BILL REQ. #:  Z-0535.1 

Read first time 01/27/2003.   Referred to Committee on Appropriations.

     AN ACT Relating to consolidating state functions that are necessary to implement the 2003-2005 omnibus operating appropriations bill; amending RCW 41.06.070, 43.78.030, 43.78.040, 43.78.050, 43.78.070, 43.78.090, 43.78.100, 43.78.105, 43.78.170, 41.06.020, 41.06.130, 41.50.010, 41.54.010, 43.17.020, 43.33A.020, 47.64.011, 47.64.090, 47.64.190, 47.64.210, 47.64.220, 47.64.240, 47.64.280, 41.58.020, 43.17.020, 9.46.0201, 9.46.0205, 9.46.0209, 9.46.0217, 9.46.0233, 9.46.0261, 9.46.0273, 9.46.0282, 9.46.0311, 9.46.0315, 9.46.0321, 9.46.0331, 9.46.0335, 9.46.0345, 9.46.0351, 9.46.0356, 9.46.0361, 9.46.060, 9.46.070, 9.46.0701, 9.46.071, 9.46.075, 9.46.077, 9.46.080, 9.46.090, 9.46.095, 9.46.100, 9.46.116, 9.46.120, 9.46.130, 9.46.140, 9.46.150, 9.46.153, 9.46.158, 9.46.160, 9.46.170, 9.46.198, 9.46.210, 9.46.215, 9.46.250, 9.46.293, 9.46.300, 9.46.310, 9.46.350, 9.46.360, 9.46.400, 9.46.420, 51.12.020, 51.16.210, 67.16.010, 67.16.040, 67.16.100, 67.16.101, 67.16.105, 67.16.130, 67.16.140, 67.16.150, 67.17.005, 67.17.120, 82.04.350, 43.21J.030, 43.41.270, 77.55.290, 77.85.070, 77.85.110, 79.01.295, 89.08.010, 89.08.020, 89.08.070, 89.08.080, 89.08.090, 89.08.100, 89.08.110, 89.08.120, 89.08.130, 89.08.140, 89.08.150, 89.08.160, 89.08.170, 89.08.180, 89.08.185, 89.08.200, 89.08.210, 89.08.220, 89.08.341, 89.08.350, 89.08.370, 89.08.410, 89.08.470, 89.08.480, 89.08.520, 89.08.530, 89.08.540, 90.64.005, 90.64.010, 90.64.026, 90.64.028, 90.64.080, 90.64.140, 90.64.800, 90.64.810, 90.71.020, 39.19.020, 39.19.030, 39.19.090, 39.19.120, 39.19.140, 39.19.150, 39.19.160, 39.19.200, 39.19.240, 43.63A.690, 43.172.010, 43.172.030, 47.28.030, 39.04.160, and 43.19.536; reenacting and amending RCW 43.17.010, 42.17.2401, 43.17.010, 42.17.2401, 70.146.060, and 42.17.2401; adding a new section to chapter 43.78 RCW; adding a new section to chapter 41.56 RCW; adding new sections to chapter 41.06 RCW; adding a new section to chapter 43.23 RCW; adding a new section to chapter 39.19 RCW; adding a new section to chapter 43.19 RCW; adding a new section to chapter 49.60 RCW; adding new chapters to Title 43 RCW; creating new sections; repealing RCW 43.78.010, 43.78.020, 43.78.110, 41.06.030, 41.50.020, 41.50.050, 9.46.0221, 9.46.040, 9.46.050, 9.46.085, 67.16.012, 67.16.014, 67.16.015, 67.16.017, 89.08.030, 89.08.040, 89.08.050, 89.08.060, 39.19.041, 39.19.050, 39.19.060, 39.19.170, 39.19.210, 39.19.220, 39.19.230, 41.06.082, and 39.19.200; providing effective dates; and declaring an emergency.

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

NEW SECTION.  Sec. 1   The legislature recognizes that efficiencies, improvements in customer service, and economies can be achieved by merging the operations of agencies with like functions. Both the public printer and the department of general administration provide vital direct central services to state agencies and their other clients, which involve large scale purchasing, mailing, and distribution and storage. Because of these functional similarities, there is overlap and duplication of some services, administrative functions, and facilities and equipment.
     It is therefore the intent of the legislature to transfer the powers, duties, and functions of the public printer to the department of general administration to strengthen the ability of both agencies to provide optimal central services to their clients. By combining the resources of the two agencies, the legislature expects that service duplications will be eliminated, administrative functions streamlined, distribution networks coordinated, facility and equipment use maximized, and other efficiencies and economies achieved.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.78 RCW to read as follows:
     (1) The office of the public printer is abolished and its powers, duties, and functions are transferred to the department of general administration. All references to the public printer or the state printer in the Revised Code of Washington mean the director or the department of general administration.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the public printer must be delivered to the custody of the department of general administration. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the public printer must be made available to the department of general administration. All funds, credits, or other assets held by the public printer are assigned to the department of general administration.
     (b) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) All employees of the public printer are transferred to the jurisdiction of the department of general administration. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of general administration to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
     (4) All rules and all pending business before the public printer are continued to be acted upon by the department of general administration. All existing contracts and obligations remain in full force and must be performed by the department of general administration.
     (5) The transfer of the powers, duties, functions, and personnel of the public printer does not affect the validity of any act performed before the effective date of this section.
     (6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (7) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified. Nothing contained in this section may be construed to alter any right to bargain collectively of employees or positions in the state printing plant within the department of general administration.

Sec. 3   RCW 41.06.070 and 2002 c 354 s 209 are each amended to read as follows:
     (1) The provisions of this chapter do not apply to:
     (a) The members of the legislature or to any employee of, or position in, the legislative branch of the state government including members, officers, and employees of the legislative council, joint legislative audit and review committee, statute law committee, and any interim committee of the legislature;
     (b) The justices of the supreme court, judges of the court of appeals, judges of the superior courts or of the inferior courts, or to any employee of, or position in the judicial branch of state government;
     (c) Officers, academic personnel, and employees of technical colleges;
     (d) The officers of the Washington state patrol;
     (e) Elective officers of the state;
     (f) The chief executive officer of each agency;
     (g) In the departments of employment security and social and health services, the director and the director's confidential secretary; in all other departments, the executive head of which is an individual appointed by the governor, the director, his or her confidential secretary, and his or her statutory assistant directors;
     (h) In the case of a multimember board, commission, or committee, whether the members thereof are elected, appointed by the governor or other authority, serve ex officio, or are otherwise chosen:
     (i) All members of such boards, commissions, or committees;
     (ii) If the members of the board, commission, or committee serve on a part-time basis and there is a statutory executive officer: The secretary of the board, commission, or committee; the chief executive officer of the board, commission, or committee; and the confidential secretary of the chief executive officer of the board, commission, or committee;
     (iii) If the members of the board, commission, or committee serve on a full-time basis: The chief executive officer or administrative officer as designated by the board, commission, or committee; and a confidential secretary to the chair of the board, commission, or committee;
     (iv) If all members of the board, commission, or committee serve ex officio: The chief executive officer; and the confidential secretary of such chief executive officer;
     (i) The confidential secretaries and administrative assistants in the immediate offices of the elective officers of the state;
     (j) Assistant attorneys general;
     (k) Commissioned and enlisted personnel in the military service of the state;
     (l) Inmate, student, part-time, or temporary employees, and part-time professional consultants, as defined by the Washington personnel resources board;
     (m) ((The public printer or to any)) Employees of or positions in the state printing plant within the department of general administration;
     (n) Officers and employees of the Washington state fruit commission;
     (o) Officers and employees of the Washington ((state)) apple ((advertising)) commission;
     (p) Officers and employees of the Washington state dairy products commission;
     (q) Officers and employees of the Washington tree fruit research commission;
     (r) Officers and employees of the Washington state beef commission;
     (s) Officers and employees of any commission formed under chapter 15.66 RCW;
     (t) Officers and employees of agricultural commissions formed under chapter 15.65 RCW;
     (u) Officers and employees of the nonprofit corporation formed under chapter 67.40 RCW;
     (v) Executive assistants for personnel administration and labor relations in all state agencies employing such executive assistants including but not limited to all departments, offices, commissions, committees, boards, or other bodies subject to the provisions of this chapter and this subsection shall prevail over any provision of law inconsistent herewith unless specific exception is made in such law;
     (w) In each agency with fifty or more employees: Deputy agency heads, assistant directors or division directors, and not more than three principal policy assistants who report directly to the agency head or deputy agency heads;
     (x) All employees of the marine employees' commission;
     (y) Staff employed by the department of community, trade, and economic development to administer energy policy functions and manage energy site evaluation council activities under RCW 43.21F.045(2)(m);
     (z) Staff employed by Washington State University to administer energy education, applied research, and technology transfer programs under RCW 43.21F.045 as provided in RCW 28B.30.900(5).
     (2) The following classifications, positions, and employees of institutions of higher education and related boards are hereby exempted from coverage of this chapter:
     (a) Members of the governing board of each institution of higher education and related boards, all presidents, vice-presidents, and their confidential secretaries, administrative, and personal assistants; deans, directors, and chairs; academic personnel; and executive heads of major administrative or academic divisions employed by institutions of higher education; principal assistants to executive heads of major administrative or academic divisions; other managerial or professional employees in an institution or related board having substantial responsibility for directing or controlling program operations and accountable for allocation of resources and program results, or for the formulation of institutional policy, or for carrying out personnel administration or labor relations functions, legislative relations, public information, development, senior computer systems and network programming, or internal audits and investigations; and any employee of a community college district whose place of work is one which is physically located outside the state of Washington and who is employed pursuant to RCW 28B.50.092 and assigned to an educational program operating outside of the state of Washington;
     (b) The governing board of each institution, and related boards, may also exempt from this chapter classifications involving research activities, counseling of students, extension or continuing education activities, graphic arts or publications activities requiring prescribed academic preparation or special training as determined by the board: PROVIDED, That no nonacademic employee engaged in office, clerical, maintenance, or food and trade services may be exempted by the board under this provision;
     (c) Printing craft employees in the department of printing at the University of Washington.
     (3) In addition to the exemptions specifically provided by this chapter, the director of personnel may provide for further exemptions pursuant to the following procedures. The governor or other appropriate elected official may submit requests for exemption to the director of personnel stating the reasons for requesting such exemptions. The director of personnel shall hold a public hearing, after proper notice, on requests submitted pursuant to this subsection. If the director determines that the position for which exemption is requested is one involving substantial responsibility for the formulation of basic agency or executive policy or one involving directing and controlling program operations of an agency or a major administrative division thereof, the director of personnel shall grant the request and such determination shall be final as to any decision made before July 1, 1993. The total number of additional exemptions permitted under this subsection shall not exceed one percent of the number of employees in the classified service not including employees of institutions of higher education and related boards for those agencies not directly under the authority of any elected public official other than the governor, and shall not exceed a total of twenty-five for all agencies under the authority of elected public officials other than the governor.
     The salary and fringe benefits of all positions presently or hereafter exempted except for the chief executive officer of each agency, full-time members of boards and commissions, administrative assistants and confidential secretaries in the immediate office of an elected state official, and the personnel listed in subsections (1)(j) through (u) and (x) and (2) of this section, shall be determined by the director of personnel. Changes to the classification plan affecting exempt salaries must meet the same provisions for classified salary increases resulting from adjustments to the classification plan as outlined in RCW 41.06.152.
     Any person holding a classified position subject to the provisions of this chapter shall, when and if such position is subsequently exempted from the application of this chapter, be afforded the following rights: If such person previously held permanent status in another classified position, such person shall have a right of reversion to the highest class of position previously held, or to a position of similar nature and salary.
     Any classified employee having civil service status in a classified position who accepts an appointment in an exempt position shall have the right of reversion to the highest class of position previously held, or to a position of similar nature and salary.
     A person occupying an exempt position who is terminated from the position for gross misconduct or malfeasance does not have the right of reversion to a classified position as provided for in this section.

Sec. 4   RCW 43.78.030 and 1994 c 82 s 1 are each amended to read as follows:
     The ((public printer)) director of general administration shall print and bind the session laws, the journals of the two houses of the legislature, all bills, resolutions, documents, and other printing and binding of either the senate or house, as the same may be ordered by the legislature; and such forms, blanks, record books, and printing and binding of every description as may be ordered by all state officers, boards, commissions, and institutions, and the supreme court, and the court of appeals and officers thereof, as the same may be ordered on requisition, from time to time, by the proper authorities. This section shall not apply to the printing of the supreme court and the court of appeals reports, to the printing of bond certificates or bond offering disclosure documents, to the printing of educational publications of the state historical societies, or to any printing done or contracted for by institutions of higher education: PROVIDED, That institutions of higher education, in consultation with the ((public printer)) director of general administration, develop vendor selection procedures comparable to those used by the ((public printer)) director of general administration for contracted printing jobs. Where any institution or institution of higher learning of the state is or may become equipped with facilities for doing such work, it may do any printing: (1) For itself, or (2) for any other state institution when such printing is done as part of a course of study relative to the profession of printer. Any printing and binding of whatever description as may be needed by any institution or agency of the state department of social and health services not at Olympia, or the supreme court or the court of appeals or any officer thereof, the estimated cost of which shall not exceed one thousand dollars, may be done by any private printing company in the general vicinity within the state of Washington so ordering, if in the judgment of the officer of the agency so ordering, the saving in time and processing justifies the award to such local private printing concern.
     Beginning on July 1, 1989, and on July 1 of each succeeding odd-numbered year, the dollar limit specified in this section shall be adjusted as follows: The office of financial management shall calculate such limit by adjusting the previous biennium's limit by an appropriate federal inflationary index reflecting the rate of inflation for the previous biennium. Such amounts shall be rounded to the nearest fifty dollars.

NEW SECTION.  Sec. 5   A new section is added to chapter 41.56 RCW to read as follows:
     In addition to the entities listed in RCW 41.56.020, this chapter applies to the department of general administration with respect to printing craft employees in the state printing plant within the department of general administration.

Sec. 6   RCW 43.78.040 and 1965 c 8 s 43.78.040 are each amended to read as follows:
     All printing and binding shall be done under the general superintendence of the authorities ordering it, and when completed shall be delivered to such authorities, who shall sign receipts therefor.
     Before the ((public printer shall)) director of general administration may execute any printing or binding for any office, board, commission, or institution, the proper officer thereof shall apply therefor by requisition.

Sec. 7   RCW 43.78.050 and 1965 c 8 s 43.78.050 are each amended to read as follows:
     Upon delivering a printing or binding job and receiving a receipt therefor the ((public printer)) director of general administration shall make out, and deliver to the requesting agency, an itemized statement of charges.

Sec. 8   RCW 43.78.070 and 1979 c 151 s 134 are each amended to read as follows:
     The ((public printer)) director of general administration shall use the state printing plant, which includes the state copy centers, upon the following conditions, to wit:
     (1) ((He)) The director shall do the public printing, and charge therefor the fees as provided by law. ((He)) The director may print the Washington Reports for the publishers thereof under a contract approved in writing by the governor.
     (2) ((The gross income of the public printer shall)) All receipts from the state printing plant must be deposited in ((an account designated "state printing plant revolving fund" in depositaries approved by the state treasurer, and shall be)) the general administration services account and disbursed ((by the public printer by check and only)) as follows:
     ((First,)) (a) In payment of the actual cost of labor, material, supplies, replacements, repairs, water, light, heat, telephone, rent, and all other expenses necessary in the operation of the plant((: PROVIDED, That no machinery shall be purchased except on written approval of the governor));
     ((Second,)) (b) In payment of the cost of reasonable insurance upon the printing plant((, payable to the state and of all fidelity bonds required by law of the public printer;
     Third, in payment to the public printer of a salary which shall be fixed by the governor in accordance with the provisions of RCW 43.03.040;
     Fourth, in remitting the balance to the state treasurer for the general fund: PROVIDED, That a reasonable sum to be determined by the governor, the public printer, and the director of financial management shall be retained in the fund for working capital for the public printer)).
     (3) Disbursements from the general administration services account for the cost of materials and services purchased for resale by the state printing plant are not subject to allotment procedures provided under chapter 43.88 RCW. Disbursements from the general administration services account for all other expenses of the state printing plant including administrative expenses and all staff costs are subject to the allotment procedures provided under chapter 43.88 RCW. An appropriation is not required for expenditures for the operation of the state printing plant.

Sec. 9   RCW 43.78.090 and 1965 c 8 s 43.78.090 are each amended to read as follows:
     Whenever required by law or by the legislature or by any state officer, board, commission, or institution, the ((public printer)) director of general administration shall keep the ((type)) copy used in printing any matter ((forming a part of the first, second, third, and fourth classes standing)) for a period not exceeding sixty days for use in reprinting such matter.

Sec. 10   RCW 43.78.100 and 1993 c 379 s 106 are each amended to read as follows:
     The ((public printer)) director of general administration shall furnish all paper, stock, and binding materials required in all public work, and shall charge the same to the state, as it is actually used, at the actual price at which it was purchased plus up to five percent for waste, insurance, storage, and handling. This section does not apply to institutions of higher education.

Sec. 11   RCW 43.78.105 and 1993 c 379 s 105 are each amended to read as follows:
     The ((public printer)) director of general administration may use the state printing plant for the purposes of printing or furnishing materials under RCW 43.78.100 if an interlocal agreement under chapter 39.34 RCW has been executed between an institution of higher education and the ((public printer)) department of general administration.

Sec. 12   RCW 43.78.170 and 1996 c 198 s 3 are each amended to read as follows:
     The ((public printer)) director of general administration shall take all actions consistent with the ((plan)) strategy under RCW 43.19A.050 to ensure that seventy-five percent or more of the total dollar amount of printing paper stock used by the ((printer)) state printing plant is recycled content paper by January 1, 1997, and ninety percent or more of the total dollar amount of printing paper stock used by the ((printer)) state printing plant is recycled content paper by January 1, 1999.

NEW SECTION.  Sec. 13   The legislature recognizes that the challenge of attracting and retaining skilled employees to carry out vital state government functions is of utmost importance. To meet this challenge effectively, the state must have an integrated human resources management structure to address comprehensively present and future workforce needs.
     The state's pension, compensation, and personnel laws, policies, and practices must be coordinated and focused on ensuring productive employees and well-managed systems to support agencies, employees, the legislature, and the public. The current state structure is fragmented, with personnel, compensation, and retirement functions in separate agencies. This makes administrative efficiencies and economies, improvements in customer service and employee communications, and strategic planning and systems integration more difficult to achieve.
     It is, therefore, the intent of the legislature to consolidate operations of the departments of personnel and retirement systems to unify human resources functions for state government. To accomplish this goal, sections 13 through 28 of this act transfer the powers, duties, and functions of the departments of personnel and retirement systems to a new department of human resources.
     By combining the two agencies, the legislature expects a strengthened and streamlined department of human resources. In addition to current duties, it is the intent of the legislature that the new department, subject to available resources, concentrate its efforts on the following goals and objectives:
     (1) Implementation of an integrated state workforce plan that addresses the present and future skill needs of state agencies;
     (2) Development of coordinated personnel, compensation, and retirement information services and systems to support employees, management, the legislature, and the public; and
     (3) Achievement of efficiencies and economies in administration.

