2735-S AMH .... H4292.1

2735-S AMH .... H4292.1 Scoped 2-12-02

SHB 2735 - H AMD

By Representative

On page 3, line 4, after "Sec. 4." strike everything through "immediately." on line 7 and insert "Sections 1 and 2 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately."

On page 3, line 8, after "Sec. 5." strike "This act expires" and insert "Sections 1 and 2 of this act expire"

On page 3, after line 8, insert the following:

"NEW SECTION. Sec. 6. The legislature finds that many small businesses in the state are frustrated by the complexity of the regulatory system. The Washington Administrative Code containing agency rules now fills twelve volumes, and appears to be growing each year. While the vast majority of small businesses make a good faith attempt to comply with applicable laws and rules, many find it extremely difficult to keep up with agencies' issuance of new rules and requirements. Therefore, state agencies are directed to make a good faith attempt to notify businesses affected by rule changes that may subject noncomplying businesses to penalties. Further, the legislature finds that requiring the governor's signatures on new agency rules will promote accountability and reduce future regulatory burdens on small businesses. Finally, the legislature finds that small businesses lack the resources that state agencies routinely use in defending administrative rules that may have been adopted unlawfully, without regard to proper administrative procedures, or which exceed an agency's statutory authority. The legislature therefore finds that it is necessary to place the burden of demonstrating that new administrative rules are adopted in a lawful manner upon the adopting agency.

NEW SECTION. Sec. 7. A new section is added to chapter 34.05 RCW to read as follows:

Within two hundred days of the effective date of a rule that imposes additional requirements on businesses the violation of which subjects the business to a penalty, assessment, or administrative sanction, an agency shall make a good faith effort to notify businesses affected by the rule of the requirements of the rule and how to obtain technical assistance to comply. For purposes of this section, "good faith" means: (1) The agency at least notifies businesses in the standard industrial classifications or their successor identified in the rule-making file as businesses affected by the rule that are registered with the department of revenue; or (2) for rules imposing additional requirements only on persons or firms licensed, registered, or operating under a permit, the agency notifies those persons or firms holding the license, registration, or permit. The notification must announce the rule change, briefly summarize the rule change, and include a contact for more information. Notification may be by individual notice, agency bulletins or newsletters, or any other means that will reasonably inform affected businesses. Failure to notify a specific business under this section does not invalidate a rule or waive the requirement to comply with the rule.

Sec. 8. RCW 34.05.360 and 1988 c 288 s 311 are each amended to read as follows:

The order of adoption by which each rule is adopted by an agency shall contain all of the following:

(1) The signature of the governor;

(2) The date the agency adopted the rule;

((~~(2)~~)) (3) A concise statement of the purpose of the rule;

((~~(3)~~)) (4) A reference to all rules repealed, amended, or suspended by the rule;

((~~(4)~~)) (5) A reference to the specific statutory or other authority authorizing adoption of the rule;

((~~(5)~~)) (6) Any findings required by any provision of law as a precondition to adoption or effectiveness of the rule; and

((~~(6)~~)) (7) The effective date of the rule if other than that specified in RCW 34.05.380(2).

Sec. 9. RCW 34.05.570 and 1995 c 403 s 802 are each amended to read as follows:

(1) Generally. Except to the extent that this chapter or another statute provides otherwise:

(a) Except as provided in subsection (2) of this section and except that an agency bears the burden of demonstrating that the agency action was authorized by law, the burden of demonstrating the invalidity of agency action is on the party asserting invalidity;

(b) The validity of agency action shall be determined in accordance with the standards of review provided in this section, as applied to the agency action at the time it was taken;

(c) The court shall make a separate and distinct ruling on each material issue on which the court's decision is based; and

(d) The court shall grant relief only if it determines that a person seeking judicial relief has been substantially prejudiced by the action complained of.

(2) Review of rules. (a) A rule may be reviewed by petition for declaratory judgment filed pursuant to this subsection or in the context of any other review proceeding under this section. In an action challenging the validity of a rule, the agency shall be made a party to the proceeding.

(b) The validity of any rule may be determined upon petition for a declaratory judgment addressed to the superior court (i) of Thurston county, (ii) of the county of the petitioner's residence or principal place of business, or (iii) in a county where property owned by the petitioner and affected by the contested rule is located, when it appears that the rule, or its threatened application, interferes with or impairs or immediately threatens to interfere with or impair the legal rights or privileges of the petitioner. The declaratory judgment order may be entered whether or not the petitioner has first requested the agency to pass upon the validity of the rule in question. When the validity of a rule is challenged, after the petitioner has identified the defects in the rule, the burden of going forward with the evidence is on the agency.

(c) In a proceeding involving review of a rule, the court shall declare the rule invalid only if it finds that: The rule violates constitutional provisions; the rule exceeds the statutory authority of the agency; the rule was adopted without compliance with statutory rule-making procedures; or the rule is arbitrary and capricious.

(3) Review of agency orders in adjudicative proceedings. The court shall grant relief from an agency order in an adjudicative proceeding only if it determines that:

(a) The order, or the statute or rule on which the order is based, is in violation of constitutional provisions on its face or as applied;

(b) The order is outside the statutory authority or jurisdiction of the agency conferred by any provision of law;

(c) The agency has engaged in unlawful procedure or decision-making process, or has failed to follow a prescribed procedure;

(d) The agency has erroneously interpreted or applied the law;

(e) The order is not supported by evidence that is substantial when viewed in light of the whole record before the court, which includes the agency record for judicial review, supplemented by any additional evidence received by the court under this chapter;

(f) The agency has not decided all issues requiring resolution by the agency;

(g) A motion for disqualification under RCW 34.05.425 or 34.12.050 was made and was improperly denied or, if no motion was made, facts are shown to support the grant of such a motion that were not known and were not reasonably discoverable by the challenging party at the appropriate time for making such a motion;

(h) The order is inconsistent with a rule of the agency unless the agency explains the inconsistency by stating facts and reasons to demonstrate a rational basis for inconsistency; ((or))

(i) The order is arbitrary or capricious; or

(j) The order is based on a de facto rule.

(4) Review of other agency action.

(a) All agency action not reviewable under subsection (2) or (3) of this section shall be reviewed under this subsection.

