implementation of Substitute Senate Bill No. 5759 (risk classification). If the bill is not enacted by July 1, 1997, the amounts provided shall lapse.

(2) INSTITUTIONAL SERVICES

General Fund‑-State Appropriation (FY 1998)......... $ 287,574,000

General Fund‑-State Appropriation (FY 1999)......... $ 306,809,000

General Fund‑-Federal Appropriation.................. $.................................. 18,097,000

Industrial Insurance Premium Rebate Account

Appropriation................................... $ 673,000

Violence Reduction and Drug Enforcement Account

Appropriation................................... $ 1,614,000

TOTAL APPROPRIATION...................... $ 614,767,000

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

(a) The department shall provide funding for the pet partnership program at the Washington corrections center for women at a level at least equal to that provided in the 1995-97 biennium.

(b) $10,000 of the general fund‑-state fiscal year 1998 appropriation and $48,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the implementation of Substitute Senate Bill No. 5938 (revising sentencing provisions). If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(c) $108,000 of the general fund‑-state fiscal year 1998 appropriation and $421,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the implementation of Substitute Senate Bill No. 5006 (enhancing the supervision and sentences of sex offenders). If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(d) $827,000 of the general fund‑-state fiscal year 1998 appropriation and $9,495,000 of the general fund‑-state fiscal year 1999 appropriation are provided solely for the implementation of section 6 of Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If section 6 of the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(e) The department of corrections shall accomplish personnel reductions with the least possible impact on correctional custody staff, community custody staff, and correctional industries. For the purposes of this subsection, correctional custody staff means employees responsible for the direct supervision of offenders.

(f) Using funds provided in this section, the department shall implement Substitute Senate Bill No. 5077 (integrated pest management).

(3) COMMUNITY CORRECTIONS

General Fund Appropriation (FY 1998)................ $ 89,037,000

General Fund Appropriation (FY 1999)................ $ 90,724,000

TOTAL APPROPRIATION...................... $ 179,761,000

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

(a) $99,000 of the general fund fiscal year 1998 appropriation and $69,000 of the general fund fiscal year 1999 appropriation are provided solely for implementation of Substitute Senate Bill No. 5760 (mentally ill offenders). If the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(b) $27,000 of the general fund fiscal year 1998 appropriation and $345,000 of the general fund fiscal year 1999 appropriation are provided solely for the implementation of section 6 of Third Substitute House Bill No. 3900 (revising the juvenile code). If section 6 of the bill is not enacted by June 30, 1997, the amounts provided shall lapse.

(c) The department of corrections shall accomplish personnel reductions with the least possible impact on correctional custody staff, community custody staff, and correctional industries. For the purposes of this subsection, correctional custody staff means employees responsible for the direct supervision of offenders.

(4) CORRECTIONAL INDUSTRIES

General Fund Appropriation (FY 1998)................ $ 4,055,000

General Fund Appropriation (FY 1999)................ $ 4,167,000

TOTAL APPROPRIATION...................... $ 8,222,000

The appropriations in this subsection are subject to the following conditions and limitations: $100,000 of the general fund fiscal year 1998 appropriation and $100,000 of the general fund fiscal year 1999 appropriation are provided solely for transfer to the jail industries board. The board shall use the amounts provided only for administrative expenses, equipment purchases, and technical assistance associated with advising cities and counties in developing, promoting, and implementing consistent, safe, and efficient offender work programs.

(5) INTERAGENCY PAYMENTS

General Fund Appropriation (FY 1998)................ $ 6,945,000

General Fund Appropriation (FY 1999)................ $ 6,444,000

TOTAL APPROPRIATION...................... $ 13,389,000

NEW SECTION. Sec. 223. FOR THE DEPARTMENT OF SERVICES FOR THE BLIND

General Fund‑-State Appropriation (FY 1998)......... $ 1,367,000

General Fund‑-State Appropriation (FY 1999)......... $ 1,410,000

General Fund‑-Federal Appropriation.................. $.................................. 10,460,000

General Fund‑-Private/Local Appropriation........... $ 80,000

TOTAL APPROPRIATION...................... $ 13,317,000

NEW SECTION. Sec. 224. FOR THE SENTENCING GUIDELINES COMMISSION

General Fund Appropriation (FY 1998)................ $ 714,000

General Fund Appropriation (FY 1999)................ $ 713,000

TOTAL APPROPRIATION...................... $ $1,427,000

NEW SECTION. Sec. 225. FOR THE EMPLOYMENT SECURITY DEPARTMENT

General Fund‑-Federal Appropriation.................. $.................................. 173,595,000

General Fund‑-Private/Local Appropriation........... $ 24,842,000

Unemployment Compensation Administration Account‑-

Federal Appropriation........................... $ 184,585,000

Administrative Contingency Account Appropriation.... $ 12,465,000

Employment Service Administrative Account

Appropriation................................... $ 13,176,000

Employment & Training Trust Account Appropriation.... $ 50,000

TOTAL APPROPRIATION...................... $ 408,713,000

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

(1) Expenditures of funds appropriated in this section for the information systems projects identified in agency budget requests as "claims and adjudication call centers", "data/wage quality initiative", and "one stop information connectivity" are conditioned upon compliance with section 902 of this act.

(2) $50,000 of the employment and training trust account appropriation is provided solely for the account's share of unemployment insurance tax collection costs.

(3) In addition to the other funds provided for the general unemployment insurance development effort (GUIDE) project, $2,600,000 of the unemployment compensation administration account--federal appropriation is provided solely for the offset of any expenses caused by vendor delay. This additional expenditure authority is further conditioned on the department seeking full recovery of these moneys from any vendors failing to perform in full.

(End of part)

PART III

NATURAL RESOURCES

NEW SECTION. Sec. 301. FOR THE COLUMBIA RIVER GORGE COMMISSION

General Fund‑-State Appropriation (FY 1998)......... $ 213,000

General Fund‑-State Appropriation (FY 1999)......... $ 222,000

General Fund‑-Private/Local Appropriation........... $ 435,000

TOTAL APPROPRIATION...................... $ 870,000

The appropriations in this section are subject to the following conditions and limitations: $120,000 of the general fund--state appropriation for fiscal year 1998 and $120,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for grants to each of the three counties within Washington state that are included in the Columbia river gorge national scenic area. The commission shall provide each county with an $80,000 grant for the purposes of implementing the scenic area management plan.

NEW SECTION. Sec. 302. FOR THE DEPARTMENT OF ECOLOGY

General Fund‑-State Appropriation (FY 1998)......... $ 23,212,000

General Fund‑-State Appropriation (FY 1999)......... $ 28,190,000

General Fund‑-Federal Appropriation.................. $.................................. 45,315,000

General Fund‑-Private/Local Appropriation........... $ 643,000

Special Grass Seed Burning Research Account

Appropriation................................... $ 42,000

Reclamation Revolving Account Appropriation......... $ 2,441,000

Flood Control Assistance Account

Appropriation................................... $ 4,600,000

State Emergency Water Projects Revolving Account

Appropriation................................... $ 319,000

Waste Reduction/Recycling/Litter Control Account

Appropriation................................... $ 10,316,000

State and Local Improvements Revolving Account

(Waste Facilities) Appropriation................ $ 1,101,000

State and Local Improvements Revolving Account

(Water Supply Facilities) Appropriation......... $ 1,366,000

Basic Data Account Appropriation.................... $ 182,000

Vehicle Tire Recycling Account Appropriation........ $ 1,194,000

Water Quality Account Appropriation.................. $.................................. 2,892,000

Wood Stove Education and Enforcement Account

Appropriation................................... $ 1,055,000

Worker and Community Right-to-Know Account

Appropriation................................... $ 469,000

State Toxics Control Account Appropriation.......... $ 54,015,000

Local Toxics Control Account Appropriation.......... $ 4,342,000

Water Quality Permit Account Appropriation.......... $ 20,378,000

Underground Storage Tank Account Appropriation...... $ 2,443,000

Solid Waste Management Account Appropriation........ $ 1,021,000

Hazardous Waste Assistance Account

Appropriation................................... $ 3,615,000

Air Pollution Control Account Appropriation......... $ 16,315,000

Oil Spill Administration Account Appropriation...... $ 6,958,000

Air Operating Permit Account Appropriation.......... $ 4,033,000

Freshwater Aquatic Weeds Account Appropriation...... $ 1,408,000

Oil Spill Response Account Appropriation............. $...................................... 7,078,000

Metals Mining Account Appropriation.................. $ 42,000

Water Pollution Control Revolving Account‑-State

Appropriation................................... $ 210,000

Water Pollution Control Revolving Account‑-Federal

Appropriation................................... $ 1,726,000

Biosolids Permit Account Appropriation.............. $ 567,000

TOTAL APPROPRIATION...................... $ 247,488,000

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

(1) $2,947,000 of the general fund‑-state appropriation for fiscal year 1998, $2,947,000 of the general fund‑-state appropriation for fiscal year 1999, $394,000 of the general fund‑-federal appropriation, $2,715,000 of the oil spill administration account appropriation, $819,000 of the state toxics control account appropriation, and $3,591,000 of the water quality permit account appropriation are provided solely for the implementation of the Puget Sound work plan and agency action items DOE-01, DOE-02, DOE-03, DOE-04, DOE-05, DOE-06, DOE-07, DOE-08, and DOE-09.

(2) $2,000,000 of the state toxics control account appropriation is provided solely for the following purposes:

(a) To conduct remedial actions for sites for which there are no potentially liable persons, for which potentially liable persons cannot be found, or potentially liable persons are unable to pay for remedial actions; and

(b) To provide funding to assist potentially liable persons under RCW 70.105D.070(2)(d)(xi) to pay for the cost of the remedial actions; and

(c) To conduct remedial actions for sites for which potentially liable persons have refused to conduct remedial actions required by the department; and

(d) To contract for services as necessary to support remedial actions.

(3) $3,600,000 of the general fund‑-state appropriation for fiscal year 1998 and $3,600,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the auto emissions inspection and maintenance program. Expenditures of the amounts provided in this subsection are contingent upon a like amount being deposited in the general fund from the auto emission inspection fees in accordance with RCW 70.120.170(4).

(4) $170,000 of the oil spill administration account appropriation is provided solely for a contract with the University of Washington's Sea Grant program in order to develop an educational program that targets small spills from commercial fishing vessels, ferries, cruise ships, ports, and marinas.

(5) The merger of the office of marine safety into the department of ecology shall be accomplished in a manner that will maintain a priority focus on oil spill prevention, as well as maintain a strong oil spill response capability. The merged program shall be established to provide a high level of visibility and ensure that there shall not be a diminution of the existing level of effort from the merged programs.

(6) $600,000 of the flood control assistance account appropriation is provided solely to complete flood control projects that were awarded funds during the 1995-97 biennium. These funds shall be spent only to complete projects that could not be completed during the 1995-97 biennium due to delays caused by weather or delays in the permitting process.

(7) $10,316,000 of the waste reduction, recycling and litter control account appropriation is provided for litter prevention and control programs. These funds shall be allocated as follows:

(a) $5,566,000 for litter crews to remove litter from state roadways. Of this amount, the department shall provide $352,000 through an interagency reimbursement to the department of corrections to hire correctional work crews to remove litter in areas that are not accessible to youth crews;

(b) $1,650,000 for grants to local governments to assist in cleaning up litter;

(d) $1,450,000 for technical assistance, policy development, and planning related to waste reduction and recycling.

(8) $5,000,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for grants to local communities for development of water resource plans.

(9) $113,000 of the general fund--state appropriation for fiscal year 1998 and $112,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 5505 (assistance to water applicants). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(10) $110,000 of the general fund--state appropriation for fiscal year 1998 and $110,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 5703 (water claims). If the bill is not enacted by June 30, 1997, this appropriation shall lapse.

(11) $70,000 of the general fund--state appropriation for fiscal year 1998 and $70,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 5785 (consolidation of groundwater rights). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(12) $20,000 of the general fund--state appropriation for fiscal year 1998 and $20,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 5276 (water right applications). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(13) $35,000 of the general fund--state appropriation for fiscal year 1998 and $35,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for implementation of Substitute Senate Bill No. 5030 (lakewater irrigation). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(14) $567,000 of the biosolids permit account appropriation is provided solely for implementation of Substitute Senate Bill No. 5590 (biosolids funding). If the bill or substantially similar legislation is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(15) Using funds provided in this section, the department shall implement Substitute Senate Bill No. 5077 (integrated pest management).

(16) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the continuation of the Southwest Washington Coastal Erosion Study.

NEW SECTION. Sec. 303. FOR THE STATE PARKS AND RECREATION COMMISSION

General Fund‑-State Appropriation (FY 1998)......... $ 20,927,000

General Fund‑-State Appropriation (FY 1999)......... $ 20,906,000

General Fund‑-Federal Appropriation.................. $.................................. 2,428,000

General Fund‑-Private/Local Appropriation........... $ 59,000

Winter Recreation Program Account

Appropriation................................... $ 759,000

Off Road Vehicle Account Appropriation.............. $ 251,000

Snowmobile Account Appropriation.................... $ 2,290,000

Aquatic Lands Enhancement Account

Appropriation................................... $ 321,000

Public Safety and Education Account

Appropriation................................... $ 48,000

Industrial Insurance Premium Refund Account

Appropriation................................... $ 10,000

Waste Reduction/Recycling/Litter Control Account

Appropriation................................... $ 34,000

Water Trail Program Account Appropriation........... $ 14,000

Parks Renewal and Stewardship Account

Appropriation................................... $ 25,330,000

TOTAL APPROPRIATION...................... $ 73,377,000

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

(1) $189,000 of the aquatic lands enhancement account appropriation is provided solely for the implementation of the Puget Sound work plan agency action items P&RC-01 and P&RC-03.

(2) The state parks and recreation commission is authorized to raise existing fees in excess of the fiscal growth factor established by Initiative Measure No. 601.

(3) $45,000 of the general fund--state appropriation for fiscal year 1998 is provided solely for a feasibility study of a public/private effort to establish a reserve for recreation and environmental studies in southwest Kitsap county.

(4) $125,000 of the general fund‑-state appropriation for fiscal year 1998 and $125,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for development of underwater park programs and facilities. The department shall work with the underwater parks program task force to develop specific plans for the use of these funds.

(5) Using funds provided in this section, the commission shall implement Substitute Senate Bill No. 5077 (integrated pest management).

NEW SECTION. Sec. 304. FOR THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION

Firearms Range Account Appropriation................ $ 46,000

Recreation Resources Account Appropriation.......... $ 2,356,000

NOVA Program Account Appropriation.................. $ 590,000

TOTAL APPROPRIATION...................... $ 2,992,000

NEW SECTION. Sec. 305. FOR THE ENVIRONMENTAL HEARINGS OFFICE

General Fund Appropriation (FY 1998)................ $ 773,000

General Fund Appropriation (FY 1999)................ $ 773,000

TOTAL APPROPRIATION...................... $ 1,546,000

NEW SECTION. Sec. 306. FOR THE CONSERVATION COMMISSION

General Fund Appropriation (FY 1998)................ $ 838,000

General Fund Appropriation (FY 1999)................ $ 840,000

Water Quality Account Appropriation.................. $ 440,000

TOTAL APPROPRIATION...................... $ 2,118,000

The appropriations in this section are subject to the following conditions and limitations: $181,000 of the general fund‑-state appropriation for fiscal year 1998, $181,000 of the general fund‑-state appropriation for fiscal year 1999, and $130,000 of the water quality account appropriation are provided solely for the implementation of the Puget Sound work plan agency action item CC-01.

NEW SECTION. Sec. 307. FOR THE DEPARTMENT OF FISH AND WILDLIFE

General Fund‑-State Appropriation (FY 1998)......... $ 35,632,000

General Fund‑-State Appropriation (FY 1999) ........ $ 36,171,000

General Fund‑-Federal Appropriation.................. $.................................. 73,015,000

General Fund‑-Private/Local Appropriation........... $ 26,758,000

Off Road Vehicle Account Appropriation.............. $ 488,000

Aquatic Lands Enhancement Account

Appropriation................................... $ 5,593,000

Public Safety and Education Account

Appropriation................................... $ 590,000

Industrial Insurance Premium Refund Account

Appropriation................................... $ 120,000

Recreational Fisheries Enhancement Account

Appropriation................................... $ 2,387,000

Warm Water Game Fish Account Appropriation.......... $ 2,419,000

Wildlife Account Appropriation....................... $............................. 51,388,000

Game Special Wildlife Account‑-State Appropriation... $................................................ 1,911,000

Game Special Wildlife Account‑-Federal Appropriation $ 10,844,000

Game Special Wildlife Account‑-Private/Local

Appropriation............................... ... $ 350,000

Oil Spill Administration Account

Appropriation................................... $ 843,000

Eastern Washington Pheasant Enhancement Account

Appropriation................................... $ 547,000

Juvenile Fishing Enhancement Account Appropriation... $ 256,000

TOTAL APPROPRIATION...................... $ 249,312,000

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

(1) $766,000 of the general fund‑-state appropriation for fiscal year 1998 and $766,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the implementation of the Puget Sound work plan agency action items DFW-01, DFW-03, DFW-04, DFW-06, DFW-07, DFW-08, DFW-09, DFW-10, DFW-11, DFW-12, DFW-14, and DFW-15.

(2) $188,000 of the general fund‑-state appropriation for fiscal year 1998 and $155,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for a maintenance and inspection program for department-owned dams. The department shall submit a report to the governor and the appropriate committees of the legislature by October 1, 1998, on the status of department-owned dams. This report shall provide a recommendation, including a cost estimate, on whether each facility should continue to be maintained or should be decommissioned.

(3) $832,000 of the general fund‑-state appropriation for fiscal year 1998 and $825,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for management activities related to potential or actual listings of salmon under the federal endangered species act.

(4) $350,000 of the wildlife account appropriation, $72,000 of the general fund--state appropriation for fiscal year 1998, and $73,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for control and eradication of class B designate weeds on department owned and managed lands. The amounts from the general fund‑-state appropriations are provided solely for control of spartina.

(5) $140,000 of the wildlife account appropriation is provided solely for a cooperative effort with the department of agriculture for research and eradication of purple loosestrife on state lands.

(6) $193,000 of the general fund--state appropriation for fiscal year 1998, $193,000 of the general fund--state appropriation for fiscal year 1999, and $300,000 of the wildlife account appropriation are provided solely for the design and development of an automated license system.

(7) The department is directed to offer for sale its Cessna 421 aircraft by June 30, 1998. Proceeds from the sale shall be deposited in the wildlife account.

(8) $1,000,000 of the general fund--state appropriation is provided solely to continue the department's habitat partnerships program during the 1997-99 biennium.

(9) $350,000 of the general fund--state appropriation for fiscal year 1998 and $350,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for purchase of monitoring equipment necessary to fully implement mass marking of coho salmon.

(10) $150,000 of the general fund--state appropriation for fiscal year 1998 and $150,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for a contract with the United States department of agriculture to carry out animal damage control projects throughout the state.