NEW SECTION.  Sec. 14   Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Department" means the department of human resources.
     (2) "Director" means the director of human resources.

NEW SECTION.  Sec. 15   There is created a department of state government to be known as the department of human resources. The department is vested with all powers and duties transferred to it under this chapter and such other powers and duties as may be authorized by law. The department of personnel and the department of retirement systems are abolished and their powers, duties, and functions are transferred to the department of human resources. All references in the Revised Code of Washington to the director or department of personnel or the director or department of retirement systems mean the director or department of human resources.

NEW SECTION.  Sec. 16   The executive head and appointing authority of the department is the director. The director is appointed by the governor, subject to confirmation by the senate, and serves at the pleasure of the governor. The director shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040.

NEW SECTION.  Sec. 17   In addition to other powers and duties granted or transferred to the director, the director has the following powers and duties:
     (1) Supervise and administer the department in accordance with law;
     (2) Appoint personnel and prescribe their duties. Except as otherwise provided by law, personnel of the department are subject to chapter 41.06 RCW, the state civil service law;
     (3) 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, the state civil service law;
     (4) Enter into contracts on behalf of the department;
     (5) Adopt such rules as are necessary to carry out the powers, duties, and functions of the department, except where rule-making authority is otherwise granted by law to the personnel resources board;
     (6) 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;
     (7) Advise the governor and the legislature with respect to matters under the jurisdiction of the department;
     (8) Accept and expend grants, gifts, or other funds that are related to the purposes of the department;
     (9) Carry out the policies of the governor;
     (10) Create or abolish such administrative structures internal to the department as the director deems appropriate, except as otherwise specified by law; and
     (11) Establish advisory groups as may be necessary to carry out the purposes of the department.

NEW SECTION.  Sec. 18   This chapter must not be construed to interfere with the powers, duties, and authority of the Washington personnel resources board created in RCW 41.06.110.

NEW SECTION.  Sec. 19   A new section is added to chapter 41.06 RCW to read as follows:
     In addition to the exemptions under RCW 41.06.070, the provisions of this chapter do not apply in the department of human resources to the director, the director's personal secretary, the deputy director, all assistant directors and special assistants, and one confidential secretary for each of these officers.

NEW SECTION.  Sec. 20   (1)(a) All reports, documents, surveys, books, records, files, papers, or written material connected with the powers, duties, and functions transferred by sections 13 through 28 of this act must be delivered to the custody of the department of human resources. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed in connection with the powers, duties, and functions transferred by sections 13 through 28 of this act must be made available to the department of human resources. All funds, credits, or other assets held in connection with the powers, duties, and functions transferred by sections 13 through 28 of this act are assigned to the department of human resources.
     (b) Any appropriations made in connection with the powers, duties, and functions transferred by sections 13 through 28 of this act are, on the effective date of this section, transferred and credited to the department of human resources.
     (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (2) All employees of the department of retirement systems and the department of personnel are transferred to the jurisdiction of the department of human resources. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of human resources to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
     (3) All rules and all pending business before any agency of state government pertaining to the powers, duties, and functions transferred by sections 13 through 28 of this act are continued to be acted upon by the department of human resources. All existing contracts and obligations remain in full force and must be performed by the department of human resources.
     (4) The transfer of the powers, duties, functions, and personnel under this section does not affect the validity of any act performed before the effective date of this section.
     (5) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (6) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel resources board as provided by law.

Sec. 21   RCW 41.06.020 and 1993 c 281 s 19 are each amended to read as follows:
     Unless the context clearly indicates otherwise, the words used in this chapter have the meaning given in this section.
     (1) "Agency" means an office, department, board, commission, or other separate unit or division, however designated, of the state government and all personnel thereof; it includes any unit of state government established by law, the executive officer or members of which are either elected or appointed, upon which the statutes confer powers and impose duties in connection with operations of either a governmental or proprietary nature.
     (2) "Board" means the Washington personnel resources board established under the provisions of RCW 41.06.110, except that this definition does not apply to the words "board" or "boards" when used in RCW 41.06.070.
     (3) "Classified service" means all positions in the state service subject to the provisions of this chapter.
     (4) "Competitive service" means all positions in the classified service for which a competitive examination is required as a condition precedent to appointment.
     (5) "Comparable worth" means the provision of similar salaries for positions that require or impose similar responsibilities, judgments, knowledge, skills, and working conditions.
     (6) "Noncompetitive service" means all positions in the classified service for which a competitive examination is not required.
     (7) "Department" means an agency of government that has as its governing officer a person, or combination of persons such as a commission, board, or council, by law empowered to operate the agency responsible either to (a) no other public officer or (b) the governor.
     (8) "Career development" means the progressive development of employee capabilities to facilitate productivity, job satisfaction, and upward mobility through work assignments as well as education and training that are both state-sponsored and are achieved by individual employee efforts, all of which shall be consistent with the needs and obligations of the state and its agencies.
     (9) "Training" means activities designed to develop job-related knowledge and skills of employees.
     (10) "Director" means the director of ((personnel)) human resources appointed under ((the provisions of RCW 41.06.130)) section 16 of this act.
     (11) "Affirmative action" means a procedure by which racial minorities, women, persons in the protected age category, persons with disabilities, Vietnam-era veterans, and disabled veterans are provided with increased employment opportunities. It shall not mean any sort of quota system.
     (12) "Institutions of higher education" means the University of Washington, Washington State University, Central Washington University, Eastern Washington University, Western Washington University, The Evergreen State College, and the various state community colleges.
     (13) "Related boards" means the state board for community and technical colleges; and such other boards, councils, and commissions related to higher education as may be established.

Sec. 22   RCW 41.06.130 and 1993 c 281 s 26 are each amended to read as follows:
     ((The office of director of personnel is hereby established.
     (1) The director of personnel shall be appointed by the governor. The governor shall consult with, but shall not be obligated by recommendations of the board. The director's appointment shall be subject to confirmation by the senate.
     (2) The director of personnel shall serve at the pleasure of the governor.
     (3) The director of personnel shall direct and supervise all the department of personnel's administrative and technical activities in accordance with the provisions of this chapter and the rules adopted under it.))
     (1) The director of human resources shall prepare for consideration by the board proposed rules required by this chapter. ((The director's salary shall be fixed by the governor.
     (4)))(2) The director of ((personnel)) human resources may delegate to any agency the authority to perform administrative and technical personnel activities if the agency requests such authority and the director of ((personnel)) human resources is satisfied that the agency has the personnel management capabilities to effectively perform the delegated activities. The director of ((personnel)) human resources shall prescribe standards and guidelines for the performance of delegated activities. If the director of ((personnel)) human resources determines that an agency is not performing delegated activities within the prescribed standards and guidelines, the director shall withdraw the authority from the agency to perform such activities.

Sec. 23   RCW 41.50.010 and 1994 c 197 s 30 are each amended to read as follows:
     As used in this chapter, unless the context clearly indicates otherwise:
     (1) "Actuarial value" means the present value of a change in actuarial liability((;)).
     (2) "Department" means the department of ((retirement systems; and)) human resources.
     (3) "Director" means the director of the department of ((retirement systems)) human resources.

Sec. 24   RCW 41.54.010 and 1998 c 341 s 702 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Base salary" means salaries or wages earned by a member of a system during a payroll period for personal services and includes wages and salaries deferred under provisions of the United States internal revenue code, but shall exclude overtime payments, nonmoney maintenance compensation, and lump sum payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, any form of severance pay, any bonus for voluntary retirement, any other form of leave, or any similar lump sum payment.
     (2) "Department" means the department of ((retirement systems)) human resources.
     (3) "Director" means the director of the department of ((retirement systems)) human resources.
     (4) "Dual member" means a person who (a) is or becomes a member of a system on or after July 1, 1988, (b) has been a member of one or more other systems, and (c) has never been retired for service from a retirement system and is not receiving a disability retirement or disability leave benefit from any retirement system listed in RCW 41.50.030 or subsection (6) of this section.
     (5) "Service" means the same as it may be defined in each respective system. For the purposes of RCW 41.54.030, military service granted under RCW 41.40.170(3) or 43.43.260 may only be based on service accrued under chapter 41.40 or 43.43 RCW, respectively.
     (6) "System" means the retirement systems established under chapters 41.32, 41.40, 41.44, 41.35, and 43.43 RCW; plan 2 of the system established under chapter 41.26 RCW; and the city employee retirement systems for Seattle, Tacoma, and Spokane. The inclusion of an individual first class city system is subject to the procedure set forth in RCW 41.54.061.

Sec. 25   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)) human resources, (13) the department of corrections, ((and)) (14) the department of health, and (15) the department of financial institutions, 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. 26   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)) human resources, (13) the secretary of corrections, ((and)) (14) the secretary of health, and (15) the director of financial institutions.
     Such officers, except the secretary of transportation and the director of fish and wildlife, shall be appointed by the governor, with the consent of the senate, and hold office at the pleasure of the governor. The secretary of transportation shall be appointed by the transportation commission as prescribed by RCW 47.01.041. The director of fish and wildlife shall be appointed by the fish and wildlife commission as prescribed by RCW 77.04.055.

Sec. 27   RCW 42.17.2401 and 2001 c 36 s 1 and 2001 c 9 s 1 are each reenacted and 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 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 director of human resources, 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 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, salmon recovery funding 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. 28   RCW 43.33A.020 and 2002 c 303 s 1 are each amended to read as follows:
     There is hereby created the state investment board to consist of fifteen members to be appointed as provided in this section.
     (1) One member who is an active member of the public employees' retirement system and has been an active member for at least five years. This member shall be appointed by the governor, subject to confirmation by the senate, from a list of nominations submitted by organizations representing active members of the system. The initial term of appointment shall be one year.
     (2) One member who is an active member of the law enforcement officers' and fire fighters' retirement system and has been an active member for at least five years. This member shall be appointed by the governor, subject to confirmation by the senate, from a list of nominations submitted by organizations representing active members of the system. The initial term of appointment shall be two years.
     (3) One member who is an active member of the teachers' retirement system and has been an active member for at least five years. This member shall be appointed by the superintendent of public instruction subject to confirmation by the senate. The initial term of appointment shall be three years.
     (4) The state treasurer or the assistant state treasurer if designated by the state treasurer.
     (5) A member of the state house of representatives. This member shall be appointed by the speaker of the house of representatives.
     (6) A member of the state senate. This member shall be appointed by the president of the senate.
     (7) One member who is a retired member of a state retirement system shall be appointed by the governor, subject to confirmation by the senate. The initial term of appointment shall be three years.
     (8) The director of the department of labor and industries.
     (9) The director of the department of ((retirement systems)) human resources.
     (10) One member who is an active member of the school employees' retirement system and has at least five years of service credit. This member shall be appointed by the superintendent of public instruction subject to confirmation by the senate. The initial term of appointment shall be three years.
     (11) Five nonvoting members appointed by the state investment board who are considered experienced and qualified in the field of investments.
     The legislative members shall serve terms of two years. The initial legislative members appointed to the board shall be appointed no sooner than January 10, 1983. The position of a legislative member on the board shall become vacant at the end of that member's term on the board or whenever the member ceases to be a member of the senate or house of representatives from which the member was appointed.
     After the initial term of appointment, all other members of the state investment board, except ex officio members, shall serve terms of three years and shall hold office until successors are appointed. Members' terms, except for ex officio members, shall commence on January 1 of the year in which the appointments are made.
     Members may be reappointed for additional terms. Appointments for vacancies shall be made for the unexpired terms in the same manner as the original appointments. Any member may be removed from the board for cause by the member's respective appointing authority.

NEW SECTION.  Sec. 29   The director of personnel and the director of retirement systems shall, by December 1, 2003, jointly submit a plan to the governor for consolidation and smooth transition of the department of personnel and the department of retirement systems into the department of human resources. The plan shall include, but not be limited to, recommendations for any additional statutory changes necessary to implement the consolidated agency.

Sec. 30   RCW 47.64.011 and 1983 c 15 s 2 are each amended to read as follows:
     As used in this chapter, unless the context otherwise requires, the definitions in this section shall apply.
     (1) "Arbitration" means the procedure whereby the parties involved in an impasse submit their differences to a third party for a final and binding decision or as provided in this chapter.
     (2) "Arbitrator" means either a single arbitrator or a panel of three arbitrators as provided in RCW 47.64.240.
     (3) "Collective bargaining representative" means the persons designated by the secretary of transportation and employee organizations to be the exclusive representatives during collective bargaining negotiations.
     (4) "Department of transportation" means the department as defined in RCW 47.01.021.
     (5) "Ferry employee" means any employee of the marine transportation division of the department of transportation who is a member of a collective bargaining unit represented by a ferry employee organization and does not include an exempt employee pursuant to RCW 41.06.079.
     (6) "Ferry employee organization" means any labor organization recognized to represent a collective bargaining unit of ferry employees.
     (7) "Ferry system management" means those management personnel of the marine transportation division of the department of transportation who have been vested with the day-to-day management responsibilities of the Washington state ferry system by the transportation commission and who are not members of a collective bargaining unit represented by a ferry employee organization.
     (8) "Lockout" means the refusal of ferry system management to furnish work to ferry employees in an effort to get ferry employee organizations to make concessions during collective bargaining, grievance, or other labor relation negotiations. Curtailment of employment of ferry employees due to lack of work resulting from a strike or work stoppage, as defined in subsection (11) of this section, shall not be considered a lockout.
     (9) (("Marine employees' commission" means the commission created in RCW 47.64.280.
     (10))) "Office of financial management" means the office as created in RCW 43.41.050.
     (10) "Public employment relations commission" means the office as created in RCW 41.58.010.
     (11) "Strike or work stoppage" means a ferry employee's refusal, in concerted action with others, to report to duty, or his or her wilful absence from his or her position, or his or her stoppage or slowdown of work, or his or her abstinence in whole or in part from the full, faithful, and proper performance of the duties of employment, for the purpose of inducing, influencing, or coercing a change in conditions, compensation, rights, privileges, or obligations of his, her, or any other ferry employee's employment. A refusal, in good faith, to work under conditions which pose an endangerment to the health and safety of ferry employees or the public, as determined by the master of the vessel, shall not be considered a strike for the purposes of this chapter.
     (12) "Transportation commission" means the commission as defined in RCW 47.01.021.

Sec. 31   RCW 47.64.090 and 1983 c 15 s 27 are each amended to read as follows:
     If any party assumes the operation and maintenance of any ferry or ferry system by rent, lease, or charter from the department of transportation, such party shall assume and be bound by all the provisions herein and any agreement or contract for such operation of any ferry or ferry system entered into by the department shall provide that the wages to be paid, hours of employment, working conditions and seniority rights of employees will be established by the ((marine employees')) public employment relations commission in accordance with the terms and provisions of this chapter and it shall further provide that all labor disputes shall be adjudicated in accordance with chapter 47.64 RCW.

Sec. 32   RCW 47.64.190 and 1983 c 15 s 10 are each amended to read as follows:
     (1) No negotiated agreement or arbitration order may become effective and in force until five calendar days after an agreement has been negotiated or an arbitration order entered for each and every ferry employee bargaining unit.
     (2) Upon the conclusion of negotiations or arbitration procedures with all ferry employee bargaining units, the secretary shall ascertain whether the cumulative fiscal requirements of all such agreements and arbitration orders are within the limitations imposed by RCW 47.64.180.
     (3) If the secretary finds that budgetary or fare restrictions will be exceeded, he shall, within five calendar days of completion of negotiations or arbitration with the last bargaining unit to conclude an agreement, submit all agreements and arbitration awards to the ((marine employees')) public employment relations commission for a binding determination whether the limitations of RCW 47.64.180 have been exceeded.
     (4) The ((marine employees')) public employment relations commission shall review all negotiated agreements and arbitration orders, and may take written or oral testimony from the parties, regarding compliance with RCW 47.64.180. Within fifteen calendar days of receiving the secretary's request for review, the commission shall determine by a majority vote of its members whether or not the cumulative effect of all such agreements and orders exceeds the limitations of RCW 47.64.180.
     (5) If the ((marine employees')) public employment relations commission determines that the limitations of RCW 47.64.180 would be exceeded if all agreements and arbitration orders were given full force and effect, it shall order the minimum percentage reduction in straight time wage provisions applied equally across the board to all agreements or arbitration orders which will result in compliance with RCW 47.64.180.
     (6) Whenever the secretary requests a determination by the ((marine employees')) public employment relations commission pursuant to this section, the effect of all agreements and arbitration orders shall be stayed, pending the commission's final determination.

Sec. 33   RCW 47.64.210 and 1983 c 15 s 12 are each amended to read as follows:
     In the absence of an impasse agreement between the parties or the failure of either party to utilize its procedures by August 1st in each odd-numbered year, the ((marine employees')) public employment relations commission shall, upon the request of either party, appoint an impartial and disinterested person to act as mediator pursuant to RCW 47.64.280. It is the function of the mediator to bring the parties together to effectuate a settlement of the dispute, but the mediator shall not compel the parties to agree.

Sec. 34   RCW 47.64.220 and 1999 c 256 s 1 are each amended to read as follows:
     (1) Prior to collective bargaining, the ((marine employees')) public employment relations commission shall conduct a salary survey. The results of the survey shall be published in a report which shall be a public document comparing wages, hours, employee benefits, and conditions of employment of involved ferry employees with those of public and private sector employees in states along the west coast of the United States, including Alaska, and in British Columbia doing directly comparable but not necessarily identical work, giving consideration to factors peculiar to the area and the classifications involved. Such survey report shall be for the purpose of disclosing generally prevailing levels of compensation, benefits, and conditions of employment. It shall be used to guide generally but not to define or limit collective bargaining between the parties. The commission shall make such other findings of fact as the parties may request during bargaining or impasse.
     (2) Except as provided in subsection (3) of this section, salary and employee benefit information collected from private employers that identifies a specific employer with the salary and employee benefit rates which that employer pays to its employees is not subject to public disclosure under chapter 42.17 RCW.
     (3) A person or entity, having reason to believe that the salary survey results are inaccurate, may submit a petition to the state auditor requesting an audit of the data upon which the salary survey results are based. The state auditor shall review and analyze all data collected for the salary survey, including proprietary information, but is prohibited from disclosing the salary survey data to any other person or entity, except by court order.