(b) A person whose rights are violated by an agency's failure to perform a duty that is required by law to be performed may file a petition for review pursuant to RCW 34.05.514, seeking an order pursuant to this subsection requiring performance. Within twenty days after service of the petition for review, the agency shall file and serve an answer to the petition, made in the same manner as an answer to a complaint in a civil action. The court may hear evidence, pursuant to RCW 34.05.562, on material issues of fact raised by the petition and answer.

(c) Relief for persons aggrieved by the performance of an agency action, including the exercise of discretion, or an action under (b) of this subsection can be granted only if the court determines that the action is:

(i) Unconstitutional;

(ii) Outside the statutory authority of the agency or the authority conferred by a provision of law;

(iii) Arbitrary or capricious; ((or))

(iv) Taken by persons who were not properly constituted as agency officials lawfully entitled to take such action; or

(v) Based on a de facto rule.

Sec. 10. RCW 28A.300.040 and 1999 c 348 s 6 are each amended to read as follows:

In addition to any other powers and duties as provided by law, the powers and duties of the superintendent of public instruction shall be:

(1) To have supervision over all matters pertaining to the public schools of the state;

(2) To report to the governor and the legislature such information and data as may be required for the management and improvement of the schools;

(3) To prepare and have printed such forms, registers, courses of study, rules for the government of the common schools, and such other material and books as may be necessary for the discharge of the duties of teachers and officials charged with the administration of the laws relating to the common schools, and to distribute the same to educational service district superintendents;

(4) To travel, without neglecting his or her other official duties as superintendent of public instruction, for the purpose of attending educational meetings or conventions, of visiting schools, of consulting educational service district superintendents or other school officials;

(5) To prepare and from time to time to revise a manual of the Washington state common school code, copies of which shall be provided in such numbers as determined by the superintendent of public instruction at no cost to those public agencies within the common school system and which shall be sold at approximate actual cost of publication and distribution per volume to all other public and nonpublic agencies or individuals, said manual to contain Titles 28A and 28C RCW, rules related to the common schools, and such other matter as the state superintendent or the state board of education shall determine. Proceeds of the sale of such code shall be transmitted to the public printer who shall credit the state superintendent's account within the state printing plant revolving fund by a like amount;

(6) To act as ex officio member and the chief executive officer of the state board of education;

(7) To file all papers, reports and public documents transmitted to the superintendent by the school officials of the several counties or districts of the state, each year separately. Copies of all papers filed in the superintendent's office, and the superintendent's official acts, may, or upon request, shall be certified by the superintendent and attested by the superintendent's official seal, and when so certified shall be evidence of the papers or acts so certified to;

(8) To require annually, on or before the 15th day of August, of the president, manager, or principal of every educational institution in this state, a report as required by the superintendent of public instruction; and it is the duty of every president, manager, or principal, to complete and return such forms within such time as the superintendent of public instruction shall direct;

(9) To keep in the superintendent's office a record of all teachers receiving certificates to teach in the common schools of this state;

(10) To issue certificates as provided by law;

(11) To keep in the superintendent's office at the capital of the state, all books and papers pertaining to the business of the superintendent's office, and to keep and preserve in the superintendent's office a complete record of statistics, as well as a record of the meetings of the state board of education;

(12) With the assistance of the office of the attorney general, to decide all points of law which may be submitted to the superintendent in writing by any educational service district superintendent, or that may be submitted to the superintendent by any other person, upon appeal from the decision of any educational service district superintendent; and the superintendent shall publish his or her rulings and decisions from time to time for the information of school officials and teachers; and the superintendent's decision shall be final unless set aside by a court of competent jurisdiction;

(13) To administer oaths and affirmations in the discharge of the superintendent's official duties;

(14) To deliver to his or her successor, at the expiration of the superintendent's term of office, all records, books, maps, documents and papers of whatever kind belonging to the superintendent's office or which may have been received by the superintendent's for the use of the superintendent's office;

(15) To administer family services and programs to promote the state's policy as provided in RCW 74.14A.025;

(16) To perform such other duties as may be required by law.

For rules adopted under the provisions of this chapter after July 1, 2002, the superintendent of public instruction may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the office of the superintendent of public instruction.

Sec. 11. RCW 41.50.050 and 1995 c 239 s 317 are each amended to read as follows:

The director shall:

(1) Have the authority to organize the department into not more than four divisions, each headed by an assistant director;

(2) Have free access to all files and records of various funds assigned to the department and inspect and audit the files and records as deemed necessary;

(3) Employ personnel to carry out the general administration of the department;

(4) Submit an annual written report of the activities of the department to the governor and the chairs of the appropriate legislative committees with one copy to the staff of each of the committees, including recommendations for statutory changes the director believes to be desirable;

(5) Adopt ((~~such~~)) rules ((~~and regulations~~)) as are necessary to carry out the powers, duties, and functions of the department pursuant to the provisions of chapter 34.05 RCW. For rules adopted under the provisions of this chapter after July 1, 2002, the director may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the department.

Sec. 12. RCW 43.06A.030 and 1996 c 131 s 4 are each amended to read as follows:

The ombudsman shall perform the following duties:

(1) Provide information as appropriate on the rights and responsibilities of individuals receiving family and children's services, and on the procedures for providing these services;

(2) Investigate, upon his or her own initiative or upon receipt of a complaint, an administrative act alleged to be contrary to law, rule, or policy, imposed without an adequate statement of reason, or based on irrelevant, immaterial, or erroneous grounds; however, the ombudsman may decline to investigate any complaint as provided by rules adopted under this chapter;

(3) Monitor the procedures as established, implemented, and practiced by the department to carry out its responsibilities in delivering family and children's services with a view toward appropriate preservation of families and ensuring children's health and safety;

(4) Review periodically the facilities and procedures of state institutions serving children, and state-licensed facilities or residences;

(5) Recommend changes in the procedures for addressing the needs of families and children;

(6) Submit annually to the committee and to the governor by November 1st a report analyzing the work of the office including recommendations;

(7) Grant the committee access to all relevant records in the possession of the ombudsman unless prohibited by law; and

(8) Adopt rules necessary to implement this chapter. For rules adopted under the provisions of this chapter after July 1, 2002, the ombudsman may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the department or the ombudsman's office.

NEW SECTION. Sec. 13. A new section is added to chapter 43.17 RCW to read as follows:

For rules adopted under the provisions of this chapter after July 1, 2002, the director of each department may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing each department.