(11) $97,000 of the general fund--state appropriation for fiscal year 1998 and $98,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement animal damage control programs for Canada geese in the lower Columbia river basin.

(12) $170,000 of the general fund--state appropriation for fiscal year 1998, $170,000 of the general fund--state appropriation for fiscal year 1999, and $360,000 of the wildlife account appropriation are provided solely to hire additional enforcement officers to address problem wildlife throughout the state.

(13) $197,000 of the general fund--state appropriation for fiscal year 1998 and $196,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Substitute Senate Bill No. 5120 (remote site incubators). If the bill or substantially similar legislation is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(14) $133,000 of the general fund--state appropriation for fiscal year 1998 and $133,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Substitute Senate Bill No. 5442 (flood control permitting). If the bill or substantially similar legislation is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(15) $256,000 of the juvenile fishing enhancement account appropriation is provided solely for implementation of Substitute Senate Bill No. 5184 (additional rod license). If the bill or substantially similar legislation is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(16) $105,000 of the recreational fisheries enhancement account appropriation is provided solely for implementation of Substitute Senate Bill No. 5886 (regional enhancement groups). If the bill or substantially similar legislation is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(17) $100,000 of the aquatic lands enhancement account appropriation is provided solely for grants to the regional fisheries enhancement groups.

(18) $547,000 of the eastern Washington pheasant enhancement account appropriation is provided solely for implementation of Substitute Senate Bill No. 5104 (pheasant enhancement program). If the bill or substantially similar legislation is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(19) $300,000 of the general fund--state appropriation for fiscal year 1998 and $300,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to hire Washington conservation corps crews to maintain department owned and managed lands.

(20) Using funds provided in this section, the department shall implement Substitute Senate Bill No. 5077 (integrated pest management).

NEW SECTION. Sec. 308. FOR THE DEPARTMENT OF NATURAL RESOURCES

General Fund‑-State Appropriation (FY 1998)......... $ 24,939,000

General Fund‑-State Appropriation (FY 1999)......... $ 25,316,000

General Fund‑-Federal Appropriation.................. $.................................. 1,156,000

General Fund‑-Private/Local Appropriation........... $ 422,000

Forest Development Account Appropriation............. $...................................... 43,855,000

Off Road Vehicle Account Appropriation.............. $ 3,628,000

Surveys and Maps Account Appropriation.............. $ 2,088,000

Aquatic Lands Enhancement Account

Appropriation................................... $ 4,869,000

Resources Management Cost Account

Appropriation................................... $ 91,113,000

Waste Reduction/Recycling/Litter Control Account

Appropriation................................... $ 450,000

Surface Mining Reclamation Account

Appropriation................................... $ 1,420,000

Aquatic Land Dredged Material Disposal Site Account

Appropriation................................... $ 751,000

Natural Resources Conservation Areas Stewardship

Account Appropriation........................... $ 77,000

Air Pollution Control Account Appropriation......... $ 890,000

Metals Mining Account Appropriation.................. $ 62,000

Water Quality Account Appropriation.................. $.................................. 4,133,000

TOTAL APPROPRIATION...................... $ 205,169,000

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

(1) $7,017,000 of the general fund‑-state appropriation for fiscal year 1998 and $7,017,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for emergency fire suppression.

(2) $18,000 of the general fund‑-state appropriation for fiscal year 1998, $18,000 of the general fund‑-state appropriation for fiscal year 1999, and $957,000 of the aquatic lands enhancement account appropriation are provided solely for the implementation of the Puget Sound work plan agency action items DNR-01, DNR-02, and DNR-04.

(3) $450,000 of the resource management cost account appropriation is provided solely for the control and eradication of class B designate weeds on state lands.

(4) $2,682,700 of the general fund‑-state appropriation for fiscal year 1998 and $3,062,745 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for fire protection activities.

(5) $541,000 of the general fund‑-state appropriation for fiscal year 1998 and $549,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the stewardship of natural area preserves, natural resource conservation areas, and the operation of the natural heritage program.

(6) $2,300,000 of the aquatic lands enhancement account appropriation is provided for the department's portion of the Eagle Harbor settlement.

(7) $4,133,000 of the water quality account appropriation, $500,000 of the forest development account appropriation, and $1,500,000 of the resource management cost account appropriation are provided solely for the jobs for the environment program.

(a) These funds shall be used to achieve the following goals:

(i) Restore and protect watersheds to benefit anadromous fish stocks, including critical or depressed stocks as determined by the department of fish and wildlife;

(ii) Conduct watershed restoration and protection projects primarily on state lands in coordination with federal, local, tribal, and private-sector efforts; and

(iii) Create market-wage jobs with benefits in environmental restoration for displaced workers in natural resource impact areas, as defined under RCW 43.31.601(2).

(b) Projects shall be selected by the department of natural resources, in consultation with an interagency task force consisting of the department of fish and wildlife, other appropriate state agencies, tribal governments, local governments, the federal government, labor, and other interested stakeholders. In recommending projects for funding, the task force shall use the following criteria:

(i) The extent to which the project, using best available science, addresses habitat factors limiting fish and wildlife populations;

(ii) The number, duration and quality of jobs to be created or retained by the project for displaced workers in natural resource impact areas;

(iii) The extent to which the project will help avoid the listing of threatened or endangered species or provides for the recovery of species already listed;

(iv) The extent to which the project will augment existing federal, state, tribal, or local watershed planning efforts or completed watershed restoration and conservation plans;

(v) The cost effectiveness of the project;

(vi) The inclusion of matching funds; and

(vii) The demonstrated ability of the project proponents to administer the project.

(c) Funds may be expended for planning, design, engineering, and monitoring. Funds expended shall be used for specific projects and not for ongoing operational costs. Eligible projects include, but are not limited to, closure or improvement of forest roads, repair of culverts, clean-up of stream beds, removal of fish barriers, installation of fish screens, fencing of streams, and construction and planting of fish cover.

(d) The department of natural resources and the department of fish and wildlife, in consultation with the office of financial management and other appropriate agencies, shall report to the appropriate committees of the legislature by January 1, 1998, and annually thereafter, on any expenditures made from these appropriations.

(e) $400,000 of this amount is provided solely for watershed restoration programs to be completed by the department of ecology's Washington conservation corps crews.

(8) Using funds provided in this section, the department shall continue to actively manage agricultural school trust lands to generate revenue for the agricultural school trust in the 1997-99 biennium.

(9) Using funds provided in this section, the department shall implement Substitute Senate Bill No. 5077 (integrated pest management).

NEW SECTION. Sec. 309. FOR THE DEPARTMENT OF AGRICULTURE

General Fund‑-State Appropriation (FY 1998)......... $ 7,460,000

General Fund‑-State Appropriation (FY 1999)......... $ 6,870,000

General Fund‑-Federal Appropriation.................. $.................................. 4,733,000

General Fund‑-Private/Local Appropriation........... $ 408,000

Aquatic Lands Enhancement Account

Appropriation................................... $ 806,000

Industrial Insurance Premium Refund Account

Appropriation................................... $ 184,000

State Toxics Control Account Appropriation.......... $ 998,000

TOTAL APPROPRIATION...................... $ 21,459,000

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

(1) $35,000 of the general fund‑-state appropriation for fiscal year 1998 and $36,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the implementation of the Puget Sound work plan agency action item DOA-01.

(2) $461,000 of the general fund‑-state appropriation for fiscal year 1998 and $361,000 of the general fund‑-federal appropriation are provided solely to monitor and eradicate the Asian gypsy moth.

(3) Using funds provided in this section, the department shall implement Substitute Senate Bill No. 5077 (integrated pest management).

NEW SECTION. Sec. 310. FOR THE WASHINGTON POLLUTION LIABILITY REINSURANCE PROGRAM

Pollution Liability Insurance Program Trust Account

Appropriation................................... $ 914,000

(End of part)

PART IV

TRANSPORTATION

NEW SECTION. Sec. 401. FOR THE DEPARTMENT OF LICENSING

General Fund Appropriation (FY 1998)................ $ 4,403,000

General Fund Appropriation (FY 1999)................ $ 4,407,000

Architects' License Account Appropriation........... $ 852,000

Cemetery Account Appropriation....................... $ 188,000

Professional Engineers' Account Appropriation........ $........................................... 2,667,000

Real Estate Commission Account Appropriation........ $ 6,703,000

Master License Account Appropriation................ $ 6,976,000

Uniform Commercial Code Account Appropriation........ $........................................... 4,217,000

Real Estate Education Account Appropriation......... $ 606,000

Funeral Directors And Embalmers Account

Appropriation................................... $ 409,000

TOTAL APPROPRIATION...................... $ 31,428,000

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

(1) $229,000 of the general fund fiscal year 1998 appropriation and $195,000 of the general fund fiscal year 1999 appropriation are provided solely for the implementation of Senate Bill No. 5997 (cosmetology inspections). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(2) $21,000 of the general fund fiscal year 1998 appropriation and $22,000 of the general fund fiscal year 1999 appropriation are provided solely for the implementation of Senate Bill No. 5754 (regulation of boxing, wrestling, and martial arts events). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

(3) $19,000 of the general fund fiscal year 1998 appropriation, $1,000 of the general fund fiscal 1999 appropriation, $2,000 of the architects' license account appropriation, $11,000 of the professional engineers' account appropriation, $9,000 of the real estate commission account appropriation, $58,000 of the master license account appropriation, and $3,000 of the funeral directors and embalmers account appropriation are provided solely for the implementation of House Bill No. 3901 (implementing welfare reform). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

NEW SECTION. Sec. 402. FOR THE STATE PATROL

General Fund‑-State Appropriation (FY 1998)......... $ 13,415,000

General Fund‑-State Appropriation (FY 1999)......... $ 14,352,000

General Fund‑-Federal Appropriation.................. $.................................. 3,990,000

General Fund‑-Private/Local Appropriation.. ........ $ 341,000

Public Safety and Education Account

Appropriation................................... $ 4,652,000

County Criminal Justice Assistance Account

Appropriation................................... $ 3,905,000

Municipal Criminal Justice Assistance Account

Appropriation................................... $ 1,573,000

Fire Service Trust Account Appropriation............. $ 92,000

Fire Service Training Account Appropriation......... $ 1,762,000

State Toxics Control Account Appropriation.......... $ 439,000

Violence Reduction and Drug Enforcement Account

Appropriation................................... $ 310,000

Fingerprint Identification Account

Appropriation................................... $ 3,082,000

TOTAL APPROPRIATION...................... $ 47,913,000

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

(1) $254,000 of the fingerprint identification account appropriation is provided solely for an automated system that will facilitate the access of criminal history records remotely by computer or phone for preemployment background checks and other non-law enforcement purposes. The agency shall submit an implementation status report to the office of financial management and the legislature by September 1, 1997.

(2) $264,000 of the general fund‑-federal appropriation is provided solely for a feasibility study to develop a criminal investigation computer system. The study will report on the feasibility of developing a system that uses incident-based reporting as its foundation, consistent with FBI standards. The system will have the capability of connecting with local law enforcement jurisdictions as well as fire protection agencies conducting arson investigations. The study will report on the system requirements for incorporating case management, intelligence data, imaging, and geographic information. The system will also provide links to existing crime information databases such as WASIS and WACIC. The agency shall submit a copy of the proposed study workplan to the office of financial management and the department of information services for approval prior to expenditure. A final report shall be submitted to the legislature, the office of financial management, and the department of information services no later than June 30, 1998.

(3) $10,000 of the general fund--state fiscal year 1998 appropriation and $10,000 of the general fund--state fiscal year 1999 appropriation are provided solely for implementation of background checks for private schools as provided in Second Substitute Senate Bill No. 5528 (background checks). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(End of part)

PART V

EDUCATION

NEW SECTION. Sec. 501. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR STATE ADMINISTRATION

General Fund‑-State Appropriation (FY 1998)......... $ 15,957,000

General Fund‑-State Appropriation (FY 1999)......... $ 39,189,000

General Fund‑-Federal Appropriation.................. $.................................. 49,039,000

Public Safety and Education Account

Appropriation................................... $ 3,148,000

Violence Reduction and Drug Enforcement Account

Appropriation................................... $ 3,122,000

Education Savings Account Appropriation............. $ 29,312,000

TOTAL APPROPRIATION...................... $ 139,767,000

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

(1) AGENCY OPERATIONS

(a) $385,000 of the general fund‑-state appropriation for fiscal year 1998 and $385,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the operation and expenses of the state board of education, including basic education assistance activities.

(b) $250,000 of the general fund‑-state appropriation for fiscal year 1998 and $250,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for enhancing computer systems and support in the office of superintendent of public instruction. These amounts shall be used to: Make a database of school information available electronically to schools, state government, and the general public; reduce agency and school district administrative costs through more effective use of technology; and replace paper reporting and publication to the extent feasible with electronic media. The superintendent, in cooperation with the commission on student learning, shall develop a state student record system including elements reflecting student achievement. The system shall be made available to the office of financial management and the legislature with suitable safeguards of student confidentiality. The superintendent shall report to the office of financial management and the legislative fiscal committees by December 1 of each year of the biennium on the progress and plans for the expenditure of these amounts.

(c) $348,000 of the public safety and education account appropriation is provided solely for administration of the traffic safety education program, including in-service training related to instruction in the risks of driving while under the influence of alcohol and other drugs.

(d) $50,000 of the general fund--state appropriation for fiscal year 1998 and $50,000 of the general fund--state appropriation for fiscal year 1999 are provided solely to implement Senate Bill No. 5394 (school audit resolutions). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(e) The superintendent of public instruction shall not accept, allocate, or expend any federal funds to implement the federal goals 2000 program.

(2) STATE-WIDE PROGRAMS

(a) $2,174,000 of the general fund‑-state appropriation is provided for in-service training and educational programs conducted by the Pacific Science Center.

(b) $63,000 of the general fund‑-state appropriation is provided for operation of the Cispus environmental learning center.

(c) $2,654,000 of the general fund‑-state appropriation is provided for educational centers, including state support activities.

(d) $617,000 of the general fund--state appropriation is provided to implement Second Substitute Senate Bill No. 5508 (third grade reading accountability) to fund the standardized norm-referenced third grade reading test and associated administrative costs.

(e) $3,122,000 of the violence reduction and drug enforcement account appropriation and $2,800,000 of the public safety education account appropriation are provided solely for matching grants to enhance security in schools. Not more than seventy-five percent of a district's total expenditures for school security in any school year may be paid from a grant under this subsection. The grants shall be expended solely for the costs of employing or contracting for building security monitors in schools during school hours and school events. Of the amount provided in this subsection, at least $2,850,000 shall be spent for grants to districts that, during the 1988-89 school year, employed or contracted for security monitors in schools during school hours. However, these grants may be used only for increases in school district expenditures for school security over expenditure levels for the 1988-89 school year.

(f) $200,000 of the general fund--state appropriation for fiscal year 1998 and $200,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for media productions by students to focus on issues and consequences of teenage pregnancy and child rearing. The projects shall be consistent with the provisions of section 4, chapter 299, Laws of 1994, including the requirement for a local/private or public sector match equal to fifty percent of the state grant.

(g) $1,500,000 of the general fund‑-state appropriation for fiscal year 1998 and $1,500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for school district petitions to juvenile court for truant students as provided in RCW 28A.225.030 and 28A.225.035. Allocation of this money to school districts shall be based on the number of petitions filed.

(h) $300,000 of the general fund‑-state appropriation is provided for alcohol and drug prevention programs pursuant to RCW 66.08.180.

(i) $14,656,000 of the fiscal year 1998 education savings account appropriation and $14,656,000 of the fiscal year 1999 education savings account appropriation are provided solely for school district technology enhancement. A maximum of $100,000 per year of this amount is provided for administrative support and oversight of the state telecommunications network of schools and colleges (K-20 network) by the superintendent of public instruction. The remaining $29,112,000 is provided for matching grants to school districts and consortia of school districts. The funds shall be awarded in a competitive grant application process. Grant applicants shall submit a technology development plan approved by the school board(s) of directors. Preference shall be given to plans that show the greatest potential educational benefit.

(j) $25,000 of the general fund--state appropriation for fiscal year 1998 and $25,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for allocation to the primary coordinators of the state geographic alliance to improve the teaching of geography in schools.

(k) $987,000 of the general fund--state fiscal year 1998 appropriation and $4,207,000 of the general fund--state fiscal year 1999 appropriation are provided solely to implement Substitute . . . . . Bill No. . . . . (charter schools). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

(l) $19,977,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the purchase of classroom instructional materials and supplies. The superintendent shall allocate the funds at a maximum rate of $20.82 per full-time equivalent student, beginning September 1, 1998, and ending June 30, 1999. The expenditure of the funds shall be determined at each school site by the school building staff, parents, and the community. School districts shall distribute all funds received to school buildings without deduction.

NEW SECTION. Sec. 502. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR GENERAL APPORTIONMENT (BASIC EDUCATION)

General Fund Appropriation (FY 1998)................ $ 3,440,625,000

General Fund Appropriation (FY 1999)................ $ 3,525,501,000

TOTAL APPROPRIATION...................... $ 6,966,126,000

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

(1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996-97 school year.