Sec. 35   RCW 47.64.240 and 1989 c 327 s 3 are each amended to read as follows:
     (1) If impasse persists fourteen days after the mediator has been appointed, or beyond any other date mutually agreed to by the parties, all impasse items shall be submitted to arbitration pursuant to this section, and that arbitration shall be binding upon the parties.
     (2) Each party shall submit to the other within four days of request, a final offer on the impasse items with proof of service of a copy upon the other party. Each party shall also submit a copy of a draft of the proposed collective bargaining agreement to the extent to which agreement has been reached and the name of its selected arbitrator. The parties may continue to negotiate all offers until an agreement is reached or a decision rendered by the panel of arbitrators.
     As an alternative procedure, the two parties may agree to submit the dispute to a single arbitrator. If the parties cannot agree on the arbitrator within four days, the selection shall be made pursuant to subsection (5) of this section. The full costs of arbitration under this provision shall be shared equally by the parties to the dispute.
     (3) The submission of the impasse items to the arbitrators shall be limited to those issues upon which the parties have not reached agreement. With respect to each such item, the arbitration panel award shall be restricted to the final offers on each impasse item submitted by the parties to the arbitration board on each impasse item.
     (4) The panel of arbitrators shall consist of three members appointed in the following manner:
     (a) One member shall be appointed by the secretary of transportation;
     (b) One member shall be appointed by the ferry employee organization;
     (c) One member shall be appointed mutually by the members appointed by the secretary of transportation and the employee organization. The last member appointed shall be the chairman of the panel of arbitrators. No member appointed may be an employee of the parties;
     (d) Ferry system management and the employee organization shall each pay the fees and expenses incurred by the arbitrator each selected. The fee and expenses of the chairman of the panel shall be shared equally by each party.
     (5) If the third member has not been selected within four days of notification as provided in subsection (2) of this section, a list of seven arbitrators shall be submitted to the parties by the ((marine employees')) public employment relations commission. The two arbitrators selected by ferry system management and the ferry employee organization shall determine by lot which arbitrator shall remove the first name from the list submitted by the ((marine employees')) public employment relations commission. The second arbitrator and the first arbitrator shall alternately remove one additional name until only one name remains. The person whose name remains shall become the chairman of the panel of arbitrators and shall call a meeting within thirty days, or at such time mutually agreed to by the parties, at a location designated by him or her. In lieu of a list of seven nominees for the third member being submitted by the ((marine employees')) public employment relations commission, the parties may mutually agree to have either the Federal Mediation and Conciliation Service or the American Arbitration Association submit a list of seven nominees.
     (6) If a vacancy occurs on the panel of arbitrators, the selection for replacement of that member shall be in the same manner and within the same time limits as the original member was chosen. No final award under subsection (3) of this section may be made by the panel until three arbitrators have been chosen.
     (7) The panel of arbitrators shall at no time engage in an effort to mediate or otherwise settle the dispute in any manner other than that prescribed in this section.
     (8) From the time of appointment until such time as the panel of arbitrators makes its final determination, there shall be no discussion concerning recommendations for settlement of the dispute by the members of the panel of arbitrators with parties other than those who are direct parties to the dispute. The panel of arbitrators may conduct formal or informal hearings to discuss offers submitted by both parties.
     (9) The panel of arbitrators shall consider, in addition to any other relevant factors, the following factors:
     (a) Past collective bargaining contracts between the parties including the bargaining that led up to the contracts;
     (b) Comparison of wages, hours, employee benefits, and conditions of employment of the involved ferry employees with those of public and private sector employees in states along the west coast of the United States, including Alaska, and in British Columbia doing directly comparable but not necessarily identical work, giving consideration to factors peculiar to the area and the classifications involved;
     (c) The interests and welfare of the public, the ability of the ferry system to finance economic adjustments, and the effect of the adjustments on the normal standard of services;
     (d) The right of the legislature to appropriate and to limit funds for the conduct of the ferry system; and
     (e) The limitations on ferry toll increases and operating subsidies as may be imposed by the legislature.
     (10) The chairman of the panel of arbitrators may hold hearings and administer oaths, examine witnesses and documents, take testimony and receive evidence, issue subpoenas to compel the attendance of witnesses and the production of records, and delegate such powers to other members of the panel of arbitrators. The chairman of the panel of arbitrators may petition the superior court in Thurston county, or any county in which any hearing is held, to enforce the order of the chairman compelling the attendance of witnesses and the production of records.
     (11) A majority of the panel of arbitrators shall within thirty days after its first meeting select the most reasonable offer, in its judgment, of the final offers on each impasse item submitted by the parties.
     (12) The selections by the panel of arbitrators and items agreed upon by the ferry system management and the employee organization shall be deemed to be the collective bargaining agreement between the parties.
     (13) The determination of the panel of arbitrators shall be by majority vote and shall be final and binding, subject to RCW 47.64.180 and 47.64.190. The panel of arbitrators shall give written explanation for its selection and inform the parties of its decision.

Sec. 36   RCW 47.64.280 and 1984 c 287 s 95 are each amended to read as follows:
     (1) ((There is created the marine employees' commission. The governor shall appoint the commission with the consent of the senate. The commission shall consist of three members: One member to be appointed from labor, one member from industry, and one member from the public who has significant knowledge of maritime affairs. The public member shall be chairman of the commission. One of the original members shall be appointed for a term of three years, one for a term of four years, and one for a term of five years. Their successors shall be appointed for terms of five years each, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the member whom he succeeds. Commission members are eligible for reappointment. Any member of the commission may be removed by the governor, upon notice and hearing, for neglect of duty or malfeasance in office, but for no other cause. Commission members are not eligible for state retirement under chapter 41.40 RCW by virtue of their service on the commission. Members of the commission shall be compensated in accordance with RCW 43.03.250 and shall receive reimbursement for official travel and other expenses at the same rate and on the same terms as provided for the transportation commission by RCW 47.01.061. The payments shall be made from the Puget Sound ferry operations account.
     (2))) The ((marine employees')) public employment relations commission shall: (a) Adjust all complaints, grievances, and disputes between labor and management arising out of the operation of the ferry system as provided in RCW 47.64.150; (b) provide for impasse mediation as required in RCW 47.64.210; (c) conduct fact-finding and provide salary surveys as required in RCW 47.64.220; and (d) provide for the selection of an impartial arbitrator as required in RCW 47.64.240(5).
     (((3))) (2) In adjudicating all complaints, grievances, and disputes, the party claiming labor disputes shall, in writing, notify the ((marine employees')) public employment relations commission, which shall make careful inquiry into the cause thereof and issue an order advising the ferry employee, or the ferry employee organization representing him or her, and the department of transportation, as to the decision of the public employment relations commission.
     The parties are entitled to offer evidence relating to disputes at all hearings conducted by the public employment relations commission. The orders and awards of the public employment relations commission are final and binding upon any ferry employee or employees or their representative affected thereby and upon the department.
     The public employment relations commission shall adopt rules of procedure under chapter 34.05 RCW.
     The public employment relations commission has the authority to subpoena any ferry employee or employees, or their representatives, and any member or representative of the department, and any witnesses. The public employment relations commission may require attendance of witnesses and the production of all pertinent records at any hearings held by the public employment relations commission. The subpoenas of the public employment relations commission are enforceable by order of any superior court in the state of Washington for the county within which the proceeding may be pending. The public employment relations commission may hire staff as necessary, appoint consultants, enter into contracts, and conduct studies as reasonably necessary to carry out this chapter.

Sec. 37   RCW 41.58.020 and 1993 c 379 s 303 are each amended to read as follows:
     (1) It shall be the duty of the commission, in order to prevent or minimize interruptions growing out of labor disputes, to assist employers and employees to settle such disputes through mediation and fact-finding.
     (2) The commission, through the director, may proffer its services in any labor dispute arising under a collective bargaining statute administered by the commission, either upon its own motion or upon the request of one or more of the parties to the dispute, whenever in its judgment such dispute threatens to cause a substantial disruption to the public welfare.
     (3) If the director is not able to bring the parties to agreement by mediation within a reasonable time, the director shall seek to induce the parties to voluntarily seek other means of settling the dispute without resort to strike or other coercion, including submission to the employees in the bargaining unit of the employer's last offer of settlement for approval or rejection in a secret ballot. The failure or refusal of either party to agree to any procedure suggested by the director shall not be deemed a violation of any duty or obligation imposed by this chapter.
     (4) Final adjustment by a method agreed upon by the parties is declared to be the desirable method for settlement of grievance disputes arising over the application or interpretation of an existing collective bargaining agreement. The commission is directed to make its mediation and fact-finding services available in the settlement of such grievance disputes only as a last resort.
     (5) Notwithstanding the requirements of this chapter, settlements of grievance disputes involving employees of the marine transportation division of the department of transportation shall be administered in accordance with the requirements of chapter 47.64 RCW.

NEW SECTION.  Sec. 38   (1) The marine employees' commission is hereby abolished and its powers, duties, and functions are hereby transferred to the public employment relations commission. All references to the commissioners or the marine employees' commission in the Revised Code of Washington shall be construed to mean the director or the public employment relations commission.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the marine employees' commission shall be delivered to the custody of the public employment relations commission. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the marine employees' commission shall be made available to the public employment relations commission. All funds, credits, or other assets held by the marine employees' commission shall be assigned to the public employment relations commission.
     (b) Any appropriations made to the marine employees' commission shall, on the effective date of this section, be transferred and credited to the public employment relations commission.
     (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) All rules and all pending business before the marine employees' commission shall be continued and acted upon by the public employment relations commission. All existing contracts and obligations shall remain in full force and shall be performed by the public employment relations commission.
     (4) The transfer of the powers, duties, functions, and personnel of the marine employees' commission shall not affect the validity of any act performed before the effective date of this section.
     (5) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (6) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel resources board as provided by law.

NEW SECTION.  Sec. 39   The public employment relations commission shall report by September 1, 2004, to the house of representatives appropriations committee, the senate ways and means committee and the transportation committees in both houses on the progress it has made in subsuming the responsibilities and duties of the marine employees' commission. This report shall include the process used to transfer the functions from the marine employees' commission to the public employment relations commission, any difficulties encountered in the transfer, how those difficulties were overcome, and whether any legislation may be needed to fully achieve the transfer.

NEW SECTION.  Sec. 40   Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Department" means the department of gaming.
     (2) "Director" means the director of gaming.

NEW SECTION.  Sec. 41   There is created a department of state government to be known as the department of gaming. The department is vested with all powers and duties transferred to it under this chapter and such other powers and duties as may be authorized by law.

NEW SECTION.  Sec. 42   The executive head and appointing authority of the department is the director. The director shall be appointed by the governor, with the consent of the senate, and shall serve at the pleasure of the governor. The director shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040. If a vacancy occurs in the position while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate.

NEW SECTION.  Sec. 43   It is the intent of the legislature wherever possible to place the internal affairs of the department under the control of the director in order that the director may institute therein the flexible, alert, and intelligent management of its business that changing contemporary circumstances require. Therefore, whenever the director's authority is not specifically limited by law, the director has complete charge and supervisory powers over the department. The director may create such administrative structures as the director considers appropriate, except as otherwise specified by law. The director may employ such assistants and personnel as necessary for the general administration of the department. This employment shall be in accordance with the state civil service law, chapter 41.06 RCW, except as otherwise provided.

NEW SECTION.  Sec. 44   Any power or duty vested in or transferred to the director by law or executive order may be delegated by the director to the deputy director or to any other assistant or subordinate; but the director shall be responsible for the official acts of the officers and employees of the department.

NEW SECTION.  Sec. 45   A new section is added to chapter 41.06 RCW to read as follows:
     In addition to the exemptions under RCW 41.06.070, the provisions of this chapter shall not apply in the department of gaming to the director, the director's personal secretary, the deputy director, all division directors and assistant directors, and one confidential secretary for each of these officers.

Sec. 46   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 gaming, 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. 47   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 gaming.
     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.

NEW SECTION.  Sec. 48   (1) The gambling commission and the horse racing commission are hereby abolished and their powers, duties, and functions are hereby transferred to the department of gaming. All references to the executive directors of the gambling commission or the horse racing commission or the gambling commission or the horse racing commission in the Revised Code of Washington shall be construed to mean the director or the department of gaming.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the gambling commission or the horse racing commission shall be delivered to the custody of the department of gaming. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the gambling commission or the horse racing commission shall be made available to the department of gaming. All funds, credits, or other assets held by the gambling commission or the horse racing commission shall be assigned to the department of gaming.
     (b) Any appropriations made to the gambling commission or the horse racing commission shall, on the effective date of this section, be transferred and credited to the department of gaming.
     (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) All employees of the gambling commission and the horse racing commission are transferred to the jurisdiction of the department of gaming. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of gaming to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
     (4) All rules and all pending business before the gambling commission and the horse racing commission shall be continued and acted upon by the department of gaming. All existing contracts and obligations shall remain in full force and shall be performed by the department of gaming.
     (5) The transfer of the powers, duties, functions, and personnel of the gambling commission and the horse racing commission shall not affect the validity of any act performed before the effective date of this section.
     (6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (7) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel resources board as provided by law.

Sec. 49   RCW 9.46.0201 and 1987 c 4 s 2 are each amended to read as follows:
     "Amusement game," as used in this chapter, means a game played for entertainment in which:
     (1) The contestant actively participates;
     (2) The outcome depends in a material degree upon the skill of the contestant;
     (3) Only merchandise prizes are awarded;
     (4) The outcome is not in the control of the operator;
     (5) The wagers are placed, the winners are determined, and a distribution of prizes or property is made in the presence of all persons placing wagers at such game; and
     (6) Said game is conducted or operated by any agricultural fair, person, association, or organization in such manner and at such locations as may be authorized by rules ((and regulations)) adopted by the ((commission)) department pursuant to this chapter ((as now or hereafter amended)).
     Cake walks as commonly known and fish ponds as commonly known shall be treated as amusement games for all purposes under this chapter.

Sec. 50   RCW 9.46.0205 and 2002 c 369 s 1 are each amended to read as follows:
     "Bingo," as used in this chapter, means a game conducted only in the county within which the organization is principally located in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random and in which no cards are sold except at the time and place of said game, when said game is conducted by a bona fide charitable or nonprofit organization, or if an agricultural fair authorized under chapters 15.76 and 36.37 RCW, which does not conduct bingo on more than twelve consecutive days in any calendar year, and except in the case of any agricultural fair as authorized under chapters 15.76 and 36.37 RCW, no person other than a bona fide member or an employee of said organization takes any part in the management or operation of said game, and no person who takes any part in the management or operation of said game takes any part in the management or operation of any game conducted by any other organization or any other branch of the same organization, unless approved by the ((commission)) department, and no part of the proceeds thereof inure to the benefit of any person other than the organization conducting said game. For the purposes of this section, the organization shall be deemed to be principally located in the county within which it has its primary business office. If the organization has no business office, the organization shall be deemed to be located in the county of principal residence of its chief executive officer: PROVIDED, That any organization which is conducting any licensed and established bingo game in any locale as of January 1, 1981, shall be exempt from the requirement that such game be conducted in the county in which the organization is principally located.

Sec. 51   RCW 9.46.0209 and 2000 c 233 s 1 are each amended to read as follows:
     "Bona fide charitable or nonprofit organization," as used in this chapter, means: (1) Any organization duly existing under the provisions of chapter 24.12, 24.20, or 24.28 RCW, any agricultural fair authorized under the provisions of chapters 15.76 or 36.37 RCW, or any nonprofit corporation duly existing under the provisions of chapter 24.03 RCW for charitable, benevolent, eleemosynary, educational, civic, patriotic, political, social, fraternal, athletic or agricultural purposes only, or any nonprofit organization, whether incorporated or otherwise, when found by the ((commission)) department to be organized and operating for one or more of the aforesaid purposes only, all of which in the opinion of the ((commission)) department have been organized and are operated primarily for purposes other than the operation of gambling activities authorized under this chapter; or (2) any corporation which has been incorporated under Title 36 U.S.C. and whose principal purposes are to furnish volunteer aid to members of the armed forces of the United States and also to carry on a system of national and international relief and to apply the same in mitigating the sufferings caused by pestilence, famine, fire, floods, and other national calamities and to devise and carry on measures for preventing the same. Such an organization must have been organized and continuously operating for at least twelve calendar months immediately preceding making application for any license to operate a gambling activity, or the operation of any gambling activity authorized by this chapter for which no license is required. It must have not less than fifteen bona fide active members each with the right to an equal vote in the election of the officers, or board members, if any, who determine the policies of the organization in order to receive a gambling license. An organization must demonstrate to the ((commission)) department that it has made significant progress toward the accomplishment of the purposes of the organization during the twelve consecutive month period preceding the date of application for a license or license renewal. The fact that contributions to an organization do not qualify for charitable contribution deduction purposes or that the organization is not otherwise exempt from payment of federal income taxes pursuant to the internal revenue code of 1954, as amended, shall constitute prima facie evidence that the organization is not a bona fide charitable or nonprofit organization for the purposes of this section.
     Any person, association or organization which pays its employees, including members, compensation other than is reasonable therefor under the local prevailing wage scale shall be deemed paying compensation based in part or whole upon receipts relating to gambling activities authorized under this chapter and shall not be a bona fide charitable or nonprofit organization for the purposes of this chapter.
     For the purposes of RCW 9.46.0315 and 9.46.110, a bona fide nonprofit organization also includes a credit union organized and operating under state or federal law. All revenue less prizes and expenses received from raffles conducted by credit unions must be devoted to purposes authorized under this section for charitable and nonprofit organizations.

Sec. 52   RCW 9.46.0217 and 1994 c 120 s 1 are each amended to read as follows:
     "Commercial stimulant," as used in this chapter, means an activity is operated as a commercial stimulant, for the purposes of this chapter, only when it is an activity operated in connection with an established business, with the purpose of increasing the volume of sales of food or drink for consumption on that business premises. The ((commission)) department may by rule establish guidelines and criteria for applying this definition to its applicants and licensees for gambling activities authorized by this chapter as commercial stimulants.

Sec. 53   RCW 9.46.0233 and 2000 c 178 s 1 are each amended to read as follows:
     (1) "Fund raising event," as used in this chapter, means a fund raising event conducted during any seventy-two consecutive hours but exceeding twenty-four consecutive hours and not more than once in any calendar year or a fund raising event conducted not more than twice each calendar year for not more than twenty-four consecutive hours each time by a bona fide charitable or nonprofit organization as defined in RCW 9.46.0209 other than any agricultural fair referred to thereunder, upon authorization therefor by the ((commission)) department, which the legislature hereby authorizes to issue a license therefor, with or without fee, permitting the following activities, or any of them, during such event: Bingo, amusement games, contests of chance, lotteries, and raffles. However: (a) Gross wagers and bets or revenue generated from participants under subsection (2) of this section received by the organization less the amount of money paid by the organization as winnings, or as payment for services or equipment rental under subsection (2) of this section, and for the purchase cost of prizes given as winnings do not exceed ten thousand dollars during the total calendar days of such fund raising event in the calendar year; (b) such activities shall not include any mechanical gambling or lottery device activated by the insertion of a coin or by the insertion of any object purchased by any person taking a chance by gambling in respect to the device; (c) only bona fide members of the organization who are not paid for such service or persons licensed or approved by the ((commission)) department under subsection (2) of this section shall participate in the management or operation of the activities, and all income therefrom, after deducting the cost of prizes and other expenses, shall be devoted solely to the lawful purposes of the organization; and (d) such organization shall notify the appropriate local law enforcement agency of the time and place where such activities shall be conducted. The ((commission)) department shall require an annual information report setting forth in detail the expenses incurred and the revenue received relative to the activities permitted.
     (2) Bona fide charitable or nonprofit organizations may hire a person or vendor, who is licensed or approved by the ((commission)) department, to organize and conduct a fund raising event on behalf of the sponsoring organization subject to the following restrictions:
     (a) The person or vendor may not provide the facility for the event;
     (b) The person or vendor may use paid personnel and may be compensated by a fixed fee determined prior to the event, but may not share in the proceeds of the event;
     (c) All wagers must be made with scrip or chips having no cash value. At the end of the event, participants may be given the opportunity to purchase or otherwise redeem their scrip or chips for merchandise prizes;
     (d) The value of all purchased prizes must not exceed ten percent of the gross revenue from the event; and
     (e) Only members and guests of the sponsoring organization may participate in the event.
     (3) Bona fide charitable or nonprofit organizations holding a license to conduct a fund raising event may join together to jointly conduct a fund raising event if:
     (a) Approval to do so is received from the ((commission)) department; and
     (b) The method of dividing the income and expenditures and the method of recording and handling of funds are disclosed to the ((commission)) department in the application for approval of the joint fund raising event and are approved by the ((commission)) department.
     The gross wagers and bets or revenue generated from participants under subsection (2) of this section received by the organizations less the amount of money paid by the organizations as winnings, or as payment for services or equipment rental under subsection (2) of this section, and for the purchase costs of prizes given as winnings may not exceed ten thousand dollars during the total calendar days of such event. The net receipts each organization receives shall count against the organization's annual limit stated in this subsection.
     A joint fund raising event shall count against only the lead organization or organizations receiving fifty percent or more of the net receipts for the purposes of the number of such events an organization may conduct each year.
     The ((commission)) department may issue a joint license for a joint fund raising event and charge a license fee for such license according to a schedule of fees adopted by the ((commission)) department which reflects the added cost to the ((commission)) department of licensing more than one licensee for the event.