Sec. 14. RCW 43.19.011 and 1999 c 229 s 2 are each amended to read as follows:

(1) The director of general administration shall supervise and administer the activities of the department of general administration and shall advise the governor and the legislature with respect to matters under the jurisdiction of the department.

(2) In addition to other powers and duties granted to the director, the director shall have the following powers and duties:

(a) Enter into contracts on behalf of the state to carry out the purposes of this chapter;

(b) Accept and expend gifts and grants that are related to the purposes of this chapter, whether such grants be of federal or other funds;

(c) Appoint a deputy director and such assistant directors and special assistants as may be needed to administer the department. These employees are exempt from the provisions of chapter 41.06 RCW;

(d) Adopt rules in accordance with chapter 34.05 RCW and perform all other functions necessary and proper to carry out the purposes of this chapter. For rules adopted under the provisions of this chapter after July 1, 2002, the director may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the department of general administration;

(e) Delegate powers, duties, and functions as the director deems necessary for efficient administration, but the director shall be responsible for the official acts of the officers and employees of the department; and

(f) Perform other duties as are necessary and consistent with law.

(3) The director may establish additional advisory groups as may be necessary to carry out the purposes of this chapter.

(4) The internal affairs of the department shall be under the control of the director in order that the director may manage the department in a flexible and intelligent manner as dictated by changing contemporary circumstances. Unless specifically limited by law, the director shall have complete charge and supervisory powers over the department. The director may create such administrative structures as the director deems appropriate, except as otherwise specified by law, and the director may employ such personnel as may be necessary in accordance with chapter 41.06 RCW, except as otherwise provided by law.

Sec. 15. RCW 43.21A.064 and 1997 c 443 s 2 are each amended to read as follows:

Subject to RCW 43.21A.068, the director of the department of ecology shall have the following powers and duties:

(1) The supervision of public waters within the state and their appropriation, diversion, and use, and of the various officers connected therewith;

(2) Insofar as may be necessary to ((~~assure~~)) ensure safety to life or property, the director shall inspect the construction of all dams, canals, ditches, irrigation systems, hydraulic power plants, and all other works, systems, and plants pertaining to the use of water, and may require such necessary changes in the construction or maintenance of said works, to be made from time to time, as will reasonably secure safety to life and property;

(3) The director shall regulate and control the diversion of water in accordance with the rights thereto;

(4) The director shall determine the discharge of streams and springs and other sources of water supply, and the capacities of lakes and of reservoirs whose waters are being or may be utilized for beneficial purposes;

(5) The director shall, if requested, provide assistance to an applicant for a water right in obtaining or developing an adequate and appropriate supply of water consistent with the land use permitted for the area in which the water is to be used and the population forecast for the area under RCW 43.62.035. If the applicant is a public water supply system, the supply being sought must be used in a manner consistent with applicable land use, watershed and water system plans, and the population forecast for that area provided under RCW 43.62.035;

(6) The director shall keep such records as may be necessary for the recording of the financial transactions and statistical data thereof, and shall procure all necessary documents, forms, and blanks. The director shall keep a seal of the office, and all certificates covering any of the director's acts or the acts of the director's office, or the records and files of that office, under such seal, shall be taken as evidence thereof in all courts;

(7) The director shall render when required by the governor, a full written report of the office's work with such recommendations for legislation as the director deems advisable for the better control and development of the water resources of the state;

(8) The director and duly authorized deputies may administer oaths;

(9) The director shall establish and ((~~promulgate~~)) adopt rules governing the administration of chapter 90.03 RCW. For rules adopted under the provisions of this chapter after July 1, 2002, the director may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the department;

(10) The director shall perform such other duties as may be prescribed by law.

Sec. 16. RCW 43.24.016 and 1999 c 240 s 4 are each amended to read as follows:

(1) The director of licensing shall supervise and administer the activities of the department of licensing and shall advise the governor and the legislature with respect to matters under the jurisdiction of the department.

(2) In addition to other powers and duties granted to the director, the director has the following powers and duties:

(a) Enter into contracts on behalf of the state to carry out the responsibilities of the department;

(b) Accept and expend gifts and grants, whether such grants be of federal or other funds;

(c) Appoint a deputy director and such assistant directors, special assistants, and administrators as may be needed to administer the department. These employees are exempt from the provisions of chapter 41.06 RCW;

(d) Adopt rules in accordance with chapter 34.05 RCW and perform all other functions necessary to carry out the responsibilities of the department. For rules adopted under the provisions of this chapter after July 1, 2002, the director may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the department;

(e) Delegate powers, duties, and functions as the director deems necessary for efficient administration, but the director is responsible for the official acts of the officers and employees of the department; and

(f) Perform other duties as are necessary and consistent with law.

(3) The director may establish advisory groups as may be necessary to carry out the responsibilities of the department.

Sec. 17. RCW 43.27A.090 and 1988 c 127 s 25 are each amended to read as follows:

The department shall be empowered as follows:

(1) To represent the state at, and fully participate in, the activities of any basin or regional commission, interagency committee, or any other joint interstate or federal-state agency, committee or commission, or publicly financed entity engaged in the planning, development, administration, management, conservation or preservation of the water resources of the state.

(2) To prepare the views and recommendations of the state of Washington on any project, plan or program relating to the planning, development, administration, management, conservation and preservation of any waters located in or affecting the state of Washington, including any federal permit or license proposal, and appear on behalf of, and present views and recommendations of the state at any proceeding, negotiation or hearing conducted by the federal government, interstate agency, state or other agency.

(3) To cooperate with, assist, advise and coordinate plans with the federal government and its officers and agencies, and serve as a state liaison agency with the federal government in matters relating to the use, conservation, preservation, quality, disposal or control of water and activities related thereto.

(4) To cooperate with appropriate agencies of the federal government and/or agencies of other states, to enter into contracts, and to make appropriate contributions to federal or interstate projects and programs and governmental bodies to carry out the provisions of this chapter.

(5) To apply for, accept, administer and expend grants, gifts and loans from the federal government or any other entity to carry out the purposes of this chapter and make contracts and do such other acts as are necessary insofar as they are not inconsistent with other provisions hereof.