(2) Allocations for certificated staff salaries for the 1997-98 and 1998-99 school years shall be determined using formula‑generated staff units calculated pursuant to this subsection. Staff allocations for small school enrollments in (d) through (f) of this subsection shall be reduced for vocational full-time equivalent enrollments. Staff allocations for small school enrollments in grades K-6 shall be the greater of that generated under (a) of this subsection, or under (d) and (e) of this subsection. Certificated staffing allocations shall be as follows:

(a) On the basis of each 1,000 average annual full-time equivalent enrollments, excluding full-time equivalent enrollment otherwise recognized for certificated staff unit allocations under (c) through (f) of this subsection:

(i) Four certificated administrative staff units per thousand full-time equivalent students in grades K-12;

(ii) 49 certificated instructional staff units per thousand full-time equivalent students in grades K-3;

(iii) An additional 5.3 certificated instructional staff units for grades K-3. Any funds allocated for these additional certificated units shall not be considered as basic education funding;

(A) Funds provided under this subsection (2)(a)(iii) in excess of the amount required to maintain the statutory minimum ratio established under RCW 28A.150.260(2)(b) shall be allocated only if the district documents an actual ratio equal to or greater than 54.3 certificated instructional staff per thousand full-time equivalent students in grades K-3. For any school district documenting a lower certificated instructional staff ratio, the allocation shall be based on the district's actual grades K-3 certificated instructional staff ratio achieved in that school year, or the statutory minimum ratio established under RCW 28A.150.260(2)(b), if greater;

(B) Districts at or above 51.0 certificated instructional staff per one thousand full-time equivalent students in grades K-3 may dedicate up to 1.3 of the 54.3 funding ratio to employ additional classified instructional assistants assigned to basic education classrooms in grades K-3. For purposes of documenting a district's staff ratio under this section, funds used by the district to employ additional classified instructional assistants shall be converted to a certificated staff equivalent and added to the district's actual certificated instructional staff ratio. Additional classified instructional assistants, for the purposes of this subsection, shall be determined using the 1989-90 school year as the base year;

(C) Any district maintaining a ratio equal to or greater than 54.3 certificated instructional staff per thousand full-time equivalent students in grades K-3 may use allocations generated under this subsection (2)(a)(iii) in excess of that required to maintain the minimum ratio established under RCW 28A.150.260(2)(b) to employ additional basic education certificated instructional staff or classified instructional assistants in grades 4-6. Funds allocated under this subsection (2)(a)(iii) shall only be expended to reduce class size in grades K-6. No more than 1.3 of the certificated instructional funding ratio amount may be expended for provision of classified instructional assistants;

(iv) An additional 4.0 certificated instructional staff units per thousand full-time equivalent students in grade 4 for the addition of teachers solely to reduce class size. Any funds allocated for these additional certificated units shall not be considered basic education funding. Funds provided under this subsection (2)(a)(iv) in excess of the amount required to maintain the statutory minimum ratio established under RCW 28A.150.260(2)(b) shall be allocated only if the district documents an actual ratio equal to or greater than 50 certificated instructional staff per thousand full-time equivalent students in grade 4. For any school district documenting a lower certificated instructional staff ratio the allocation shall be based on the district's actual grade 4 certificated instructional staff ratio achieved in that school year, or the statutory minimum ratio established under RCW 28A.150.260(2)(b), if greater; and

(v) Forty‑six certificated instructional staff units per thousand full-time equivalent students in grades 5-12;

(b) For school districts with a minimum enrollment of 250 full-time equivalent students whose full-time equivalent student enrollment count in a given month exceeds the first of the month full-time equivalent enrollment count by 5 percent, an additional state allocation of 110 percent of the share that such increased enrollment would have generated had such additional full-time equivalent students been included in the normal enrollment count for that particular month;

(i) Vocational education programs approved by the superintendent of public instruction, a maximum of 0.92 certificated instructional staff units and 0.08 certificated administrative staff units for each 18.3 full-time equivalent vocational students. Districts documenting staffing ratios of less than 1 certificated staff per 18.3 students shall be allocated the greater of the ratio in subsection 2(a)(v) of this section or the actual documented ratio;

(ii) Skills center programs approved by the superintendent of public instruction, 0.92 certificated instructional staff units and 0.08 certificated administrative units for each 16.67 full-time equivalent vocational students;

(iii) Indirect cost charges to vocational-secondary programs shall not exceed 10 percent; and

(iv) Vocational full-time equivalent enrollment shall be reported on the same monthly basis as the enrollment for students eligible for basic support, and payments shall be adjusted for reported vocational enrollments on the same monthly basis as those adjustments for enrollment for students eligible for basic support.

(d) For districts enrolling not more than twenty‑five average annual full-time equivalent students in grades K-8, and for small school plants within any school district which have been judged to be remote and necessary by the state board of education and enroll not more than twenty‑five average annual full-time equivalent students in grades K-8:

(i) For those enrolling no students in grades 7 and 8, 1.76 certificated instructional staff units and 0.24 certificated administrative staff units for enrollment of not more than five students, plus one‑twentieth of a certificated instructional staff unit for each additional student enrolled; and

(ii) For those enrolling students in grades 7 or 8, 1.68 certificated instructional staff units and 0.32 certificated administrative staff units for enrollment of not more than five students, plus one‑tenth of a certificated instructional staff unit for each additional student enrolled;

(e) For specified enrollments in districts enrolling more than twenty‑five but not more than one hundred average annual full-time equivalent students in grades K-8, and for small school plants within any school district which enroll more than twenty‑five average annual full-time equivalent students in grades K-8 and have been judged to be remote and necessary by the state board of education:

(i) For enrollment of up to sixty annual average full-time equivalent students in grades K-6, 2.76 certificated instructional staff units and 0.24 certificated administrative staff units; and

(ii) For enrollment of up to twenty annual average full-time equivalent students in grades 7 and 8, 0.92 certificated instructional staff units and 0.08 certificated administrative staff units;

(f) For districts operating no more than two high schools with enrollments of less than three hundred average annual full-time equivalent students, for enrollment in grades 9-12 in each such school, other than alternative schools:

(i) For remote and necessary schools enrolling students in any grades 9-12 but no more than twenty‑five average annual full-time equivalent students in grades K-12, four and one‑half certificated instructional staff units and one‑quarter of a certificated administrative staff unit;

(ii) For all other small high schools under this subsection, nine certificated instructional staff units and one‑half of a certificated administrative staff unit for the first sixty average annual full time equivalent students, and additional staff units based on a ratio of 0.8732 certificated instructional staff units and 0.1268 certificated administrative staff units per each additional forty‑three and one‑half average annual full time equivalent students.

Units calculated under (f)(ii) of this subsection shall be reduced by certificated staff units at the rate of forty‑six certificated instructional staff units and four certificated administrative staff units per thousand vocational full-time equivalent students.

(g) For each nonhigh school district having an enrollment of more than seventy annual average full-time equivalent students and less than one hundred eighty students, operating a grades K-8 program or a grades 1-8 program, an additional one-half of a certificated instructional staff unit; and

(h) For each nonhigh school district having an enrollment of more than fifty annual average full-time equivalent students and less than one hundred eighty students, operating a grades K-6 program or a grades 1-6 program, an additional one‑half of a certificated instructional staff unit.

(3) Allocations for classified salaries for the 1997‑98 and 1998‑99 school years shall be calculated using formula‑generated classified staff units determined as follows:

(a) For enrollments generating certificated staff unit allocations under subsection (2) (d) through (h) of this section, one classified staff unit for each three certificated staff units allocated under such subsections;

(b) For all other enrollment in grades K-12, including vocational full-time equivalent enrollments, one classified staff unit for each sixty average annual full-time equivalent students; and

(c) For each nonhigh school district with an enrollment of more than fifty annual average full-time equivalent students and less than one hundred eighty students, an additional one‑half of a classified staff unit.

(4) Fringe benefit allocations shall be calculated at a rate of 20.22 percent in the 1997‑98 and 1998-99 school years for certificated salary allocations provided under subsection (2) of this section, and a rate of 18.65 percent in the 1997‑98 and 1998-99 school years for classified salary allocations provided under subsection (3) of this section.

(5) Insurance benefit allocations shall be calculated at the maintenance rate specified in section 504(2) of this act, based on the number of benefit units determined as follows:

(a) The number of certificated staff units determined in subsection (2) of this section; and

(b) The number of classified staff units determined in subsection (3) of this section multiplied by 1.152. This factor is intended to adjust allocations so that, for the purposes of distributing insurance benefits, full-time equivalent classified employees may be calculated on the basis of 1440 hours of work per year, with no individual employee counted as more than one full-time equivalent.

(6)(a) For nonemployee-related costs associated with each certificated staff unit allocated under subsection (2) (a), (b), and (d) through (h) of this section, there shall be provided a maximum of $7,950 per certificated staff unit in the 1997‑98 school year and a maximum of $8,165 per certificated staff unit in the 1998-99 school year.

(b) For nonemployee-related costs associated with each vocational certificated staff unit allocated under subsection (2)(c) of this section, there shall be provided a maximum of $15,147 per certificated staff unit in the 1997‑98 school year and a maximum of $15,556 per certificated staff unit in the 1998-99 school year.

(7) Allocations for substitute costs for classroom teachers shall be distributed at a maintenance rate of $354.64 per allocated classroom teachers exclusive of salary increase amounts provided in section 504 of this act. Solely for the purposes of this subsection, allocated classroom teachers shall be equal to the number of certificated instructional staff units allocated under subsection (2) of this section, multiplied by the ratio between the number of actual basic education certificated teachers and the number of actual basic education certificated instructional staff reported state‑wide for the 1996-97 school year.

(8) Any school district board of directors may petition the superintendent of public instruction by submission of a resolution adopted in a public meeting to reduce or delay any portion of its basic education allocation for any school year. The superintendent of public instruction shall approve such reduction or delay if it does not impair the district's financial condition. Any delay shall not be for more than two school years. Any reduction or delay shall have no impact on levy authority pursuant to RCW 84.52.0531 and local effort assistance pursuant to chapter 28A.500 RCW.

(9) The superintendent may distribute a maximum of $6,124,000 outside the basic education formula during fiscal years 1998 and 1999 as follows:

(a) For fire protection for school districts located in a fire protection district as now or hereafter established pursuant to chapter 52.04 RCW, a maximum of $447,000 may be expended in fiscal year 1998 and a maximum of $459,000 may be expended in fiscal year 1999;

(b) For summer vocational programs at skills centers, a maximum of $1,948,000 may be expended each fiscal year;

(d) A maximum of $500,000 per fiscal year may be expended for programs providing skills training for secondary students who are enrolled in extended day school-to-work programs, as approved by the superintendent of public instruction. The funds shall be allocated at a rate not to exceed $500 per full-time equivalent student enrolled in those programs.

(10) For the purposes of RCW 84.52.0531, the increase per full-time equivalent student in state basic education appropriations provided under this act, including appropriations for salary and benefits increases, is 3.0 percent from the 1996‑97 school year to the 1997‑98 school year, and 1.0 percent from the 1997‑98 school year to the 1998‑99 school year.

(11) If two or more school districts consolidate and each district was receiving additional basic education formula staff units pursuant to subsection (2) (b) through (h) of this section, the following shall apply:

(a) For three school years following consolidation, the number of basic education formula staff units shall not be less than the number of basic education formula staff units received by the districts in the school year prior to the consolidation; and

(b) For the fourth through eighth school years following consolidation, the difference between the basic education formula staff units received by the districts for the school year prior to consolidation and the basic education formula staff units after consolidation pursuant to subsection (2) (a) through (h) of this section shall be reduced in increments of twenty percent per year.

NEW SECTION. Sec. 503. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-BASIC EDUCATION EMPLOYEE COMPENSATION

(1) The following calculations determine the salaries used in the general fund allocations for certificated instructional, certificated administrative, and classified staff units under section 502 of this act:

(a) Salary allocations for certificated instructional staff units shall be determined for each district by multiplying the district's certificated instructional derived base salary shown on LEAP Document 12D, by the district's average staff mix factor for basic education and special education certificated instructional staff in that school year, computed using LEAP Document 1A; and

(b) Salary allocations for certificated administrative staff units and classified staff units for each district shall be based on the district's certificated administrative and classified salary allocation amounts shown on LEAP Document 12D.

(2) For the purposes of this section:

(a) "Basic education certificated instructional staff" is defined as provided in RCW 28A.150.100 and "special education certificated staff" means staff assigned to the state-supported special education program pursuant to chapter 28A.155 RCW in positions requiring a certificate;

(b) "LEAP Document 1A" means the computerized tabulation establishing staff mix factors for certificated instructional staff according to education and years of experience, as developed by the legislative evaluation and accountability program committee on April 8, 1991, at 13:35 hours; and

(c) "LEAP Document 12D" means the computerized tabulation of 1997-98 and 1998-99 school year salary allocations for basic education certificated administrative staff and basic education classified staff and derived base salaries for basic education certificated instructional staff as developed by the legislative evaluation and accountability program committee on March 21, 1997 at 16:37 hours.

(3) Incremental fringe benefit factors shall be applied to salary adjustments at a rate of 19.58 percent for certificated staff and 15.15 percent for classified staff for both years of the biennium.

(4)(a) Pursuant to RCW 28A.150.410, the following state‑wide salary allocation schedules for certificated instructional staff are established for basic education salary allocations:

STATE-WIDE SALARY ALLOCATION SCHEDULE

FOR THE 1997-98 AND 1998-99 SCHOOL YEARS

Years of

Service BA BA+15 BA+30 BA+45 BA+90

0 22,950 23,570 24,212 24,855 26,920

1 23,702 24,342 25,005 25,690 27,816

2 24,469 25,129 25,812 26,563 28,725

3 25,275 25,955 26,657 27,450 29,650

4 26,095 26,818 27,540 28,375 30,632

5 26,953 27,695 28,437 29,336 31,629

6 27,847 28,586 29,370 30,333 32,661

7 28,756 29,513 30,316 31,341 33,727

8 29,678 30,477 31,299 32,408 34,827

9 31,475 32,337 33,487 35,962

10 33,388 34,621 37,129

11 35,788 38,351

12 36,918 39,605

13 40,890

14 42,182

15 or more 43,279

Years of MA+90

Service BA+135 MA MA+45 or PHD

0 28,251 27,516 29,581 30,912

1 29,165 28,351 30,477 31,825

2 30,115 29,224 31,386 32,774

3 31,100 30,111 32,311 33,761

4 32,123 31,036 33,293 34,783

5 33,180 31,996 34,290 35,840

6 34,250 32,994 35,322 36,911

7 35,377 34,002 36,388 38,038

8 36,537 35,069 37,488 39,198

9 37,730 36,147 38,623 40,391

10 38,956 37,282 39,790 41,617

11 40,214 38,449 41,012 42,875

12 41,525 39,662 42,266 44,186

13 42,867 40,917 43,551 45,528

14 44,260 42,210 44,927 46,921

15 or more 45,411 43,307 46,095 48,141

(b) As used in this subsection, the column headings "BA+(N)" refer to the number of credits earned since receiving the baccalaureate degree.

(c) For credits earned after the baccalaureate degree but before the masters degree, any credits in excess of forty‑five credits may be counted after the masters degree. Thus, as used in this subsection, the column headings "MA+(N)" refer to the total of:

(i) Credits earned since receiving the masters degree; and

(ii) Any credits in excess of forty‑five credits that were earned after the baccalaureate degree but before the masters degree.

(5) For the purposes of this section:

(a) "BA" means a baccalaureate degree.

(b) "MA" means a masters degree.

(d) "Years of service" shall be calculated under the same rules adopted by the superintendent of public instruction.

(e) "Credits" means college quarter hour credits and equivalent in-service credits computed in accordance with RCW 28A.415.020.

(6) No more than ninety college quarter-hour credits received by any employee after the baccalaureate degree may be used to determine compensation allocations under the state salary allocation schedule and LEAP documents referenced in this act, or any replacement schedules and documents, unless:

(a) The employee has a masters degree; or

(b) The credits were used in generating state salary allocations before January 1, 1992.

(7)(a) Credits earned by certificated instructional staff after September 1, 1995, shall be counted only if the content of the course: (i) Is consistent with the school district's strategic plan for improving student learning; (ii) is consistent with a school-based plan for improving student learning as required by the annual school performance report, under RCW 28A.320.205, for the school in which the individual is assigned; (iii) pertains to the individual's current assignment or expected assignment for the following school year; (iv) is necessary for obtaining an endorsement as prescribed by the state board of education; (v) is specifically required for obtaining advanced levels of certification; or (vi) is included in a college or university degree program that pertains to the individual's current assignment, or potential future assignment, as a certificated instructional staff.

(b) Once credits earned by certificated instructional staff have been determined to meet one or more of the criteria in (a) of this subsection, the credits shall be counted even if the individual transfers to other school districts.

(8) The salary allocation schedules established in this section are for allocation purposes only except as provided in RCW 28A.400.200(2).

NEW SECTION. Sec. 504. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR SCHOOL EMPLOYEE COMPENSATION ADJUSTMENTS

General Fund Appropriation (FY 1998)................ $ 83,802,000

General Fund Appropriation (FY 1999)................ $ 117,853,000

TOTAL APPROPRIATION...................... $ 201,655,000

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

(1) $177,176,000 is provided for a cost of living adjustment of 3.0 percent effective September 1, 1997, for state formula staff units. The appropriations include associated incremental fringe benefit allocations at rates 19.58 percent for certificated staff and 15.15 percent for classified staff.

(a) The appropriations in this section include the increased portion of salaries and incremental fringe benefits for all relevant state-funded school programs in part V of this act. Salary adjustments for state employees in the office of superintendent of public instruction and the education reform program are provided in part VII of this act. Increases for general apportionment (basic education) are based on the salary allocation schedules and methodology in section 503 of this act. Increases for special education result from increases in each district's basic education allocation per student. Increases for educational service districts and institutional education programs are determined by the superintendent of public instruction using the methodology for general apportionment salaries and benefits in section 503 of this act.

(b) The appropriations in this section provide salary increase and incremental fringe benefit allocations based on formula adjustments as follows:

(i) For pupil transportation, an increase of $0.60 per weighted pupil‑mile for the 1997‑98 school year and maintained for the 1998-99 school year;

(ii) For education of highly capable students, an increase of $6.81 per formula student for the 1997‑98 school year and maintained for the 1998-99 school year; and

(iii) For transitional bilingual education, an increase of $17.69 per eligible bilingual student for the 1997‑98 school year and maintained for the 1998-99 school year; and

(iv) For learning assistance, an increase of $8.74 per entitlement unit for the 1997‑98 school year and maintained for the 1998-99 school year.

(c) The appropriations in this section include $918,000 for salary increase adjustments for substitute teachers at a rate of $10.64 per unit in the 1997-98 school year and maintained in the 1998-99 school year.

(2) $24,479,000 is provided for adjustments to insurance benefit allocations. The maintenance rate for insurance benefit allocations is $314.51 per month for the 1997-98 and 1998-99 school years. The appropriations in this section provide increases of $7.32 per month for the 1997-98 school year and $14.22 per month for the 1998-99 school year at the following rates:

(a) For pupil transportation, an increase of $0.07 per weighted pupil‑mile for the 1997‑98 school year and $0.20 for the 1998-99 school year;

(b) For education of highly capable students, an increase of $0.45 per formula student for the 1997‑98 school year and $1.37 for the 1998-99 school year;

(c) For transitional bilingual education, an increase of $1.19 per eligible bilingual student for the 1997‑98 school year and $3.49 for the 1998-99 school year; and

(d) For learning assistance, an increase of $.93 per funded unit for the 1997‑98 school year and $2.74 for the 1998-99 school year.

(3) The rates specified in this section are subject to revision each year by the legislature.

(4)(a) For the 1997-98 school year, the superintendent shall prepare a report showing the allowable derived base salary for certificated instructional staff in accordance with RCW 28A.400.200 and LEAP Document 12D, and the actual derived base salary paid by each school district as shown on the S-275 report and shall make the report available to the fiscal committees of the legislature no later than February 15, 1998.

(b) For the 1998-99 school year, the superintendent shall reduce the percent of salary increase funds provided in section 504 of this act by the percentage by which a district exceeds the allowable derived base salary for certificated instructional staff as shown on LEAP Document 12D.

(5) Cost-of-living funds provided to school districts under this section for classified staff shall be distributed to each and every formula funded employee at 3.0 percent, effective September 1, 1997.

NEW SECTION. Sec. 505. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR PUPIL TRANSPORTATION

General Fund Appropriation (FY 1998)................ $ 174,344,000

General Fund Appropriation (FY 1999)................ $ 179,560,000

TOTAL APPROPRIATION...................... $ 353,904,000

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

(1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996‑97 school year.

