S-1932

AN ACT Relating to the reorganization of the liquor control board; amending RCW 66.04.010, 66.08.012, 66.08.014, 66.08.016, 66.08.020, 66.08.020, 66.08.022, 66.08.024, 66.08.026, 66.08.030, 66.08.055, 66.08.060, 66.08.070, 66.08.075, 66.08.080, 66.08.090, 66.08.095, 66.08.100, 66.08.130, 66.08.140, 66.08.150, 66.08.170, 66.08.220, 66.08.235, 10.93.020, 19.02.050, 42.17.2401, 43.17.020, and 43.82.010; reenacting and amending RCW 66.08.180 and 43.17.010; adding new sections to chapter 66.08 RCW; creating new sections; repealing RCW 66.08.016 and 66.08.050; and providing an effective date.

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

Sec. 1. RCW 66.04.010 and 1997 c 321 s 37 are each amended to read as follows:

In this title, unless the context otherwise requires:

(1) "Alcohol" is that substance known as ethyl alcohol, hydrated oxide of ethyl, or spirit of wine, which is commonly produced by the fermentation or distillation of grain, starch, molasses, or sugar, or other substances including all dilutions and mixtures of this substance. The term "alcohol" does not include alcohol in the possession of a manufacturer or distiller of alcohol fuel, as described in RCW 66.12.130, which is intended to be denatured and used as a fuel for use in motor vehicles, farm implements, and machines or implements of husbandry.

(2) "Beer" means any malt beverage or malt liquor as these terms are defined in this chapter.

(3) "Beer distributor" means a person who buys beer from a brewer or brewery located either within or beyond the boundaries of the state, beer importers, or foreign produced beer from a source outside the state of Washington, for the purpose of selling the same pursuant to this title, or who represents such brewer or brewery as agent.

(4) "Beer importer" means a person or business within Washington who purchases beer from a United States brewery holding a certificate of approval (B5) or foreign produced beer from a source outside the state of Washington for the purpose of selling the same pursuant to this title.

(5) "Brewer" means any person engaged in the business of manufacturing beer and malt liquor.

(6) "Board" means the liquor control board, constituted under this title.

(7) "Club" means an organization of persons, incorporated or unincorporated, operated solely for fraternal, benevolent, educational, athletic or social purposes, and not for pecuniary gain.

(8) "Consume" includes the putting of liquor to any use, whether by drinking or otherwise.

(9) "Dentist" means a practitioner of dentistry duly and regularly licensed and engaged in the practice of his or her profession within the state pursuant to chapter 18.32 RCW.

(10) "Department" means the department of liquor control created in section 2 of this act.

(11) "Director" means the director of the department.

(12) "Distiller" means a person engaged in the business of distilling spirits.

((~~(11)~~)) (13) "Domestic winery" means a place where wines are manufactured or produced within the state of Washington.

((~~(12)~~)) (14) "Druggist" means any person who holds a valid certificate and is a registered pharmacist and is duly and regularly engaged in carrying on the business of pharmaceutical chemistry pursuant to chapter 18.64 RCW.

((~~(13)~~)) (15) "Drug store" means a place whose principal business is, the sale of drugs, medicines and pharmaceutical preparations and maintains a regular prescription department and employs a registered pharmacist during all hours the drug store is open.

((~~(14)~~)) (16) "Employee" means any person employed by the ((~~board~~)) director, including a vendor, as ((~~hereinafter~~)) defined in this section ((~~defined~~)).

((~~(15)~~)) (17) "Fund" means ((')) the liquor revolving fund.(('

~~(16)~~)) (18) "Hotel" means every building or other structure kept, used, maintained, advertised or held out to the public to be a place where food is served and sleeping accommodations are offered for pay to transient guests, in which twenty or more rooms are used for the sleeping accommodation of such transient guests and having one or more dining rooms where meals are served to such transient guests, such sleeping accommodations and dining rooms being conducted in the same building and buildings, in connection therewith, and such structure or structures being provided, in the judgment of the ((~~board~~)) director, with adequate and sanitary kitchen and dining room equipment and capacity, for preparing, cooking and serving suitable food for its guests: PROVIDED FURTHER, That in cities and towns of less than five thousand population, the ((~~board~~)) director shall have authority to waive the provisions requiring twenty or more rooms.

((~~(17)~~)) (19) "Importer" means a person who buys distilled spirits from a distillery outside the state of Washington and imports such spirituous liquor into the state for sale to the board or for export.

((~~(18)~~)) (20) "Imprisonment" means confinement in the county jail.

((~~(19)~~)) (21) "Liquor" includes the four varieties of liquor herein defined (alcohol, spirits, wine and beer), and all fermented, spirituous, vinous, or malt liquor, or combinations thereof, and mixed liquor, a part of which is fermented, spirituous, vinous or malt liquor, or otherwise intoxicating; and every liquid or solid or semisolid or other substance, patented or not, containing alcohol, spirits, wine or beer, and all drinks or drinkable liquids and all preparations or mixtures capable of human consumption, and any liquid, semisolid, solid, or other substance, which contains more than one percent of alcohol by weight shall be conclusively deemed to be intoxicating. Liquor does not include confections or food products that contain one percent or less of alcohol by weight.

((~~(20)~~)) (22) "Manufacturer" means a person engaged in the preparation of liquor for sale, in any form whatsoever.

((~~(21)~~)) (23) "Malt beverage" or "malt liquor" means any beverage such as beer, ale, lager beer, stout, and porter obtained by the alcoholic fermentation of an infusion or decoction of pure hops, or pure extract of hops and pure barley malt or other wholesome grain or cereal in pure water containing not more than eight percent of alcohol by weight, and not less than one-half of one percent of alcohol by volume. For the purposes of this title, any such beverage containing more than eight percent of alcohol by weight shall be referred to as "strong beer."

((~~(22)~~)) (24) "Package" means any container or receptacle used for holding liquor.

((~~(23)~~)) (25) "Permit" means a permit for the purchase of liquor under this title.

((~~(24)~~)) (26) "Person" means an individual, copartnership, association, or corporation.

((~~(25)~~)) (27) "Physician" means a medical practitioner duly and regularly licensed and engaged in the practice of his or her profession within the state pursuant to chapter 18.71 RCW.

((~~(26)~~)) (28) "Prescription" means a memorandum signed by a physician and given by ((~~him~~)) the physician to a patient for the obtaining of liquor pursuant to this title for medicinal purposes.