Sec. 54   RCW 9.46.0261 and 1987 c 4 s 16 are each amended to read as follows:
     "Member" and "bona fide member," as used in this chapter, mean a person accepted for membership in an organization eligible to be licensed by the ((commission)) department under this chapter upon application, with such action being recorded in the official minutes of a regular meeting or who has held full and regular membership status in the organization for a period of not less than twelve consecutive months prior to participating in the management or operation of any gambling activity. Such membership must in no way be dependent upon, or in any way related to, the payment of consideration to participate in any gambling activity.
     Member or bona fide member shall include only members of an organization's specific chapter or unit licensed by the ((commission)) department or otherwise actively conducting the gambling activity: PROVIDED, That:
     (1) Members of chapters or local units of a state, regional or national organization may be considered members of the parent organization for the purpose of a gambling activity conducted by the parent organization, if the rules of the parent organization so permit;
     (2) Members of a bona fide auxiliary to a principal organization may be considered members of the principal organization for the purpose of a gambling activity conducted by the principal organization. Members of the principal organization may also be considered members of its auxiliary for the purpose of a gambling activity conducted by the auxiliary; and
     (3) Members of any chapter or local unit within the jurisdiction of the next higher level of the parent organization, and members of a bona fide auxiliary to that chapter or unit, may assist any other chapter or local unit of that same organization licensed by the ((commission)) department in the conduct of gambling activities.
     No person shall be a member of any organization if that person's primary purpose for membership is to become, or continue to be, a participant in, or an operator or manager of, any gambling activity or activities.

Sec. 55   RCW 9.46.0273 and 1987 c 4 s 19 are each amended to read as follows:
     "Punch boards" and "pull-tabs," as used in this chapter, shall be given their usual and ordinary meaning as of July 16, 1973, except that such definition may be revised by the ((commission)) department pursuant to rules ((and regulations promulgated)) adopted pursuant to this chapter.

Sec. 56   RCW 9.46.0282 and 1997 c 118 s 1 are each amended to read as follows:
     "Social card game" as used in this chapter means a card game that constitutes gambling and is authorized by the ((commission)) department under RCW 9.46.070. Authorized card games may include a house-banked or a player-funded banked card game. No one may participate in the card game or have an interest in the proceeds of the card game who is not a player or a person licensed by the ((commission)) department to participate in social card games. There shall be two or more participants in the card game who are players or persons licensed by the ((commission)) department. The card game must be played in accordance with the rules adopted by the ((commission)) department under RCW 9.46.070, which shall include but not be limited to rules for the collection of fees, limitation of wagers, and management of player funds. The number of tables authorized shall be set by the ((commission)) department but shall not exceed a total of fifteen separate tables per establishment.

Sec. 57   RCW 9.46.0311 and 1987 c 4 s 26 are each amended to read as follows:
     The legislature hereby authorizes bona fide charitable or nonprofit organizations to conduct bingo games, raffles, amusement games, and fund raising events, and to utilize punch boards and pull-tabs and to allow their premises and facilities to be used by only members, their guests, and members of a chapter or unit organized under the same state, regional, or national charter or constitution, to play social card games authorized by the ((commission)) department, when licensed, conducted or operated pursuant to the provisions of this chapter and rules ((and regulations)) adopted pursuant thereto.

Sec. 58   RCW 9.46.0315 and 1991 c 192 s 4 are each amended to read as follows:
     Bona fide charitable or bona fide nonprofit organizations organized primarily for purposes other than the conduct of raffles, are hereby authorized to conduct raffles without obtaining a license to do so from the ((commission)) department when such raffles are held in accordance with all other requirements of this chapter, other applicable laws, and rules of the ((commission)) department; when gross revenues from all such raffles held by the organization during the calendar year do not exceed five thousand dollars; and when tickets to such raffles are sold only to, and winners are determined only from among, the regular members of the organization conducting the raffle. The organization may provide unopened containers of beverages containing alcohol as raffle prizes if the appropriate permit has been obtained from the liquor control board: PROVIDED, That the term members for this purpose shall mean only those persons who have become members prior to the commencement of the raffle and whose qualification for membership was not dependent upon, or in any way related to, the purchase of a ticket, or tickets, for such raffles.

Sec. 59   RCW 9.46.0321 and 1987 c 4 s 28 are each amended to read as follows:
     Bona fide charitable or bona fide nonprofit organizations organized primarily for purposes other than the conduct of such activities are hereby authorized to conduct bingo, raffles, and amusement games, without obtaining a license to do so from the ((commission)) department but only when:
     (1) Such activities are held in accordance with all other requirements of this chapter, other applicable laws, and rules of the ((commission)) department;
     (2) Said activities are, alone or in any combination, conducted no more than twice each calendar year and over a period of no more than twelve consecutive days each time, notwithstanding the limitations of RCW 9.46.0205: PROVIDED, That a raffle conducted under this subsection may be conducted for a period longer than twelve days;
     (3) Only bona fide members of that organization, who are not paid for such services, participate in the management or operation of the activities;
     (4) Gross revenues to the organization from all the activities together do not exceed five thousand dollars during any calendar year;
     (5) All revenue therefrom, after deducting the cost of prizes and other expenses of the activity, is devoted solely to the purposes for which the organization qualifies as a bona fide charitable or nonprofit organization;
     (6) The organization gives notice at least five days in advance of the conduct of any of the activities to the local police agency of the jurisdiction within which the activities are to be conducted of the organization's intent to conduct the activities, the location of the activities, and the date or dates they will be conducted; and
     (7) The organization conducting the activities maintains records for a period of one year from the date of the event which accurately show at a minimum the gross revenue from each activity, details of the expenses of conducting the activities, and details of the uses to which the gross revenue therefrom is put.

Sec. 60   RCW 9.46.0331 and 1991 c 287 s 1 are each amended to read as follows:
     The legislature hereby authorizes any person to conduct or operate amusement games when licensed and operated pursuant to the provisions of this chapter and rules ((and regulations)) adopted by the ((commission)) department at such locations as the ((commission)) department may authorize. The rules shall provide for at least the following:
     (1) Persons other than bona fide charitable or bona fide nonprofit organizations shall conduct amusement games only after obtaining a special amusement game license from the ((commission)) department.
     (2) Amusement games may be conducted under such a license only as a part of, and upon the site of:
     (a) Any agricultural fair as authorized under chapter 15.76 or 36.37 RCW; or
     (b) A civic center of a county, city, or town; or
     (c) A world's fair or similar exposition that is approved by the bureau of international expositions at Paris, France; or
     (d) A community-wide civic festival held not more than once annually and sponsored or approved by the city, town, or county in which it is held; or
     (e) A commercial exposition organized and sponsored by an organization or association representing the retail sales and service operators conducting business in a shopping center or other commercial area developed and operated for retail sales and service, but only upon a parking lot or similar area located in said shopping center or commercial area for a period of no more than seventeen consecutive days by any licensee during any calendar year; or
     (f) An amusement park. An amusement park is a group of activities, at a permanent location, to which people go to be entertained through a combination of various mechanical or aquatic rides, theatrical productions, motion picture, and/or slide show presentations with food and drink service. The amusement park must include at least five different mechanical, or aquatic rides, three additional activities, and the gross receipts must be primarily from these amusement activities; or
     (g) Within a regional shopping center. A regional shopping center is a shopping center developed and operated for retail sales and service by retail sales and service operators and consisting of more than six hundred thousand gross square feet not including parking areas. Amusement games conducted as a part of, and upon the site of, a regional shopping center shall not be subject to the prohibition on revenue sharing set forth in RCW 9.46.120(2); or
     (h) A location that possesses a valid license from the Washington state liquor (([control])) control board and prohibits minors on their premises; or
     (i) Movie theaters, bowling alleys, miniature golf course facilities, and amusement centers. For the purposes of this section an amusement center shall be defined as a permanent location whose primary source of income is from the operation of ten or more amusement devices; or
     (j) Any business whose primary activity is to provide food service for on premises consumption and who offers family entertainment which includes at least three of the following activities: Amusement devices; theatrical productions; mechanical rides; motion pictures; and slide show presentations.
     (3) No amusement games may be conducted in any location except in conformance with local zoning, fire, health, and similar regulations. In no event may the licensee conduct any amusement games at any of the locations set out in subsection (2) of this section without first having obtained the written permission to do so from the person or organization owning the premises or an authorized agent thereof, and from the persons sponsoring the fair, exhibition, commercial exhibition, or festival, or from the city or town operating the civic center, in connection with which the games are to be operated.
     (4) In no event may a licensee conduct any amusement games at the location described in subsection (2)(g) of this section, without, at the location of such games, providing adult supervision during all hours the licensee is open for business at such location, prohibiting school-age minors from entry during school hours, maintaining full-time personnel whose responsibilities include maintaining security and daily machine maintenance, and providing for hours for the close of business at such location that are no later than 10:00 p.m. on Fridays and Saturdays and on all other days that are the same as those of the regional shopping center in which the licensee is located.
     (5) In no event may a licensee conduct any amusement game at a location described in subsection (2)(i) or (j) of this section, without, at the location of such games, providing adult supervision during all hours the licensee is open for business at such location, prohibiting school-age minors from playing licensed amusement games during school hours, maintaining full-time personnel whose responsibilities include maintaining security and daily machine maintenance, and prohibiting minors from playing the amusement games after 10:00 p.m. on any day.

Sec. 61   RCW 9.46.0335 and 1987 c 4 s 31 are each amended to read as follows:
     The legislature hereby authorizes any person, association, or organization to conduct sports pools without a license to do so from the ((commission)) department but only when the outcome of which is dependent upon the score, or scores, of a certain athletic contest and which is conducted only in the following manner:
     (1) A board or piece of paper is divided into one hundred equal squares, each of which constitutes a chance to win in the sports pool and each of which is offered directly to prospective contestants at one dollar or less;
     (2) The purchaser of each chance or square signs his or her name on the face of each square or chance he or she purchases; and
     (3) At some time not later than prior to the start of the subject athletic contest the pool is closed and no further chances in the pool are sold;
     (4) After the pool is closed a prospective score is assigned by random drawing to each square;
     (5) All money paid by entrants to enter the pool less taxes is paid out as the prize or prizes to those persons holding squares assigned the winning score or scores from the subject athletic contest;
     (6) The sports pool board is available for inspection by any person purchasing a chance thereon, the ((commission)) department, or by any law enforcement agency upon demand at all times prior to the payment of the prize;
     (7) The person or organization conducting the pool is conducting no other sports pool on the same athletic event; and
     (8) The sports pool conforms to any rules ((and regulations)) of the ((commission)) department applicable thereto.

Sec. 62   RCW 9.46.0345 and 1987 c 4 s 33 are each amended to read as follows:
     The legislature hereby authorizes bowling establishments to conduct, without the necessity of obtaining a permit or license to do so, as a commercial stimulant, a bowling activity which permits bowlers to purchase tickets from the establishment for a predetermined and posted amount of money, which tickets are then selected by the luck of the draw and the holder of the matching ticket so drawn has an opportunity to bowl a strike and if successful receives a predetermined and posted monetary prize: PROVIDED, That all sums collected by the establishment from the sale of tickets shall be returned to purchasers of tickets and no part of the proceeds shall inure to any person other than the participants winning in the game or a recognized charity. The tickets shall be sold, and accounted for, separately from all other sales of the establishment. The price of any single ticket shall not exceed one dollar. Accounting records shall be available for inspection during business hours by any person purchasing a chance thereon, by the ((commission)) department or its representatives, or by any law enforcement agency.

Sec. 63   RCW 9.46.0351 and 1999 c 143 s 5 are each amended to read as follows:
     (1) The legislature hereby authorizes any bona fide charitable or nonprofit organization which is licensed pursuant to RCW 66.24.400, and its officers and employees, to allow the use of the premises, furnishings, and other facilities not gambling devices of such organization by members of the organization, and members of a chapter or unit organized under the same state, regional, or national charter or constitution, who engage as players in the following types of gambling activities only:
     (a) Social card games; and
     (b) Social dice games, which shall be limited to contests of chance, the outcome of which are determined by one or more rolls of dice.
     (2) Bona fide charitable or nonprofit organizations shall not be required to be licensed by the ((commission)) department in order to allow use of their premises in accordance with this section. However, the following conditions must be met:
     (a) No organization, corporation, or person shall collect or obtain or charge any percentage of or shall collect or obtain any portion of the money or thing of value wagered or won by any of the players: PROVIDED, That a player may collect his or her winnings; and
     (b) No organization, corporation, or person shall collect or obtain any money or thing of value from, or charge or impose any fee upon, any person which either enables him or her to play or results in or from his or her playing: PROVIDED, That this subsection shall not preclude collection of a membership fee which is unrelated to participation in gambling activities authorized under this section.

Sec. 64   RCW 9.46.0356 and 2000 c 228 s 1 are each amended to read as follows:
     (1) The legislature authorizes a business to conduct a promotional contest of chance as defined in this section, in this state, or partially in this state, whereby the elements of prize and chance are present but in which the element of consideration is not present.
     (2) Promotional contests of chance under this section are not gambling as defined in RCW 9.46.0237.
     (3) Promotional contests of chance shall be conducted as advertising and promotional undertakings solely for the purpose of advertising or promoting the services, goods, wares, and merchandise of a business.
     (4) No person eligible to receive a prize in a promotional contest of chance may be required to:
     (a) Pay any consideration to the promoter or operator of the business in order to participate in the contest; or
     (b) Purchase any service, goods, wares, merchandise, or anything of value from the business, however, for other than contests entered through a direct mail solicitation, the promoter or sponsor may give additional entries or chances upon purchase of service, goods, wares, or merchandise if the promoter or sponsor provides an alternate method of entry requiring no consideration.
     (5)(a) As used in this section, "consideration" means anything of pecuniary value required to be paid to the promoter or sponsor in order to participate in a promotional contest. Such things as visiting a business location, placing or answering a telephone call, completing an entry form or customer survey, or furnishing a stamped, self-addressed envelope do not constitute consideration.
     (b) Coupons or entry blanks obtained by purchase of a bona fide newspaper or magazine or in a program sold in conjunction with a regularly scheduled sporting event are not consideration.
     (6) Unless authorized by the ((commission)) department, equipment or devices made for use in a gambling activity are prohibited from use in a promotional contest.
     (7) This section shall not be construed to permit noncompliance with chapter 19.170 RCW, promotional advertising of prizes, and chapter 19.86 RCW, unfair business practices.

Sec. 65   RCW 9.46.0361 and 1987 c 4 s 36 are each amended to read as follows:
     The legislature hereby authorizes bona fide charitable or nonprofit organizations to conduct, without the necessity of obtaining a permit or license to do so from the ((commission)) department, turkey shoots permitting wagers of money. Such contests shall not constitute such gambling or lottery as otherwise prohibited in this chapter, or be subject to civil or criminal penalties. Such organizations must be organized for purposes other than the conduct of turkey shoots.
     Such turkey shoots shall be held in accordance with all other requirements of this chapter, other applicable laws, and rules that may be adopted by the ((commission)) department. Gross revenues from all such turkey shoots held by the organization during the calendar year shall not exceed five thousand dollars. Turkey shoots conducted under this section shall meet the following requirements:
     (1) The target shall be divided into one hundred or fewer equal sections, with each section constituting a chance to win. Each chance shall be offered directly to a prospective contestant for one dollar or less;
     (2) The purchaser of each chance shall sign his or her name on the face of the section he or she purchases;
     (3) The person shooting at the target shall not be a participant in the contest, but shall be a member of the organization conducting the contest;
     (4) Participation in the contest shall be limited to members of the organization which is conducting the contest and their guests;
     (5) The target shall contain the following information:
     (a) Distance from the shooting position to the target;
     (b) The gauge of the shotgun;
     (c) The type of choke on the barrel;
     (d) The size of shot that will be used; and
     (e) The prize or prizes that are to be awarded in the contest;
     (6) The targets, shotgun, and ammunition shall be available for inspection by any person purchasing a chance thereon, the ((commission)) department, or by any law enforcement agency upon demand, at all times before the prizes are awarded;
     (7) The turkey shoot shall award the prizes based upon the greatest number of shots striking a section;
     (8) No turkey shoot may offer as a prize the right to advance or continue on to another turkey shoot or turkey shoot target; and
     (9) Only bona fide members of the organization who are not paid for such service may participate in the management or operation of the turkey shoot, and all income therefrom, after deducting the cost of prizes and other expenses, shall be devoted solely to the lawful purposes of the organization.

Sec. 66   RCW 9.46.060 and 1973 1st ex.s. c 218 s 6 are each amended to read as follows:
     (1) The attorney general shall be general counsel for the ((state gambling commission)) department and shall assign such assistants as may be necessary in carrying out the purposes and provisions of this chapter, which shall include instituting and prosecuting any actions and proceedings necessary thereto.
     (2) The state auditor shall audit the books, records, and affairs of the ((commission)) department annually. The ((commission)) department shall pay to the state treasurer for the credit of the state auditor such funds as may be necessary to defray the costs of such audits. The ((commission)) department may provide for additional audits by certified public accountants. All such audits shall be public records of the state.
     The payment for legal services and audits as authorized in this section shall be paid upon authorization of the ((commission)) department from moneys in the gambling revolving fund.