(2) A maximum of $1,451,000 may be expended for regional transportation coordinators and related activities. The transportation coordinators shall ensure that data submitted by school districts for state transportation funding shall, to the greatest extent practical, reflect the actual transportation activity of each district.

(3) $35,000 of the fiscal year 1998 appropriation and $35,000 of the fiscal year 1999 appropriation are provided solely for the transportation of students enrolled in "choice" programs. Transportation shall be limited to low-income students who are transferring to "choice" programs solely for educational reasons.

(4) Allocations for transportation of students shall be based on reimbursement rates of $34.47 per weighted mile in the 1997-98 school year and $34.76 per weighted mile in the 1998-99 school year exclusive of salary and benefit adjustments provided in section 504 of this act. Allocations for transportation of students transported more than one radius mile shall be based on weighted miles as determined by superintendent of public instruction times the per mile reimbursement rates for the school year pursuant to the formulas adopted by the superintendent of public instruction. Allocations for transportation of students living within one radius mile shall be based on the number of enrolled students in grades kindergarten through five living within one radius mile of their assigned school times the per mile reimbursement rate for the school year times 1.29.

NEW SECTION. Sec. 506. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR SCHOOL FOOD SERVICE PROGRAMS

General Fund‑-State Appropriation (FY 1998)......... $ 3,075,000

General Fund‑-State Appropriation (FY 1999)......... $ 3,075,000

General Fund‑-Federal Appropriation.................. $.................................. 194,483,000

TOTAL APPROPRIATION...................... $ 200,633,000

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

(1) $6,000,000 of the general fund‑-state appropriations are provided for state matching money for federal child nutrition programs.

(2) $150,000 of the general fund--state appropriations are provided for summer food programs for children in low-income areas.

NEW SECTION. Sec. 507. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR SPECIAL EDUCATION PROGRAMS

General Fund‑-State Appropriation (FY 1998)......... $ 370,136,000

General Fund‑-State Appropriation (FY 1999)......... $ 373,977,000

General Fund‑-Federal Appropriation.................. $.................................. 135,106,000

TOTAL APPROPRIATION...................... $ 879,219,000

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

(1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996‑97 school year.

(2) The superintendent of public instruction shall distribute state funds to school districts based on two categories, the optional birth through age two program for special education eligible developmentally delayed infants and toddlers, and the mandatory special education program for special education eligible students ages three to twenty-one. A "special education eligible student" means a student receiving specially designed instruction in accordance with a properly formulated individualized education program.

(3) For the 1997-98 and 1998-99 school years, the superintendent shall distribute state funds to each district based on the sum of:

(a) A district's annual average headcount enrollment of developmentally delayed infants and toddlers ages birth through two, times the district's average basic education allocation per full-time equivalent student, times 1.15; and

(b) A district's annual average full-time equivalent basic education enrollment times the funded enrollment percent determined pursuant to subsection (4)(c) of this section, times the district's average basic education allocation per full-time equivalent student times 0.9309.

(4) The definitions in this subsection apply throughout this section.

(a) "Average basic education allocation per full-time equivalent student" for a district shall be based on the staffing ratios required by RCW 28A.150.260 (i.e., 49/1000 certificated instructional staff in grades K-3, and 46/1000 in grades 4-12) and shall not include enhancements for K-3, secondary vocational education, or small schools.

(b) "Annual average full-time equivalent basic education enrollment" means the resident enrollment including students enrolled through choice (RCW 28A.225.225) and students from nonhigh districts (RCW 28A.225.210) and excluding students residing in another district enrolled as part of an interdistrict cooperative program (RCW 28A.225.250).

(c) "Enrollment percent" shall mean the district's resident special education annual average enrollment, excluding the birth through age two enrollment, as a percent of the district's annual average full-time equivalent basic education enrollment. For the 1997-98 and the 1998-99 school years, each district's funded enrollment percent shall be:

(i) For districts whose enrollment percent for 1994-95 was at or below 12.7 percent, the lesser of the district's actual enrollment percent for the school year for which the allocation is being determined or 12.7 percent.

(ii) For districts whose enrollment percent for 1994-95 was above 12.7 percent, the lesser of:

(A) The district's actual enrollment percent for the school year for which the special education allocation is being determined; or

(B) The district's actual enrollment percent for the school year immediately prior to the school year for which the special education allocation is being determined if greater than 12.7 percent; or

(C) For 1997-98, the 1994-95 enrollment percent reduced by 75 percent of the difference between the district's 1994-95 enrollment percent and 12.7 percent and for 1998-99, 12.7 percent.

(5) $12,000,000 of the general fund‑-state appropriation for fiscal year 1998 and $12,000,000 of the general fund‑-state appropriation for fiscal year 1999 are provided as safety net funding for districts with demonstrated needs for state special education funding beyond the amounts provided in subsection (3) of this section. Safety net funding shall be awarded by the state safety net oversight committee.

(a) The safety net oversight committee shall first consider the needs of districts adversely affected by the 1995 change in the special education funding formula. Awards shall be based on the amount required to maintain the 1994-95 state special education excess cost allocation to the school district in aggregate or on a dollar per funded student basis.

(b) The committee shall then consider unusual needs of districts due to a special education population which differs significantly from the assumptions of the state funding formula. Awards shall be made to districts that convincingly demonstrate need due to the concentration and/or severity of disabilities in the district. Differences in program costs attributable to district philosophy or service delivery style are not a basis for safety net awards.

(6) Prior to June 1st of each year, the superintendent shall make available to each school district from available data the district's maximum funded enrollment percent for the coming school year.

(7) The superintendent of public instruction may adopt such rules and procedures as are necessary to administer the special education funding and safety net award process. Prior to revising any standards, procedures, or rules in place for the 1996-97 school year, the superintendent shall consult with the office of financial management and the fiscal committees of the legislature.

(8) The safety net oversight committee appointed by the superintendent of public instruction shall consist of:

(a) Staff of the office of superintendent of public instruction;

(b) Staff of the office of the state auditor;

(d) One or more representatives from school districts or educational service districts knowledgeable of special education programs and funding.

(9) A maximum of $4,500,000 of the general fund‑-federal appropriation shall be expended for safety net funding to meet the extraordinary needs of one or more individual special education students.

(10) A maximum of $678,000 may be expended from the general fund‑-state appropriations to fund 5.43 full-time equivalent teachers and 2.1 full-time equivalent aides at children's orthopedic hospital and medical center. This amount is in lieu of money provided through the home and hospital allocation and the special education program.

(11) A maximum of $1,000,000 of the general fund‑-federal appropriation is provided for projects to provide special education students with appropriate job and independent living skills, including work experience where possible, to facilitate their successful transition out of the public school system. The funds provided by this subsection shall be from federal discretionary grants.

(12) A school district may carry over up to 10 percent of general fund‑-state funds allocated under this program; however, carry over funds shall be expended in the special education program.

(13) Beginning in the 1997-98 school year, the superintendent shall increase the percentage of federal flow-through to school districts to at least 84 percent. In addition to other purposes, school districts may use increased federal funds for high cost students, for purchasing regional special education services from educational service districts, and for staff development activities particularly relating to inclusion issues.

(14) Up to one percent of the general fund--federal appropriation shall be expended by the superintendent for projects related to use of inclusion strategies by school districts for provision of special education services. The superintendent shall prepare an information database on laws, best practices, examples of programs, and recommended resources. The information may be disseminated in a variety of ways, including workshops and other staff development activities.

NEW SECTION. Sec. 508. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR TRAFFIC SAFETY EDUCATION PROGRAMS

Public Safety and Education Account

Appropriation................................... $ 17,179,000

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

(1) The appropriation includes such funds as are necessary for the remaining months of the 1996-97 school year.

(2) A maximum of $507,000 shall be expended for regional traffic safety education coordinators.

(3) The maximum basic state allocation per student completing the program shall be $137.16 in the 1997-98 and 1998-99 school years.

(4) Additional allocations to provide tuition assistance for students from low-income families who complete the program shall be a maximum of $66.81 per eligible student in the 1997-98 and 1998-99 school years.

NEW SECTION. Sec. 509. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR EDUCATIONAL SERVICE DISTRICTS

General Fund Appropriation (FY 1998)................ $ 4,511,000

General Fund Appropriation (FY 1999)................ $ 4,510,000

TOTAL APPROPRIATION......... ............ $ 9,021,000

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

(1) The educational service districts shall continue to furnish financial services required by the superintendent of public instruction and RCW 28A.310.190 (3) and (4).

(2) $250,000 of the general fund appropriation for fiscal year 1998 and $250,000 of the general fund appropriation for fiscal year 1999 are provided solely for student teaching centers as provided in RCW 28A.415.100.

(3) A maximum of $500,000 is provided for centers for the improvement of teaching pursuant to RCW 28A.415.010.

NEW SECTION. Sec. 510. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR LOCAL EFFORT ASSISTANCE

General Fund Appropriation (FY 1998)................ $ 84,598,000

General Fund Appropriation (FY 1999)................ $ 86,947,000

TOTAL APPROPRIATION...................... $ 171,545,000

NEW SECTION. Sec. 511. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR THE ELEMENTARY AND SECONDARY SCHOOL IMPROVEMENT ACT

General Fund‑-Federal Appropriation.................. $.................................. 255,987,000

NEW SECTION. Sec. 512. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR INSTITUTIONAL EDUCATION PROGRAMS

General Fund‑-State Appropriation (FY 1998)......... $ 18,327,000

General Fund‑-State Appropriation (FY 1999)......... $ 19,131,000

General Fund‑-Federal Appropriation.................. $.................................. 8,548,000

TOTAL APPROPRIATION...................... $ 46,006,000

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

(1) The general fund‑-state appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996‑97 school year.

(2) State funding provided under this section is based on salaries and other expenditures for a 220‑day school year. The superintendent of public instruction shall monitor school district expenditure plans for institutional education programs to ensure that districts plan for a full-time summer program.

(3) State funding for each institutional education program shall be based on the institution's annual average full-time equivalent student enrollment. Staffing ratios for each category of institution shall remain the same as those funded in the 1995-97 biennium.

(4) $758,000 of the general fund--state fiscal year 1998 appropriation and $704,000 of the general fund--state fiscal year 1999 appropriation are provided solely for the implementation of Engrossed Third Substitute House Bill No. 3900 (revising the juvenile code). If the bill is not enacted by June 30, 1997, the amounts provided in this subsection shall lapse.

NEW SECTION. Sec. 513. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR PROGRAMS FOR HIGHLY CAPABLE STUDENTS

General Fund Appropriation (FY 1998)................ $ 4,442,000

General Fund Appropriation (FY 1999)................ $ 4,524,000

TOTAL APPROPRIATION...................... $ 8,966,000

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

(1) The appropriation for fiscal year 1998 includes such funds as are necessary for the remaining months of the 1996‑97 school year.

(2) Allocations for school district programs for highly capable students shall be distributed at a maximum rate of $302.60 per funded student for the 1997-98 school year and $303.18 per funded student for the 1998-99 school year, exclusive of salary and benefit adjustments pursuant to section 504 of this act. The number of funded students shall be a maximum of one and one-half percent of each district's full-time equivalent basic education enrollment.

(3) $436,000 of the appropriation is for the centrum program at Fort Worden state park.

NEW SECTION. Sec. 514. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-EDUCATION REFORM PROGRAMS

General Fund Appropriation (FY 1998)................ $ 19,855,000

General Fund Appropriation (FY 1999)................ $ 22,068,000

TOTAL APPROPRIATION...................... $ 41,923,000

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

(1) $19,253,000 is provided for the operation of the commission on student learning and the development and implementation of student assessments. The commission shall cooperate with the superintendent of public instruction in defining measures of student achievement to be included in the student record system developed by the superintendent pursuant to section 501(1)(b) of this act.

(2) $2,190,000 is provided solely for training of paraprofessional classroom assistants and certificated staff who work with classroom assistants as provided in RCW 28A.415.310.

(3) $2,970,000 is provided for mentor teacher assistance, including state support activities, under RCW 28A.415.250 and 28A.415.260. Funds for the teacher assistance program shall be allocated to school districts based on the number of beginning teachers.

(4) $4,050,000 is provided for improving technology infrastructure, monitoring and reporting on school district technology development, promoting standards for school district technology, promoting statewide coordination and planning for technology development, and providing regional educational technology support centers, including state support activities, under chapter 28A.650 RCW.

(5) $7,200,000 is provided for grants to school districts to provide a continuum of care for children and families to help children become ready to learn. Grant proposals from school districts shall contain local plans designed collaboratively with community service providers. If a continuum of care program exists in the area in which the school district is located, the local plan shall provide for coordination with existing programs to the greatest extent possible. Grant funds shall be allocated pursuant to RCW 70.190.040.

(6) $5,000,000 is provided solely for the meals for kids program under RCW 28A.235.145 through 28A.235.155.

(7) $1,260,000 is provided for technical assistance related to education reform through the office of the superintendent of public instruction, in consultation with the commission on student learning, as specified in RCW 28A.300.130 (center for the improvement of student learning).

(8) The superintendent of public instruction shall not accept, allocate, or expend any federal funds to implement the federal goals 2000 program.

NEW SECTION. Sec. 515. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR TRANSITIONAL BILINGUAL PROGRAMS

General Fund Appropriation (FY 1998)................ $ 31,275,000

General Fund Appropriation (FY 1999)................ $ 33,356,000

TOTAL APPROPRIATION...................... $ 64,631,000

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

(1) The appropriation for fiscal year 1998 provides such funds as are necessary for the remaining months of the 1996-97 school year.

(2) The superintendent shall distribute a maximum of $643.78 per eligible bilingual student in the 1997-98 school year, exclusive of salary and benefit adjustments provided in section 504 of this act.

(3) A student shall be eligible for funding under this section if the student is enrolled in grades K-12 pursuant to WAC 392-121-106 and is receiving specialized instruction pursuant to chapter 28A.180 RCW.

(4) The superintendent shall distribute a maximum of $643.78 per eligible weighted bilingual student in the 1998-99 school year exclusive of salary and benefit adjustments provided in section 504 of this act.

(5) The following factors shall be used to calculate weightings for the 1998-99 school year.

(a) Grades Level

(i) K-5................... .35

(ii) 6-8.................. .50

(iii) 9-12................ .72

(b) Time in Program

(i) Up to 1 year.......... .82

(ii) 1 to 2 years......... .62

(iii) 2 to 3 years........ .41

(iv) more than 3 years.... .21

(c) The grade level weight and time in program weight shall be summed for each eligible student and the result shall be multiplied by the rate per weighted student specified in subsection (3) of this section.

(d) Time in program under (b) of this subsection shall be calculated in accordance with WAC 392-160-035.

NEW SECTION. Sec. 516. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR THE LEARNING ASSISTANCE PROGRAM

General Fund Appropriation (FY 1998)................ $ 60,309,000

General Fund Appropriation (FY 1999)................ $ 60,862,000

TOTAL APPROPRIATION...................... $ 121,171,000

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

(1) The appropriation for fiscal year 1998 provides such funds as are necessary for the remaining months of the 1996‑97 school year.

(2) For making the calculation of the percentage of students scoring in the lowest quartile as compared with national norms, beginning with the 1991-92 school year, the superintendent shall multiply each school district's 4th and 8th grade test results by 0.86.

(3) Funding for school district learning assistance programs shall be allocated at maximum rates of $378.33 per funded unit for the 1997-98 school year and $379.47 per funded unit for the 1998-99 school year exclusive of salary and benefit adjustments provided in section 504 of this act. School districts may carryover up to 10 percent of funds allocated under this program; however, carryover funds shall be expended for the learning assistance program.

(a) A school district's funded units for the 1997-98 and 1998-99 school years shall be the sum of the following:

(i) The district's full-time equivalent enrollment in kindergarten through 6th grade, times the 5-year average 4th grade test result as adjusted pursuant to subsection (2) of this section, times 0.92; and

(ii) The district's full-time equivalent enrollment in grades 7 through 9, times the 5-year average 8th grade test result as adjusted pursuant to subsection (2) of this section, times 0.92; and

(iii) If in the prior school year the district's percentage of October headcount enrollment in grades K-12 eligible for free and reduced price lunch exceeded the state average, subtract the state average percentage of students eligible for free and reduced price lunch from the district's percentage and multiply the result by the district's K-12 annual average full-time equivalent enrollment for the current school year times 22.30 percent.

NEW SECTION. Sec. 517. FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-LOCAL ENHANCEMENT FUNDS

General Fund Appropriation (FY 1998)................ $ 45,404,000

General Fund Appropriation (FY 1999)................ $ 51,374,000

TOTAL APPROPRIATION...................... $ 96,778,000

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

(1) A maximum of $40,841,000 is provided for learning improvement allocations to school districts to enhance the ability of instructional staff to teach and assess the essential academic learning requirements for reading, writing, communication, and math in accordance with the timelines and requirements established under RCW 28A.630.885. However, special emphasis shall be given to the successful teaching of reading. Allocations under this section shall be subject to the following conditions and limitations:

(a) In accordance with the timetable for the implementation of the assessment system by the commission on student learning, the allocations for the 1997-98 and 1998-99 school years shall be at a maximum annual rate per full-time equivalent student of $30 for students enrolled in grades K-4, $24 for students enrolled in grades 5-7, and $18 for students enrolled in grades 8-12. Allocations shall be made on the monthly apportionment schedule provided in RCW 28A.510.250.

(b) A district receiving learning improvement allocations shall:

(i) Develop and keep on file at each building a student learning improvement plan to achieve the student learning goals and essential academic learning requirements and to implement the assessment system as it is developed. The plan shall delineate how the learning improvement allocations will be used to accomplish the foregoing. The plan shall be made available to the public upon request;

(ii) Maintain a policy regarding the involvement of school staff, parents, and community members in instructional decisions;

(iii) File a report by October 1, 1998, and October 1, 1999, with the office of the superintendent of public instruction, in a format developed by the superintendent that: Enumerates the activities funded by these allocations; the amount expended for each activity; describes how the activity improved understanding, teaching, and assessment of the essential academic learning requirements by instructional staff; and identifies any amounts expended from this allocation for supplemental contracts; and

(iv) Provide parents and the local community with specific information on the use of this allocation by including in the annual performance report required in RCW 28A.320.205, information on how funds allocated under this subsection were spent and the results achieved.

(c) The superintendent of public instruction shall compile and analyze the school district reports and present the results to the office of financial management and the appropriate committees of the legislature no later than November 15, 1998, and November 15, 1999.

(2) $55,937,000 is provided for local education program enhancements to meet educational needs as identified by the school district, including alternative education programs. This amount includes such amounts as are necessary for the remainder of the 1996-97 school year. Allocations for the 1997-98 and 1998-99 school year shall be at a maximum annual rate of $29.86 per full-time equivalent student as determined pursuant to subsection (3) of this section. Allocations shall be made on the monthly apportionment payment schedule provided in RCW 28A.510.250.