((~~(27)~~)) (29) "Public place" includes streets and alleys of incorporated cities and towns; state or county or township highways or roads; buildings and grounds used for school purposes; public dance halls and grounds adjacent thereto; those parts of establishments where beer may be sold under this title, soft drink establishments, public buildings, public meeting halls, lobbies, halls and dining rooms of hotels, restaurants, theatres, stores, garages and filling stations which are open to and are generally used by the public and to which the public is permitted to have unrestricted access; railroad trains, stages, and other public conveyances of all kinds and character, and the depots and waiting rooms used in conjunction therewith which are open to unrestricted use and access by the public; publicly owned bathing beaches, parks, and/or playgrounds; and all other places of like or similar nature to which the general public has unrestricted right of access, and which are generally used by the public.

((~~(28) "Regulations" means regulations made by the board under the powers conferred by this title.~~

~~(29)~~)) (30) "Restaurant" means any establishment provided with special space and accommodations where, in consideration of payment, food, without lodgings, is habitually furnished to the public, not including drug stores and soda fountains.

((~~(30)~~)) (31) "Rules" means rules adopted in accordance with chapter 34.05 RCW by the board under the powers conferred by this title.

(32) "Sale" and "sell" include exchange, barter, and traffic; and also include the selling or supplying or distributing, by any means whatsoever, of liquor, or of any liquid known or described as beer or by any name whatever commonly used to describe malt or brewed liquor or of wine, by any person to any person; and also include a sale or selling within the state to a foreign consignee or his or her agent in the state. "Sale" and "sell" shall not include the giving, at no charge, of a reasonable amount of liquor by a person not licensed by the ((~~board~~)) department to a person not licensed by the ((~~board~~)) department, for personal use only. "Sale" and "sell" also does not include a raffle authorized under RCW 9.46.0315: PROVIDED, That the nonprofit organization conducting the raffle has obtained the appropriate permit from the ((~~board~~)) department.

((~~(31)~~)) (33) "Soda fountain" means a place especially equipped with apparatus for the purpose of dispensing soft drinks, whether mixed or otherwise.

((~~(32)~~)) (34) "Spirits" means any beverage which contains alcohol obtained by distillation, including wines exceeding twenty-four percent of alcohol by volume.

((~~(33)~~)) (35) "Store" means a state liquor store established under this title.

((~~(34)~~)) (36) "Tavern" means any establishment with special space and accommodation for sale by the glass and for consumption on the premises, of beer, as herein defined.

((~~(35)~~)) (37) "Vendor" means a person employed by the ((~~board~~)) department as a store manager under this title.

((~~(36)~~)) (38) "Winery" means a business conducted by any person for the manufacture of wine for sale, other than a domestic winery.

((~~(37)~~)) (39) "Wine" means any alcoholic beverage obtained by fermentation of fruits (grapes, berries, apples, et cetera) or other agricultural product containing sugar, to which any saccharine substances may have been added before, during or after fermentation, and containing not more than twenty-four percent of alcohol by volume, including sweet wines fortified with wine spirits, such as port, sherry, muscatel and angelica, not exceeding twenty-four percent of alcohol by volume and not less than one-half of one percent of alcohol by volume. For purposes of this title, any beverage containing no more than fourteen percent of alcohol by volume when bottled or packaged by the manufacturer shall be referred to as "table wine," and any beverage containing alcohol in an amount more than fourteen percent by volume when bottled or packaged by the manufacturer shall be referred to as "fortified wine." However, "fortified wine" shall not include: (a) Wines that are both sealed or capped by cork closure and aged two years or more; and (b) wines that contain more than fourteen percent alcohol by volume solely as a result of the natural fermentation process and that have not been produced with the addition of wine spirits, brandy, or alcohol.

This subsection shall not be interpreted to require that any wine be labeled with the designation "table wine" or "fortified wine."

((~~(38)~~)) (40) "Wine distributor" means a person who buys wine from a vintner or winery located either within or beyond the boundaries of the state for the purpose of selling the same not in violation of this title, or who represents such vintner or winery as agent.

((~~(39)~~)) (41) "Wine importer" means a person or business within Washington who purchases wine from a United States winery holding a certificate of approval (W7) or foreign produced wine from a source outside the state of Washington for the purpose of selling the same pursuant to this title.

NEW SECTION. Sec. 2. A new section is added to chapter 66.08 RCW to read as follows:

There is created an agency of state government known as the Washington state department of liquor control.

The executive head of the department is the director. The director shall be appointed by, and serve at the pleasure of, the governor. The appointment of the director is subject to confirmation by the senate. The director shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040. The director shall have management experience in a public agency and an understanding of the distribution and retail sales operations of Washington's controlled sales environment.

NEW SECTION. Sec. 3. All powers, duties, and functions vested by law in the liquor control board are transferred to the director of the department, except those powers, duties, and functions that are expressly directed to remain with the board. This transfer shall take place on the effective date of this section. This act does not create a new agency, but provides for a new administrative structure within the renamed agency.

Sec. 4. RCW 66.08.012 and 1961 c 307 s 7 are each amended to read as follows:

There shall be a board, known as the "Washington state liquor control board," consisting of ((~~three~~)) five members, to be appointed by the governor, with the consent of the senate, who shall each be ((~~paid an annual salary to be fixed by the governor in accordance with the provisions of RCW 43.03.040~~)) compensated in accordance with RCW 43.03.250 and shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060. The governor may, in his or her discretion, appoint one of the members as ((~~chairman~~)) chair of the board, and a majority of the members shall constitute a quorum of the board. The board shall meet once a month or at such times as the chair may designate.

Sec. 5. RCW 66.08.014 and 1986 c 105 s 1 are each amended to read as follows:

(1) The members of the board to be appointed after December 2, 1948, shall be appointed for terms beginning January 15, 1949, and expiring as follows: One member of the board for a term of three years from January 15, 1949; one member of the board for a term of six years from January 15, 1949; and one member of the board for a term of nine years from January 15, 1949. Each of the members of the board appointed hereunder shall hold office until his or her successor is appointed and qualified. After June 11, 1986, the term that began on January 15, 1985, will end on January 15, 1989, the term beginning on January 15, 1988, will end on January 15, 1993, and the term beginning on January 15, 1991, will end on January 15, 1997. Thereafter, upon the expiration of the term of any member appointed after June 11, 1986, each succeeding member of the board shall be appointed and hold office for the term of six years. The unexpired terms of board members serving on the effective date of this section shall be completed by the members appointed to serve part time after the effective date of this section. The governor shall stagger the terms of members appointed to positions created July 1, 2001. In case of a vacancy, it shall be filled by appointment by the governor for the unexpired portion of the term in which said vacancy occurs. No vacancy in the membership of the board shall impair the right of the remaining member or members to act, except as herein otherwise provided.

(2) The principal office of the ((~~board~~)) department shall be at the state ((~~capitol~~)) capital, and it may establish such other offices as it may deem necessary.