Sec. 67   RCW 9.46.070 and 2002 c 119 s 1 are each amended to read as follows:
     The ((commission)) department shall have the following powers and duties:
     (1) To authorize and issue licenses for a period not to exceed one year to bona fide charitable or nonprofit organizations approved by the ((commission)) department meeting the requirements of this chapter and any rules ((and regulations)) adopted pursuant thereto permitting said organizations to conduct bingo games, raffles, amusement games, and social card games, to utilize punch boards and pull-tabs in accordance with the provisions of this chapter and any rules ((and regulations)) adopted pursuant thereto and to revoke or suspend said licenses for violation of any provisions of this chapter or any rules ((and regulations)) adopted pursuant thereto: PROVIDED, That the ((commission)) department shall not deny a license to an otherwise qualified applicant in an effort to limit the number of licenses to be issued: PROVIDED FURTHER, That the ((commission)) department or director shall not issue, deny, suspend, or revoke any license because of considerations of race, sex, creed, color, or national origin: AND PROVIDED FURTHER, That the ((commission)) department may authorize the director to temporarily issue or suspend licenses subject to final action by the ((commission)) department;
     (2) To authorize and issue licenses for a period not to exceed one year to any person, association, or organization operating a business primarily engaged in the selling of items of food or drink for consumption on the premises, approved by the ((commission)) department meeting the requirements of this chapter and any rules ((and regulations)) adopted pursuant thereto permitting said person, association, or organization to utilize punch boards and pull-tabs and to conduct social card games as a commercial stimulant in accordance with the provisions of this chapter and any rules ((and regulations)) adopted pursuant thereto and to revoke or suspend said licenses for violation of any provisions of this chapter and any rules ((and regulations)) adopted pursuant thereto: PROVIDED, That the ((commission)) department shall not deny a license to an otherwise qualified applicant in an effort to limit the number of licenses to be issued: PROVIDED FURTHER, That the ((commission)) department may authorize the director to temporarily issue or suspend licenses subject to final action by the ((commission)) department;
     (3) To authorize and issue licenses for a period not to exceed one year to any person, association, or organization approved by the ((commission)) department meeting the requirements of this chapter and meeting the requirements of any rules ((and regulations)) adopted by the ((commission)) department pursuant to this chapter ((as now or hereafter amended)), permitting said person, association, or organization to conduct or operate amusement games in such manner and at such locations as the ((commission)) department may determine;
     (4) To authorize, require, and issue, for a period not to exceed one year, such licenses as the ((commission)) department may by rule provide, to any person, association, or organization to engage in the selling, distributing, or otherwise supplying or in the manufacturing of devices for use within this state for those activities authorized by this chapter;
     (5) To establish a schedule of annual license fees for carrying on specific gambling activities upon the premises, and for such other activities as may be licensed by the ((commission)) department, which fees shall provide to the ((commission)) department not less than an amount of money adequate to cover all costs incurred by the ((commission)) department relative to licensing under this chapter and the enforcement by the ((commission)) department of the provisions of this chapter and rules ((and regulations)) adopted pursuant thereto: PROVIDED, That all licensing fees shall be submitted with an application therefor and such portion of said fee as the ((commission)) department may determine, based upon its cost of processing and investigation, shall be retained by the ((commission)) department upon the withdrawal or denial of any such license application as its reasonable expense for processing the application and investigation into the granting thereof: PROVIDED FURTHER, That if in a particular case the basic license fee established by the ((commission)) department for a particular class of license is less than the ((commission's)) department's actual expenses to investigate that particular application, the ((commission)) department may at any time charge to that applicant such additional fees as are necessary to pay the ((commission)) department for those costs. The ((commission)) department may decline to proceed with its investigation and no license shall be issued until the ((commission)) department has been fully paid therefor by the applicant: AND PROVIDED FURTHER, That the ((commission)) department may establish fees for the furnishing by it to licensees of identification stamps to be affixed to such devices and equipment as required by the ((commission)) department and for such other special services or programs required or offered by the ((commission)) department, the amount of each of these fees to be not less than is adequate to offset the cost to the ((commission)) department of the stamps and of administering their dispersal to licensees or the cost of administering such other special services, requirements or programs;
     (6) To prescribe the manner and method of payment of taxes, fees and penalties to be paid to or collected by the ((commission)) department;
     (7) To require that applications for all licenses contain such information as may be required by the ((commission)) department: PROVIDED, That all persons (a) having a managerial or ownership interest in any gambling activity, or the building in which any gambling activity occurs, or the equipment to be used for any gambling activity, or (b) participating as an employee in the operation of any gambling activity, shall be listed on the application for the license and the applicant shall certify on the application, under oath, that the persons named on the application are all of the persons known to have an interest in any gambling activity, building, or equipment by the person making such application: PROVIDED FURTHER, That the ((commission)) department shall require fingerprinting and national criminal history background checks on any persons seeking licenses, certifications, or permits under this chapter or of any person holding an interest in any gambling activity, building, or equipment to be used therefor, or of any person participating as an employee in the operation of any gambling activity. All national criminal history background checks shall be conducted using fingerprints submitted to the United States department of justice-federal bureau of investigation. The ((commission)) department must establish rules to delineate which persons named on the application are subject to national criminal history background checks. In identifying these persons, the ((commission)) department must take into consideration the nature, character, size, and scope of the gambling activities requested by the persons making such applications;
     (8) To require that any license holder maintain records as directed by the ((commission)) department and submit such reports as the ((commission)) department may deem necessary;
     (9) To require that all income from bingo games, raffles, and amusement games be recorded and reported as established by rule ((or regulation)) of the ((commission)) department to the extent deemed necessary by considering the scope and character of the gambling activity in such a manner that will disclose gross income from any gambling activity, amounts received from each player, the nature and value of prizes, and the fact of distributions of such prizes to the winners thereof;
     (10) To regulate and establish maximum limitations on income derived from bingo. In establishing limitations pursuant to this subsection the ((commission)) department shall take into account (i) the nature, character, and scope of the activities of the licensee; (ii) the source of all other income of the licensee; and (iii) the percentage or extent to which income derived from bingo is used for charitable, as distinguished from nonprofit, purposes. However, the ((commission's)) department's powers and duties granted by this subsection are discretionary and not mandatory;
     (11) To regulate and establish the type and scope of and manner of conducting the gambling activities authorized by this chapter, including but not limited to, the extent of wager, money, or other thing of value which may be wagered or contributed or won by a player in any such activities;
     (12) To regulate the collection of and the accounting for the fee which may be imposed by an organization, corporation, or person licensed to conduct a social card game on a person desiring to become a player in a social card game in accordance with RCW 9.46.0282;
     (13) To cooperate with and secure the cooperation of county, city, and other local or state agencies in investigating any matter within the scope of its duties and responsibilities;
     (14) In accordance with RCW 9.46.080, to adopt such rules ((and regulations)) as are deemed necessary to carry out the purposes and provisions of this chapter. All rules ((and regulations)) shall be adopted pursuant to the administrative procedure act, chapter 34.05 RCW;
     (15) To set forth for the perusal of counties, city-counties, cities and towns, model ordinances by which any legislative authority thereof may enter into the taxing of any gambling activity authorized by this chapter;
     (16) To establish and regulate a maximum limit on salaries or wages which may be paid to persons employed in connection with activities conducted by bona fide charitable or nonprofit organizations and authorized by this chapter, where payment of such persons is allowed, and to regulate and establish maximum limits for other expenses in connection with such authorized activities, including but not limited to rent or lease payments. However, the ((commissioner's)) department's powers and duties granted by this subsection are discretionary and not mandatory.
     In establishing these maximum limits the ((commission)) department shall take into account the amount of income received, or expected to be received, from the class of activities to which the limits will apply and the amount of money the games could generate for authorized charitable or nonprofit purposes absent such expenses. The ((commission)) department may also take into account, in its discretion, other factors, including but not limited to, the local prevailing wage scale and whether charitable purposes are benefited by the activities;
     (17) To authorize, require, and issue for a period not to exceed one year such licenses or permits, for which the ((commission)) department may by rule provide, to any person to work for any operator of any gambling activity authorized by this chapter in connection with that activity, or any manufacturer, supplier, or distributor of devices for those activities in connection with such business. The ((commission)) department shall not require that persons working solely as volunteers in an authorized activity conducted by a bona fide charitable or bona fide nonprofit organization, who receive no compensation of any kind for any purpose from that organization, and who have no managerial or supervisory responsibility in connection with that activity, be licensed to do such work. The ((commission)) department may require that licensees employing such unlicensed volunteers submit to the ((commission)) department periodically a list of the names, addresses, and dates of birth of the volunteers. If any volunteer is not approved by the ((commission)) department, the ((commission)) department may require that the licensee not allow that person to work in connection with the licensed activity;
     (18) To publish and make available at the office of the ((commission)) department or elsewhere to anyone requesting it a list of the ((commission)) department licensees, including the name, address, type of license, and license number of each licensee;
     (19) To establish guidelines for determining what constitutes active membership in bona fide nonprofit or charitable organizations for the purposes of this chapter; ((and))
     (20) To license, regulate, and supervise all race meets held in this state under chapter 67.16 RCW; and
     (21) To perform all other matters and things necessary to carry out the purposes and provisions of this chapter.

Sec. 68   RCW 9.46.0701 and 2002 c 369 s 2 are each amended to read as follows:
     The ((commission)) department may allow existing licensees under RCW 9.46.070(1) to share facilities at one location.

Sec. 69   RCW 9.46.071 and 1994 c 218 s 6 are each amended to read as follows:
     The legislature recognizes that some individuals in this state are problem or compulsive gamblers. Because the state promotes and regulates gambling through the activities of the ((state lottery commission, the Washington horse racing commission, and the Washington state gambling commission)) department, the state has the responsibility to continue to provide resources for the support of services for problem and compulsive gamblers. Therefore, the ((Washington state gambling commission, the Washington horse racing commission,)) department and the state lottery commission shall jointly develop informational signs concerning problem and compulsive gambling which include a toll-free hot line number for problem and compulsive gamblers. The signs shall be placed in the establishments of gambling licensees, horse racing licensees, and lottery retailers.

Sec. 70   RCW 9.46.075 and 1981 c 139 s 4 are each amended to read as follows:
     The ((commission)) department may deny an application, or suspend or revoke any license or permit issued by it, for any reason or reasons, it deems to be in the public interest. These reasons shall include, but not be limited to, cases wherein the applicant or licensee, or any person with any interest therein:
     (1) Has violated, failed or refused to comply with the provisions, requirements, conditions, limitations or duties imposed by chapter 9.46 RCW and any amendments thereto, or any rules adopted by the ((commission)) department pursuant thereto, or when a violation of any provision of chapter 9.46 RCW, or any ((commission)) department rule, has occurred upon any premises occupied or operated by any such person or over which he or she has substantial control;
     (2) Knowingly causes, aids, abets, or conspires with another to cause, any person to violate any of the laws of this state or the rules of the ((commission)) department;
     (3) Has obtained a license or permit by fraud, misrepresentation, concealment, or through inadvertence or mistake;
     (4) Has been convicted of, or forfeited bond upon a charge of, or pleaded guilty to, forgery, larceny, extortion, conspiracy to defraud, wilful failure to make required payments or reports to a governmental agency at any level, or filing false reports therewith, or of any similar offense or offenses, or of bribing or otherwise unlawfully influencing a public official or employee of any state or the United States, or of any crime, whether a felony or misdemeanor involving any gambling activity or physical harm to individuals or involving moral turpitude;
     (5) Denies the ((commission)) department or its authorized representatives, including authorized local law enforcement agencies, access to any place where a licensed activity is conducted or who fails promptly to produce for inspection or audit any book, record, document or item required by law or ((commission)) department rule;
     (6) Shall fail to display its license on the premises where the licensed activity is conducted at all times during the operation of the licensed activity;
     (7) Makes a misrepresentation of, or fails to disclose, a material fact to the ((commission)) department;
     (8) Fails to prove, by clear and convincing evidence, that he, she or it is qualified in accordance with the provisions of this chapter;
     (9) Is subject to current prosecution or pending charges, or a conviction which is under appeal, for any of the offenses included under subsection (4) of this section: PROVIDED, That at the request of an applicant for an original license, the ((commission)) department may defer decision upon the application during the pendency of such prosecution or appeal;
     (10) Has pursued or is pursuing economic gain in an occupational manner or context which is in violation of the criminal or civil public policy of this state if such pursuit creates probable cause to believe that the participation of such person in gambling or related activities would be inimical to the proper operation of an authorized gambling or related activity in this state. For the purposes of this section, occupational manner or context shall be defined as the systematic planning, administration, management or execution of an activity for financial gain;
     (11) Is a career offender or a member of a career offender cartel or an associate of a career offender or career offender cartel in such a manner which creates probable cause to believe that the association is of such a nature as to be inimical to the policy of this chapter or to the proper operation of the authorized gambling or related activities in this state. For the purposes of this section, career offender shall be defined as any person whose behavior is pursued in an occupational manner or context for the purpose of economic gain utilizing such methods as are deemed criminal violations of the public policy of this state. A career offender cartel shall be defined as any group of persons who operate together as career offenders.
     For the purpose of reviewing any application for a license and for considering the denial, suspension or revocation of any license the ((gambling commission)) department may consider any prior criminal conduct of the applicant or licensee and the provisions of RCW 9.95.240 and of chapter 9.96A RCW shall not apply to such cases.

Sec. 71   RCW 9.46.077 and 1981 c 139 s 5 are each amended to read as follows:
     The ((commission)) department, when suspending any license for a period of thirty days or less, may further provide in the order of suspension that such suspension shall be vacated upon payment to the ((commission)) department of a monetary penalty in an amount then fixed by the ((commission)) department.

Sec. 72   RCW 9.46.080 and 1994 c 218 s 14 are each amended to read as follows:
     ((The commission shall employ a full time director, who shall be the administrator for the commission in carrying out its powers and duties and who shall issue rules and regulations adopted by the commission governing the activities authorized hereunder and shall supervise commission employees in carrying out the purposes and provisions of this chapter. In addition,)) The director shall employ a deputy director, not more than three assistant directors, together with such investigators and enforcement officers and such staff as the ((commission)) department determines is necessary to carry out the purposes and provisions of this chapter. The director, the deputy director, the assistant directors, and personnel occupying positions requiring the performing of undercover investigative work shall be exempt from the provisions of chapter 41.06 RCW((, as now law or hereafter amended)). Neither the director nor any ((commission)) department employee working therefor shall be an officer or manager of any bona fide charitable or bona fide nonprofit organization, or of any organization which conducts gambling activity in this state.
     The director((, subject to the approval of the commission,)) is authorized to enter into agreements on behalf of the ((commission)) department for mutual assistance and services, based upon actual costs, with any state or federal agency or with any city, town, or county, and such state or local agency is authorized to enter into such an agreement with the ((commission)) department. If a needed service is not available from another agency of state government within a reasonable time, the director may obtain that service from private industry.

Sec. 73   RCW 9.46.090 and 1987 c 505 s 3 are each amended to read as follows:
     Subject to RCW 40.07.040, the ((commission)) department shall, from time to time, make reports to the governor and the legislature covering such matters in connection with this chapter as the governor and the legislature may require. These reports shall be public documents and contain such general information and remarks as the ((commission)) department deems pertinent thereto and any information requested by either the governor or members of the legislature: PROVIDED, That the ((commission appointed pursuant to RCW 9.46.040)) department may conduct a thorough study of the types of gambling activity permitted and the types of gambling activity prohibited by this chapter and may make recommendations to the legislature as to: (1) Gambling activity that ought to be permitted; (2) gambling activity that ought to be prohibited; (3) the types of licenses and permits that ought to be required; (4) the type and amount of tax that ought to be applied to each type of permitted gambling activity; (5) any changes which may be made to the law of this state which further the purposes and policies set forth in RCW 9.46.010 ((as now law or hereafter amended)); and (6) any other matter that the ((commission)) department may deem appropriate. ((Members of the commission and its)) Department staff may contact the legislature, or any of its members, at any time, to advise it of recommendations of the ((commission)) department.

Sec. 74   RCW 9.46.095 and 1989 c 175 s 41 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 ((commission)) department or any member thereof for anything done or omitted to be done in or arising out of the performance of his or her duties under this title: PROVIDED, That an appeal from an adjudicative proceeding involving a final decision of the ((commission)) department to deny, suspend, or revoke a license shall be governed by chapter 34.05 RCW, the Administrative Procedure Act.
     Neither the ((commission)) department nor any ((member or members)) employee thereof 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 ((commission or any member of the commission,)) department or any employee of the ((commission)) department, in the performance of his or her duties and in the administration of this title.

Sec. 75   RCW 9.46.100 and 2002 c 371 s 901 are each amended to read as follows:
     There is hereby created the gambling revolving fund which shall consist of all moneys receivable for licensing, penalties, forfeitures, and all other moneys, income, or revenue received by the ((commission)) department. The state treasurer shall be custodian of the fund. All moneys received by the ((commission)) department or any employee thereof, except for change funds and an amount of petty cash as fixed by rule ((or regulation)) of the ((commission)) department, shall be deposited each day in a depository approved by the state treasurer and transferred to the state treasurer to be credited to the gambling revolving fund. Disbursements from the revolving fund shall be on authorization of the ((commission or a duly authorized representative thereof)) director or the director's designee. In order to maintain an effective expenditure and revenue control the gambling revolving fund shall be subject in all respects to chapter 43.88 RCW but no appropriation shall be required to permit expenditures and payment of obligations from such fund. All expenses relative to ((commission)) department business, including but not limited to salaries and expenses of the director and other ((commission)) department employees shall be paid from the gambling revolving fund.
     ((During the 2001-2003 fiscal biennium, the legislature may transfer from the gambling revolving fund to the state general fund such amounts as reflect the excess fund balance of the fund and reductions made by the 2002 supplemental appropriations act for administrative efficiencies and savings.))

Sec. 76   RCW 9.46.116 and 1985 c 7 s 2 are each amended to read as follows:
     The ((commission)) department shall charge fees or increased fees on pull tabs sold over-the-counter and on sales from punchboards and pull tab devices at levels necessary to assure that the increased revenues are equal or greater to the amount of revenue lost by removing the special tax on coin-operated gambling devices by the 1984 repeal of RCW 9.46.115.

Sec. 77   RCW 9.46.120 and 1997 c 394 s 3 are each amended to read as follows:
     (1) Except in the case of an agricultural fair as authorized under chapters 15.76 and 36.37 RCW, no person other than a member of a bona fide charitable or nonprofit organization (and their employees) or any other person, association or organization (and their employees) approved by the ((commission)) department, shall take any part in the management or operation of any gambling activity authorized under this chapter unless approved by the ((commission)) department. No person who takes any part in the management or operation of any such gambling activity shall take any part in the management or operation of any gambling activity conducted by any other organization or any other branch of the same organization unless approved by the ((commission)) department. No part of the proceeds of the activity shall inure to the benefit of any person other than the organization conducting such gambling activities or if such gambling activities be for the charitable benefit of any specific persons designated in the application for a license, then only for such specific persons as so designated.
     (2) No bona fide charitable or nonprofit organization or any other person, association or organization shall conduct any gambling activity authorized under this chapter in any leased premises if rental for such premises is unreasonable or to be paid, wholly or partly, on the basis of a percentage of the receipts or profits derived from such gambling activity.

Sec. 78   RCW 9.46.130 and 1981 c 139 s 10 are each amended to read as follows:
     The premises and paraphernalia, and all the books and records of any person, association or organization conducting gambling activities authorized under this chapter and any person, association or organization receiving profits therefrom or having any interest therein shall be subject to inspection and audit at any reasonable time, with or without notice, upon demand, by the ((commission)) department or its designee, the attorney general or his designee, the chief of the Washington state patrol or his designee or the prosecuting attorney, sheriff or director of public safety or their designees of the county wherein located, or the chief of police or his designee of any city or town in which said organization is located, for the purpose of determining compliance or noncompliance with the provisions of this chapter and any rules ((or regulations)) or local ordinances adopted pursuant thereto. A reasonable time for the purpose of this section shall be: (1) If the items or records to be inspected or audited are located anywhere upon a premises any portion of which is regularly open to the public or members and guests, then at any time when the premises are so open, or at which they are usually open; or (2) if the items or records to be inspected or audited are not located upon a premises set out in subsection (1) above, then any time between the hours of 8:00 a.m. and 9:00 p.m., Monday through Friday.
     The ((commission)) department shall be provided at such reasonable intervals as the ((commission)) department shall determine with a report, under oath, detailing all receipts and disbursements in connection with such gambling activities together with such other reasonable information as required in order to determine whether such activities comply with the purposes of this chapter or any local ordinances relating thereto.