(6) To develop and maintain a coordinated and comprehensive state water and water resources related development plan, and adopt, with regard to such plan, such policies as are necessary to ((~~insure~~)) ensure that the waters of the state are used, conserved and preserved for the best interest of the state. There shall be included in the state plan a description of developmental objectives and a statement of the recommended means of accomplishing these objectives. To the extent the director deems desirable, the plan shall integrate into the state plan, the plans, programs, reports, research and studies of other state agencies.

(7) To assemble and correlate information relating to water supply, power development, irrigation, watersheds, water use, future possibilities of water use and prospective demands for all purposes served through or affected by water resources development.

(8) To assemble and correlate state, local and federal laws, regulations, plans, programs and policies affecting the beneficial use, disposal, pollution, control or conservation of water, river basin development, flood prevention, parks, reservations, forests, wildlife refuges, drainage and sanitary systems, waste disposal, water works, watershed protection and development, soil conservation, power facilities and area and municipal water supply needs, and recommend suitable legislation or other action to the legislature, the congress of the United States, or any city, municipality, or to responsible state, local or federal executive departments or agencies.

(9) To cooperate with federal, state, regional, interstate and local public and private agencies in the making of plans for drainage, flood control, use, conservation, allocation and distribution of existing water supplies and the development of new water resource projects.

(10) To encourage, assist and advise regional, and city and municipal agencies, officials or bodies responsible for planning in relation to water aspects of their programs, and coordinate local water resources activities, programs, and plans.

(11) To ((~~promulgate such~~)) adopt rules ((~~and regulations~~)) as are necessary to carry out the purposes of this chapter. For rules adopted under the provisions of this chapter after July 1, 2002, the department may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the department.

(12) To hold public hearings, and make such investigations, studies and surveys as are necessary to carry out the purposes of the chapter.

(13) To subpoena witnesses, compel their attendance, administer oaths, take the testimony of any person under oath and require the production of any books or papers when the department deems such measures necessary in the exercise of its rule-making power or in determining whether or not any license, certificate, or permit shall be granted or extended.

Sec. 18. RCW 43.30.150 and 1988 c 128 s 10 are each amended to read as follows:

The board shall:

(1) Perform duties relating to appraisal, appeal, approval and hearing functions as provided by law;

(2) Establish policies to ((~~insure~~)) ensure that the acquisition, management and disposition of all lands and resources within the department's jurisdiction are based on sound principles designed to achieve the maximum effective development and use of such lands and resources consistent with laws applicable thereto;

(3) Constitute the board of appraisers provided for in Article 16, section 2 of the state Constitution;

(4) Constitute the commission on harbor lines provided for in Article 15, section 1 of the state Constitution as amended;

(5) Hold regular monthly meetings at such times as it may determine, and such special meetings as may be called by the ((~~chairman~~)) chair or majority of the board membership upon written notice to all members thereof: PROVIDED, That the board may dispense with any regular meetings, except that the board shall not dispense with two consecutive regular meetings;

(6) Adopt and enforce ((~~such~~)) rules ((~~and regulations~~)) as may be deemed necessary and proper for carrying out the powers, duties and functions imposed upon it by this chapter. For rules adopted under the provisions of this chapter after July 1, 2002, the board may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the board or the department;

(7) Employ and fix the compensation of such technical, clerical and other personnel as may be deemed necessary for the performance of its duties;

(8) Appoint such advisory committees as it may deem appropriate to advise and assist it to more effectively discharge its responsibilities. The members of such committees shall receive no compensation, but shall be entitled to reimbursement for travel expenses in attending committee meetings in accordance with RCW 43.03.050 and 43.03.060 as now existing or hereafter amended;

(9) Meet and organize within thirty days after March 6, 1957, and on the third Monday of each January following a state general election at which the elected ex officio members of the board are elected. The board shall select its own ((~~chairman~~)) chair. The commissioner of public lands shall be the secretary of the board. The board may select a ((~~vice chairman~~)) vice-chair from among its members. In the absence of the ((~~chairman~~)) chair and ((~~vice chairman~~)) vice-chair at a meeting of the board, the members shall elect a ((~~chairman~~)) chair pro tem. No action shall be taken by the board except by the agreement of at least four members. The department and the board shall maintain its principal office at the capital;

(10) Be entitled to reimbursement individually for travel expenses incurred in the discharge of their official duties in accordance with RCW 43.03.050 and 43.03.060 as now existing or hereafter amended.

Sec. 19. RCW 43.31C.060 and 2000 c 212 s 7 are each amended to read as follows:

The department must administer this chapter and has the following powers and duties:

(1) To monitor the implementation of chapter 212, Laws of 2000 and submit reports evaluating the effectiveness of the program and any suggestions for legislative changes to the governor and legislature by December 1, 2000;

(2) To develop evaluation and performance measures for local governments to measure the effectiveness of the program at the local level on meeting the objectives of this chapter;

(3) To provide information and appropriate assistance to persons desiring to locate and operate a business in a community empowerment zone;

(4) To work with appropriate state agencies to coordinate the delivery of programs, including but not limited to housing, community and economic development, small business assistance, social service, and employment and training programs which are carried on in a community empowerment zone; and

(5) To develop rules necessary for the administration of this chapter. For rules adopted under the provisions of this chapter after July 1, 2002, the department may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the department.

Sec. 20. RCW 43.33.040 and 1965 c 8 s 43.33.040 are each amended to read as follows:

The state finance committee may ((~~make~~)) adopt appropriate rules ((~~and regulations~~)) for the performance of its duties. The state treasurer shall act as ((~~chairman~~)) chair of the committee. For rules adopted under the provisions of this chapter after July 1, 2002, the state finance committee may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the state finance committee.

Sec. 21. RCW 43.33A.110 and 1994 c 154 s 310 are each amended to read as follows:

The state investment board may ((~~make~~)) adopt appropriate rules ((~~and regulations~~)) for the performance of its duties. The board shall establish investment policies and procedures designed exclusively to maximize return at a prudent level of risk. However, in the case of the department of labor and industries' accident, medical aid, and reserve funds, the board shall establish investment policies and procedures designed to attempt to limit fluctuations in industrial insurance premiums and, subject to this purpose, to maximize return at a prudent level of risk. The board shall adopt rules to ensure that its members perform their functions in compliance with chapter 42.52 RCW. Rules adopted by the board shall be adopted pursuant to chapter 34.05 RCW.

For rules adopted under the provisions of this chapter after July 1, 2002, the state investment board may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the state investment board.