(3) Any member of the board may be removed for inefficiency, malfeasance or misfeasance in office, upon specific written charges filed by the governor, who shall transmit such written charges to the member accused and to the chief justice of the supreme court. The chief justice shall thereupon designate a tribunal composed of three judges of the superior court to hear and adjudicate the charges. Such tribunal shall fix the time of the hearing, which shall be public, and the procedure for the hearing, and the decision of such tribunal shall be final and not subject to review by the supreme court. Removal of any member of the board by the tribunal shall disqualify such member for reappointment.

(4) Each member of the board shall ((~~devote his entire time to the duties of his office~~)) serve part time and no member of the board shall hold any other public office. Before entering upon the duties of his or her office, each of ((~~said~~)) the members of the board shall enter into a surety bond executed by a surety company authorized to do business in this state, payable to the state of Washington, to be approved by the governor in the penal sum of fifty thousand dollars conditioned upon the faithful performance of his or her duties, and shall take and subscribe to the oath of office prescribed for elective state officers, which oath and bond shall be filed with the secretary of state. The premium for ((~~said~~)) the bond shall be paid by the ((~~board~~)) department.

Sec. 6. RCW 66.08.016 and 1961 c 1 s 30 are each amended to read as follows:

The ((~~board~~)) chair may employ such number of employees as in its judgment are required from time to time.

Sec. 7. RCW 66.08.020 and 1933 ex.s. c 62 s 5 are each amended to read as follows:

(1) The administration of this title, including the general control, management, and supervision of all liquor stores, shall be vested in the ((~~liquor control board, constituted under this title~~)) chair.

(2) Until July 1, 2001, duties in RCW 66.08.030, 66.08.050, and 66.08.150 shall remain with the board.

Sec. 8. RCW 66.08.020 and 1999 c . . . s 7 (section 7 of this act) are each amended to read as follows:

((~~(1)~~)) The administration of this title, including the general control, management, and supervision of all liquor stores, shall be vested in the ((~~chair~~)) director, who shall carry out this administrative function in accordance with the rules adopted by the board.

In addition to any other powers granted or transferred to the director, the director shall have the following powers and duties as may be necessary to carry out the purposes of this title:

(1) Supervise and administer the operations of the department in accordance with the provisions of this title;

(2) Employ personnel in accordance with chapter 41.06 RCW and prescribe their duties;

(3) Appoint such assistant directors and special assistants as may be necessary to administer the department, who shall be exempt from chapter 41.06 RCW;

(4) Enter into contracts on behalf of the department;

(5) Accept and expend donations, grants, or other funds;

(6) Delegate powers, duties, and functions of the department to employees of the department as the director deems necessary to ensure efficient administration;

(7) Appoint advisory committees and undertake studies, research, and analysis necessary to support activities of the department; and

(8) Perform such other duties as are consistent with this title.

((~~(2) Until July 1, 2001, duties in RCW 66.08.030, 66.08.050, and 66.08.150 shall remain with the board.~~))

Sec. 9. RCW 66.08.022 and 1961 ex.s. c 6 s 2 are each amended to read as follows:

The attorney general shall be the general counsel of the ((~~liquor control board~~)) department and he or she shall institute and prosecute all actions and proceedings which may be necessary in the enforcement and carrying out of the provisions of this chapter and Title 66 RCW.

He or she shall assign such assistants as may be necessary to the exclusive duty of assisting the liquor control board in the enforcement of Title 66 RCW.

Sec. 10. RCW 66.08.024 and 1987 c 74 s 1 are each amended to read as follows:

The state auditor shall audit the books, records, and affairs of the ((~~board~~)) department annually. The ((~~board~~)) department may provide for additional audits by certified public accountants. All such audits shall be public records of the state. The payment of the audits provided for in this section shall be paid as provided in RCW 66.08.026 for other administrative expenses.

Sec. 11. RCW 66.08.026 and 1998 c 265 s 2 are each amended to read as follows:

All administrative expenses of the ((~~board~~)) department incurred on and after April 1, 1963 shall be appropriated and paid from the liquor revolving fund. These administrative expenses shall include, but not be limited to: The salaries and expenses of the ((~~board~~)) department and its employees, the cost of establishing, leasing, maintaining, and operating state liquor stores and warehouses, legal services, pilot projects, annual or other audits, and other general costs of conducting the business of the ((~~board~~)) department, and the costs of supplying, installing, and maintaining equipment used in state liquor stores and agency liquor vendor stores for the purchase of liquor by nonlicensees using debit or credit cards. The administrative expenses shall not, however, be deemed to include costs of liquor and lottery tickets purchased, the cost of transportation and delivery to the point of distribution, other costs pertaining to the acquisition and receipt of liquor and lottery tickets, packaging and repackaging of liquor, transaction fees associated with credit or debit card purchases for liquor in state liquor stores and in the stores of agency liquor vendors pursuant to RCW 66.16.040 and 66.16.041, sales tax, and those amounts distributed pursuant to RCW 66.08.180, 66.08.190, 66.08.200, 66.08.210 and 66.08.220.

Sec. 12. RCW 66.08.030 and 1977 ex.s. c 115 s 1 are each amended to read as follows:

(1) For the purpose of carrying into effect the provisions of this title according to their true intent or of supplying any deficiency therein, the board may ((~~make~~)) adopt such ((~~regulations~~)) rules in accordance with chapter 34.05 RCW not inconsistent with the spirit of this title as are deemed necessary or advisable. All ((~~regulations~~)) rules so made shall be a public record and shall be filed in the office of the code reviser, and thereupon shall have the same force and effect as if incorporated in this title. Such ((~~regulations~~)) rules, together with a copy of this title, shall be published in pamphlets and shall be distributed as directed by the board.