Sec. 79   RCW 9.46.140 and 1989 c 175 s 42 are each amended to read as follows:
     (1) The ((commission)) department or its authorized representative may:
     (a) Make necessary public or private investigations within or outside of this state to determine whether any person has violated or is about to violate this chapter or any rule or order hereunder, or to aid in the enforcement of this chapter or in the prescribing of rules and forms hereunder; and
     (b) Inspect the books, documents, and records of any person lending money to or in any manner financing any license holder or applicant for a license or receiving any income or profits from the use of such license for the purpose of determining compliance or noncompliance with the provisions of this chapter or the rules ((and regulations)) adopted pursuant thereto.
     (2) For the purpose of any investigation or proceeding under this chapter, the ((commission)) department or an administrative law judge appointed under chapter 34.12 RCW may conduct hearings, administer oaths or affirmations, or upon the ((commission's)) department's or administrative law judge's motion or upon request of any party may subpoena witnesses, compel attendance, take depositions, take evidence, or require the production of any matter which is relevant to the investigation or proceeding, including but not limited to the existence, description, nature, custody, condition, or location of any books, documents, or other tangible things, or the identity or location of persons having knowledge or relevant facts, or any other matter reasonably calculated to lead to the discovery of material evidence.
     (3) Upon failure to obey a subpoena or to answer questions propounded by the administrative law judge and upon reasonable notice to all persons affected thereby, the director may apply to the superior court for an order compelling compliance.
     (4) The administrative law judges appointed under chapter 34.12 RCW may conduct hearings respecting the suspension, revocation, or denial of licenses, who may administer oaths, admit or deny admission of evidence, compel the attendance of witnesses, issue subpoenas, issue orders, and exercise all other powers and perform all other functions set out in RCW 34.05.446, 34.05.449, and 34.05.452.
     (5) Except as otherwise provided in this chapter, all proceedings under this chapter shall be in accordance with the Administrative Procedure Act, chapter 34.05 RCW.

Sec. 80   RCW 9.46.150 and 1973 1st ex.s. c 218 s 15 are each amended to read as follows:
     (1) Any activity conducted in violation of any provision of this chapter may be enjoined in an action commenced by the ((commission)) department through the attorney general or by the prosecuting attorney or legal counsel of any city or town in which the prohibited activity may occur.
     (2) When a violation of any provision of this chapter or any rule ((or regulation)) adopted pursuant hereto has occurred on any property or premises for which one or more licenses, permits, or certificates issued by this state, or any political subdivision or public agency thereof are in effect, all such licenses, permits and certificates may be voided and no license, permit, or certificate so voided shall be issued or reissued for such property or premises for a period of up to sixty days thereafter.

Sec. 81   RCW 9.46.153 and 1981 c 139 s 14 are each amended to read as follows:
     (1) It shall be the affirmative responsibility of each applicant and licensee to establish by clear and convincing evidence the necessary qualifications for licensure of each person required to be qualified under this chapter, as well as the qualifications of the facility in which the licensed activity will be conducted;
     (2) All applicants and licensees shall consent to inspections, searches and seizures and the supplying of handwriting examples as authorized by this chapter and rules adopted hereunder;
     (3) All licensees, and persons having any interest in licensees, including but not limited to employees and agents of licensees, and other persons required to be qualified under this chapter or rules of the ((commission)) department shall have a duty to inform the ((commission)) department or its staff of any action or omission which they believe would constitute a violation of this chapter or rules adopted pursuant thereto. No person who so informs the ((commission)) department or the staff shall be discriminated against by an applicant or licensee because of the supplying of such information;
     (4) All applicants, licensees, persons who are operators or directors thereof and persons who otherwise have a substantial interest therein shall have the continuing duty to provide any assistance or information required by the ((commission)) department and to investigations conducted by the ((commission)) department. If, upon issuance of a formal request to answer or produce information, evidence or testimony, any applicant, licensee or officer or director thereof or person with a substantial interest therein, refuses to comply, the applicant or licensee may be denied or revoked by the ((commission)) department;
     (5) All applicants and licensees shall waive any and all liability as to the state of Washington, its agencies, employees and agents for any damages resulting from any disclosure or publication in any manner, other than a wilfully unlawful disclosure or publication, of any information acquired by the ((commission)) department during its licensing or other investigations or inquiries or hearings;
     (6) Each applicant or licensee may be photographed for investigative and identification purposes in accordance with rules of the ((commission)) department;
     (7) An application to receive a license under this chapter or rules adopted pursuant thereto constitutes a request for determination of the applicant's and those person's with an interest in the applicant, general character, integrity and ability to engage or participate in, or be associated with, gambling or related activities impacting this state. Any written or oral statement made in the course of an official investigation, proceeding or process of the ((commission)) department by any member, employee or agent thereof or by any witness, testifying under oath, which is relevant to the investigation, proceeding or process, is absolutely privileged and shall not impose any liability for slander, libel or defamation, or constitute any grounds for recovery in any civil action.

Sec. 82   RCW 9.46.158 and 1981 c 139 s 18 are each amended to read as follows:
     No applicant for a license from, nor licensee of, the ((commission)) department, nor any operator of any gambling activity, shall, without advance approval of the ((commission)) department, knowingly permit any person to participate in the management or operation of any activity for which a license from the ((commission)) department is required or which is otherwise authorized by this chapter if that person:
     (1) Has been convicted of, or forfeited bond upon a charge of, or pleaded guilty to, forgery, larceny, extortion, conspiracy to defraud, wilful failure to make required payments or reports to a governmental agency at any level, or filing false reports therewith, or of any similar offense or offenses, or of any crime, whether a felony or misdemeanor involving any gambling activity or physical harm to individuals or involving moral turpitude; or
     (2) Has violated, failed, or refused to comply with provisions, requirements, conditions, limitations or duties imposed by this chapter, and any amendments thereto, or any rules adopted by the ((commission)) department pursuant thereto, or has permitted, aided, abetted, caused, or conspired with another to cause, any person to violate any of the provisions of this chapter or rules of the ((commission)) department.

Sec. 83   RCW 9.46.160 and 1991 c 261 s 3 are each amended to read as follows:
     Any person who conducts any activity for which a license is required by this chapter, or by rule of the ((commission)) department, without the required license issued by the ((commission)) department shall be guilty of a class B felony. If any corporation conducts any activity for which a license is required by this chapter, or by rule of the ((commission)) department, without the required license issued by the ((commission)) department, it may be punished by forfeiture of its corporate charter, in addition to the other penalties set forth in this section.

Sec. 84   RCW 9.46.170 and 1991 c 261 s 4 are each amended to read as follows:
     Whoever, in any application for a license or in any book or record required to be maintained by the ((commission)) department or in any report required to be submitted to the ((commission)) department, shall make any false or misleading statement, or make any false or misleading entry or wilfully fail to maintain or make any entry required to be maintained or made, or who wilfully refuses to produce for inspection by the ((commission)) department, or its designee, any book, record, or document required to be maintained or made by federal or state law, shall be guilty of a gross misdemeanor subject to the penalty set forth in RCW 9A.20.021.

Sec. 85   RCW 9.46.198 and 1999 c 143 s 7 are each amended to read as follows:
     Any person who works as an employee or agent or in a similar capacity for another person in connection with the operation of an activity for which a license is required under this chapter or by ((commission)) department rule without having obtained the applicable license required by the ((commission)) department under RCW 9.46.070(17) shall be guilty of a gross misdemeanor and shall, upon conviction, be punished by not more than one year in the county jail or a fine of not more than five thousand dollars, or both.

Sec. 86   RCW 9.46.210 and 2000 c 46 s 1 are each amended to read as follows:
     (1) It shall be the duty of all peace officers, law enforcement officers, and law enforcement agencies within this state to investigate, enforce, and prosecute all violations of this chapter.
     (2) In addition to the authority granted by subsection (1) of this section law enforcement agencies of cities and counties shall investigate and report to the ((commission)) department all violations of the provisions of this chapter and of the rules of the ((commission)) department found by them and shall assist the ((commission)) department in any of its investigations and proceedings respecting any such violations. Such law enforcement agencies shall not be deemed agents of the ((commission)) department.
     (3) In addition to its other powers and duties, the ((commission)) department shall have the power to enforce the penal provisions of this chapter ((218, Laws of 1973 1st ex. sess. and as it may be amended,)) and the penal laws of this state relating to the conduct of or participation in gambling activities and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith. The director((, the deputy director, both assistant directors,)) and each of the ((commission's)) department's investigators, enforcement officers, and inspectors shall have the power, under the supervision of the ((commission)) department, to enforce the penal provisions of this chapter ((218, Laws of 1973 1st ex. sess. and as it may be amended,)) and the penal laws of this state relating to the conduct of or participation in gambling activities and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith. They shall have the power and authority to apply for and execute all warrants and serve process of law issued by the courts in enforcing the penal provisions of this chapter ((218, Laws of 1973 1st ex. sess. and as it may be amended,)) and the penal laws of this state relating to the conduct of or participation in gambling activities and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith. They shall have the power to arrest without a warrant, any person or persons found in the act of violating any of the penal provisions of this chapter ((218, Laws of 1973 1st ex. sess. and as it may be amended,)) and the penal laws of this state relating to the conduct of or participation in gambling activities and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith. To the extent set forth ((above)) in this section, the ((commission)) department shall be a law enforcement agency of this state with the power to investigate for violations of and to enforce the provisions of this chapter((, as now law or hereafter amended,)) and to obtain information from and provide information to all other law enforcement agencies.
     (4) Criminal history record information that includes nonconviction data, as defined in RCW 10.97.030, may be disseminated by a criminal justice agency to the ((Washington state gambling commission)) department for any purpose associated with the investigation for suitability for involvement in gambling activities authorized under this chapter. The ((Washington state gambling commission)) department shall only disseminate nonconviction data obtained under this section to criminal justice agencies.

Sec. 87   RCW 9.46.215 and 1994 c 218 s 9 are each amended to read as follows:
     Whoever knowingly owns, manufactures, possesses, buys, sells, rents, leases, finances, holds a security interest in, stores, repairs, or transports any gambling device or offers or solicits any interest therein, whether through an agent or employee or otherwise, is guilty of a felony and shall be fined not more than one hundred thousand dollars or imprisoned not more than five years or both. However, this section does not apply to persons licensed by the ((commission)) department, or who are otherwise authorized by this chapter, or by ((commission)) department rule, to conduct gambling activities without a license, respecting devices that are to be used, or are being used, solely in that activity for which the license was issued, or for which the person has been otherwise authorized if:
     (1) The person is acting in conformance with this chapter and the rules adopted under this chapter; and
     (2) The devices are a type and kind traditionally and usually employed in connection with the particular activity. This section also does not apply to any act or acts by the persons in furtherance of the activity for which the license was issued, or for which the person is authorized, when the activity is conducted in compliance with this chapter and in accordance with the rules adopted under this chapter. In the enforcement of this section direct possession of any such a gambling device is presumed to be knowing possession thereof.

Sec. 88   RCW 9.46.250 and 1987 c 4 s 45 are each amended to read as follows:
     (1) All gambling premises are common nuisances and shall be subject to abatement by injunction or as otherwise provided by law. The plaintiff in any action brought under this subsection against any gambling premises, need not show special injury and may, in the discretion of the court, be relieved of all requirements as to giving security.
     (2) When any property or premise held under a mortgage, contract or leasehold is determined by a court having jurisdiction to be a gambling premises, all rights and interests of the holder therein shall terminate and the owner shall be entitled to immediate possession at his election: PROVIDED, HOWEVER, That this subsection shall not apply to those premises in which activities authorized by this chapter or any act or acts in furtherance thereof are carried on when conducted in compliance with the provisions of this chapter and in accordance with the rules ((and regulations)) adopted pursuant thereto.
     (3) When any property or premises for which one or more licenses issued by the ((commission)) department are in effect, is determined by a court having jurisdiction to be a gambling premise, all such licenses may be voided and no longer in effect, and no license so voided shall be issued or reissued for such property or premises for a period of up to sixty days thereafter. Enforcement of this subsection shall be the duty of all peace officers and all taxing and licensing officials of this state and its political subdivisions and other public agencies. This subsection shall not apply to property or premises in which activities authorized by this chapter, or any act or acts in furtherance thereof, are carried on when conducted in compliance with the provisions of this chapter and in accordance with the rules ((and regulations)) adopted pursuant thereto.

Sec. 89   RCW 9.46.293 and 1989 c 8 s 1 are each amended to read as follows:
     Any fishing derby, defined under RCW 9.46.0229, shall not be subject to any other provisions of this chapter or to any rules ((or regulations)) of the ((commission)) department.

Sec. 90   RCW 9.46.300 and 1977 ex.s. c 326 s 17 are each amended to read as follows:
     All applications for licenses made to the ((commission)) department, with the exception of any portions of the applications describing the arrest or conviction record of any person, and all reports required by the ((commission)) department to be filed by its licensees on a periodic basis concerning the operation of the licensed activity or concerning any organization, association, or business in connection with which a licensed activity is operated, in the ((commission)) department files, shall be open to public inspection at the ((commission's)) department's offices upon a prior written request of the ((commission)) department. The ((staff)) employees of the ((commission)) department may decline to allow an inspection until such time as the inspection will not unduly interfere with the other duties of the ((staff)) employees. The ((commission)) department may charge the person making a request for an inspection an amount necessary to offset the costs to the ((commission)) department of providing the inspection and copies of any requested documents.

Sec. 91   RCW 9.46.310 and 1981 c 139 s 13 are each amended to read as follows:
     No person shall manufacture, and no person shall sell, distribute, furnish or supply to any other person, any gambling device, including but not limited to punchboards and pull tabs, in this state, or for use within this state, without first obtaining a license to do so from the ((commission)) department under the provisions of this chapter.
     Such licenses shall not be issued by the ((commission)) department except respecting devices which are designed and permitted for use in connection with activities authorized under this chapter: PROVIDED, That this requirement for licensure shall apply only insofar as the ((commission)) department has adopted, or may adopt, rules implementing it as to particular categories of gambling devices and related equipment.

Sec. 92   RCW 9.46.350 and 1981 c 139 s 16 are each amended to read as follows:
     At any time within five years after any amount of fees, interest, penalties, or tax which is imposed pursuant to this chapter, or rules adopted pursuant thereto, shall become due and payable, the attorney general, on behalf of the ((commission)) department, may bring a civil action in the courts of this state, or any other state, or of the United States, to collect the amount delinquent, together with penalties and interest: PROVIDED, That where the tax is one imposed by a county, city or town under RCW 9.46.110, any such action shall be brought by that county, city or town on its own behalf. An action may be brought whether or not the person owing the amount is at such time a licensee pursuant to the provisions of this chapter.
     If such an action is brought in the courts of this state, a writ of attachment may be issued and no bond or affidavit prior to the issuance thereof shall be required. In all actions in this state, the records of the ((commission)) department, or the appropriate county, city or town, shall be prima facie evidence of the determination of the tax due or the amount of the delinquency.

Sec. 93   RCW 9.46.360 and 1992 c 172 s 2 are each amended to read as follows:
     (1) The negotiation process for compacts with federally recognized Indian tribes for conducting class III gaming, as defined in the Indian Gaming Regulatory Act, 25 U.S.C. Sec. 2701 et seq., on federal Indian lands is governed by this section.
     (2) The ((gambling commission)) department, through the director or the director's designee, shall negotiate compacts for class III gaming on behalf of the state with federally recognized Indian tribes in the state of Washington.
     (3) When a tentative agreement with an Indian tribe on a proposed compact is reached, the director shall immediately transmit a copy of the proposed compact to ((all voting and ex officio members of the gambling commission and to)) the standing committees designated pursuant to subsection (((5))) (4) of this section.
     (4) ((Notwithstanding RCW 9.46.040, the four ex officio members of the gambling commission shall be deemed voting members of the gambling commission for the sole purpose of voting on proposed compacts submitted under this section.
     (5))) Within thirty days after receiving a proposed compact from the director, one standing committee from each house of the legislature shall hold a public hearing on the proposed compact and forward its respective comments to the ((gambling commission)) department. The president of the senate shall designate the senate standing committee that is to carry out the duties of this section, and the speaker of the house of representatives shall designate the house standing committee that is to carry out the duties of this section. The designated committees shall continue to perform under this section until the president of the senate or the speaker of the house of representatives, as the case may be, designates a different standing committee.
     (((6))) (5) The ((gambling commission)) department may hold public hearings on the proposed compact any time after receiving a copy of the compact ((from the director)). Within forty-five days after receiving the proposed compact ((from)), the director((, the gambling commission, including the four ex officio members, shall vote on whether to return the proposed compact to the director with instructions for further negotiation or to)) may forward the proposed compact to the governor for review and final execution.
     (((7))) (6) Notwithstanding provisions in this section to the contrary, if the director forwards a proposed compact to the ((gambling commission and the)) designated standing committees within ten days before the beginning of a regular session of the legislature, or during a regular or special session of the legislature, the thirty-day time limit set forth in subsection (((5))) (4) of this section and the forty-five day limit set forth in subsection (((6))) (5) of this section are each forty-five days and sixty days, respectively.
     (((8))) (7) Funding for the negotiation process under this section must come from the gambling revolving fund.
     (((9))) (8) In addition to the powers granted under this chapter, the ((commission)) department, consistent with the terms of any compact, is authorized and empowered to enforce the provisions of any compact between a federally recognized Indian tribe and the state of Washington.

Sec. 94   RCW 9.46.400 and 1996 c 101 s 3 are each amended to read as follows:
     Any raffle authorized by the fish and wildlife commission involving hunting big game animals or wild turkeys shall not be subject to any provisions of this chapter other than RCW 9.46.010 and this section or to any rules ((or regulations)) of the ((gambling commission)) department.

Sec. 95   RCW 9.46.420 and 2002 c 252 s 3 are each amended to read as follows:
     The ((commission)) department shall consider the provisions of RCW 9.46.410 as elements to be negotiated with federally recognized Indian tribes as provided in RCW 9.46.360.