(3) Allocations provided under this section shall be based on school district annual average full-time equivalent enrollment in grades kindergarten through twelve: PROVIDED, That for school districts enrolling not more than one hundred average annual full-time equivalent students, and for small school plants within any school district designated as remote and necessary schools, the allocations shall be as follows:

(a) Enrollment of not more than 60 average annual full-time equivalent students in grades kindergarten through six shall generate funding based on sixty full-time equivalent students;

(b) Enrollment of not more than 20 average annual full-time equivalent students in grades seven and eight shall generate funding based on twenty full-time equivalent students; and

(c) Enrollment of not more than 60 average annual full-time equivalent students in grades nine through twelve shall generate funding based on sixty full-time equivalent students.

(4) Funding provided pursuant to this section does not fall within the definition of basic education for purposes of Article IX of the state Constitution and the state's funding duty thereunder.

(5) Receipt by a school district of one-fourth of the district's allocation of funds under this section, shall be conditioned on a finding by the superintendent that:

(1) The district is enrolled as a medicaid service provider and is actively pursuing federal matching funds for medical services provided through special education programs, pursuant to RCW 74.09.5241 through 74.09.5256 (Title XIX funding); and

(2) The district is filing truancy petitions as required under chapter 312, Laws of 1995 and RCW 28A.225.030.

(End of part)

PART VI

HIGHER EDUCATION

NEW SECTION. Sec. 601. The appropriations in sections 603 through 609 of this act are subject to the following conditions and limitations:

(1) "Institutions" means the institutions of higher education receiving appropriations under sections 603 through 609 of this act.

(2)(a) The salary increases provided or referenced in this subsection shall be the allowable salary increases provided at institutions of higher education, excluding increases associated with normally occurring promotions and increases related to faculty and professional staff retention, and excluding increases associated with employees under the jurisdiction of chapter 41.56 RCW pursuant to the provisions of RCW 28B.16.015.

(b) Each institution of higher education shall provide to each classified staff employee as defined by the office of financial management a salary increase of 3.0 percent on July 1, 1997. Each institution of higher education shall provide to instructional and research faculty, exempt professional staff, academic administrators, academic librarians, counselors, teaching and research assistants as classified by the office of financial management, and all other nonclassified staff, including those employees under RCW 28B.16.015, an average salary increase of 3.0 percent on July 1, 1997. For employees under the jurisdiction of chapter 41.56 RCW pursuant to the provisions of RCW 28B.16.015, distribution of the salary increases will be in accordance with the applicable collective bargaining agreement. However, an increase shall not be provided to any classified employee whose salary is above the approved salary range maximum for the class to which the employee's position is allocated. In order to consistently collect data for the legislature, the office of financial management, and other state agencies, to be used for policy and planning purposes, institutions of higher education shall report personnel data to the human resource data warehouse in compliance with uniform reporting procedures established by the department of personnel.

(c) Each institution of higher education receiving appropriations under sections 604 through 609 of this act may provide to instructional and research faculty, exempt professional staff, academic administrators, academic librarians, counselors, teaching and research assistants, as classified by the office of financial management, and all other nonclassified staff, but not including employees under RCW 28B.16.015, an additional average salary increase of 1.0 percent on July 1, 1997 and an average salary increase of 2.0 percent on July 1, 1998.

(d) Specific salary increases authorized in section 603 of this act are in addition to any salary increase provided in this subsection.

(3)(a) Each institution receiving appropriations under sections 604 through 609 of this act, at the direction of the higher education coordinating board, shall develop and submit to the board goals and strategies for measurable and specific improvements in academic years 1997-98 and 1998-99 for the following instructional efficiency indicators as defined by the board:

(i) Undergraduate degrees granted per full-time equivalent instructional faculty;

(ii) Undergraduate graduation efficiency index; and

(iii) Graduation rates.

(b) An institution may develop and propose additional goals, strategies, and indicators that measure other quality improvements important to the institution's mission.

(4)(a) In collaboration with the state board for community and technical colleges, each community and technical college shall develop and submit to the state board goals and strategies for measurable and specific improvements in academic years 1997-98 and 1998-99 for the following performance indicators as defined by the board:

(i) Student and employment outcomes for vocational students;

(ii) Number and percent of academic students transferring to upper division coursework in Washington higher education;

(iii) Number and percent of students enrolled in basic skills or English as a second language who complete one or more competency levels; and

(iv) Student retention and student progress.

(b) A college may develop and propose additional goals, strategies, and indicators that measure other quality improvements important to the college's mission.

(5) The state's public institutions of higher education increasingly are being called upon to become more efficient in conducting the business operations necessary to support the carrying out of their academic missions. The legislature recognizes that state laws and regulations may have the unintended effect of acting as barriers to efficient operation in some instances, and desires to encourage the institutions of higher education to think beyond the constraints of current law in identifying opportunities for improved efficiency. Accordingly, the legislature requests that the institutions of higher education, working together through the council of presidents' office and the state board for community and technical colleges, identify opportunities for changes in state law that would form the basis for a new efficiency compact with the state, for consideration no later than the 1999 legislative session.

NEW SECTION. Sec. 602. (1) The appropriations in sections 603 through 609 of this act provide state general fund support or employment and training trust account support for full-time equivalent student enrollments at each institution of higher education. Listed below are the annual full-time equivalent student enrollments by institution assumed in this act.

1997-98 1998-99

Annual Annual

Average Average

University of Washington

Main campus 30,743 30,894

Evening Degree Program 626 635

Tacoma branch 851 998

Bothell branch 766 941

Washington State University

Main campus 17,403 17,739

Spokane branch 382 432

Tri-Cities branch 794 864

Vancouver branch 931 1,061

Central Washington University 7,364 7,472

Eastern Washington University 7,739 7,739

The Evergreen State College 3,457 3,508

Western Washington University 10,187 10,336

State Board for Community and

Technical Colleges 115,903 118,431

Higher Education Coordinating

Board 50 50

(2) Based on 10th day student enrollment data for the 1997 autumn term and the office of financial management's fall 1997 full-time equivalent student (FTE) budget driver report, for each FTE below the budgeted FTE shown in subsection (1) of this section, average instructional funding per FTE of state general funds provided for the 1997-98 academic year shall be placed into reserve by allotment amendment by November 15, 1997. Based on 10th day student enrollment data for the 1998 autumn term, and the office of financial management's fall 1998 full-time equivalent student (FTE) budget driver report, for each FTE below the budgeted FTE shown in subsection (1) of this section, average instructional funding per FTE of state general funds provided for the 1998-99 academic year shall be placed into reserve by allotment amendment by November 15, 1998.

NEW SECTION. Sec. 603. FOR THE STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES

General Fund‑-State Appropriation (FY 1998)......... $ 378,461,000

General Fund‑-State Appropriation (FY 1999)......... $ 417,645,000

General Fund‑-Federal Appropriation.................. $.................................. 11,404,000

Employment and Training Trust Account

Appropriation................................... $ 26,764,000

TOTAL APPROPRIATION...................... $ 834,274,000

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

(1) $2,718,000 of the general fund‑-state appropriation for fiscal year 1998 and $4,079,000 of the general fund‑-state appropriation for fiscal year 1999 shall be placed in reserve. Funds are provided to improve instructional efficiency and the quality of educational programs. The office of financial management may approve the fiscal year 1998 allotment of funds under this subsection upon notification by the state board for community and technical colleges of its approval of the colleges' plans submitted in accordance with section 601(4) of this act. The office of financial management may approve the fiscal year 1999 allotment of funds under this subsection upon notification by the state board of its approval of a plan for allocation of the funds appropriated in this subsection in fiscal year 1999, which shall be based on the state board's evaluation of:

(a) College performance compared to the goals for quality improvement and instructional efficiency as submitted in the plan required in section 601(4) of this act;

(b) A college's performance on other goals for quality improvement and instructional efficiency as identified by the college; and

(c) The quality and effectiveness of the strategies, programs, and indicators the colleges propose to achieve continued improvement in quality and efficiency during the 1998-99 academic year.

(2) $606,000 of the general fund‑-state appropriation for fiscal year 1998 and $27,196,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely as special funds to supplement the appropriations from the employment and training trust account for the support of 7,200 annual student FTEs engaged in workforce training and retraining.

(3) $1,441,000 of the general fund--state appropriation for fiscal year 1998 and $1,441,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for 500 FTE enrollment slots to implement RCW 28B.50.259 (timber-dependent communities).

(4) $1,862,500 of the general fund--state appropriation for fiscal year 1998 and $1,862,500 of the general fund--state appropriation for fiscal year 1999 are provided solely for assessment of student outcomes at community and technical colleges.

(5) $706,000 of the general fund--state appropriation for fiscal year 1998 and $706,000 of general fund--state appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(6) Up to $1,035,000 of the general fund--state appropriation for fiscal year 1998 and up to $2,102,000 of the general fund--state appropriation for fiscal year 1999 may be used in combination with salary and benefit savings from faculty turnover to provide faculty salary increments.

(7) $83,000 of the general fund--state appropriation for fiscal year 1998 and $1,567,000 of the general fund--state appropriation for fiscal year 1999 are provided for personnel and expenses to develop curricula, acquire library resources, and begin operations of Cascadia community college. It is the legislature's desire to use the opportunity provided by the establishment of the new institution to conduct a pilot project of budgeting based on instructional standards and outcomes. The college shall use a portion of the available funds to develop a set of measurable standards and outcomes as the basis for budget development in the 1999-01 biennium.

(8) The technical colleges may increase tuition and fees to conform with the percentage increase in community college operating fees authorized in Senate Bill No. 5927. The community colleges may charge up to the maximum level authorized for services and activities fees in RCW 28B.15.069.

(9) $1,349,000 of the general fund--state appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management may approve the allotment of funds under this subsection upon approval by the higher education coordinating board in accordance with the provisions of Senate Bill No. 5927.

(10) To address part-time faculty salary disparities and to increase the ratio of full-time to part-time faculty instructors, the board may provide salary increases to part-time instructors or hire additional full-time instructional staff under the following conditions and limitations: The amount used for such purposes shall not exceed an amount equivalent to an additional salary increase of 1.0 percent on July 1, 1997, and an additional salary increase of 2.0 percent on July 1, 1998, for instructional faculty, exempt professional staff, academic administrators, librarians, and counselors, as classified by the office of financial management.

(11) Using funds provided in this section, the university shall implement Substitute Senate Bill No. 5077 (integrated pest management).

(12) Community and technical colleges with below-average faculty salaries may use funds identified by the state board in the 1997-98 and 1998-99 operating allocations to increase faculty salaries no higher than the system-wide average.

NEW SECTION. Sec. 604. FOR UNIVERSITY OF WASHINGTON

General Fund Appropriation (FY 1998)................ $ 286,059,000

General Fund Appropriation (FY 1999)................ $ 291,852,000

Death Investigations Account Appropriation.......... $ 1,810,000

Industrial Insurance Premium Refund Appropriation.... $ 514,000

Accident Account Appropriation....................... $............................. 4,958,000

Medical Aid Account Appropriation................... $ 4,989,000

TOTAL APPROPRIATION...................... $ 590,182,000

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

(1) $2,019,000 of the general fund appropriation for fiscal year 1998 and $3,029,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. Funds are provided to improve instructional efficiency and the quality of educational programs. The office of financial management may approve the allotment of funds under this subsection upon notification by the higher education coordinating board.

(2) $832,000 of the general fund appropriation for fiscal year 1998 and $1,946,000 of the general fund appropriation for fiscal year 1999 are provided solely to support additional upper-division and graduate level enrollments at the Tacoma branch campus above the 1996-97 budgeted FTE level.

(3) $533,000 of the general fund appropriation for fiscal year 1998 and $1,938,000 of the general fund appropriation for fiscal year 1999 are provided solely to support additional upper-division and graduate level enrollments at the Bothell branch campus above the 1996-97 budgeted FTE level.

(4) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(5) $324,000 of the general fund appropriation for fiscal year 1998 and $324,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(6) $130,000 of the general fund appropriation for fiscal year 1998 and $130,000 of the general fund appropriation for fiscal year 1999 are provided solely for the implementation of the Puget Sound work plan agency action item UW-01.

(7) $2,150,000 of the general fund appropriation for fiscal year 1998 and $2,150,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The university shall provide a report in their 1999-01 biennium operating budget request submittal on the effective expenditure of funds for the purposes in this subsection.

(8) $75,000 of the general fund appropriation for fiscal year 1998 and $75,000 of the general fund appropriation for fiscal year 1999 are provided solely for enhancements to research capabilities at the Olympic natural resources center.

(9) $780,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management may approve the allotment of funds under this subsection upon approval by the higher education coordinating board in accordance with the provisions of Senate Bill No. 5927.

(10) Using funds provided in this section, the university shall implement Substitute Senate Bill No. 5077 (integrated pest management).

NEW SECTION. Sec. 605. FOR WASHINGTON STATE UNIVERSITY

General Fund Appropriation (FY 1998)................ $ 168,677,000

General Fund Appropriation (FY 1999)................ $ 174,494,000

Air Pollution Control Account Appropriation......... $ 206,000

TOTAL APPROPRIATION...................... $ 343,377,000

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

(1) $1,204,000 of the general fund appropriation for fiscal year 1998 and $1,807,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. Funds are provided to improve instructional efficiency and the quality of educational programs. The office of financial management may approve the allotment of funds under this subsection upon notification by the higher education coordinating board.

(2) $724,000 of the general fund appropriation for fiscal year 1998 and $1,859,000 of the general fund appropriation for fiscal year 1999 are provided solely to support additional upper-division and graduate level enrollments at the Vancouver branch campus above the 1996-97 budgeted FTE level.

(3) $621,000 of the general fund appropriation for fiscal year 1998 and $1,224,000 of the general fund appropriation for fiscal year 1999 are provided solely to support additional upper-division and graduate level enrollments at the Tri-Cities branch campus above the 1996-97 budgeted FTE level.

(4) $333,000 of the general fund appropriation for fiscal year 1998 and $873,000 of the general fund appropriation for fiscal year 1999 are provided solely to support additional upper-division and graduate level enrollments at the Spokane branch campus above the 1996-97 budgeted FTE level.

(5) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(6) $140,000 of the general fund appropriation for fiscal year 1998 and $140,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(7) $157,000 of the general fund appropriation for fiscal year 1998 and $157,000 of the general fund appropriation for fiscal year 1999 are provided solely for the implementation of the Puget Sound work plan agency action item WSU-01.

(8) $1,050,000 of the general fund appropriation for fiscal year 1998 and $1,050,000 of the general fund appropriation for fiscal year 1999 are provided solely for competitively offered faculty recruitment and retention salary adjustments. The university shall provide a report in their 1999-01 biennium operating budget request submittal on the effective expenditure of funds for the purposes in this subsection.

(9) $556,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management may approve the allotment of funds under this subsection upon approval by the higher education coordinating board in accordance with the provisions of Senate Bill No. 5927.

(10) Using funds provided in this section, the university shall implement Substitute Senate Bill No. 5077 (integrated pest management).

(11) $110,000 of the general fund appropriation is provided solely for the Goldendale distance learning center.

NEW SECTION. Sec. 606. FOR EASTERN WASHINGTON UNIVERSITY

General Fund Appropriation (FY 1998)................ $ 39,204,000

General Fund Appropriation (FY 1999)................ $ 39,439,000

TOTAL APPROPRIATION...................... $ 78,643,000

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

(1) $285,000 of the general fund appropriation for fiscal year 1998 and $428,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. Funds are provided to improve instructional efficiency and the quality of educational programs. The office of financial management may approve the allotment of funds under this subsection upon notification by the higher education coordinating board.

(2) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(3) $93,000 of the general fund appropriation for fiscal year 1998 and $93,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(4) $3,188,000 of the general fund appropriation for fiscal year 1998 and $3,188,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve pending attainment of budgeted enrollments of 6,942 FTE. The office of financial management may approve the allotment of funds under this subsection at the annual rate of $4,000 general fund‑-state appropriation for annual student FTEs in excess of 6,942 based on tenth day quarterly enrollment and the office of financial management's quarterly budget driver report. In addition, allotments of reserve funds in this section may be approved by the office of financial management upon approval by the higher education coordinating board for actions that will result in additional enrollment growth.

(5) Using funds provided in this section, the university shall implement Substitute Senate Bill No. 5077 (integrated pest management).

NEW SECTION. Sec. 607. FOR CENTRAL WASHINGTON UNIVERSITY

General Fund Appropriation (FY 1998)................ $ 37,287,000

General Fund Appropriation (FY 1999)................ $ 38,684,000

TOTAL APPROPRIATION...................... $ 75,971,000

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

(1) $269,000 of the general fund appropriation for fiscal year 1998 and $403,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. Funds are provided to improve instructional efficiency and the quality of educational programs. The office of financial management may approve the allotment of funds under this subsection upon notification by the higher education coordinating board.

(2) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(3) $70,000 of the general fund appropriation for fiscal year 1998 and $70,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(4) $97,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management may approve the allotment of funds under this subsection upon approval by the higher education coordinating board in accordance with the provisions of Senate Bill No. 5927.

(5) Using funds provided in this section, the university shall implement Substitute Senate Bill No. 5077 (integrated pest management).

NEW SECTION. Sec. 608. FOR THE EVERGREEN STATE COLLEGE

General Fund Appropriation (FY 1998)................ $ 20,015,000

General Fund Appropriation (FY 1999)................ $ 20,261,000

TOTAL APPROPRIATION...................... $ 40,276,000

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

(1) $144,000 of the general fund appropriation for fiscal year 1998 and $217,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. Funds are provided to improve instructional efficiency and the quality of educational programs. The office of financial management may approve the allotment of funds under this subsection upon notification by the higher education coordinating board.

(2) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(3) $47,000 of the general fund appropriation for fiscal year 1998 and $47,000 of the general fund appropriation for fiscal year 1999 are provided solely to recruit and retain minority students and faculty.

(4) $34,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management may approve the allotment of funds under this subsection upon approval by the higher education coordinating board in accordance with the provisions of Senate Bill No. 5927.

(5) Using funds provided in this section, the university shall implement Substitute Senate Bill No. 5077 (integrated pest management).

NEW SECTION. Sec. 609. FOR WESTERN WASHINGTON UNIVERSITY

General Fund Appropriation (FY 1998)................ $ 47,810,000

General Fund Appropriation (FY 1999)................ $ 48,783,000

TOTAL APPROPRIATION...................... $ 96,593,000

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

(1) $342,000 of the general fund appropriation for fiscal year 1998 and $514,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. Funds are provided to improve instructional efficiency and the quality of educational programs. The office of financial management may approve the allotment of funds under this subsection upon notification by the higher education coordinating board.

(2) $186,000 of the general fund appropriation for fiscal year 1998 and $186,000 of the general fund appropriation for fiscal year 1999 are provided solely for assessment of student outcomes.