(2) Without thereby limiting the generality of the provisions ((~~contained~~)) in subsection (1) of this section, it is declared that the power of the board to make ((~~regulations~~)) rules in the manner set out in that subsection shall extend to:

(a) ((regulating the equipment and management of stores and warehouses in which state liquor is sold or kept, and prescribing the books and records to be kept therein and the reports to be made thereon to the board;

~~(b) prescribing the duties of the employees of the board, and regulating their conduct in the discharge of their duties;~~

~~(c)~~)) Governing the purchase of liquor by the state and the furnishing of liquor to stores established under this title;

((~~(d) determining the classes, varieties, and brands of liquor to be kept for sale at any store;~~

~~(e)~~)) (b) Prescribing, subject to RCW 66.16.080, the hours during which the state liquor stores shall be kept open for the sale of liquor;

((~~(f)~~)) (c) Providing for the issuing and distributing of price lists showing the price to be paid by purchasers for each variety of liquor kept for sale under this title;

((~~(g)~~)) (d) Prescribing an official seal and official labels and stamps and determining the manner in which they shall be attached to every package of liquor sold or sealed under this title, including the prescribing of different official seals or different official labels for different classes of liquor;

((~~(h)~~)) (e) Providing for the payment by the ((~~board~~)) department in whole or in part of the carrying charges on liquor shipped by freight or express;

((~~(i)~~)) (f) Prescribing ((~~forms to be used for purposes of this title or the regulations, and~~)) the terms and conditions to be contained in permits and licenses issued under this title;

((~~(j)~~)) (g) Prescribing the fees payable in respect of permits and licenses issued under this title for which no fees are prescribed in this title, and prescribing the fees for anything done or permitted to be done under the ((~~regulations~~)) rules;

((~~(k)~~)) (h) Prescribing the kinds and quantities of liquor which may be kept on hand by the holder of a special permit for the purposes named in the permit, regulating the manner in which the same shall be kept and disposed of, and providing for the inspection of the same at any time at the instance of the ((~~board~~)) department;

((~~(l)~~)) (i) Regulating the sale of liquor kept by the holders of licenses which entitle the holder to purchase and keep liquor for sale;

((~~(m)~~)) (j) Prescribing the records of purchases or sales of liquor kept by the holders of licenses, and the reports to be made thereon to the ((~~board~~)) department, and providing for inspection of the records so kept;

((~~(n)~~)) (k) Prescribing the kinds and quantities of liquor for which a prescription may be given, and the number of prescriptions which may be given to the same patient within a stated period;

((~~(o)~~)) (l) Prescribing the manner of giving and serving notices required by this title or the ((~~regulations~~)) rules, where not otherwise provided for in this title;

((~~(p)~~)) (m) Regulating premises in which liquor is kept for export from the state, or from which liquor is exported, prescribing the books and records to be kept therein and the reports to be made thereon to the ((~~board~~)) department, and providing for the inspection of the premises and the books, records and the liquor so kept;

((~~(q)~~)) (n) Prescribing the conditions and qualifications requisite for the obtaining of club licenses and the books and records to be kept and the returns to be made by clubs, prescribing the manner of licensing clubs in any municipality or other locality, and providing for the inspection of clubs;

((~~(r)~~)) (o) Prescribing the conditions, accommodations, and qualifications requisite for the obtaining of licenses to sell beer and wines, and regulating the sale of beer and wines thereunder;

((~~(s)~~)) (p) Specifying and regulating the time and periods when, and the manner, methods, and means by which manufacturers shall deliver liquor within the state; and the time and periods when, and the manner, methods, and means by which liquor may lawfully be conveyed or carried within the state;

((~~(t)~~)) (q) Providing for the making of returns by brewers of their sales of beer shipped within the state, or from the state, showing the gross amount of such sales and providing for the inspection of brewers' books and records, and for the checking of the accuracy of any such returns;

((~~(u)~~)) (r) Providing for the making of returns by the wholesalers of beer whose breweries are located beyond the boundaries of the state;

((~~(v)~~)) (s) Providing for the making of returns by any other liquor manufacturers, showing the gross amount of liquor produced or purchased, the amount sold within and exported from the state, and to whom so sold or exported, and providing for the inspection of the premises of any such liquor manufacturers, their books and records, and for the checking of any such return;

((~~(w)~~)) (t) Providing for the giving of fidelity bonds by any or all of the employees of the ((~~board~~)) department: PROVIDED, That the premiums therefor shall be paid by the ((~~board~~)) department;

((~~(x)~~)) (u) Providing for the shipment by mail or common carrier of liquor to any person holding a permit and residing in any unit which has, by election pursuant to this title, prohibited the sale of liquor therein;

((~~(y)~~)) (v) Prescribing methods of manufacture, conditions of sanitation, standards of ingredients, quality, and identity of alcoholic beverages manufactured, sold, bottled, or handled by licensees and the ((~~board~~)) department; and conducting from time to time, in the interest of the public health and general welfare, scientific studies and research relating to alcoholic beverages and the use and effect thereof; and

((~~(z)~~)) (w) Seizing, confiscating, and destroying all alcoholic beverages manufactured, sold, or offered for sale within this state which do not conform in all respects to the standards prescribed by this title or the ((~~regulations~~)) rules of the board: PROVIDED, Nothing ((~~herein contained~~)) in this section shall be construed as authorizing the ((~~liquor~~)) board to prescribe, alter, limit, or in any way change the present law as to the quantity or percentage of alcohol used in the manufacturing of wine or other alcoholic beverages.

NEW SECTION. Sec. 13. A new section is added to chapter 66.08 RCW to read as follows:

The director, subject to the provisions of this title and the rules adopted under this title, shall:

(1) Establish and operate all necessary warehouses for the storing and bottling, diluting, and rectifying of stocks of liquors for the purposes of this title;

(2) Provide for the leasing for periods not to exceed ten years of all premises required for the conduct of the business; and for remodeling the same, and the procuring of their furnishings, fixtures, and supplies; and for obtaining options of renewal of such leases by the lessee. The terms of such leases in all other respects shall be subject to the direction of the director;

(3) Execute or cause to be executed, all contracts, papers, and documents in the name of the department, under such rules as the board may adopt;

(4) Pay all customs, duties, excises, charges, and obligations whatsoever relating to the business of the department;

(5) Require bonds from all employees in the discretion of the director, and to determine the amount of fidelity bond of each such employee;

(6) Perform services for the state lottery commission to such extent, and for such compensation, as may be mutually agreed upon between the director and the commission;

(7) Perform all other matters and things, whether similar to the foregoing or not, to carry out the provisions of this title, and have full power to do each and every act necessary to the conduct of its business, including all buying, selling, preparation and approval of forms, and every other function of the business whatsoever, subject only to audit by the state auditor: PROVIDED, That the director has no authority to regulate the content of spoken language on licensed premises where wine and other liquors are served and where there is not a clear and present danger of disorderly conduct being provoked by such language;

(8) Determine the localities within which state liquor stores shall be established throughout the state, and the number and situation of the stores within each locality;

(9) Appoint in cities and towns and other communities, in which no state liquor store is located, liquor vendors. Such liquor vendors shall be agents of the liquor control agency and be authorized to sell liquor to such persons, firms, or corporations as provided for the sale of liquor from a state liquor store, and such vendors shall be subject to such additional rules consistent with this title; and

(10) Determine the nature, form, and capacity of all packages to be used for containing liquor kept for sale under this title.