Sec. 96   RCW 42.17.2401 and 2001 c 36 s 1 and 2001 c 9 s 1 are each reenacted and 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 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)) department of gaming, 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 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, salmon recovery funding 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. 97   RCW 51.12.020 and 1999 c 68 s 1 are each amended to read as follows:
     The following are the only employments which shall not be included within the mandatory coverage of this title:
     (1) Any person employed as a domestic servant in a private home by an employer who has less than two employees regularly employed forty or more hours a week in such employment.
     (2) Any person employed to do gardening, maintenance, or repair, in or about the private home of the employer. For the purposes of this subsection, "maintenance" means the work of keeping in proper condition, "repair" means to restore to sound condition after damage, and "private home" means a person's place of residence.
     (3) A person whose employment is not in the course of the trade, business, or profession of his or her employer and is not in or about the private home of the employer.
     (4) Any person performing services in return for aid or sustenance only, received from any religious or charitable organization.
     (5) Sole proprietors or partners.
     (6) Any child under eighteen years of age employed by his or her parent or parents in agricultural activities on the family farm.
     (7) Jockeys while participating in or preparing horses for race meets licensed by the ((Washington horse racing commission)) department of gaming pursuant to chapter 67.16 RCW.
     (8)(a) Except as otherwise provided in (b) of this subsection, any bona fide officer of a corporation voluntarily elected or voluntarily appointed in accordance with the articles of incorporation or bylaws of the corporation, who at all times during the period involved is also a bona fide director, and who is also a shareholder of the corporation. Only such officers who exercise substantial control in the daily management of the corporation and whose primary responsibilities do not include the performance of manual labor are included within this subsection.
     (b) Alternatively, a corporation that is not a "public company" as defined in RCW 23B.01.400(((21))) may exempt eight or fewer bona fide officers, who are voluntarily elected or voluntarily appointed in accordance with the articles of incorporation or bylaws of the corporation and who exercise substantial control in the daily management of the corporation, from coverage under this title without regard to the officers' performance of manual labor if the exempted officer is a shareholder of the corporation, or may exempt any number of officers if all the exempted officers are related by blood within the third degree or marriage. If a corporation that is not a "public company" elects to be covered under subsection (8)(a) of this section, the corporation's election must be made on a form prescribed by the department and under such reasonable rules as the department may adopt.
     (c) Determinations respecting the status of persons performing services for a corporation shall be made, in part, by reference to Title 23B RCW and to compliance by the corporation with its own articles of incorporation and bylaws. For the purpose of determining coverage under this title, substance shall control over form, and mandatory coverage under this title shall extend to all workers of this state, regardless of honorary titles conferred upon those actually serving as workers.
     (d) A corporation may elect to cover officers who are exempted by this subsection in the manner provided by RCW 51.12.110.
     (9) Services rendered by a musician or entertainer under a contract with a purchaser of the services, for a specific engagement or engagements when such musician or entertainer performs no other duties for the purchaser and is not regularly and continuously employed by the purchaser. A purchaser does not include the leader of a group or recognized entity who employs other than on a casual basis musicians or entertainers.
     (10) Services performed by a newspaper carrier selling or distributing newspapers on the street or from house to house.
     (11) Services performed by an insurance agent, insurance broker, or insurance solicitor, as defined in RCW 48.17.010, 48.17.020, and 48.17.030, respectively.
     (12) Services performed by a booth renter ((as defined in RCW 18.16.020)). However, a person exempted under this subsection may elect coverage under RCW 51.32.030.
     (13) Members of a limited liability company, if either:
     (a) Management of the company is vested in its members, and the members for whom exemption is sought would qualify for exemption under subsection (5) of this section were the company a sole proprietorship or partnership; or
     (b) Management of the company is vested in one or more managers, and the members for whom the exemption is sought are managers who would qualify for exemption under subsection (8) of this section were the company a corporation.

Sec. 98   RCW 51.16.210 and 1989 c 385 s 1 are each amended to read as follows:
     (1) The department shall assess premiums, under the provisions of this section, for certain horse racing employments licensed in accordance with chapter 67.16 RCW. This premium assessment shall be for the purpose of providing industrial insurance coverage for employees of trainers licensed under chapter 67.16 RCW, including but not limited to exercise riders, pony riders, and grooms, and including all on or off track employment. For the purposes of RCW 51.16.210, 67.16.300, 51.16.140, 51.32.073, and 67.16.020 a hotwalker shall be considered a groom. The department may adopt rules under chapter 34.05 RCW to carry out the purposes of this section, including rules providing for alternative reporting periods and payment due dates for coverage under this section. The department rules shall ensure that no licensee licensed prior to May 13, 1989, shall pay more than the assessment fixed at the basic manual rate.
     (2) The department shall compute industrial insurance premium rates on a per license basis, which premiums shall be assessed at the time of each issuance or renewal of the license for owners, trainers, and grooms in amounts established by department rule for coverage under this section. Premium assessments shall be determined in accordance with the requirements of this title, except that assessments shall not be experience rated and shall be fixed at the basic manual rate. However, rates may vary according to differences in working conditions at major tracks and fair tracks.
     (3) For the purposes of paying premiums and assessments under this section and making reports under this title, individuals licensed as trainers by the ((Washington horse racing commission)) department of gaming shall be considered employers. The premium assessment for a groom's license shall be paid by the trainer responsible for signing the groom's license application and shall be payable at the time of license issuance or renewal.
     (4) The fee to be assessed on owner licenses as required by this section shall not exceed one hundred fifty dollars. However, those owners having less than a full ownership in a horse or horses shall pay a percentage of the required license fee that is equal to the total percentage of the ownership that the owner has in the horse or horses. In no event shall an owner having an ownership percentage in more than one horse pay more than a one hundred fifty-dollar license fee. The assessment on each owner's license shall not imply that an owner is an employer, but shall be required as part of the privilege of holding an owner's license.
     (5) Premium assessments under this section shall be collected by the ((Washington horse racing commission)) department of gaming and deposited in the industrial insurance trust funds as provided under department rules.

Sec. 99   RCW 67.16.010 and 1991 c 270 s 1 are each amended to read as follows:
     (1) Unless the context otherwise requires, words and phrases as used herein shall mean:
     (("Commission" shall mean the Washington horse racing commission, hereinafter created.)) (a) "Department" means the department of gaming created in section 41 of this act.
     (b) "Parimutuel machine" shall mean and include both machines at the track and machines at the satellite locations, that record parimutuel bets and compute the payoff.
     (c) "Person" shall mean and include individuals, firms, corporations and associations.
     (d) "Race meet" shall mean and include any exhibition of thoroughbred, quarter horse, paint horse, appaloosa horse racing, arabian horse racing, or standard bred harness horse racing, where the parimutuel system is used.
     (2) Singular shall include the plural, and the plural shall include the singular; and words importing one gender shall be regarded as including all other genders.

Sec. 100   RCW 67.16.040 and 1933 c 55 s 5 are each amended to read as follows:
     The ((commission created by this chapter is hereby authorized, and it shall be its duty, to)) department shall license, regulate, and supervise all race meets held in this state under the terms of this chapter, and to cause the various race courses of the state to be visited and inspected at least once a year.

Sec. 101   RCW 67.16.100 and 1998 c 345 s 5 are each amended to read as follows:
     (1) All sums paid to the ((commission)) department under this chapter, including those sums collected for license fees and excluding those sums collected under RCW 67.16.102 and 67.16.105(3), shall be disposed of by the ((commission)) department as follows: One hundred percent thereof shall be retained by the ((commission)) department for the payment of the salaries of its ((members, secretary, clerical, office, and other help)) employees and all expenses incurred in carrying out the provisions of this chapter. ((No salary, wages, expenses, or compensation of any kind shall be paid by the state in connection with the work of the commission.))
     (2) Any moneys collected or paid to the ((commission)) department under the terms of this chapter and not expended at the close of the fiscal biennium shall be paid to the state treasurer and be placed in the fair fund created in RCW 15.76.115. The ((commission)) department may, with the approval of the office of financial management, retain any sum required for working capital.

Sec. 102   RCW 67.16.101 and 1977 ex.s. c 372 s 1 are each amended to read as follows:
     The legislature finds that:
     (1) A ((primary)) responsibility of the ((horse racing commission)) department is the encouragement of the training and development of the equine industry in the state of Washington whether the result of this training and development results in legalized horse racing or in the recreational use of horses;
     (2) The ((horse racing commission)) department has a further major responsibility to assure that any facility used as a race course should be maintained and upgraded to insure the continued safety of both the public and the horse at any time the facility is used for the training or contesting of these animals;
     (3) Small race courses within the state have difficulty in obtaining sufficient funds to provide the maintenance and upgrading necessary to assure this safety at these facilities, or to permit frequent use of these facilities by 4-H children or other horse owners involved in training; and
     (4) The one percent of the parimutuel machine gross receipts used to pay a special purse to the licensed owners of Washington bred horses is available for the purpose of drawing interest, thereby obtaining sufficient funds to be disbursed to achieve the necessary support to these small race courses.

Sec. 103   RCW 67.16.105 and 1998 c 345 s 6 are each amended to read as follows:
     (1) Licensees of race meets that are nonprofit in nature and are of ten days or less shall be exempt from payment of a parimutuel tax.
     (2) Licensees that do not fall under subsection (1) of this section shall withhold and pay to the ((commission)) department daily for each authorized day of parimutuel wagering the following applicable percentage of all daily gross receipts from its in-state parimutuel machines:
     (a) If the gross receipts of all its in-state parimutuel machines are more than fifty million dollars in the previous calendar year, the licensee shall withhold and pay to the ((commission)) department daily 1.30 percent of the daily gross receipts; and
     (b) If the gross receipts of all its in-state parimutuel machines are fifty million dollars or less in the previous calendar year, the licensee shall withhold and pay to the ((commission)) department daily ((0.52)) 1.803 percent of the daily gross receipts.
     (3) In addition to those amounts in subsection (2) of this section, a licensee shall forward one-tenth of one percent of the daily gross receipts of all its in-state parimutuel machines to the ((commission)) department for payment to those nonprofit race meets as set forth in RCW 67.16.130 and subsection (1) of this section, but said percentage shall not be charged against the licensee. Payments to nonprofit race meets under this subsection shall be distributed on a pro rata per-race-day basis and used only for purses at race tracks that have been operating under RCW 67.16.130 and subsection (1) of this section for the five consecutive years immediately preceding the year of payment. The ((commission)) department shall transfer funds generated under subsection (2) of this section equal to the difference between funds collected under this subsection (3) in a calendar year and three hundred thousand dollars, and distribute that amount under this subsection (3).
     (4) Beginning July 1, 1999, at the conclusion of each authorized race meet, the ((commission)) department shall calculate the mathematical average daily gross receipts of parimutuel wagering that is conducted only at the physical location of the live race meet at those race meets of licensees with gross receipts of all their in-state parimutuel machines of more than fifty million dollars. Such calculation shall include only the gross parimutuel receipts from wagering occurring on live racing dates, including live racing receipts and receipts derived from one simulcast race card that is conducted only at the physical location of the live racing meet, which, for the purposes of this subsection, is "the handle." If the calculation exceeds eight hundred eighty-six thousand dollars, the licensee shall within ten days of receipt of written notification by the ((commission)) department forward to the ((commission)) department a sum equal to the product obtained by multiplying 0.6 percent by the handle. Sums collected by the ((commission)) department under this subsection shall be forwarded on the next business day following receipt thereof to the state treasurer to be deposited in the fair fund created in RCW 15.76.115.

Sec. 104   RCW 67.16.130 and 1991 c 270 s 7 are each amended to read as follows:
     (1) Notwithstanding any other provision of law or of chapter 67.16 RCW, the ((commission)) department may license race meets which are nonprofit in nature, of ten days or less, and which have an average daily handle of one hundred twenty thousand dollars or less, at a daily licensing fee of ten dollars, and the sponsoring nonprofit association shall be exempt from any other fees as provided for in chapter 67.16 RCW or by rule ((or regulation)) of the ((commission)) department: PROVIDED, That the ((commission)) department may deny the application for a license to conduct a racing meet by a nonprofit association, if same shall be determined not to be a nonprofit association by the ((Washington state racing commission)) department.
     (2) Notwithstanding any other provision of law or of chapter 67.16 RCW or any rule promulgated by the ((commission)) department, no license for a race meet which is nonprofit in nature, of ten days or less, and which has an average daily handle of one hundred twenty thousand dollars or less, shall be denied for the reason that the applicant has not installed an electric parimutuel tote board.
     (3) As a condition to the reduction in fees as provided for in subsection (1) of this section, all fees charged to horse owners, trainers, or jockeys, or any other fee charged for a permit incident to the running of such race meet shall be retained by the ((commission)) department as reimbursement for its expenses incurred in connection with the particular race meet.

Sec. 105   RCW 67.16.140 and 1973 1st ex.s. c 216 s 3 are each amended to read as follows:
     No employee of the ((horse racing commission)) department shall serve as an employee of any track at which that individual will also serve as an employee of the ((commission)) department.

Sec. 106   RCW 67.16.150 and 1973 1st ex.s. c 216 s 4 are each amended to read as follows:
     No employee nor ((any commissioner)) the director of the ((horse racing commission)) department shall have any financial interest whatsoever, other than an ownership interest in a community venture, in any track at which said employee serves as an agent or employee of the ((commission or at any track with respect to a commissioner)) department.

Sec. 107   RCW 67.17.005 and 2001 c 18 s 1 are each amended to read as follows:
     The purposes of the live horse racing compact are to:
     (1) Establish uniform requirements among the party states for the licensing of participants in live horse racing with pari-mutuel wagering, and ensure that all such participants who are licensed pursuant to the compact meet a uniform minimum standard of honesty and integrity;
     (2) Facilitate the growth of the horse racing industry in each party state and nationwide by simplifying the process for licensing participants in live racing, and reduce the duplicative and costly process of separate licensing by the regulatory agency in each state that conducts live horse racing with pari-mutuel wagering;
     (3) Authorize the ((Washington horse racing commission)) department of gaming to participate in the live horse racing compact;
     (4) Provide for participation in the live horse racing compact by officials of the party states, and permit those officials, through the compact committee established by this chapter, to enter into contracts with governmental agencies and nongovernmental persons to carry out the purposes of the live horse racing compact; and
     (5) Establish the compact committee created by this chapter as an interstate governmental entity duly authorized to request and receive criminal history record information from the federal bureau of investigation and other state and local law enforcement agencies.

Sec. 108   RCW 67.17.120 and 2001 c 18 s 13 are each amended to read as follows:
     Nothing in this chapter shall be construed to diminish or limit the powers and responsibilities of the ((Washington horse racing commission)) department of gaming established in ((chapter 67.16 RCW)) section 41 of this act or to invalidate any action of the Washington horse racing commission or the department of gaming previously taken, including without limitation any ((regulation issued)) rule adopted by the commission or the department.

Sec. 109   RCW 82.04.350 and 1961 c 15 s 82.04.350 are each amended to read as follows:
     This chapter shall not apply to any person in respect to the business of conducting race meets for the conduct of which a license must be secured from the ((horse racing commission)) department of gaming.

NEW SECTION.  Sec. 110   (1) The state conservation commission is hereby abolished and its powers, duties, and functions are hereby transferred to the department of agriculture. All references to the executive director or the state conservation commission in the Revised Code of Washington shall be construed to mean the director or the department of agriculture.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the state conservation commission shall be delivered to the custody of the department of agriculture. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the state conservation commission shall be made available to the department of agriculture. All funds, credits, or other assets held by the state conservation commission shall be assigned to the department of agriculture.
     (b) Any appropriations made to the state conservation commission shall, on the effective date of this section, be transferred and credited to the department of agriculture.
     (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) The employees of the state conservation commission that are transferred to the jurisdiction of the department of agriculture shall be determined based upon the amount of money appropriated for staff. All transferred employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of agriculture to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
     (4) All rules and all pending business before the state conservation commission shall be continued and acted upon by the department of agriculture. All existing contracts and obligations shall remain in full force and shall be performed by the department of agriculture.
     (5) The transfer of the powers, duties, functions, and personnel of the state conservation commission shall not affect the validity of any act performed before the effective date of this section.
     (6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (7) Nothing contained in this section may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel resources board as provided by law.

NEW SECTION.  Sec. 111   A new section is added to chapter 43.23 RCW to read as follows:
     (1) There is hereby created within the department a program to provide grants and technical assistance to local conservation districts. For the program, the department shall be vested with all powers and duties transferred to it from the state conservation commission and such other powers and duties as may be authorized by chapter 89.08 RCW.
     (2) The department shall establish a committee to advise the agency on its implementation of programs and technical assistance established in this section.
     (3) The advisory committee shall consist of ten members, selected as provided for in this subsection.
     (a) Five of the ten members shall be appointed by the director, three of whom shall be landowners or operators of a farm. Two of the five members appointed by the director shall reside in eastern Washington, and two of the five members shall reside in western Washington. The appointed members shall serve for terms of four years.
     (b) Three of the ten members shall be elected by the conservation district supervisors at their annual statewide meeting. At least two of the three elected members shall be landowners or operators of a farm. One of the members shall reside in eastern Washington, one in central Washington, and one in western Washington, the specific boundaries to be determined by district supervisors. At the initial election, the term of the member from western Washington is one year, the term of the member from central Washington is two years, and the term of the member from eastern Washington is three years. Successors shall be elected for three-year terms.
     (c) One member of the committee shall be appointed by the director of the department of ecology, and one member of the committee shall be appointed by the director of the department of fish and wildlife.
     (4) Unexpired term vacancies in the office of appointed committee members shall be filled by the director in the same manner as full-term appointments. Unexpired terms of elected commission members shall be filled by the regional vice-president of the Washington association of conservation districts who is serving that part of the state where the vacancy occurs, the term continuing only until conservation district supervisors fill the unexpired term by electing the commission member.
     (5) Members of the advisory committee shall be compensated in accordance with RCW 43.03.240 and are entitled to travel expenses incurred in the discharge of their duties in accordance with RCW 43.03.050 and 43.03.060.

Sec. 112   RCW 43.21J.030 and 1998 c 245 s 60 are each amended to read as follows:
     (1) There is created the environmental enhancement and job creation task force within the office of the governor. The purpose of the task force is to provide a coordinated and comprehensive approach to implementation of chapter 516, Laws of 1993. The task force shall consist of the commissioner of public lands, the director of the department of fish and wildlife, the director of the department of ecology, the director of the parks and recreation commission, the timber team coordinator, the executive director of the work force training and education coordinating board, and the executive director of the Puget Sound ((water quality authority)) action team, or their designees. The task force may seek the advice of the following agencies and organizations: The department of community, trade, and economic development, the ((conservation commission)) department of agriculture, the employment security department, the interagency committee for outdoor recreation, appropriate federal agencies, appropriate special districts, the Washington state association of counties, the association of Washington cities, labor organizations, business organizations, timber-dependent communities, environmental organizations, and Indian tribes. The governor shall appoint the task force chair. Members of the task force shall serve without additional pay. Participation in the work of the committee by agency members shall be considered in performance of their employment. The governor shall designate staff and administrative support to the task force and shall solicit the participation of agency personnel to assist the task force.
     (2) The task force shall have the following responsibilities:
     (a) Soliciting and evaluating, in accordance with the criteria set forth in RCW 43.21J.040, requests for funds from the environmental and forest restoration account and making distributions from the account. The task force shall award funds for projects and training programs it approves and may allocate the funds to state agencies for disbursement and contract administration;
     (b) Coordinating a process to assist state agencies and local governments to implement effective environmental and forest restoration projects funded under this chapter;
     (c) Considering unemployment profile data provided by the employment security department.
     (3) Beginning July 1, 1994, the task force shall have the following responsibilities:
     (a) To solicit and evaluate proposals from state and local agencies, private nonprofit organizations, and tribes for environmental and forest restoration projects;
     (b) To rank the proposals based on criteria developed by the task force in accordance with RCW 43.21J.040; and
     (c) To determine funding allocations for projects to be funded from the account created in RCW 43.21J.020 and for projects or programs as designated in the omnibus operating and capital appropriations acts.