(4) $138,000 of the general fund appropriation for fiscal year 1999 shall be placed in reserve. The office of financial management may approve the allotment of funds under this subsection upon approval by the higher education coordinating board in accordance with the provisions of Senate Bill No. 5927.

(5) Using funds provided in this section, the university shall implement Substitute Senate Bill No. 5077 (integrated pest management).

NEW SECTION. Sec. 610. FOR THE HIGHER EDUCATION COORDINATING BOARD‑-POLICY COORDINATION AND ADMINISTRATION

General Fund‑-State Appropriation (FY 1998)......... $ 2,653,000

General Fund‑-State Appropriation (FY 1999)......... $ 2,654,000

General Fund‑-Federal Appropriation.................. $ 693,000

TOTAL APPROPRIATION...................... $ 6,000,000

The appropriations in this section are provided to carry out the policy coordination, planning, studies, and administrative functions of the board and are subject to the following conditions and limitations:

(1) $280,000 of the general fund--state appropriation for fiscal year 1998 and $280,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for enrollment to implement RCW 28B.80.570 through 28B.80.585 (rural natural resources impact areas). The number of students served shall be 50 full-time equivalent students per fiscal year. The board shall ensure that enrollments reported under this subsection meet the criteria outlined in RCW 28B.80.570 through 28B.80.585.

(2) $70,000 of the general fund--state appropriation for fiscal year 1998 and $70,000 of the general fund--state appropriation for fiscal year 1999 are provided to develop a competency based admissions system for higher education institutions. The board shall complete the competency based admissions system and issue a report outlining the competency based admissions system by January 1999.

(3) $500,000 of the general fund--state appropriation for fiscal year 1998 and $500,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for activities related to higher education facilities planning, project monitoring, and access issues related to capital facilities. Of this amount, $50,000 is provided for a study of higher education needs of Okanogan county and surrounding communities with consideration given to alternative approaches to educational service delivery, facility expansion, relocation or partnership, and long-term growth and future educational demands of the region.

NEW SECTION. Sec. 611. FOR THE HIGHER EDUCATION COORDINATING BOARD‑-FINANCIAL AID AND GRANT PROGRAMS

General Fund‑-State Appropriation (FY 1998)......... $ 83,849,000

General Fund‑-State Appropriation (FY 1999)......... $ 90,655,000

General Fund‑-Federal Appropriation.................. $.................................. 8,255,000

TOTAL APPROPRIATION...................... $ 182,759,000

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

(1) $527,000 of the general fund--state appropriation for fiscal year 1998 and $526,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the displaced homemakers program.

(2) $214,000 of the general fund--state appropriation for fiscal year 1998 and $217,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the western interstate commission for higher education.

(3) $236,000 of the general fund--state appropriation is provided for the health personnel resources plan.

(4) $2,000,000 of the general fund--state appropriation is provided solely for the scholarships and loans program under chapter 28B.115 RCW, the health professional conditional scholarship program. This amount shall be deposited to the health professional loan repayment and scholarship trust fund to carry out the purposes of the program.

(5) $87,663,000 of the general fund--state appropriation for fiscal year 1998 and $94,115,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for student financial aid, including all administrative costs. Of this amount:

(a) $62,961,000 of the general fund--state appropriation for fiscal year 1998 and $69,663,000 of the general fund--state appropriation for fiscal year 1999 are provided solely for the state need grant program. The board shall, to the best of its ability, rank and serve students eligible for the state need grant in order from the lowest family income to the highest family income. After April 1 of each fiscal year, up to one percent of the annual appropriation for the state need grant program may be transferred to the state work study program;

(b) $14,100,000 in fiscal year 1998 and $14,100,000 in fiscal year 1999 are provided solely for the state work study program. After April 1 of each fiscal year, up to one percent of the annual appropriation for the state work study program may be transferred to the state need grant program;

(c) $1,250,000 in fiscal year 1998 and $1,250,000 in fiscal year 1999 are provided solely for educational opportunity grants;

(d) A maximum of $1,325,000 in fiscal year 1998 and $1,325,000 in fiscal year 1999 may be expended for financial aid administration, excluding the four percent state work study program administrative allowance provision;

(e) $226,000 in fiscal year 1998 and $197,000 in fiscal year 1999 are provided solely for the educator's excellence awards. Any educator's excellence moneys not awarded by April 1st of each year may be transferred by the board to either the Washington scholars program or, in consultation with the workforce training and education coordinating board, to the Washington award for vocational excellence;

(f) $990,000 in fiscal year 1998 and $1,244,000 in fiscal year 1999 are provided solely to implement the Washington scholars program. Any Washington scholars program moneys not awarded by April 1st of each year may be transferred by the board to either the educator's excellence awards or, in consultation with the workforce training and education coordinating board, to the Washington award for vocational excellence;

(g) $447,000 in fiscal year 1998 and $465,000 in fiscal year 1999 are provided solely to implement Washington award for vocational excellence program. Any Washington award for vocational program moneys not awarded by April 1st of each year may be transferred by the board to either the educator's excellence awards or, the Washington scholars program; and

(h) $50,000 in fiscal year 1998 and $50,000 in fiscal year 1999 are provided solely for community scholarship matching grants of $2,000 each. To be eligible for the matching grant, a nonprofit community organization, organized under section 501(c)(3) of the internal revenue code, must demonstrate that it has raised $2,000 in new moneys for college scholarships after the effective date of this act. No organization may receive more than one $2,000 matching grant.

(6) $350,000 of the general fund--state appropriation for fiscal year 1998 is provided solely to implement Senate Bill No. 5106 (Washington advanced college tuition payment program). If the bill is not enacted by June 30, 1997, the amount provided in this subsection shall lapse.

NEW SECTION. Sec. 612. FOR THE JOINT CENTER FOR HIGHER EDUCATION

General Fund Appropriation (FY 1998)................ $ 1,320,000

General Fund Appropriation (FY 1999)................ $ 1,320,000

TOTAL APPROPRIATION...................... $ 2,640,000

NEW SECTION. Sec. 613. FOR THE WORK FORCE TRAINING AND EDUCATION COORDINATING BOARD

General Fund‑-State Appropriation (FY 1998)......... $ 1,693,000

General Fund‑-State Appropriation (FY 1999)......... $ 1,699,000

General Fund‑-Federal Appropriation.................. $.................................. 34,378,000

TOTAL APPROPRIATION...................... $ 37,770,000

NEW SECTION. Sec. 614. FOR WASHINGTON STATE LIBRARY

General Fund‑-State Appropriation (FY 1998)......... $ 7,688,000

General Fund‑-State Appropriation (FY 1999)......... $ 7,584,000

General Fund‑-Federal Appropriation.................. $.................................. 4,847,000

TOTAL APPROPRIATION...................... $ 20,119,000

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

(1) $1,235,000 of the general fund--state appropriation for fiscal year 1998, $1,235,000 of the general fund--state appropriation for fiscal year 1999, and $54,000 of the general fund--federal appropriation are provided solely for a contract with the Seattle public library for library services for the Washington talking book and braille library.

(2) $198,000 of the general fund‑-state appropriation for fiscal year 1998 and $198,000 of the general fund‑-state appropriation for fiscal year 1999 are provided solely for the state library, with the assistance of the department of information services and the state archives, to establish a government information locator service in accordance with chapter 171, Laws of 1996. The state library, in consultation with interested parties, shall prepare an evaluation of the government information locator service by October 1, 1997. The evaluation shall include a cost-benefit analysis, determination of fiscal impacts to the state, and programmatic information. The evaluation report shall be provided to the appropriate legislative fiscal committees. The amount provided from the fiscal year 1999 appropriation shall not be expended without prior legislative approval.

NEW SECTION. Sec. 615. FOR THE WASHINGTON STATE ARTS COMMISSION

General Fund‑-State Appropriation (FY 1998)......... $ 2,015,000

General Fund‑-State Appropriation (FY 1999)......... $ 2,013,000

General Fund‑-Federal Appropriation.................. $ 690,000

TOTAL APPROPRIATION...................... $ 4,718,000

NEW SECTION. Sec. 616. FOR THE WASHINGTON STATE HISTORICAL SOCIETY

General Fund Appropriation (FY 1998)................ $ 2,502,000

General Fund Appropriation (FY 1999)................ $ 2,531,000

TOTAL APPROPRIATION...................... $ 5,033,000

The appropriations in this section are subject to the following conditions and limitations: $216,200 of the general fund appropriation for fiscal year 1998 and $216,200 of the general fund appropriation for fiscal year 1999 are provided solely for exhibit and educational programming.

NEW SECTION. Sec. 617. FOR THE EASTERN WASHINGTON STATE HISTORICAL SOCIETY

General Fund Appropriation (FY 1998)................ $ 741,000

General Fund Appropriation (FY 1999)................ $ 1,022,000

TOTAL APPROPRIATION...................... $ 1,763,000

The appropriations in this section are subject to the following conditions and limitations: $275,000 of the general fund appropriation for fiscal year 1999 is provided solely for exhibit design and planning.

NEW SECTION. Sec. 618. FOR THE STATE SCHOOL FOR THE BLIND

General Fund‑-State Appropriation (FY 1998)......... $ 3,714,000

General Fund‑-State Appropriation (FY 1999)......... $ 3,738,000

General Fund‑-Private/Local Appropriation........... $ 192,000

TOTAL APPROPRIATION...................... $ 7,644,000

NEW SECTION. Sec. 619. FOR THE STATE SCHOOL FOR THE DEAF

General Fund Appropriation (FY 1998)................ $ 6,458,000

General Fund Appropriation (FY 1999)................ $ 6,459,000

TOTAL APPROPRIATION...................... $ 12,917,000

(End of part)

PART VII

SPECIAL APPROPRIATIONS

NEW SECTION. Sec. 701. FOR THE STATE TREASURER‑-BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR GENERAL FUND BOND DEBT

General Fund Appropriation (FY 1998)................ $ 447,442,000

General Fund Appropriation (FY 1999)................ $ 485,237,000

Debt Limit General Fund Bond Retirement Account..... $ 933,080,000

Nondebt Limit General Fund Bond Retirement Account... $................................................ 12,083,000

TOTAL APPROPRIATION...................... $ $1,877,842,000

The appropriations in this section are subject to the following conditions and limitations: The general fund appropriation is for deposit into the general fund bonds subject to the limit bond retirement account.

NEW SECTION. Sec. 702. FOR THE STATE TREASURER‑-BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR GENERAL OBLIGATION DEBT TO BE REIMBURSED BY ENTERPRISE ACTIVITIES

State Convention & Trade Center Account

Appropriation................................... $ 34,081,000

Accident Account Appropriation....................... $............................. 5,108,000

Medical Aid Account Appropriation................... $ 5,108,000

TOTAL APPROPRIATION...................... $ 44,297,000

NEW SECTION. Sec. 703. FOR THE STATE TREASURER‑-BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR GENERAL OBLIGATION DEBT TO BE REIMBURSED AS PRESCRIBED BY STATUTE

General Fund Appropriation (FY 1998)................ $ 23,297,000

General Fund Appropriation (FY 1999)................ $ 25,803,000

Nondebt Limit General Fund Bond Retirement Account... $................................................ 49,100,000

Nondebt Limit Reimbursable Bond Retirement Account... $................................................ 103,917,000

TOTAL APPROPRIATION...................... $ 202,117,000

The appropriations in this section are subject to the following conditions and limitations: The general fund appropriation is for deposit into the general fund bonds excluded from the limit bond retirement account.

NEW SECTION. Sec. 704. FOR THE STATE TREASURER‑-BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR DEBT TO BE PAID BY STATUTORILY PRESCRIBED REVENUE

Nondebt Limit Revenue Bond Retirement Account........ $........................................... 2,451,000

NEW SECTION. Sec. 705. FOR THE STATE TREASURER‑-BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES

General Fund Appropriation (FY 1998)................ $ 115,000

General Fund Appropriation (FY 1999)................ $ 115,000

Common School Construction Account Appropriation.... $ 129,000

Higher Education Construction Account Appropriation. $ 215,000

State Building Construction Account

Appropriation................................... $ 6,374,000

Public Safety Reimbursable Bond Account

Appropriation................................... $ 8,000

TOTAL APPROPRIATION...................... $ 6,956,000

Total Bond Retirement and Interest Appropriations

contained in sections 701 through 705 of this

act............................................. $ 2,133,663,000

NEW SECTION. Sec. 706. FOR THE GOVERNOR‑-FOR TRANSFER TO THE TORT CLAIMS REVOLVING FUND

General Fund Appropriation (FY 1998)................ $ 1,250,000

General Fund Appropriation (FY 1999)................ $ 1,250,000

TOTAL APPROPRIATION...................... $ 2,500,000

NEW SECTION. Sec. 707. FOR THE GOVERNOR‑-AMERICANS WITH DISABILITIES ACT

Americans with Disabilities Special Revolving Fund

Appropriation................................... $ 426,000

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

(1) The appropriation shall be used solely to fund requests from state agencies complying with the program requirements of the federal Americans with disabilities act. This appropriation will be administered by the office of financial management and will be apportioned to agencies meeting distribution criteria.

(2) To facilitate payment from special funds dedicated to agency programs receiving allocations under this section, the state treasurer is directed to transfer sufficient moneys from the special funds to the Americans with disabilities special revolving fund, hereby created in the state treasury, in accordance with schedules provided by the office of financial management.

NEW SECTION. Sec. 708. FOR THE GOVERNOR‑-TORT DEFENSE SERVICES

General Fund Appropriation (FY 1998)................ $ 1,257,000

General Fund Appropriation (FY 1999)................ $ 1,257,000

Special Fund Agency Tort Defense Services

Revolving Fund Appropriation.................... $ 2,513,000

TOTAL APPROPRIATION...................... $ 5,027,000

The appropriations in this section are subject to the following conditions and limitations: To facilitate payment of tort defense services from special funds, the state treasurer is directed to transfer sufficient moneys from each special fund to the special fund agency tort defense services revolving fund, in accordance with schedules provided by the office of financial management. The governor shall distribute the moneys appropriated in this section to agencies to pay for tort defense services.

NEW SECTION. Sec. 709. FOR THE OFFICE OF FINANCIAL MANAGEMENT‑-EMERGENCY FUND

General Fund Appropriation (FY 1998)................ $ 500,000

General Fund Appropriation (FY 1999)................ $ 500,000

TOTAL APPROPRIATION...................... $ 1,000,000

The appropriation in this section is for the governor's emergency fund for the critically necessary work of any agency.

NEW SECTION. Sec. 710. FOR THE OFFICE OF FINANCIAL MANAGEMENT‑-YEAR 2000 ALLOCATIONS

General Fund‑-State Appropriation (FY 1998)......... $ 3,380,000

General Fund‑-State Appropriation (FY 1999)......... $ 1,960,000

General Fund‑-Federal Appropriation.................. $.................................. 2,883,000

Liquor Revolving Account Appropriation.............. $ 131,000

Health Care Authority Administrative Account

Appropriation................................... $ 631,000

Accident Account Appropriation....................... $............................. 1,102,000

Medical Aid Account Appropriation................... $ 1,102,000

Unemployment Compensation Administration Account

Appropriation................................... $ 1,313,000

Administrative Contingency Account Appropriation.... $ 948,000

Employment Services Administrative Account

Appropriation................................... $ 500,000

Forest Development Account Appropriation............. $ 156,000

Off Road Vehicle Account Appropriation.............. $ 7,000

Surveys and Maps Account Appropriation.............. $ 1,000

Aquatic Lands Enhancement Account Appropriation..... $ 8,000

Resource Management Cost Account Appropriation...... $ 348,000

TOTAL APPROPRIATION...................... $ 14,470,000

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

(1) The appropriations will be allocated by the office of financial management to agencies to perform Year 2000 maintenance on their computer systems.

(2) In addition, up to $10,000,000 of the cash balance of the data processing revolving account will be expended on Year 2000 costs as needed, as an investment in the state's technology infrastructure. The $10,000,000 will be taken from the cash balances of the data processing revolving account's two major users, as follows: $7,000,000 from the department of information services and $3,000,000 from the office of financial management. These funds will be allocated by the office of financial management in consultation with the department of information services.

(3) All agencies that receive these allocations will report upon request throughout the biennium to the information services board and to the governor on the progress of Year 2000 maintenance efforts.

NEW SECTION. Sec. 711. BELATED CLAIMS. The agencies and institutions of the state may expend moneys appropriated in this act, upon approval of the office of financial management, for the payment of supplies and services furnished to the agency or institution in prior fiscal biennia.

NEW SECTION. Sec. 712. FOR THE GOVERNOR‑-COMPENSATION‑-INSURANCE BENEFITS

General Fund‑-State Appropriation (FY 1998)......... $ 2,127,000

General Fund‑-State Appropriation (FY 1999)......... $ 6,346,000

General Fund‑-Federal Appropriation.................. $.................................. 2,905,000

General Fund‑-Private/Local Appropriation........... $ 176,000

Salary and Insurance Increase Revolving Account

Appropriation................................... $ 6,550,000

TOTAL APPROPRIATION...................... $ 18,104,000

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

(1)(a) The monthly contribution for insurance benefit premiums shall not exceed $316.86 per eligible employee for fiscal year 1998, and $331.62 for fiscal year 1999.

(b) The monthly contribution for the operating costs of the health care authority shall not exceed $4.97 per eligible employee for fiscal year 1998, and $4.43 for fiscal year 1999.

(c) Surplus moneys accruing to the public employees' and retirees' insurance account due to lower-than-projected insurance costs may not be reallocated by the health care authority to increase the actuarial value of public employee insurance plans. Such funds shall be held in reserve in the public employees' and retirees' insurance account and may not be expended without subsequent legislative authorization.

(d) In order to achieve the level of funding provided for health benefits, the public employees' benefits board may require employee premium co-payments, increase point-of-service cost sharing, and/or implement managed competition.

(2) To facilitate the transfer of moneys from dedicated funds and accounts, the state treasurer is directed to transfer sufficient moneys from each dedicated fund or account to the special fund salary and insurance contribution increase revolving fund in accordance with schedules provided by the office of financial management.

(3) The health care authority, subject to the approval of the public employees' benefits board, shall provide subsidies for health benefit premiums to eligible retired or disabled public employees and school district employees who are eligible for parts A and B of medicare, pursuant to RCW 41.05.085. From January 1, 1998, through December 31, 1998, the subsidy shall be $41.26 per month. Starting January 1, 1999, the subsidy shall be $43.16 per month.

(4) Technical colleges, school districts, and educational service districts shall remit to the health care authority for deposit in the public employees' and retirees' insurance account established in RCW 41.05.120:

(a) For each full-time employee, $14.80 per month beginning September 1, 1997, and $14.80 per month beginning September 1, 1998;

(b) For each part-time employee who, at the time of the remittance, is employed in an eligible position as defined in RCW 41.32.010 or 41.40.010 and is eligible for employer fringe benefit contributions for basic benefits, $14.80 each month beginning September 1, 1997, and $14.80 each month beginning September 1, 1998, prorated by the proportion of employer fringe benefit contributions for a full-time employee that the part-time employee receives.