NEW SECTION. Sec. 14. A new section is added to chapter 66.08 RCW to read as follows:

The director shall cause the preparation, update, and execution of an integrated liquor plan that includes, but is not limited to, the following elements:

(1) A program to achieve efficiencies, implement quality service improvements, and ensure operational integration of regulatory, merchandising, and administrative services;

(2) A program of public and consumer information and coordination with other public agencies and private organizations that emphasizes alcohol abuse prevention and responsible consumption; and

(3) A strategy for implementation of the plan.

Sec. 15. RCW 66.08.055 and 1933 ex.s. c 62 s 80 are each amended to read as follows:

Every member of the board, and every employee authorized by the ((~~board~~)) department to issue permits under this title, may administer any oath and take and receive any affidavit or declaration required under this title or the ((~~regulations~~)) rules.

Sec. 16. RCW 66.08.060 and 1933 ex.s. c 62 s 43 are each amended to read as follows:

The ((~~board~~)) department shall not advertise liquor in any form or through any medium whatsoever. The board shall have power to adopt any and all reasonable ((~~regulations~~)) rules as to the kind, character, and location of advertising of liquor.

Sec. 17. RCW 66.08.070 and 1985 c 226 s 2 are each amended to read as follows:

(1) Every order for the purchase of liquor shall be authorized by the ((~~board~~)) director, and no order for liquor shall be valid or binding unless it is so authorized and signed by the ((~~board~~)) director or ((~~its~~)) the director's authorized designee.

(2) A duplicate of every such order shall be kept on file in the office of the ((~~board~~)) director.

(3) All cancellations of such orders made by the ((~~board~~)) director shall be signed in the same manner and duplicates thereof kept on file in the office of the ((~~board~~)) director. Nothing in this title shall be construed as preventing the ((~~board~~)) department from accepting liquor on consignment.

(4) In the purchase of wine or malt beverages the ((~~board~~)) department shall not require, as a term or condition of purchase, any warranty or affirmation with respect to the relationship of the price charged the ((~~board~~)) department to any price charged any other buyer.

Sec. 18. RCW 66.08.075 and 1937 c 217 s 5 are each amended to read as follows:

No official or employee of the ((~~liquor control board of the state of Washington~~)) department shall, during his or her term of office or employment, or for a period of two years immediately following the termination thereof, represent directly or indirectly any manufacturer or wholesaler of liquor in the sale of liquor to the ((~~board~~)) department.

Sec. 19. RCW 66.08.080 and 1994 c 154 s 313 are each amended to read as follows:

Except as provided by chapter 42.52 RCW, no member of the board and no employee of the ((~~board~~)) department shall have any interest, directly or indirectly, in the manufacture of liquor or in any liquor sold under this title, or derive any profit or remuneration from the sale of liquor, other than the salary or wages payable to him or her in respect of his or her office or position, and shall receive no gratuity from any person in connection with such business.

Sec. 20. RCW 66.08.090 and 1933 ex.s. c 62 s 31 are each amended to read as follows:

No employee shall sell liquor in any other place, nor at any other time, nor otherwise than as authorized by the ((~~board~~)) director under this title and the ((~~regulations~~)) rules.

Sec. 21. RCW 66.08.095 and 1993 c 26 s 3 are each amended to read as follows:

The ((~~liquor control board~~)) department may provide liquor at no charge, including liquor forfeited under chapter 66.32 RCW, to recognized law enforcement agencies within the state when the law enforcement agency will be using the liquor for bona fide law enforcement training or investigation purposes.

Sec. 22. RCW 66.08.100 and 1935 c 174 s 9 are each amended to read as follows:

No court of the state of Washington other than the superior court of Thurston county shall have jurisdiction over any action or proceeding against the board or department or any member thereof for anything done or omitted to be done in or arising out of the performance of ((~~his or their~~)) the member's duties under this title. Neither the board, the director, the department, nor any member or members ((~~thereof~~)) of the board or department shall be personally liable in any action at law for damages sustained by any person because of any acts performed or done or omitted to be done by the board, the director, or the department or any employee of the board, the director, or the department in the performance of his or her duties and in the administration of this title.

Sec. 23. RCW 66.08.130 and 1981 1st ex.s. c 5 s 4 are each amended to read as follows:

For the purpose of obtaining information concerning any matter relating to the administration or enforcement of this title, the board, the director, or any person appointed by ((it)) the director in writing for the purpose, may inspect the books and records of:

(1) Any manufacturer;

(2) Any license holder;

(3) Any drug store holding a permit to sell on prescriptions;

(4) The freight and express books and records and all waybills, bills of lading, receipts, and documents in the possession of any common carrier doing business within the state, containing any information or record relating to any goods shipped or carried, or consigned or received for shipment or carriage within the state. Every manufacturer, license holder, drug store holding a permit to sell on prescriptions, and common carrier, and every owner or officer or employee of the foregoing, who neglects or refuses to produce and submit for inspection any book, record, or document referred to in this section when requested to do so by the board, the director, or by a person so appointed by ((it)) the director shall be guilty of a violation of this title.

Sec. 24. RCW 66.08.140 and 1945 c 48 s 1 are each amended to read as follows:

For the purpose of obtaining information concerning any matter relating to the administration or enforcement of this title, the board, the director, or any person appointed by it in writing for the purpose, may inspect the books, documents, and records of any person lending money to or in any manner financing any license, holder, or applicant for license insofar as such books, documents, and/or records pertain to the financial transaction involved. Every person who neglects or refuses to produce and submit for inspection any book, record, or document as required by this section when requested to do so by the board or by a person duly appointed by it shall be guilty of a violation of this title.

Sec. 25. RCW 66.08.150 and 1989 c 175 s 122 are each amended to read as follows:

The action, order, or decision of the ((~~board~~)) director as to any denial of an application for the reissuance of a permit or license or as to any revocation, suspension, or modification of any permit or license shall be an adjudicative proceeding and subject to the applicable provisions of chapter 34.05 RCW. The final decision in any adjudicative proceeding commenced under this section or chapter 34.05 RCW shall be made by the board.

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

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

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

(4) The ((~~board~~)) director may summarily suspend a license or permit for a period of up to thirty days without a prior hearing if it finds that public health, safety, or welfare imperatively require emergency action, and incorporates a finding to that effect in its order; and proceedings for revocation or other action must be promptly instituted and determined.

Sec. 26. RCW 66.08.170 and 1961 ex.s. c 6 s 1 are each amended to read as follows:

There shall be a fund, known as the "liquor revolving fund", which shall consist of all license fees, permit fees, penalties, forfeitures, and all other moneys, income, or revenue received by the ((~~board~~)) department. The state treasurer shall be custodian of the fund. All moneys received by the ((~~board~~)) department or any employee thereof, except for change funds and an amount of petty cash as fixed by the ((~~board~~)) department within the authority of law shall be deposited each day in a depository approved by the state treasurer and transferred to the state treasurer to be credited to the liquor revolving fund. Disbursements from the revolving fund shall be on authorization of the ((~~board~~)) director or a duly authorized representative thereof. In order to maintain an effective expenditure and revenue control the liquor revolving fund shall be subject in all respects to chapter 43.88 RCW but no appropriation shall be required to permit expenditures and payment of obligations from such fund.