Sec. 22. RCW 43.59.070 and 1967 ex.s. c 147 s 8 are each amended to read as follows:

The director shall be secretary of the commission and shall be responsible for carrying into effect the commission's orders and rules ((~~and regulations promulgated~~)) adopted by the commission. The director shall also be authorized to employ such staff as is necessary pursuant to the provisions of chapter 41.06 RCW. The commission shall adopt ((~~such~~)) rules ((~~and regulations~~)) as shall be necessary to carry into effect the purposes of this chapter.

For rules adopted under the provisions of this chapter after July 1, 2002, the Washington state traffic safety commission may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the commission.

Sec. 23. RCW 43.61.040 and 1977 c 75 s 60 are each amended to read as follows:

The director of veterans affairs shall ((~~make such~~)) adopt rules ((~~and regulations~~)) as may be necessary to carry out the purposes of this chapter. For rules adopted under the provisions of this chapter after July 1, 2002, the director of veterans affairs may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the department of veterans affairs. The department shall furnish information, advice, and assistance to veterans and coordinate all programs and services in the field of veterans' claims service, education, health, vocational guidance and placement, and services not provided by some other agency of the state or by the federal government. The director shall submit a report of the departments' activities hereunder each year to the governor.

Sec. 24. RCW 43.63A.475 and 1993 c 124 s 2 are each amended to read as follows:

The department shall adopt all rules under chapter 34.05 RCW necessary to implement chapter 124, Laws of 1993, giving due consideration to standards and regulations adopted by the secretary of housing and urban development under the National Manufactured Housing Construction and Safety Standards Act of 1974 (800 Stat. 700; 42 U.S.C. Secs. 5401-5426) for manufactured housing construction and safety standards. For rules adopted under the provisions of this chapter after July 1, 2002, the department of community, trade, and economic development may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the department of community, trade, and economic development.

Sec. 25. RCW 43.70.580 and 1995 c 43 s 3 are each amended to read as follows:

The primary responsibility of the public health system, is to take those actions necessary to protect, promote, and improve the health of the population. In order to accomplish this, the department shall:

(1) Identify, as part of the public health improvement plan, the key health outcomes sought for the population and the capacity needed by the public health system to fulfill its responsibilities in improving health outcomes.

(2)(a) Distribute state funds that, in conjunction with local revenues, are intended to improve the capacity of the public health system. The distribution methodology shall encourage system-wide effectiveness and efficiency and provide local health jurisdictions with the flexibility both to determine governance structures and address their unique needs.

(b) Enter into with each local health jurisdiction performance-based contracts that establish clear measures of the degree to which the local health jurisdiction is attaining the capacity necessary to improve health outcomes. The contracts negotiated between the local health jurisdictions and the department of health must identify the specific measurable progress that local health jurisdictions will make toward achieving health outcomes. A community assessment conducted by the local health jurisdiction according to the public health improvement plan, which shall include the results of the comprehensive plan prepared according to RCW 70.190.130, will be used as the basis for identifying the health outcomes. The contracts shall include provisions to encourage collaboration among local health jurisdictions. State funds shall be used solely to expand and complement, but not to supplant city and county government support for public health programs.

(3) Develop criteria to assess the degree to which capacity is being achieved and ensure compliance by public health jurisdictions.

(4) Adopt rules necessary to carry out the purposes of chapter 43, Laws of 1995. For rules adopted under the provisions of this chapter after July 1, 2002, the department may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the department.

(5) Biennially, within the public health improvement plan, evaluate the effectiveness of the public health system, assess the degree to which the public health system is attaining the capacity to improve the status of the public's health, and report progress made by each local health jurisdiction toward improving health outcomes.

Sec. 26. RCW 43.101.085 and 2001 c 167 s 7 are each amended to read as follows:

In addition to its other powers granted under this chapter, the commission has authority and power to:

(1) Adopt, amend, or repeal rules as necessary to carry out this chapter. For rules adopted under the provisions of this chapter after July 1, 2002, the commission may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the commission;

(2) Issue subpoenas and administer oaths in connection with investigations, hearings, or other proceedings held under this chapter;

(3) Take or cause to be taken depositions and other discovery procedures as needed in investigations, hearings, and other proceedings held under this chapter;

(4) Appoint members of a hearings board as provided under RCW 43.101.380;

(5) Enter into contracts for professional services determined by the commission to be necessary for adequate enforcement of this chapter;

(6) Grant, deny, or revoke certification of peace officers under the provisions of this chapter;

(7) Designate individuals authorized to sign subpoenas and statements of charges under the provisions of this chapter; and

(8) Employ such investigative, administrative, and clerical staff as necessary for the enforcement of this chapter.

Sec. 27. RCW 43.115.040 and 1993 c 261 s 3 are each amended to read as follows:

The commission shall have the following powers and duties:

(1) Elect one of its members to serve as ((~~chairman~~)) chair;

(2) Adopt rules ((~~and regulations~~)) pursuant to chapter 34.05 RCW. For rules adopted under the provisions of this chapter after July 1, 2002, the commission may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the commission;

(3) Examine and define issues pertaining to the rights and needs of Hispanics, and make recommendations to the governor and state agencies for changes in programs and laws;

(4) Advise the governor and state agencies on the development and implementation of policies, plans, and programs that relate to the special needs of Hispanics;

(5) Advise the legislature on issues of concern to the Hispanic community;

(6) Establish relationships with state agencies, local governments, and private sector organizations that promote equal opportunity and benefits for Hispanics; and

(7) Receive gifts, grants, and endowments from public or private sources that are made for the use or benefit of the commission and expend, without appropriation, the same or any income from the gifts, grants, or endowments according to their terms.

Sec. 28. RCW 43.117.050 and 1974 ex.s. c 140 s 5 are each amended to read as follows:

The commission shall:

(1) Elect one of its members to serve as ((~~chairman~~)) chair; and also such other officers as necessary to form an executive committee;

(3) Meet at the call of the ((~~chairman~~)) chair or the call of a majority of its members, but in no case less often than once during any three month period;

(4) Be authorized to appoint such citizen task force as it deems appropriate.