The remittance requirements specified in this subsection shall not apply to employees of a technical college, school district, or educational service district who purchase insurance benefits through contracts with the health care authority.

(5) The salary and insurance increase revolving account appropriation includes funds sufficient to fund health benefits for ferry workers at the premium levels specified in subsection (1) of this section, consistent with the 1997-99 transportation appropriations act.

NEW SECTION. Sec. 713. FOR THE DEPARTMENT OF RETIREMENT SYSTEMS‑-CONTRIBUTIONS TO RETIREMENT SYSTEMS

The appropriations in this section are subject to the following conditions and limitations: The appropriations shall be made on a monthly basis consistent with chapter 41.45 RCW.

(1) There is appropriated for state contributions to the law enforcement officers' and fire fighters' retirement system:

General Fund Appropriation (FY 1998)................ $ 68,300,000

General Fund Appropriation (FY 1999)................ $ 72,700,000

(2) There is appropriated for contributions to the judicial retirement system:

General Fund Appropriation (FY 1998)................ $ 8,500,000

General Fund Appropriation (FY 1999)................ $ 8,500,000

(3) There is appropriated for contributions to the judges retirement system:

General Fund Appropriation (FY 1998)................ $ 750,000

General Fund Appropriation (FY 1999)................ $ 750,000

TOTAL APPROPRIATION...................... $ 159,500,000

NEW SECTION. Sec. 714. SALARY COST OF LIVING ADJUSTMENT

General Fund‑-State Appropriation (FY 1998)..... ... $ 31,031,000

General Fund‑-State Appropriation (FY 1999)......... $ 31,422,000

General Fund‑-Federal Appropriation.................. $.................................. 17,578,000

Salary and Insurance Increase Revolving Account

Appropriation................................... $ 48,678,000

TOTAL APPROPRIATION...................... $ 128,709,000

The appropriations in this section shall be expended solely for the purposes designated in this section and are subject to the conditions and limitations in this section:

(1) In addition to the purposes set forth in subsections (2) and (3) of this section, appropriations in this section are provided solely for a 3.0 percent salary increase effective July 1, 1997, for all classified employees (including those employees in the Washington management service) and exempt employees under the jurisdiction of the personnel resources board.

(2) The appropriations in this section are sufficient to fund a 3.0 percent salary increase effective July 1, 1997, for general government, legislative, and judicial employees exempt from merit system rules whose salaries are not set by the commission on salaries for elected officials.

(3) The salary and insurance increase revolving account appropriation in this section includes funds sufficient to fund a 3.0 percent salary increase effective July 1, 1997, for ferry workers consistent with the 1997-99 transportation appropriations act.

(4) No salary increase may be paid under this section to any person whose salary has been Y-rated pursuant to rules adopted by the personnel resources board.

NEW SECTION. Sec. 715. FOR THE ATTORNEY GENERAL‑-SALARY ADJUSTMENTS

General Fund Appropriation (FY 1998)................ $ 250,000

General Fund Appropriation (FY 1999)................ $ 250,000

Attorney General Salary Increase Revolving

Account Appropriation........................... $ 500,000

TOTAL APPROPRIATION...................... $ 1,000,000

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

(1) The appropriations are provided solely for increases in salaries and related benefits of assistant attorneys general levels 1 and 2. The attorney general shall distribute these funds in a manner that will maintain or increase the quality and experience of the attorney general's staff. Market value, specialization, retention, and performance (including billable hours) shall be the factors in determining the distribution of these funds.

(2) To facilitate the transfer of moneys from dedicated funds and accounts, state agencies are directed to transfer sufficient moneys from each dedicated fund or account to the attorney general salary increase revolving account, hereby created in the state treasury, in accordance with schedules provided by the office of financial management.

NEW SECTION. Sec. 716. FOR THE OFFICE OF FINANCIAL MANAGEMENT‑-COMPENSATION ACTIONS OF PERSONNEL RESOURCES BOARD

General Fund Appropriation (FY 1998)................ $ 10,504,000

General Fund Appropriation (FY 1999)................ $ 10,504,000

Salary and Insurance Increase Revolving

Account Appropriation........................... $ 8,109,000

TOTAL APPROPRIATION...................... $ 29,117,000

The appropriations in this section shall be expended solely for the purposes designated in this section and are subject to the conditions and limitations in this section.

(1) Funding is provided to implement seventeen of the classification titles recommended by the Washington personnel resources board consistent with the provisions of chapter 319, Laws of 1996 (1997-99 priority list).

(2) Implementation for these increases will be July 1, 1997, for all specified classes.

NEW SECTION. Sec. 717. AGENCY SAVINGS‑-FISCAL YEAR 1998. The sum of seventy-five million dollars or so much thereof as may be available on June 30, 1998, from the total amount of unspent fiscal year 1998 state general fund appropriations is appropriated for the purposes of sections 1 and 2 of Senate Bill No. 6045 in the manner provided in this section.

(1) Of the total appropriated amount, one-half of that portion that is attributable to incentive savings, not to exceed twenty-five million dollars, is appropriated to the savings incentive account for the purpose of improving the quality, efficiency, and effectiveness of agency services, and credited to the agency that generated the savings.

(2) The remainder of the total amount, not to exceed seventy million dollars, is appropriated to the education savings account for the purpose of common school construction projects and education technology.

(3) For purposes of this section, the total amount of unspent state general fund appropriations does not include the appropriations made in this section or any amounts included in across-the-board allotment reductions under RCW 43.88.110.

NEW SECTION. Sec. 718. AGENCY SAVINGS‑-FISCAL YEAR 1999. The sum of seventy-five million dollars or so much thereof as may be available on June 30, 1999, from the total amount of unspent fiscal year 1999 state general fund appropriations is appropriated for the purposes of sections 1 and 2 of Senate Bill No. 6045 in the manner provided in this section.

(End of part)

PART VIII

OTHER TRANSFERS AND APPROPRIATIONS

NEW SECTION. Sec. 801. FOR THE STATE TREASURER‑-STATE REVENUES FOR DISTRIBUTION

General Fund Appropriation for fire insurance

premiums distribution........................... $ 6,617,250

General Fund Appropriation for public utility

district excise tax distribution................ $ 35,183,803

General Fund Appropriation for prosecuting attorneys

salaries........................................ $ 2,960,000

General Fund Appropriation for motor vehicle excise

tax distribution................................ $ 84,721,573

General Fund Appropriation for local mass transit

assistance...................................... $ 383,208,166

General Fund Appropriation for camper and travel

trailer excise tax distribution.................. $ 3,904,937

General Fund Appropriation for boating

safety/education and law enforcement

distribution.................................... $ 3,616,000

Aquatic Lands Enhancement Account Appropriation

for harbor improvement revenue distribution..... $ 142,000

Liquor Excise Tax Account Appropriation for liquor

excise tax distribution......................... $ 22,287,746

Liquor Revolving Fund Appropriation for liquor

profits distribution............................ $ 36,989,000

Timber Tax Distribution Account Appropriation

for distribution to "Timber" counties........... $ 107,146,000

Municipal Sales and Use Tax Equalization Account

Appropriation................................... $ 66,860,014

County Sales and Use Tax Equalization Account

Appropriation................................... $ 11,843,224

Death Investigations Account Appropriation for

distribution to counties for publicly funded

autopsies....................................... $ 1,266,000

County Criminal Justice Account Appropriation........ $........................................... 82,960,471

Municipal Criminal Justice Account Appropriation.... $ 32,042,450

County Public Health Account Appropriation.......... $ 43,773,588

TOTAL APPROPRIATION...................... $ 922,669,222

The total expenditures from the state treasury under the appropriations in this section shall not exceed the funds available under statutory distributions for the stated purposes.

NEW SECTION. Sec. 802. FOR THE STATE TREASURER‑-FEDERAL REVENUES FOR DISTRIBUTION

Forest Reserve Fund Appropriation for federal forest

reserve fund distribution....................... $ 58,801,910

General Fund Appropriation for federal flood control

funds distribution.............................. $ 4,000

General Fund Appropriation for federal grazing fees

distribution.................................... $ 52,000

General Fund Appropriation for distribution of

federal funds to counties in conformance with

P.L. 97-99 Federal Aid to Counties.............. $ 885,916

TOTAL APPROPRIATION...................... $ 59,743,826

The total expenditures from the state treasury under the appropriations in this section shall not exceed the funds available under statutory distributions for the stated purposes.

NEW SECTION. Sec. 803. FOR THE STATE TREASURER‑-TRANSFERS

General Fund: For transfer to the Water Quality

Account......................................... $ 22,691,000

General Fund: For transfer to the Flood Control

Assistance Account.............................. $ 3,999,000

Oil Spill Response Account: For transfer to

the Oil Spill Administration Account............. $ 1,565,000

State Convention and Trade Center Account: For

transfer to the State Convention and Trade

Center Operations Account....................... $ 3,633,000

Water Quality Account: For transfer to the Water

Pollution Control Account. Transfers shall be

made at intervals coinciding with deposits of

federal capitalization grant money into the

account. The amounts transferred shall not

exceed the match required for each federal

deposit......................................... $ 21,061,000

State Treasurer's Service Account: For transfer to

the general fund on or before June 30, 1999 an

amount up to $3,600,000 in excess of the cash

requirements of the State Treasurer's Service

Account......................................... $ 3,600,000

Public Health Services Account: For transfer to the

County Public Health Account.................... $ 2,250,000

Public Works Assistance Account: For transfer to

the Drinking Water Assistance Account........... $ 9,949,000

NEW SECTION. Sec. 804. FOR THE DEPARTMENT OF RETIREMENT SYSTEMS‑-TRANSFERS

General Fund Appropriation: For transfer to the

department of retirement systems expense fund

for the administrative expenses of the judicial

retirement system............................... $ 16,000

(End of part)

PART IX

MISCELLANEOUS

NEW SECTION. Sec. 901. EXPENDITURE AUTHORIZATIONS. The appropriations contained in this act are maximum expenditure authorizations. Pursuant to RCW 43.88.037, moneys disbursed from the treasury on the basis of a formal loan agreement shall be recorded as loans receivable and not as expenditures for accounting purposes. To the extent that moneys are disbursed on a loan basis, the corresponding appropriation shall be reduced by the amount of loan moneys disbursed from the treasury during the 1997-99 biennium.

NEW SECTION. Sec. 902. INFORMATION SYSTEMS PROJECTS. Agencies shall comply with the following requirements regarding information systems projects when specifically directed to do so by this act.

(1) The agency shall produce a feasibility study for each information systems project in accordance with published department of information services instructions. In addition to department of information services requirements, the study shall examine and evaluate the costs and benefits of maintaining the status quo and the costs and benefits of the proposed project. The study shall identify when and in what amount any fiscal savings will accrue, and what programs or fund sources will be affected.

(2) The agency shall produce a project management plan for each project. The plan or plans shall address all factors critical to successful completion of each project. The plan shall include, but is not limited to, the following elements: A description of the problem or opportunity that the information systems project is intended to address; a statement of project objectives and assumptions; definition of phases, tasks, and activities to be accomplished and the estimated cost of each phase; a description of how the agency will facilitate responsibilities of oversight agencies; a description of key decision points in the project life cycle; a description of variance control measures; a definitive schedule that shows the elapsed time estimated to complete the project and when each task is to be started and completed; and a description of resource requirements to accomplish the activities within specified time, cost, and functionality constraints.

(3) A copy of each feasibility study and project management plan shall be provided to the department of information services, the office of financial management, and legislative fiscal committees. Authority to expend any funds for individual information systems projects is conditioned on approval of the relevant feasibility study and project management plan by the department of information services and the office of financial management.

(4) A project status report shall be submitted to the department of information services, the office of financial management, and legislative fiscal committees for each project prior to reaching key decision points identified in the project management plan. Project status reports shall examine and evaluate project management, accomplishments, budget, action to address variances, risk management, costs and benefits analysis, and other aspects critical to completion of a project.

Work shall not commence on any task in a subsequent phase of a project until the status report for the preceding key decision point has been approved by the department of information services and the office of financial management.

(5) If a project review is requested in accordance with department of information services policies, the reviews shall examine and evaluate: System requirements specifications; scope; system architecture; change controls; documentation; user involvement; training; availability and capability of resources; programming languages and techniques; system inputs and outputs; plans for testing, conversion, implementation, and postimplementation; and other aspects critical to successful construction, integration, and implementation of automated systems. Copies of project review written reports shall be forwarded to the office of financial management and appropriate legislative committees by the agency.

(6) A written postimplementation review report shall be prepared by the agency for each information systems project in accordance with published department of information services instructions. In addition to the information requested pursuant to the department of information services instructions, the postimplementation report shall evaluate the degree to which a project accomplished its major objectives including, but not limited to, a comparison of original cost and benefit estimates to actual costs and benefits achieved. Copies of the postimplementation review report shall be provided to the department of information services, the office of financial management, and appropriate legislative committees.

NEW SECTION. Sec. 903. VIDEO TELECOMMUNICATIONS. The department of information services shall act as lead agency in coordinating video telecommunications services for state agencies. As lead agency, the department shall develop standards and common specifications for leased and purchased telecommunications equipment and assist state agencies in developing a video telecommunications expenditure plan. No agency may spend any portion of any appropriation in this act for new video telecommunication equipment, new video telecommunication transmission, or new video telecommunication programming, or for expanding current video telecommunication systems without first complying with chapter 43.105 RCW, including but not limited to, RCW 43.105.041(2), and without first submitting a video telecommunications expenditure plan, in accordance with the policies of the department of information services, for review and assessment by the department of information services under RCW 43.105.052. Prior to any such expenditure by a public school, a video telecommunications expenditure plan shall be approved by the superintendent of public instruction. The office of the superintendent of public instruction shall submit the plans to the department of information services in a form prescribed by the department. The office of the superintendent of public instruction shall coordinate the use of video telecommunications in public schools by providing educational information to local school districts and shall assist local school districts and educational service districts in telecommunications planning and curriculum development. Prior to any such expenditure by a public institution of postsecondary education, a telecommunications expenditure plan shall be approved by the higher education coordinating board. The higher education coordinating board shall coordinate the use of video telecommunications for instruction and instructional support in postsecondary education, including the review and approval of instructional telecommunications course offerings.

NEW SECTION. Sec. 904. EMERGENCY FUND ALLOCATIONS. Whenever allocations are made from the governor's emergency fund appropriation to an agency that is financed in whole or in part by other than general fund moneys, the director of financial management may direct the repayment of such allocated amount to the general fund from any balance in the fund or funds which finance the agency. No appropriation shall be necessary to effect such repayment.

NEW SECTION. Sec. 905. STATUTORY APPROPRIATIONS. In addition to the amounts appropriated in this act for revenues for distribution, state contributions to the law enforcement officers' and fire fighters' retirement system, and bond retirement and interest including ongoing bond registration and transfer charges, transfers, interest on registered warrants, and certificates of indebtedness, there is also appropriated such further amounts as may be required or available for these purposes under any statutory formula or under chapter 39.96 RCW or any proper bond covenant made under law.

NEW SECTION. Sec. 906. BOND EXPENSES. In addition to such other appropriations as are made by this act, there is hereby appropriated to the state finance committee from legally available bond proceeds in the applicable construction or building funds and accounts such amounts as are necessary to pay the expenses incurred in the issuance and sale of the subject bonds.

NEW SECTION. Sec. 907. LEGISLATIVE FACILITIES. Notwithstanding RCW 43.01.090, the house of representatives, the senate, and the permanent statutory committees shall pay expenses quarterly to the department of general administration facilities and services revolving fund for services rendered by the department for operations, maintenance, and supplies relating to buildings, structures, and facilities used by the legislature for the biennium beginning July 1, 1997.

NEW SECTION. Sec. 908. AGENCY RECOVERIES. Except as otherwise provided by law, recoveries of amounts expended pursuant to an appropriation, including but not limited to, payments for material supplied or services rendered under chapter 39.34 RCW, may be expended as part of the original appropriation of the fund to which such recoveries belong, without further or additional appropriation. Such expenditures shall be subject to conditions and procedures prescribed by the director of financial management. The director may authorize expenditure with respect to recoveries accrued but not received, in accordance with generally accepted accounting principles, except that such recoveries shall not be included in revenues or expended against an appropriation for a subsequent fiscal period. This section does not apply to the repayment of loans, except for loans between state agencies.

NEW SECTION. Sec. 909. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. The appropriations of moneys and the designation of funds and accounts by this and other acts of the 1997 legislature shall be construed in a manner consistent with legislation enacted by the 1985, 1987, 1989, 1991, 1993, and 1995 legislatures to conform state funds and accounts with generally accepted accounting principles.

Sec. 910. RCW 18.51.060 and 1989 c 372 s 8 are each amended to read as follows:

(1) In any case in which the department finds that a licensee, or any partner, officer, director, owner of five percent or more of the assets of the nursing home, or managing employee failed or refused to comply with the requirements of this chapter or of chapter 74.42 RCW, or the standards, rules and regulations established under them or, in the case of a Medicaid contractor, failed or refused to comply with the Medicaid requirements of Title XIX of the social security act, as amended, and regulations promulgated thereunder, the department may take any or all of the following actions:

(a) Suspend, revoke, or refuse to renew a license;

(b) Order stop placement;

(d) Deny payment to a nursing home for any Medicaid resident admitted after notice to deny payment. Residents who are Medicaid recipients shall not be responsible for payment when the department takes action under this subsection;

(e) Appoint temporary management as provided in subsection (7) of this section.

(2) The department may suspend, revoke, or refuse to renew a license, assess monetary penalties of a civil nature, or both, in any case in which it finds that the licensee, or any partner, officer, director, owner of five percent or more of the assets of the nursing home, or managing employee:

(a) Operated a nursing home without a license or under a revoked or suspended license; or

(b) Knowingly or with reason to know made a false statement of a material fact in his application for license or any data attached thereto, or in any matter under investigation by the department; or

(c) Refused to allow representatives or agents of the department to inspect all books, records, and files required to be maintained or any portion of the premises of the nursing home; or

(d) Willfully prevented, interfered with, or attempted to impede in any way the work of any duly authorized representative of the department and the lawful enforcement of any provision of this chapter or of chapter 74.42 RCW; or

(e) Willfully prevented or interfered with any representative of the department in the preservation of evidence of any violation of any of the provisions of this chapter or of chapter 74.42 RCW or the standards, rules, and regulations adopted under them; or

(f) Failed to report patient abuse or neglect in violation of chapter 70.124 RCW; or

(g) Fails to pay any civil monetary penalty assessed by the department pursuant to this chapter within ten days after such assessment becomes final.