Sec. 27. RCW 66.08.180 and 1997 c 451 s 3 and 1997 c 321 s 57 are each reenacted and amended to read as follows:

Except as provided in RCW 66.24.290(1), moneys in the liquor revolving fund shall be distributed by the ((~~board~~)) director at least once every three months in accordance with RCW 66.08.190, 66.08.200 and 66.08.210: PROVIDED, That the ((~~board~~)) director shall reserve from distribution such amount not exceeding five hundred thousand dollars as may be necessary for the proper administration of this title.

(1) All license fees, penalties and forfeitures derived under this act from ((~~class H~~)) spirits, beer, and wine restaurant licenses or ((~~class H~~)) spirits, beer, and wine restaurant licensees shall every three months be disbursed by the ((~~board~~)) director as follows:

(a) Three hundred thousand dollars per biennium, to the University of Washington for the forensic investigations council to conduct the state toxicological laboratory pursuant to RCW 68.50.107; and

(b) Of the remaining funds:

(i) 6.06 percent to the University of Washington and 4.04 percent to Washington State University for alcoholism and drug abuse research and for the dissemination of such research; and

(ii) 89.9 percent to the general fund to be used by the department of social and health services solely to carry out the purposes of RCW 70.96A.050;

(2) The first fifty-five dollars per license fee provided in RCW 66.24.320 and 66.24.330 up to a maximum of one hundred fifty thousand dollars annually shall be disbursed every three months by the ((~~board~~)) director to the general fund to be used for juvenile alcohol and drug prevention programs for kindergarten through third grade to be administered by the superintendent of public instruction;

(3) Twenty percent of the remaining total amount derived from license fees pursuant to RCW 66.24.320, 66.24.330, 66.24.350, and 66.24.360, shall be transferred to the general fund to be used by the department of social and health services solely to carry out the purposes of RCW 70.96A.050; and

(4) One-fourth cent per liter of the tax imposed by RCW 66.24.210 shall every three months be disbursed by the ((~~board~~)) director to Washington State University solely for wine and wine grape research, extension programs related to wine and wine grape research, and resident instruction in both wine grape production and the processing aspects of the wine industry in accordance with RCW 28B.30.068. The director of financial management shall prescribe suitable accounting procedures to ensure that the funds transferred to the general fund to be used by the department of social and health services and appropriated are separately accounted for.

Sec. 28. RCW 66.08.220 and 1949 c 5 s 11 are each amended to read as follows:

The ((~~board~~)) director shall set aside in a separate account in the liquor revolving fund an amount equal to ten percent of its gross sales of liquor to ((~~class H~~)) spirits, beer, and wine restaurant licensees; and the moneys in said separate account shall be distributed in accordance with the provisions of RCW 66.08.190, 66.08.200 and 66.08.210: PROVIDED, HOWEVER, That no election unit in which the sale of liquor under ((~~class H~~)) spirits, beer, and wine restaurant licenses is unlawful shall be entitled to share in the distribution of moneys from such separate account.

Sec. 29. RCW 66.08.235 and 1997 c 75 s 1 are each amended to read as follows:

The liquor control ((~~board~~)) construction and maintenance account is created within the state treasury. The ((~~liquor control board~~)) director shall deposit into this account a portion of the ((~~board's~~)) department's markup, as authorized by chapter 66.16 RCW, placed upon liquor as determined by the board. Moneys in the account may be spent only after appropriation. The ((~~liquor control board~~)) department shall use deposits to this account to fund construction and maintenance of a centralized distribution center for liquor products intended for sale through the ((~~board's~~)) department's liquor store and vendor system.

Sec. 30. RCW 10.93.020 and 1994 c 264 s 3 are each amended to read as follows:

As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.

(1) "General authority Washington law enforcement agency" means any agency, department, or division of a municipal corporation, political subdivision, or other unit of local government of this state, and any agency, department, or division of state government, having as its primary function the detection and apprehension of persons committing infractions or violating the traffic or criminal laws in general, as distinguished from a limited authority Washington law enforcement agency, and any other unit of government expressly designated by statute as a general authority Washington law enforcement agency. The Washington state patrol is a general authority Washington law enforcement agency.

(2) "Limited authority Washington law enforcement agency" means any agency, political subdivision, or unit of local government of this state, and any agency, department, or division of state government, having as one of its functions the apprehension or detection of persons committing infractions or violating the traffic or criminal laws relating to limited subject areas, including but not limited to, the state departments of natural resources, fish and wildlife, and social and health services, the state gambling commission, the state lottery commission, the state parks and recreation commission, the state utilities and transportation commission, the ((~~state~~)) department of liquor control ((~~board~~)), and the state department of corrections.

(3) "General authority Washington peace officer" means any full-time, fully compensated and elected, appointed, or employed officer of a general authority Washington law enforcement agency who is commissioned to enforce the criminal laws of the state of Washington generally.

(4) "Limited authority Washington peace officer" means any full-time, fully compensated officer of a limited authority Washington law enforcement agency empowered by that agency to detect or apprehend violators of the laws in some or all of the limited subject areas for which that agency is responsible. A limited authority Washington peace officer may be a specially commissioned Washington peace officer if otherwise qualified for such status under this chapter.

(5) "Specially commissioned Washington peace officer", for the purposes of this chapter, means any officer, whether part-time or full-time, compensated or not, commissioned by a general authority Washington law enforcement agency to enforce some or all of the criminal laws of the state of Washington, who does not qualify under this chapter as a general authority Washington peace officer for that commissioning agency, specifically including reserve peace officers, and specially commissioned full-time, fully compensated peace officers duly commissioned by the states of Oregon or Idaho or any such peace officer commissioned by a unit of local government of Oregon or Idaho. A reserve peace officer is an individual who is an officer of a Washington law enforcement agency who does not serve such agency on a full-time basis but who, when called by the agency into active service, is fully commissioned on the same basis as full-time peace officers to enforce the criminal laws of the state.

(6) "Federal peace officer" means any employee or agent of the United States government who has the authority to carry firearms and make warrantless arrests and whose duties involve the enforcement of criminal laws of the United States.

(7) "Agency with primary territorial jurisdiction" means a city or town police agency which has responsibility for police activity within its boundaries; or a county police or sheriff's department which has responsibility with regard to police activity in the unincorporated areas within the county boundaries; or a statutorily authorized port district police agency or four-year state college or university police agency which has responsibility for police activity within the statutorily authorized enforcement boundaries of the port district, state college, or university.