Sec. 29. RCW 43.121.050 and 1988 c 278 s 5 are each amended to read as follows:

To carry out the purposes of this chapter, the council may:

(1) Contract with public or private nonprofit organizations, agencies, schools, or with qualified individuals for the establishment of community-based educational and service programs designed to:

(a) Reduce the occurrence of child abuse and neglect; and

(b) Provide for parenting skills which include: Consistency in parenting; providing children with positive discipline that provides firm order without hurting children physically or emotionally; and preserving and nurturing the family unit. Programs to provide these parenting skills may include the following:

(i) Programs to teach positive methods of disciplining children;

(ii) Programs to educate parents about the physical, mental, and emotional development of children;

(iii) Programs to enhance the skills of parents in providing for their children's learning and development; and

(iv) Learning experiences for children and parents to help prepare parents and children for the experiences in school. Contracts also may be awarded for research programs related to primary and secondary prevention of child abuse and neglect, and to develop and strengthen community child abuse and neglect prevention networks. Each contract entered into by the council shall contain a provision for the evaluation of services provided under the contract. Contracts for services to prevent child abuse and child neglect shall be awarded as demonstration projects with continuation based upon goal attainment. Contracts for services to prevent child abuse and child neglect shall be awarded on the basis of probability of success based in part upon sound research data.

(2) Facilitate the exchange of information between groups concerned with families and children.

(3) Consult with applicable state agencies, commissions, and boards to help determine the probable effectiveness, fiscal soundness, and need for proposed educational and service programs for the prevention of child abuse and neglect.

(4) Establish fee schedules to provide for the recipients of services to reimburse the state general fund for the cost of services received.

(5) Adopt its own bylaws.

(6) Adopt rules under chapter 34.05 RCW as necessary to carry out the purposes of this chapter. For rules adopted under the provisions of this chapter after July 1, 2002, the council may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the council.

Sec. 30. RCW 43.155.040 and 1985 c 446 s 10 are each amended to read as follows:

The board may:

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

(2) Provide technical assistance to local governments;

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

(4) Adopt rules under chapter 34.05 RCW as necessary to carry out the purposes of this chapter. For rules adopted under the provisions of this chapter after July 1, 2002, the board may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the board;

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

Sec. 31. RCW 43.160.050 and 1996 c 51 s 4 are each amended to read as follows:

The board may:

(1) Adopt bylaws for the regulation of its affairs and the conduct of its business.

(2) Adopt an official seal and alter the seal at its pleasure.

(3) Utilize the services of other governmental agencies.

(4) Accept from any federal agency loans or grants for the planning or financing of any project and enter into an agreement with the agency respecting the loans or grants.

(5) Conduct examinations and investigations and take testimony at public hearings of any matter material for its information that will assist in determinations related to the exercise of the board's lawful powers.

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

(7) Exercise all the powers of a public corporation under chapter 39.84 RCW.

(8) Invest any funds received in connection with industrial development revenue bond financing not required for immediate use, as the board considers appropriate, subject to any agreements with owners of bonds.

(9) Arrange for lines of credit for industrial development revenue bonds from and enter into participation agreements with any financial institution.

(10) Issue industrial development revenue bonds in one or more series for the purpose of defraying the cost of acquiring or improving any industrial development facility or facilities and securing the payment of the bonds as provided in this chapter.

(11) Enter into agreements or other transactions with and accept grants and the cooperation of any governmental agency in furtherance of this chapter.

(12) Sell, purchase, or insure loans to finance the costs of industrial development facilities.

(13) Service, contract, and pay for the servicing of loans for industrial development facilities.

(14) Provide financial analysis and technical assistance for industrial development facilities when the board reasonably considers it appropriate.

(15) Collect, with respect to industrial development revenue bonds, reasonable interest, fees, and charges for making and servicing its lease agreements, loan agreements, mortgage loans, notes, bonds, commitments, and other evidences of indebtedness. Interest, fees, and charges are limited to the amounts required to pay the costs of the board, including operating and administrative expenses and reasonable allowances for losses that may be incurred.

(16) Procure insurance or guarantees from any party as allowable under law, including a governmental agency, against any loss in connection with its lease agreements, loan agreements, mortgage loans, and other assets or property.

(17) Adopt rules under chapter 34.05 RCW as necessary to carry out the purposes of this chapter. For rules adopted under the provisions of this chapter after July 1, 2002, the board may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the board.

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

Sec. 32. RCW 43.163.100 and 1990 c 53 s 6 are each amended to read as follows:

In addition to accomplishing the economic development finance programs specifically authorized in this chapter, the authority may:

(1) Maintain an office or offices;

(2) Sue and be sued in its own name, and plead and be impleaded;

(3) Engage consultants, agents, attorneys, and advisers, contract with federal, state, and local governmental entities for services, and hire such employees, agents and other personnel as the authority deems necessary, useful, or convenient to accomplish its purposes;

(4) Make and execute all manner of contracts, agreements and instruments and financing documents with public and private parties as the authority deems necessary, useful, or convenient to accomplish its purposes;

(5) Acquire and hold real or personal property, or any interest therein, in the name of the authority, and to sell, assign, lease, encumber, mortgage, or otherwise dispose of the same in such manner as the authority deems necessary, useful, or convenient to accomplish its purposes;

(6) Open and maintain accounts in qualified public depositaries and otherwise provide for the investment of any funds not required for immediate disbursement, and provide for the selection of investments;

(7) Appear in its own behalf before boards, commissions, departments, or agencies of federal, state, or local government;

(8) Procure such insurance in such amounts and from such insurers as the authority deems desirable, including, but not limited to, insurance against any loss or damage to its property or other assets, public liability insurance for injuries to persons or property, and directors and officers liability insurance;

(9) Apply for and accept subventions, grants, loans, advances, and contributions from any source of money, property, labor, or other things of value, to be held, used and applied as the authority deems necessary, useful, or convenient to accomplish its purposes;

(10) Establish guidelines for the participation by eligible banking organizations in programs conducted by the authority under this chapter;

(11) Act as an agent, by agreement, for federal, state, or local governmental entities to carry out the programs authorized in this chapter;

(12) Establish, revise, and collect such fees and charges as the authority deems necessary, useful, or convenient to accomplish its purposes;

(13) Make such expenditures as are appropriate for paying the administrative costs and expenses of the authority in carrying out the provisions of this chapter: PROVIDED, That expenditures with respect to the economic development financing programs of the authority shall not be made from funds of the state;

(14) Establish such reserves and special funds, and controls on deposits to and disbursements from them, as the authority deems necessary, useful, or convenient to accomplish its purposes;

(15) Give assistance to public bodies by providing information, guidelines, forms, and procedures for implementing their financing programs;

(16) Prepare, publish and distribute, with or without charge, such studies, reports, bulletins, and other material as the authority deems necessary, useful, or convenient to accomplish its purposes;

(17) Delegate any of its powers and duties if consistent with the purposes of this chapter;

(18) Adopt rules concerning its exercise of the powers authorized by this chapter. For rules adopted under the provisions of this chapter after July 1, 2002, the authority may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the authority; and

(19) Exercise any other power the authority deems necessary, useful, or convenient to accomplish its purposes and exercise the powers expressly granted in this chapter.