(3) The department shall deny payment to a nursing home having a Medicaid contract with respect to any Medicaid-eligible individual admitted to the nursing home when:

(a) The department finds the nursing home not in compliance with the requirements of Title XIX of the social security act, as amended, and regulations promulgated thereunder, and the facility has not complied with such requirements within three months; in such case, the department shall deny payment until correction has been achieved; or

(b) The department finds on three consecutive standard surveys that the nursing home provided substandard quality of care; in such case, the department shall deny payment for new admissions until the facility has demonstrated to the satisfaction of the department that it is in compliance with Medicaid requirements and that it will remain in compliance with such requirements.

(4)(a) Civil penalties collected under this section or under chapter 74.42 RCW shall be deposited into a special fund administered by the department to be applied to the protection of the health or property of residents of nursing homes found to be deficient, including payment for the costs of relocation of residents to other facilities, maintenance of operation of a facility pending correction of deficiencies or closure, and reimbursement of residents for personal funds lost. Funds in the nursing home civil penalties account may be expended, subject to legislative appropriation, during the fiscal biennium ending June 30, 1999, for investigation and resolution of resident abuse and neglect.

(b) Civil monetary penalties, if imposed, may be assessed and collected, with interest, for each day a nursing home is or was out of compliance. Civil monetary penalties shall not exceed three thousand dollars per violation. Each day upon which the same or a substantially similar action occurs is a separate violation subject to the assessment of a separate penalty.

(c) Any civil penalty assessed under this section or chapter 74.46 RCW shall be a nonreimbursable item under chapter 74.46 RCW.

(5)(a) The department shall order stop placement on a nursing home, effective upon oral or written notice, when the department determines:

(i) The nursing home no longer substantially meets the requirements of chapter 18.51 or 74.42 RCW, or in the case of medicaid contractors, the requirements of Title XIX of the social security act, as amended, and any regulations promulgated under such statutes; and

(ii) The deficiency or deficiencies in the nursing home:

(A) Jeopardize the health and safety of the residents, or

(B) Seriously limit the nursing home's capacity to provide adequate care.

(b) When the department has ordered a stop placement, the department may approve a readmission to the nursing home from a hospital when the department determines the readmission would be in the best interest of the individual seeking readmission.

(i) The provider states in writing that the deficiencies necessitating the stop placement action have been corrected; and

(ii) The department staff confirms in a timely fashion not to exceed fifteen working days that:

(A) The deficiencies necessitating stop placement action have been corrected, and

(B) The provider exhibits the capacity to maintain adequate care and service.

(d) A nursing home provider shall have the right to an informal review to present written evidence to refute the deficiencies cited as the basis for the stop placement. A request for an informal review must be made in writing within ten days of the effective date of the stop placement.

(e) A stop placement shall not be delayed or suspended because the nursing home requests a hearing pursuant to chapter 34.05 RCW or an informal review. The stop placement shall remain in effect until:

(i) The department terminates the stop placement; or

(ii) The stop placement is terminated by a final agency order, after a hearing, pursuant to chapter 34.05 RCW.

(6) If the department determines that an emergency exists as a result of a nursing home's failure or refusal to comply with requirements of this chapter or, in the case of a Medicaid contractor, its failure or refusal to comply with Medicaid requirements of Title XIX of the social security act, as amended, and rules adopted thereunder, the department may suspend the nursing home's license and order the immediate closure of the nursing home, the immediate transfer of residents, or both.

(7) If the department determines that the health or safety of residents is immediately jeopardized as a result of a nursing home's failure or refusal to comply with requirements of this chapter or, in the case of a medicaid contractor, its failure or refusal to comply with medicaid requirements of Title XIX of the social security act, as amended, and rules adopted thereunder, the department may appoint temporary management to:

(a) Oversee the operation of the facility; and

(b) Ensure the health and safety of the facilities residents while:

(i) Orderly closure of the facility occurs; or

(ii) The deficiencies necessitating temporary management are corrected.

(8) The department shall by rule specify criteria as to when and how the sanctions specified in this section shall be applied. Such criteria shall provide for the imposition of incrementally more severe penalties for deficiencies that are repeated, uncorrected, pervasive, or present a threat to the health, safety, or welfare of the residents.

Sec. 911. RCW 43.08.250 and 1996 c 283 s 901 are each amended to read as follows:

The money received by the state treasurer from fees, fines, forfeitures, penalties, reimbursements or assessments by any court organized under Title 3 or 35 RCW, or chapter 2.08 RCW, shall be deposited in the public safety and education account which is hereby created in the state treasury. The legislature shall appropriate the funds in the account to promote traffic safety education, highway safety, criminal justice training, crime victims' compensation, judicial education, the judicial information system, civil representation of indigent persons, winter recreation parking, and state game programs. During the fiscal biennium ending June 30, ((~~1997~~)) 1999, the legislature may appropriate moneys from the public safety and education account for purposes of appellate indigent defense, the criminal litigation unit of the attorney general's office, the treatment alternatives to street crimes program, crime victims advocacy programs, justice information network telecommunication planning, sexual assault treatment, operations of the office of administrator for the courts, security in the common schools, programs for alternative dispute resolution of farmworker employment claims, criminal justice data collection, and Washington state patrol criminal justice activities.

Sec. 912. RCW 79.24.580 and 1995 2nd sp.s. c 18 s 923 are each amended to read as follows:

After deduction for management costs as provided in RCW 79.64.040 and payments to towns under RCW 79.92.110(2), all moneys received by the state from the sale or lease of state-owned aquatic lands and from the sale of valuable material from state-owned aquatic lands shall be deposited in the aquatic lands enhancement account which is hereby created in the state treasury. After appropriation, these funds shall be used solely for aquatic lands enhancement projects; for the purchase, improvement, or protection of aquatic lands for public purposes; for providing and improving access to such lands; and for volunteer cooperative fish and game projects. ((During the fiscal biennium ending June 30, 1995, the funds may be appropriated for shellfish management, enforcement, and enhancement and for developing and implementing plans for population monitoring and restoration of native wild salmon stock.)) During the fiscal biennium ending June 30, ((~~1997~~)) 1999, the funds may be appropriated for shellfish management, enforcement, and enhancement and for developing and implementing plans for population monitoring and restoration of native wild salmon stock.

Sec. 913. RCW 86.26.007 and 1996 c 283 s 903 are each amended to read as follows:

The flood control assistance account is hereby established in the state treasury. At the beginning of the 1997-99 fiscal biennium and each biennium thereafter the state treasurer shall transfer from the general fund to the flood control assistance account an amount of money which, when combined with money remaining in the account from the previous biennium, will equal four million dollars. Moneys in the flood control assistance account may be spent only after appropriation for purposes specified under this chapter or, during the ((1995-97 biennium, for state and local response and recovery costs associated with federal emergency management agency (FEMA) disaster number 1079 (November/December 1995 storms), FEMA disaster number 1100 (February 1996 floods), and for prior biennia disaster recovery costs. To the extent that moneys in the flood control assistance account are not appropriated during the 1995-97 fiscal biennium for flood control assistance, the legislature may direct their transfer to the state general fund)) 1997-99 fiscal biennium, for transfer to the disaster response account.

Sec. 914. RCW 90.56.510 and 1995 2nd sp.s. c 14 s 525 are each amended to read as follows:

(1) The oil spill administration account is created in the state treasury. All receipts from RCW 82.23B.020(2) shall be deposited in the account. Moneys from the account may be spent only after appropriation. The account is subject to allotment procedures under chapter 43.88 RCW. On July 1 of each odd-numbered year, if receipts deposited in the account from the tax imposed by RCW 82.23B.020(2) for the previous fiscal biennium exceed the amount appropriated from the account for the previous fiscal biennium, the state treasurer shall transfer the amount of receipts exceeding the appropriation to the oil spill response account. If, on the first day of any calendar month, the balance of the oil spill response account is greater than twenty-five million dollars and the balance of the oil spill administration account exceeds the unexpended appropriation for the current biennium, then the tax under RCW 82.23B.020(2) shall be suspended on the first day of the next calendar month until the beginning of the following biennium, provided that the tax shall not be suspended during the last six months of the biennium. If the tax imposed under RCW 82.23B.020(2) is suspended during two consecutive biennia, the department shall by November 1st after the end of the second biennium, recommend to the appropriate standing committees an adjustment in the tax rate. For the biennium ending June 30, ((~~1997~~)) 1999, the state treasurer may transfer up to $((~~1,718,000~~)) 1,565,000 from the oil spill response account to the oil spill administration account to support appropriations made from the oil spill administration account in the omnibus and transportation appropriations acts adopted not later than June 30, ((~~1997~~)) 1999.

(2) Expenditures from the oil spill administration account shall be used exclusively for the administrative costs related to the purposes of this chapter, and chapters 90.48, 88.40, and 88.46 RCW. Starting with the 1995-1997 biennium, the legislature shall give activities of state agencies related to prevention of oil spills priority in funding from the oil spill administration account. Costs of administration include the costs of:

(a) Routine responses not covered under RCW 90.56.500;

(b) Management and staff development activities;

(d) Facility and vessel plan review and approval, drills, inspections, investigations, enforcement, and litigation;

(e) Interagency coordination and public outreach and education;

(f) Collection and administration of the tax provided for in chapter 82.23B RCW; and

(g) Appropriate travel, goods and services, contracts, and equipment.

NEW SECTION. Sec. 915. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 916. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997.

(End of part)

INDEX PAGE #

ADMINISTRATOR FOR THE COURTS.................................... 5

AGENCY RECOVERIES............................................. 128

AGENCY SAVINGS........................................... 120, 121

FISCAL YEAR 1998.............................................. 120

FISCAL YEAR 1999.............................................. 121

ATTORNEY GENERAL........................................... 9, 119

SALARY ADJUSTMENTS............................................ 119

BELATED CLAIMS................................................ 116

BOARD FOR VOLUNTEER FIRE FIGHTERS.............................. 20

BOARD OF ACCOUNTANCY........................................... 18

BOARD OF INDUSTRIAL INSURANCE APPEALS.......................... 40

BOARD OF TAX APPEALS........................................... 16

BOND EXPENSES................................................. 128

CASELOAD FORECAST COUNCIL...................................... 21

CENTRAL WASHINGTON UNIVERSITY................................. 105

CITIZENS' COMMISSION ON SALARIES FOR ELECTED OFFICIALS.......... 9

COLUMBIA RIVER GORGE COMMISSION................................ 52

COMMISSION ON AFRICAN-AMERICAN AFFAIRS......................... 15

COMMISSION ON ASIAN-AMERICAN AFFAIRS............................ 8

COMMISSION ON HISPANIC AFFAIRS................................. 15

COMMISSION ON JUDICIAL CONDUCT.................................. 5

CONSERVATION COMMISSION........................................ 57

COURT OF APPEALS................................................ 4

CRIMINAL JUSTICE TRAINING COMMISSION........................... 40

DEATH INVESTIGATION COUNCIL.................................... 19

DEPARTMENT OF AGRICULTURE...................................... 63

DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT....... 10

DEPARTMENT OF CORRECTIONS...................................... 47

DEPARTMENT OF ECOLOGY.......................................... 52

DEPARTMENT OF FINANCIAL INSTITUTIONS........................... 10

DEPARTMENT OF FISH AND WILDLIFE................................ 58

DEPARTMENT OF GENERAL ADMINISTRATION........................... 17

DEPARTMENT OF HEALTH........................................... 44

DEPARTMENT OF INFORMATION SERVICES............................. 18

DEPARTMENT OF LABOR AND INDUSTRIES............................. 41

DEPARTMENT OF LICENSING........................................ 65

DEPARTMENT OF NATURAL RESOURCES................................ 61

DEPARTMENT OF PERSONNEL........................................ 13

DEPARTMENT OF RETIREMENT SYSTEMS..................... 15, 118, 124

CONTRIBUTIONS TO RETIREMENT SYSTEMS........................... 118

OPERATIONS..................................................... 15

TRANSFERS..................................................... 124

DEPARTMENT OF REVENUE.......................................... 16

DEPARTMENT OF SERVICES FOR THE BLIND........................... 49

DEPARTMENT OF SOCIAL AND HEALTH SERVICES 23, 26, 28, 29, 31, 33‑39

ADMINISTRATION AND SUPPORTING SERVICES PROGRAM................. 37

AGING AND ADULT SERVICES PROGRAM............................... 31

ALCOHOL AND SUBSTANCE ABUSE PROGRAM............................ 34

CHILD SUPPORT PROGRAM.......................................... 38

CHILDREN AND FAMILY SERVICES PROGRAM........................... 23

DEVELOPMENTAL DISABILITIES PROGRAM............................. 29

ECONOMIC SERVICES PROGRAM...................................... 33

JUVENILE REHABILITATION PROGRAM................................ 26

MEDICAL ASSISTANCE PROGRAM..................................... 35

MENTAL HEALTH PROGRAM.......................................... 28

PAYMENTS TO OTHER AGENCIES PROGRAM............................. 39

VOCATIONAL REHABILITATION PROGRAM.............................. 36

DEPARTMENT OF VETERANS AFFAIRS................................. 43

EASTERN WASHINGTON STATE HISTORICAL SOCIETY................... 112

EASTERN WASHINGTON UNIVERSITY................................. 104

ECONOMIC AND REVENUE FORECAST COUNCIL.......................... 13

EMERGENCY FUND ALLOCATIONS.................................... 127

EMPLOYMENT SECURITY DEPARTMENT................................. 50

ENVIRONMENTAL HEARINGS OFFICE.................................. 57

EXPENDITURE AUTHORIZATIONS.................................... 125

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES...................... 129

GOVERNOR............................................ 114, 115, 117

AMERICANS WITH DISABILITIES ACT............................... 114

COMPENSATION--INSURANCE BENEFITS.............................. 117

TORT DEFENSE SERVICES......................................... 115

TRANSFER TO THE TORT CLAIMS REVOLVING FUND.................... 114

GOVERNOR'S OFFICE OF INDIAN AFFAIRS............................. 8

GROWTH PLANNING HEARINGS BOARD................................. 21

HIGHER EDUCATION COORDINATING BOARD...................... 107, 108

FINANCIAL AID AND GRANT PROGRAMS.............................. 108

POLICY COORDINATION AND ADMINISTRATION........................ 107

HORSE RACING COMMISSION........................................ 19

HOUSE OF REPRESENTATIVES........................................ 2

HUMAN RIGHTS COMMISSION........................................ 40

INDETERMINATE SENTENCE REVIEW BOARD............................ 43

INFORMATION SYSTEMS PROJECTS.................................. 125

INSURANCE COMMISSIONER......................................... 18

INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION................... 57

JOINT CENTER FOR HIGHER EDUCATION............................. 110

JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEE.................... 3

JOINT LEGISLATIVE SYSTEMS COMMITTEE............................. 4

LAW LIBRARY..................................................... 4

LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEE..... 3

LEGISLATIVE FACILITIES........................................ 128

LIEUTENANT GOVERNOR............................................. 7

LIQUOR CONTROL BOARD........................................... 19

MILITARY DEPARTMENT............................................ 20

MUNICIPAL RESEARCH COUNCIL..................................... 16

OFFICE OF ADMINISTRATIVE HEARINGS.............................. 13

OFFICE OF FINANCIAL MANAGEMENT....................... 13, 115, 120

COMPENSATION ACTIONS OF PERSONNEL RESOURCES BOARD............. 120

EMERGENCY FUND................................................ 115

YEAR 2000 ALLOCATIONS......................................... 115

OFFICE OF MINORITY AND WOMEN'S BUSINESS ENTERPRISES............ 17

OFFICE OF PUBLIC DEFENSE........................................ 6

OFFICE OF THE GOVERNOR.......................................... 6

OFFICE OF THE STATE ACTUARY..................................... 3

PERSONNEL APPEALS BOARD........................................ 15

PUBLIC DISCLOSURE COMMISSION.................................... 7

PUBLIC EMPLOYMENT RELATIONS COMMISSION......................... 21

SALARY COST OF LIVING ADJUSTMENT.............................. 119

SECRETARY OF STATE.............................................. 7

SENATE.......................................................... 2

SENTENCING GUIDELINES COMMISSION............................... 50

STATE AUDITOR................................................... 8

STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES............... 99

STATE CONVENTION AND TRADE CENTER.............................. 21

STATE HEALTH CARE AUTHORITY.................................... 39

STATE INVESTMENT BOARD......................................... 16

STATE PARKS AND RECREATION COMMISSION.......................... 56

STATE PATROL................................................... 66

STATE SCHOOL FOR THE BLIND.................................... 112

STATE SCHOOL FOR THE DEAF..................................... 112

STATE TREASURER............................. 8, 113, 114, 122, 123

BOND RETIREMENT AND INTEREST............................. 113, 114

FEDERAL REVENUES FOR DISTRIBUTION............................. 123

STATE REVENUES FOR DISTRIBUTION............................... 122

TRANSFERS..................................................... 123

STATUTE LAW COMMITTEE........................................... 4

STATUTORY APPROPRIATIONS...................................... 128

SUPERINTENDENT OF PUBLIC INSTRUCTION 68, 71, 78, 81, 83, 84, 87‑93

BASIC EDUCATION EMPLOYEE COMPENSATION.......................... 78

EDUCATION REFORM PROGRAMS...................................... 90

EDUCATIONAL SERVICE DISTRICTS.................................. 88

ELEMENTARY AND SECONDARY SCHOOL IMPROVEMENT ACT................ 89

GENERAL APPORTIONMENT (BASIC EDUCATION)........................ 71

INSTITUTIONAL EDUCATION PROGRAMS............................... 89

LEARNING ASSISTANCE PROGRAM.................................... 92

LOCAL EFFORT ASSISTANCE........................................ 88

LOCAL ENHANCEMENT FUNDS........................................ 93

PROGRAMS FOR HIGHLY CAPABLE STUDENTS........................... 89

PUPIL TRANSPORTATION........................................... 83

SCHOOL EMPLOYEE COMPENSATION ADJUSTMENTS....................... 81

SCHOOL FOOD SERVICE PROGRAMS................................... 84

SPECIAL EDUCATION PROGRAMS..................................... 84

STATE ADMINISTRATION........................................... 68

TRAFFIC SAFETY EDUCATION PROGRAMS.............................. 87

TRANSITIONAL BILINGUAL PROGRAMS................................ 91

SUPREME COURT................................................... 4

THE EVERGREEN STATE COLLEGE................................... 106

UNIVERSITY OF WASHINGTON...................................... 101

UTILITIES AND TRANSPORTATION COMMISSION........................ 20

VIDEO TELECOMMUNICATIONS...................................... 127

WASHINGTON POLLUTION LIABILITY REINSURANCE PROGRAM............. 64

WASHINGTON STATE ARTS COMMISSION.............................. 111

WASHINGTON STATE HISTORICAL SOCIETY........................... 111

WASHINGTON STATE LIBRARY...................................... 110

WASHINGTON STATE LOTTERY....................................... 15

WASHINGTON STATE UNIVERSITY................................... 103

WESTERN WASHINGTON UNIVERSITY................................. 106

WORK FORCE TRAINING AND EDUCATION COORDINATING BOARD.......... 110