(8) "Primary commissioning agency" means (a) the employing agency in the case of a general authority Washington peace officer, a limited authority Washington peace officer, an Indian tribal peace officer, or a federal peace officer, and (b) the commissioning agency in the case of a specially commissioned Washington peace officer (i) who is performing functions within the course and scope of the special commission and (ii) who is not also a general authority Washington peace officer, a limited authority Washington peace officer, an Indian tribal peace officer, or a federal peace officer.

(9) "Primary function of an agency" means that function to which greater than fifty percent of the agency's resources are allocated.

(10) "Mutual law enforcement assistance" includes, but is not limited to, one or more law enforcement agencies aiding or assisting one or more other such agencies through loans or exchanges of personnel or of material resources, for law enforcement purposes.

Sec. 31. RCW 19.02.050 and 1997 c 391 s 11 are each amended to read as follows:

The legislature hereby directs the full participation by the following agencies in the implementation of this chapter:

(1) Department of agriculture;

(2) Secretary of state;

(3) Department of social and health services;

(4) Department of revenue;

(5) Department of fish and wildlife;

(6) Department of employment security;

(7) Department of labor and industries;

(8) Department of community, trade, and economic development;

(9) Department of liquor control ((~~board~~));

(10) Department of health;

(11) Department of licensing;

(12) Parks and recreation commission;

(13) Utilities and transportation commission; and

(14) Other agencies as determined by the governor.

Sec. 32. RCW 42.17.2401 and 1996 c 186 s 504 are each amended to read as follows:

For the purposes of RCW 42.17.240, the term "executive state officer" includes:

(1) The chief administrative law judge, the director of agriculture, the administrator of the office of marine safety, the administrator of the Washington basic health plan, the director of the department of services for the blind, the director of the state system of community and technical colleges, the director of community, trade, and economic development, the secretary of corrections, the director of ecology, the commissioner of employment security, the chairman of the energy facility site evaluation council, the secretary of the state finance committee, the director of financial management, the director of fish and wildlife, the executive secretary of the forest practices appeals board, the director of the gambling commission, the director of general administration, the secretary of health, the administrator of the Washington state health care authority, the executive secretary of the health care facilities authority, the executive secretary of the higher education facilities authority, the executive secretary of the horse racing commission, the executive secretary of the human rights commission, the executive secretary of the indeterminate sentence review board, the director of the department of information services, the director of the interagency committee for outdoor recreation, the executive director of the state investment board, the director of labor and industries, the director of licensing, the director of the department of liquor control, the director of the lottery commission, the director of the office of minority and women's business enterprises, the director of parks and recreation, the director of personnel, the executive director of the public disclosure commission, the director of retirement systems, the director of revenue, the secretary of social and health services, the chief of the Washington state patrol, the executive secretary of the board of tax appeals, the secretary of transportation, the secretary of the utilities and transportation commission, the director of veterans affairs, the president of each of the regional and state universities and the president of The Evergreen State College, each district and each campus president of each state community college;

(2) Each professional staff member of the office of the governor;

(3) Each professional staff member of the legislature; and

(4) Central Washington University board of trustees, board of trustees of each community college, each member of the state board for community and technical colleges, state convention and trade center board of directors, committee for deferred compensation, Eastern Washington University board of trustees, Washington economic development finance authority, The Evergreen State College board of trustees, executive ethics board, forest practices appeals board, forest practices board, gambling commission, Washington health care facilities authority, each member of the Washington health services commission, higher education coordinating board, higher education facilities authority, horse racing commission, state housing finance commission, human rights commission, indeterminate sentence review board, board of industrial insurance appeals, information services board, interagency committee for outdoor recreation, state investment board, commission on judicial conduct, legislative ethics board, liquor control board, lottery commission, marine oversight board, Pacific Northwest electric power and conservation planning council, parks and recreation commission, personnel appeals board, board of pilotage commissioners, pollution control hearings board, public disclosure commission, public pension commission, shorelines hearing board, public employees' benefits board, board of tax appeals, transportation commission, University of Washington board of regents, utilities and transportation commission, Washington state maritime commission, Washington personnel resources board, Washington public power supply system executive board, Washington State University board of regents, Western Washington University board of trustees, and fish and wildlife commission.

Sec. 33. RCW 43.17.010 and 1993 sp.s. c 2 s 16, 1993 c 472 s 17, and 1993 c 280 s 18 are each reenacted and amended to read as follows:

There shall be departments of the state government which shall be known as (1) the department of social and health services, (2) the department of ecology, (3) the department of labor and industries, (4) the department of agriculture, (5) the department of fish and wildlife, (6) the department of transportation, (7) the department of licensing, (8) the department of general administration, (9) the department of community, trade, and economic development, (10) the department of veterans affairs, (11) the department of revenue, (12) the department of retirement systems, (13) the department of corrections, ((~~and~~)) (14) the department of health, ((~~and~~)) (15) the department of financial institutions, and (16) the department of liquor control, which shall be charged with the execution, enforcement, and administration of such laws, and invested with such powers and required to perform such duties, as the legislature may provide.

Sec. 34. RCW 43.17.020 and 1995 1st sp.s. c 2 s 2 are each amended to read as follows:

There shall be a chief executive officer of each department to be known as: (1) The secretary of social and health services, (2) the director of ecology, (3) the director of labor and industries, (4) the director of agriculture, (5) the director of fish and wildlife, (6) the secretary of transportation, (7) the director of licensing, (8) the director of general administration, (9) the director of community, trade, and economic development, (10) the director of veterans affairs, (11) the director of revenue, (12) the director of retirement systems, (13) the secretary of corrections, ((~~and~~)) (14) the secretary of health, ((~~and~~)) (15) the director of financial institutions, and (16) the director of liquor control.

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

Sec. 35. RCW 43.82.010 and 1997 c 117 s 1 are each amended to read as follows:

(1) The director of general administration, on behalf of the agency involved, shall purchase, lease, lease purchase, rent, or otherwise acquire all real estate, improved or unimproved, as may be required by elected state officials, institutions, departments, commissions, boards, and other state agencies, or federal agencies where joint state and federal activities are undertaken and may grant easements and transfer, exchange, sell, lease, or sublease all or part of any surplus real estate for those state agencies which do not otherwise have the specific authority to dispose of real estate. This section does not transfer financial liability for the acquired property to the department of general administration.