Sec. 33. RCW 43.180.040 and 1995 c 399 s 98 are each amended to read as follows:

(1) There is ((~~hereby~~)) established a public body corporate and politic, with perpetual corporate succession, to be known as the Washington state housing finance commission. The commission is an instrumentality of the state exercising essential government functions and, for purposes of the code, acts as a constituted authority on behalf of the state when it issues bonds pursuant to this chapter. The commission is a "public body" within the meaning of RCW 39.53.010.

(2) The commission shall consist of the following voting members:

(a) The state treasurer, ex officio;

(b) The director of community, trade, and economic development, ex officio;

(c) An elected local government official, ex officio, with experience in local housing programs, who shall be appointed by the governor with the consent of the senate;

(d) A representative of housing consumer interests, appointed by the governor with the consent of the senate;

(e) A representative of labor interests, appointed by the governor, with the consent of the senate, after consultation with representatives of organized labor;

(f) A representative of low-income persons, appointed by the governor with the consent of the senate;

(g) Five members of the public appointed by the governor, with the consent of the senate, on the basis of geographic distribution and their expertise in housing, real estate, finance, energy efficiency, or construction, one of whom shall be appointed by the governor as chair of the commission and who shall serve on the commission and as chair of the commission at the pleasure of the governor.

The term of the persons appointed by the governor, other than the chair, shall be four years from the date of their appointment, except that the terms of three of the initial appointees shall be for two years from the date of their appointment. The governor shall designate the appointees who will serve the two-year terms. An appointee may be removed by the governor for cause pursuant to RCW 43.06.070 and 43.06.080. The governor shall fill any vacancy in an appointed position by appointment for the remainder of the unexpired term. If the department of community, trade, and economic development is abolished, the resulting vacancy shall be filled by a state official who shall be appointed to the commission by the governor. If this official occupies an office or position for which senate confirmation is not required, then his or her appointment to the commission shall be subject to the consent of the senate. The members of the commission shall be compensated in accordance with RCW 43.03.240 and may be reimbursed, solely from the funds of the commission, for expenses incurred in the discharge of their duties under this chapter, subject to the provisions of RCW 43.03.050 and 43.03.060. A majority of the commission constitutes a quorum. Designees shall be appointed in such manner and shall exercise such powers as are specified by the rules of the commission.

(3) The commission may adopt an official seal and may select from its membership a vice-chair, a secretary, and a treasurer. The commission shall establish rules concerning its exercise of the powers authorized by this chapter. The rules shall be adopted in conformance with chapter 34.05 RCW. For rules adopted under the provisions of this chapter after July 1, 2002, the commission may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the commission.

Sec. 34. RCW 43.200.070 and 1989 c 322 s 5 are each amended to read as follows:

The department of ecology shall adopt such rules as are necessary to carry out responsibilities under this chapter. The department of ecology is authorized to adopt such rules as are necessary to carry out its responsibilities under chapter 43.145 RCW. For rules adopted under the provisions of this chapter after July 1, 2002, the department of ecology may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the department of ecology.

Sec. 35. RCW 43.210.060 and 1995 c 399 s 108 are each amended to read as follows:

The department of community, trade, and economic development or its statutory successor shall adopt rules under chapter 34.05 RCW as necessary to carry out the purposes of this chapter. For rules adopted under the provisions of this chapter after July 1, 2002, the department of community, trade, and economic development may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the department of community, trade, and economic development.

Sec. 36. RCW 43.250.090 and 1986 c 294 s 9 are each amended to read as follows:

The state finance committee shall administer this chapter and adopt appropriate rules. For rules adopted under the provisions of this chapter after July 1, 2002, the state finance committee may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the state finance committee.

Sec. 37. RCW 43.320.040 and 1993 c 472 s 5 are each amended to read as follows:

The director of financial institutions may adopt any rules, under chapter 34.05 RCW, necessary to implement the powers and duties of the director under this chapter. For rules adopted under the provisions of this chapter after July 1, 2002, the director of financial institutions may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the department of financial institutions.

Sec. 38. RCW 43.330.040 and 1993 c 280 s 6 are each amended to read as follows:

(1) The director shall supervise and administer the activities of the department and shall advise the governor and the legislature with respect to community and economic development matters affecting the state.

(2) In addition to other powers and duties granted to the director, the director shall have the following powers and duties:

(a) Enter into contracts on behalf of the state to carry out the purposes of this chapter;

(b) Act for the state in the initiation of or participation in any multigovernmental program relative to the purpose of this chapter;

(d) Appoint such deputy directors, assistant directors, and up to seven special assistants as may be needed to administer the department. These employees are exempt from the provisions of chapter 41.06 RCW;

(e) Prepare and submit budgets for the department for executive and legislative action;

(f) Submit recommendations for legislative actions as are deemed necessary to further the purposes of this chapter;

(g) Adopt rules in accordance with chapter 34.05 RCW and perform all other functions necessary and proper to carry out the purposes of this chapter. For rules adopted under the provisions of this chapter after July 1, 2002, the director may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the department;

(h) Delegate powers, duties, and functions as the director deems necessary for efficient administration, but the director shall be responsible for the official acts of the officers and employees of the department; and

(i) Perform other duties as are necessary and consistent with law.

(3) When federal or other funds are received by the department, they shall be promptly transferred to the state treasurer and thereafter expended only upon the approval of the director.

(4) The director may request information and assistance from all other agencies, departments, and officials of the state, and may reimburse such agencies, departments, or officials if such a request imposes any additional expenses upon any such agency, department, or official.

(5) The director shall, in carrying out the responsibilities of office, consult with governmental officials, private groups, and individuals and with officials of other states. All state agencies and their officials and the officials of any political subdivision of the state shall cooperate with and give such assistance to the department, including the submission of requested information, to allow the department to carry out its purposes under this chapter.