(2) Except for real estate occupied by federal agencies, the director shall determine the location, size, and design of any real estate or improvements thereon acquired or held pursuant to subsection (1) of this section. Facilities acquired or held pursuant to this chapter, and any improvements thereon, shall conform to standards adopted by the director and approved by the office of financial management governing facility efficiency unless a specific exemption from such standards is provided by the director of general administration. The director of general administration shall report to the office of financial management annually on any exemptions granted pursuant to this subsection.

(3) The director of general administration may fix the terms and conditions of each lease entered into under this chapter, except that no lease shall extend greater than twenty years in duration. The director of general administration may enter into a long-term lease greater than ten years in duration upon a determination by the director of the office of financial management that the long-term lease provides a more favorable rate than would otherwise be available, it appears to a substantial certainty that the facility is necessary for use by the state for the full length of the lease term, and the facility meets the standards adopted pursuant to subsection (2) of this section. The director of general administration may enter into a long-term lease greater than ten years in duration if an analysis shows that the life-cycle cost of leasing the facility is less than the life-cycle cost of purchasing or constructing a facility in lieu of leasing the facility.

(4) Except as permitted under chapter 39.94 RCW, no lease for or on behalf of any state agency may be used or referred to as collateral or security for the payment of securities offered for sale through a public offering. Except as permitted under chapter 39.94 RCW, no lease for or on behalf of any state agency may be used or referred to as collateral or security for the payment of securities offered for sale through a private placement without the prior written approval of the state treasurer. However, this limitation shall not prevent a lessor from assigning or encumbering its interest in a lease as security for the repayment of a promissory note provided that the transaction would otherwise be an exempt transaction under RCW 21.20.320. The state treasurer shall adopt rules that establish the criteria under which any such approval may be granted. In establishing such criteria the state treasurer shall give primary consideration to the protection of the state's credit rating and the integrity of the state's debt management program. If it appears to the state treasurer that any lease has been used or referred to in violation of this subsection or rules adopted under this subsection, then he or she may recommend that the governor cause such lease to be terminated. The department of general administration shall promptly notify the state treasurer whenever it may appear to the department that any lease has been used or referred to in violation of this subsection or rules adopted under this subsection.

(5) It is the policy of the state to encourage the colocation and consolidation of state services into single or adjacent facilities, whenever appropriate, to improve public service delivery, minimize duplication of facilities, increase efficiency of operations, and promote sound growth management planning.

(6) The director of general administration shall provide coordinated long-range planning services to identify and evaluate opportunities for colocating and consolidating state facilities. Upon the renewal of any lease, the inception of a new lease, or the purchase of a facility, the director of general administration shall determine whether an opportunity exists for colocating the agency or agencies in a single facility with other agencies located in the same geographic area. If a colocation opportunity exists, the director of general administration shall consult with the affected state agencies and the office of financial management to evaluate the impact colocation would have on the cost and delivery of agency programs, including whether program delivery would be enhanced due to the centralization of services. The director of general administration, in consultation with the office of financial management, shall develop procedures for implementing colocation and consolidation of state facilities.

(7) The director of general administration is authorized to purchase, lease, rent, or otherwise acquire improved or unimproved real estate as owner or lessee and to lease or sublet all or a part of such real estate to state or federal agencies. The director of general administration shall charge each using agency its proportionate rental which shall include an amount sufficient to pay all costs, including, but not limited to, those for utilities, janitorial and accounting services, and sufficient to provide for contingencies; which shall not exceed five percent of the average annual rental, to meet unforeseen expenses incident to management of the real estate.

(8) If the director of general administration determines that it is necessary or advisable to undertake any work, construction, alteration, repair, or improvement on any real estate acquired pursuant to subsection (1) or (7) of this section, the director shall cause plans and specifications thereof and an estimate of the cost of such work to be made and filed in his or her office and the state agency benefiting thereby is hereby authorized to pay for such work out of any available funds: PROVIDED, That the cost of executing such work shall not exceed the sum of twenty-five thousand dollars. Work, construction, alteration, repair, or improvement in excess of twenty-five thousand dollars, other than that done by the owner of the property if other than the state, shall be performed in accordance with the public works law of this state.

(9) In order to obtain maximum utilization of space, the director of general administration shall make space utilization studies, and shall establish standards for use of space by state agencies. Such studies shall include the identification of opportunities for colocation and consolidation of state agency office and support facilities.

(10) The director of general administration may construct new buildings on, or improve existing facilities, and furnish and equip, all real estate under his or her management. Prior to the construction of new buildings or major improvements to existing facilities or acquisition of facilities using a lease purchase contract, the director of general administration shall conduct an evaluation of the facility design and budget using life-cycle cost analysis, value-engineering, and other techniques to maximize the long-term effectiveness and efficiency of the facility or improvement.

(11) All conveyances and contracts to purchase, lease, rent, transfer, exchange, or sell real estate and to grant and accept easements shall be approved as to form by the attorney general, signed by the director of general administration or the director's designee, and recorded with the county auditor of the county in which the property is located.

(12) The director of general administration may delegate any or all of the functions specified in this section to any agency upon such terms and conditions as the director deems advisable.

(13) This section does not apply to the acquisition of real estate by:

(a) The state college and universities for research or experimental purposes;

(b) The ((~~state~~)) department of liquor control ((~~board~~)) for liquor stores and warehouses; and

(c) The department of natural resources, the department of fish and wildlife, the department of transportation, and the state parks and recreation commission for purposes other than the leasing of offices, warehouses, and real estate for similar purposes.

(14) Notwithstanding any provision in this chapter to the contrary, the department of general administration may negotiate ground leases for public lands on which property is to be acquired under a financing contract pursuant to chapter 39.94 RCW under terms approved by the state finance committee.

NEW SECTION. Sec. 36. The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective July 1, 2001:

(1) RCW 66.08.016 (Employees of the board) and 1999 c . . . s 6 (section 6 of this act), 1961 c 1 s 30, 1947 c 113 s 2, & 1933 ex.s. c 62 s 65; and

(2) RCW 66.08.050 (Powers of board in general) and 1997 c 228 s 1, 1993 c 25 s 1, 1986 c 214 s 2, 1983 c 160 s 1, 1975 1st ex.s. c 173 s 1, 1969 ex.s. c 178 s 1, 1963 c 239 s 3, 1935 c 174 s 10, & 1933 ex.s. c 62 s 69.

NEW SECTION. Sec. 37. Nothing in this act requires the liquor control agency to discard stationery or signs, rename its facilities or stores, or incur similar expenses attributable to the renaming of the agency.

NEW SECTION. Sec. 38. The code reviser shall prepare and present to the 2000 legislature a bill that corrects references to the liquor control board that are rendered inaccurate by this act.

NEW SECTION. Sec. 39. Sections 1 through 5 and 8 through 37 of this act take effect July 1, 2001.

NEW SECTION. Sec. 40. 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.