(6) The director may establish additional advisory or coordinating groups with the legislature, within state government, with state and other governmental units, with the private sector and nonprofit entities or in specialized subject areas as may be necessary to carry out the purposes of this chapter.

(7) The internal affairs of the department shall be under the control of the director in order that the director may manage the department in a flexible and intelligent manner as dictated by changing contemporary circumstances. Unless specifically limited by law, the director shall have complete charge and supervisory powers over the department. The director may create such administrative structures as the director deems appropriate, except as otherwise specified by law, and the director may employ such personnel as may be necessary in accordance with chapter 41.06 RCW, except as otherwise provided by law.

Sec. 39. RCW 47.01.071 and 1981 c 59 s 2 are each amended to read as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(8) To adopt ((~~such~~)) rules((~~, regulations,~~)) and policy directives as may be necessary to carry out reasonably and properly those functions expressly vested in the commission by statute. For rules adopted under the provisions of this chapter after July 1, 2002, the commission may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the department;

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

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

Sec. 40. RCW 48.02.060 and 1947 c 79 s .02.06 are each amended to read as follows:

(1) The commissioner shall have the authority expressly conferred upon him or her by or reasonably implied from the provisions of this code.

(2) The commissioner shall execute his or her duties and shall enforce the provisions of this code.

(3) The commissioner may:

(a) ((~~Make~~)) Adopt reasonable rules ((~~and regulations~~)) for effectuating any provision of this code, except those relating to his or her election, qualifications, or compensation. No ((~~such~~)) rules ((~~and regulations shall be~~)) are effective prior to their being filed for public inspection in the commissioner's office. For rules adopted under the provisions of this chapter after July 1, 2002, the commissioner may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the office of the insurance commissioner.

(b) Conduct investigations to determine whether any person has violated any provision of this code.

(c) Conduct examinations, investigations, hearings, in addition to those specifically provided for, useful and proper for the efficient administration of any provision of this code.

Sec. 41. RCW 48.44.050 and 1947 c 268 s 5 are each amended to read as follows:

The insurance commissioner shall ((~~make~~)) adopt reasonable ((~~regulations~~)) rules in aid of the administration of this chapter which may include, but shall not be limited to ((~~regulations~~)) rules concerning the maintenance of adequate insurance, bonds, or cash deposits, information required of registrants, and methods of expediting speedy and fair payments to claimants. For rules adopted under the provisions of this chapter after July 1, 2002, the insurance commissioner may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the office of the insurance commissioner.

Sec. 42. RCW 48.46.200 and 1975 1st ex.s. c 290 s 21 are each amended to read as follows:

The commissioner may, in accordance with the provisions of the administrative procedure act, chapter 34.05 RCW, ((~~promulgate~~)) adopt rules ((~~and regulations~~)) as necessary or proper to carry out the provisions of this chapter. For rules adopted under the provisions of this chapter after July 1, 2002, the commissioner may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the office of the insurance commissioner. Nothing in this chapter shall be construed to prohibit the commissioner from requiring changes in procedures previously approved by him.

Sec. 43. RCW 66.08.0501 and 1997 c 321 s 56 are each amended to read as follows:

The liquor control board may adopt appropriate rules pursuant to chapter 34.05 RCW for the purpose of carrying out the provisions of chapter 321, Laws of 1997. For rules adopted under the provisions of this chapter after July 1, 2002, the liquor control board may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the liquor control board.

Sec. 44. RCW 77.04.055 and 2000 c 107 s 204 are each amended to read as follows:

(1) In establishing policies to preserve, protect, and perpetuate wildlife, fish, and wildlife and fish habitat, the commission shall meet annually with the governor to:

(a) Review and prescribe basic goals and objectives related to those policies; and

(b) Review the performance of the department in implementing fish and wildlife policies.

The commission shall maximize fishing, hunting, and outdoor recreational opportunities compatible with healthy and diverse fish and wildlife populations.

(2) The commission shall establish hunting, trapping, and fishing seasons and prescribe the time, place, manner, and methods that may be used to harvest or enjoy game fish and wildlife.

(3) The commission shall establish provisions regulating food fish and shellfish as provided in RCW 77.12.047.

(4) The commission shall have final approval authority for tribal, interstate, international, and any other department agreements relating to fish and wildlife.

(5) The commission shall adopt rules to implement the state's fish and wildlife laws. For rules adopted under the provisions of this chapter after July 1, 2002, the commission may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the commission or the department.

(6) The commission shall have final approval authority for the department's budget proposals.

(7) The commission shall select its own staff and shall appoint the director of the department. The director and commission staff shall serve at the pleasure of the commission.

Sec. 45. RCW 80.01.040 and 1985 c 450 s 10 are each amended to read as follows:

The utilities and transportation commission shall:

(1) Exercise all the powers and perform all the duties prescribed therefor by this title and by Title 81 RCW, or by any other law.

(2) Regulate in the public interest, as provided by the public service laws, the rates, services, facilities, and practices of all persons engaging in the transportation by whatever means of persons or property within this state for compensation, and related activities; including, but not limited to, air transportation companies, auto transportation companies, express companies, freight and freight line companies, motor freight companies, motor transportation agents, private car companies, railway companies, sleeping car companies, steamboat companies, street railway companies, toll bridge companies, storage warehousemen, and wharfingers and warehousemen.

(3) Regulate in the public interest, as provided by the public service laws, the rates, services, facilities, and practices of all persons engaging within this state in the business of supplying any utility service or commodity to the public for compensation, and related activities; including, but not limited to, electrical companies, gas companies, irrigation companies, telecommunications companies, and water companies.

(4) ((~~Make such~~)) Adopt rules ((~~and regulations~~)) as may be necessary to carry out its other powers and duties. For rules adopted under the provisions of this chapter after July 1, 2002, the commission may only adopt rules derived from a specific grant of legislative authority. The rules must include the specific statutory section or sections from which the grant of authority is derived, and may not rely solely on a section of law stating a statute's intent or purpose or the general enabling provisions establishing the commission.

NEW SECTION. Sec. 46. The secretary of state shall submit sections 6 through 40 of this act to the people for their adoption and ratification, or rejection, at the next general election to be held in this state, in accordance with Article II, section 1 of the state Constitution and the laws adopted to facilitate its operation."

Correct the title.