Sec. 113   RCW 43.41.270 and 2001 c 227 s 2 are each amended to read as follows:
     (1) The office of financial management shall assist natural resource-related agencies in developing outcome-focused performance measures for administering natural resource-related and environmentally based grant and loan programs. These performance measures are to be used in determining grant eligibility, for program management and performance assessment.
     (2) The office of financial management and the governor's salmon recovery office shall assist natural resource-related agencies in developing recommendations for a monitoring program to measure outcome-focused performance measures required by this section. The recommendations must be consistent with the framework and coordinated monitoring strategy developed by the monitoring oversight committee established in RCW 77.85.210.
     (3) Natural resource agencies shall consult with grant or loan recipients including local governments, tribes, nongovernmental organizations, and other interested parties, and report to the office of financial management on the implementation of this section. The office of financial management shall report to the appropriate legislative committees of the legislature on the agencies' implementation of this section, including any necessary changes in current law, and funding requirements by July 31, 2002. Natural resource agencies shall assist the office of financial management in preparing the report, including complying with time frames for submitting information established by the office of financial management.
     (4) For purposes of this section, "natural resource-related agencies" include the department of ecology, the department of natural resources, the department of fish and wildlife, the ((state conservation commission)) department of agriculture, the interagency committee for outdoor recreation, the salmon recovery funding board, and the public works board within the department of community, trade, and economic development.
     (5) For purposes of this section, "natural resource-related environmentally based grant and loan programs" includes the conservation reserve enhancement program; dairy nutrient management grants under chapter 90.64 RCW; ((state conservation commission)) department of agriculture water quality grants under chapter 89.08 RCW; coordinated prevention grants, public participation grants, and remedial action grants under RCW 70.105D.070; water pollution control facilities financing under chapter 70.146 RCW; aquatic lands enhancement grants under RCW 79.24.580; habitat grants under the Washington wildlife and recreation program under RCW 79A.15.040; salmon recovery grants under chapter 77.85 RCW; and the public ((work[s])) works trust fund program under chapter 43.155 RCW. The term also includes programs administered by the department of fish and wildlife related to protection or recovery of fish stocks which are funded with moneys from the capital budget.

Sec. 114   RCW 70.146.060 and 1987 c 527 s 1 and 1987 c 436 s 7 are each reenacted and amended to read as follows:
     During the period from July 1, 1987, until June 30, 1995, the following limitations shall apply to the department's total distribution of funds appropriated from the water quality account:
     (1) Not more than fifty percent for water pollution control facilities which discharge directly into marine waters;
     (2) Not more than twenty percent for water pollution control activities that prevent or mitigate pollution of underground waters and facilities that protect federally designated sole source aquifers with at least two-thirds for the Spokane-Rathdrum Prairie Aquifer;
     (3) Not more than ten percent for water pollution control activities that protect freshwater lakes and rivers including but not limited to Lake Chelan and the Yakima and Columbia rivers;
     (4) Not more than ten percent for activities which control nonpoint source water pollution;
     (5) Ten percent and such sums as may be remaining from the categories specified in subsections (1) through (4) of this section for water pollution control activities or facilities as determined by the department; and
     (6) Two and one-half percent of the total amounts of moneys under subsections (1) through (5) of this section from February 21, 1986, until December 31, 1995, shall be appropriated biennially to the ((state conservation commission)) department of agriculture for the purposes of this chapter. Not less than ten percent of the moneys received by the ((state conservation commission)) department of agriculture under the provisions of this section shall be expended on research activities.
     The distribution under this section shall not be required to be met in any single fiscal year.
     Funds provided for facilities and activities under this chapter may be used for payments to a service provider under a service agreement pursuant to RCW 70.150.060. If funds are to be used for such payments, the department may make periodic disbursements to a public body or may make a single lump sum disbursement. Disbursements of funds with respect to a facility owned or operated by a service provider shall be equivalent in value to disbursements that would otherwise be made if that facility were owned or operated by a public body. Payments under this chapter for waste disposal and management facilities made to public bodies entering into service agreements pursuant to RCW 70.150.060 shall not exceed amounts paid to public bodies not entering into service agreements.

Sec. 115   RCW 77.55.290 and 2001 c 253 s 55 are each amended to read as follows:
     (1) In order to receive the permit review and approval process created in this section, a fish habitat enhancement project must meet the criteria under (a) and (b) of this subsection:
     (a) A fish habitat enhancement project must be a project to accomplish one or more of the following tasks:
     (i) Elimination of human-made fish passage barriers, including culvert repair and replacement;
     (ii) Restoration of an eroded or unstable stream bank employing the principle of bioengineering, including limited use of rock as a stabilization only at the toe of the bank, and with primary emphasis on using native vegetation to control the erosive forces of flowing water; or
     (iii) Placement of woody debris or other instream structures that benefit naturally reproducing fish stocks.
     The department shall develop size or scale threshold tests to determine if projects accomplishing any of these tasks should be evaluated under the process created in this section or under other project review and approval processes. A project proposal shall not be reviewed under the process created in this section if the department determines that the scale of the project raises concerns regarding public health and safety; and
     (b) A fish habitat enhancement project must be approved in one of the following ways:
     (i) By the department pursuant to chapter 77.95 or 77.100 RCW;
     (ii) By the sponsor of a watershed restoration plan as provided in chapter 89.08 RCW;
     (iii) By the department as a department-sponsored fish habitat enhancement or restoration project;
     (iv) Through the review and approval process for the jobs for the environment program;
     (v) Through the review and approval process for conservation district-sponsored projects, where the project complies with design standards established by the ((conservation commission)) department of agriculture through interagency agreement with the United States fish and wildlife service and the natural resource conservation service;
     (vi) Through a formal grant program established by the legislature or the department for fish habitat enhancement or restoration; and
     (vii) Through other formal review and approval processes established by the legislature.
     (2) Fish habitat enhancement projects meeting the criteria of subsection (1) of this section are expected to result in beneficial impacts to the environment. Decisions pertaining to fish habitat enhancement projects meeting the criteria of subsection (1) of this section and being reviewed and approved according to the provisions of this section are not subject to the requirements of RCW 43.21C.030(2)(c).
     (3) Hydraulic project approval is required for projects that meet the criteria of subsection (1) of this section and are being reviewed and approved under this section. An applicant shall use a joint aquatic resource permit application form developed by the department of ecology permit assistance center to apply for approval under this chapter. On the same day, the applicant shall provide copies of the completed application form to the department and to each appropriate local government. Local governments shall accept the application as notice of the proposed project. The department shall provide a fifteen-day comment period during which it will receive comments regarding environmental impacts. In no more than forty-five days, the department shall either issue hydraulic project approval, with or without conditions, deny approval, or make a determination that the review and approval process created by this section is not appropriate for the proposed project. The department shall base this determination on identification during the comment period of adverse impacts that cannot be mitigated by hydraulic project approval. If the department determines that the review and approval process created by this section is not appropriate for the proposed project, the department shall notify the applicant and the appropriate local governments of its determination. The applicant may reapply for approval of the project under other review and approval processes.
     Any person aggrieved by the approval, denial, conditioning, or modification of hydraulic project approval under this section may formally appeal the decision to the hydraulic appeals board pursuant to the provisions of this chapter.
     (4) No local government may require permits or charge fees for fish habitat enhancement projects that meet the criteria of subsection (1) of this section and that are reviewed and approved according to the provisions of this section.

Sec. 116   RCW 77.85.070 and 2000 c 107 s 97 are each amended to read as follows:
     (1) The ((conservation commission)) department of agriculture, in consultation with local government and the tribes, shall invite private, federal, state, tribal, and local government personnel with appropriate expertise to act as a technical advisory group.
     (2) For state personnel, involvement on the technical advisory group shall be at the discretion of the particular agency. Unless specifically provided for in the budget, technical assistance participants shall be provided from existing full-time equivalent employees.
     (3) The technical advisory group shall identify the limiting factors for salmonids to respond to the limiting factors relating to habitat pursuant to RCW 77.85.060(2).
     (4) Where appropriate, the conservation district within the area implementing this chapter shall take the lead in developing and maintaining relationships between the technical advisory group and the private landowners under RCW 75.46.080. The conservation districts may assist landowners to organize around river, tributary, estuary, or subbasins of a watershed.
     (5) Fishery enhancement groups and other volunteer organizations may participate in the activities under this section.

Sec. 117   RCW 77.85.110 and 1999 sp.s. c 13 s 3 are each amended to read as follows:
     (1) The salmon recovery funding board is created consisting of ten members.
     (2) Five members of the board shall be voting members who are appointed by the governor, subject to confirmation by the senate. One of these voting members shall be a cabinet-level appointment as the governor's representative to the board. Board members who represent the general public shall not have a financial or regulatory interest in salmon recovery. The governor shall appoint one of the general public members of the board as the chair. The voting members of the board shall be appointed for terms of four years, except that two members initially shall be appointed for terms of two years and three members shall initially be appointed for terms of three years. In making the appointments, the governor shall seek a board membership that collectively provide the expertise necessary to provide strong fiscal oversight of salmon recovery expenditures, and that provide extensive knowledge of local government processes and functions and an understanding of issues relevant to salmon recovery in Washington state. The governor shall appoint at least three of the voting members of the board no later than ninety days after July 1, 1999. Vacant positions on the board shall be filled in the same manner as the original appointments. The governor may remove members of the board for good cause.
     In addition to the five voting members of the board, the following five state officials shall serve as ex officio nonvoting members of the board: The director of the department of fish and wildlife, the ((executive)) director of the ((conservation commission)) department of agriculture, the secretary of transportation, the director of the department of ecology, and the commissioner of public lands. The state officials serving in an ex officio capacity may designate a representative of their respective agencies to serve on the board in their behalf. Such designations shall be made in writing and in such manner as is specified by the board.
     (3) Staff support to the board shall be provided by the interagency committee for outdoor recreation. For administrative purposes, the board shall be located with the interagency committee for outdoor recreation.
     (4) Members of the board who do not represent state agencies shall be compensated as provided by RCW 43.03.250. Members of the board shall be reimbursed for travel expenses as provided by RCW 43.03.050 and 43.03.060.

Sec. 118   RCW 79.01.295 and 1998 c 245 s 162 are each amended to read as follows:
     (1) By December 31, 1993, the department of fish and wildlife shall develop goals for the wildlife and fish that this agency manages, to preserve, protect, and perpetuate wildlife and fish on shrub steppe habitat or on lands that are presently agricultural lands, rangelands, or grazable woodlands. These goals shall be consistent with the maintenance of a healthy ecosystem.
     (2) ((By July 31, 1993,)) The ((conservation commission)) department of agriculture shall appoint a technical advisory committee to develop standards that achieve the goals developed in subsection (1) of this section. The committee members shall include but not be limited to technical experts representing the following interests: Agriculture, academia, range management, utilities, environmental groups, commercial and recreational fishing interests, the Washington rangelands committee, Indian tribes, the department of fish and wildlife, the department of natural resources, the department of ecology, and conservation districts((, and the department of agriculture)). ((A member of the conservation commission)) The director of the department of agriculture shall appoint a chair from among the members of the committee.
     (3) By December 31, 1994, the committee shall develop standards to meet the goals developed under subsection (1) of this section. These standards shall not conflict with the recovery of wildlife or fish species that are listed or proposed for listing under the federal endangered species act. These standards shall be utilized to the extent possible in development of coordinated resource management plans to provide a level of management that sustains and perpetuates renewable resources, including fish and wildlife, riparian areas, soil, water, timber, and forage for livestock and wildlife. Furthermore, the standards are recommended for application to model watersheds designated by the Northwest power planning council in conjunction with the ((conservation commission)) department of agriculture. The maintenance and restoration of sufficient habitat to preserve, protect, and perpetuate wildlife and fish shall be a major component included in the standards and coordinated resource management plans. Application of standards to privately owned lands is voluntary and may be dependent on funds to provide technical assistance through conservation districts.
     (4) The ((conservation commission)) department of agriculture shall approve the standards and shall provide them to the departments of natural resources and fish and wildlife, each of the conservation districts, and Washington State University cooperative extension service. The conservation districts shall make these standards available to the public and for coordinated resource management planning. Application to private lands is voluntary.
     (5) The department of natural resources shall implement practices necessary to meet the standards developed pursuant to this section on department managed agricultural and grazing lands, consistent with the trust mandate of the Washington state Constitution and Title 79 RCW. The standards may be modified on a site-specific basis as needed to achieve the fish and wildlife goals, and as determined by the department of fish and wildlife, and the department of natural resources. Existing lessees shall be provided an opportunity to participate in any site-specific field review. Department agricultural and grazing leases issued after December 31, 1994, shall be subject to practices to achieve the standards that meet those developed pursuant to this section.

Sec. 119   RCW 89.08.010 and 1973 1st ex.s. c 184 s 2 are each amended to read as follows:
     It is hereby declared, as a matter of legislative determination:
     (1) That the lands of the state of Washington are among the basic assets of the state and that the preservation of these lands is necessary to protect and promote the health, safety, and general welfare of its people; that improper land-use practices have caused and have contributed to, and are now causing and contributing to, a progressively more serious erosion of the lands of this state by wind and water; that the breaking of natural grass, plant and forest cover have interfered with the natural factors of soil stabilization, causing loosening of soil and exhaustion of humus, and developing a soil condition that favors erosion; that the topsoil is being blown and washed off of lands; that there has been an accelerated washing of sloping lands; that these processes of erosion by wind and water speed up with removal of absorptive topsoil, causing exposure of less absorptive and less protective but more erosive subsoil; that failure by any land occupier to conserve the soil and control erosion upon his lands may cause a washing and blowing of soil from his lands onto other lands and makes the conservation of soil and control of erosion on such other lands difficult or impossible, and that extensive denuding of land for development creates critical erosion areas that are difficult to effectively regenerate and the resulting sediment causes extensive pollution of streams, ponds, lakes and other waters.
     (2) That the consequences of such soil erosion in the form of soil blowing and soil washing are the silting and sedimentation of stream channels, reservoirs, dams, ditches, and harbors, and loading the air with soil particles; the loss of fertile soil material in dust storms; the piling up of soil on lower slopes and its deposit over alluvial plains; the reduction in productivity or outright ruin of rich bottom lands by overwash of poor subsoil material, sand, and gravel swept out of the hills; deterioration of soil and its fertility, deterioration of crops grown thereon, and declining acre yields despite development of scientific processes for increasing such yields; loss of soil and water which causes destruction of food and cover for wildlife; a blowing and washing of soil into streams which silts over spawning beds, and destroys water plants, diminishing the food supply of fish; a diminishing of the underground water reserve, which causes water shortages, intensifies periods of drought, and causes crop failures; an increase in the speed and volume of rainfall run-off, causing severe and increasing floods, which bring suffering, disease, and death; impoverishment of families attempting to farm eroding and eroded lands; damage to roads, highways, railways, buildings, and other property from floods and from dust storms; and losses in navigation, hydroelectric power, municipal water supply, irrigation developments, farming and grazing.
     (3) That to conserve soil resources and control and prevent soil erosion and prevent flood water and sediment damages, and further agricultural and nonagricultural phases of the conservation, development, utilization, and disposal of water, it is necessary that land-use practices contributing to soil wastage and soil erosion be discouraged and discontinued, and appropriate soil-conserving land-use practices, and works of improvement for flood prevention of agricultural and nonagricultural phases of the conservation, development, utilization, and disposal of water be adopted and carried out; that among the procedures necessary for widespread adoption, are the carrying on of engineering operations such as the construction of terraces, terrace outlets, check-dams, desilting basins, flood water retarding structures, channel floodways, dikes, ponds, ditches, and the like; the utilization of strip cropping, contour cultivating, and contour furrowing; land irrigation; seeding and planting of waste, sloping, abandoned, or eroded lands to water-conserving and erosion-preventing plants, trees, and grasses; forestation and reforestation; rotation of crops; soil stabilizations with trees, grasses, legumes, and other thick-growing, soil-holding crops, retardation of run-off by increasing absorption of rainfall; and retirement from cultivation of steep, highly erosive areas and areas now badly gullied or otherwise eroded.
     (4) Whereas, there is a pressing need for the conservation of renewable resources in all areas of the state, whether urban, suburban, or rural, and that the benefits of resource practices, programs, and projects, as carried out by the ((state conservation commission)) department of agriculture and by the conservation districts, should be available to all such areas; therefore, it is hereby declared to be the policy of the legislature to provide for the conservation of the renewable resources of this state, and for the control and prevention of soil erosion, and for the prevention of flood water and sediment damages, and for furthering agricultural and nonagricultural phases of conservation, development, utilization, and disposal of water, and thereby to preserve natural resources, control floods, prevent impairment of dams and reservoirs, assist in maintaining the navigability of rivers and harbors, preserve wildlife, protect the tax base, protect public lands, and protect and promote the health, safety, and general welfare of the people of this state. To this end all incorporated cities and towns heretofore excluded from the boundaries of a conservation district established pursuant to the provisions of the state conservation district law, as amended, may be approved by the ((conservation commission)) department of agriculture as being included in and deemed a part of the district upon receiving a petition for annexation signed by the governing authority of the city or town and the conservation district within the exterior boundaries of which it lies in whole or in part or to which it lies closest.

Sec. 120   RCW 89.08.020 and 1999 c 305 s 1 are each amended to read as follows:
     Unless the context clearly indicates otherwise, as used in this chapter:
     (("Commission" and "state conservation commission" means the agency created hereunder. All former references to "state soil and water conservation committee", "state committee" or "committee" shall be deemed to be references to the "state conservation commission";))
     "Department" means the state department of agriculture;
     "Director" means the director of the department;
     "District", or "conservation district" means a governmental subdivision of this state and a public body corporate and politic, organized in accordance with the provisions of chapter 184, Laws of 1973 1st ex. sess., for the purposes, with the powers, and subject to the restrictions set forth in this chapter. All districts created under chapter 184, Laws of 1973 1st ex. sess. shall be known as conservation districts and shall have all the powers and duties set out in chapter 184, Laws of 1973 1st ex. sess. All references in chapter 184, Laws of 1973 1st ex. sess. to "districts", or "soil and water conservation districts" shall be deemed to be reference to "conservation districts";
     "Board" and "supervisors" mean the board of supervisors of a conservation district;
     "Land occupier" or "occupier of land" includes any person, firm, political subdivision, government agency, municipality, public or private corporation, copartnership, association, or any other entity whatsoever which holds title to, or is in possession of, any lands lying within a district organized under the provisions of chapter 184, Laws of 1973 1st ex. sess., whether as owner, lessee, renter, tenant, or otherwise;
     "District elector" or "voter" means a registered voter in the county where the district is located who resides within the district boundary or in the area affected by a petition;
     "Due notice" means a notice published at least twice, with at least six days between publications, in a publication of general circulation within the affected area, or if there is no such publication, by posting at a reasonable number of public places within the area, where it is customary to post notices concerning county and municipal affairs. Any hearing held pursuant to due notice may be postponed from time to time without a new notice;
     "Renewable natural resources", "natural resources" or "resources" includes land, air, water, vegetation, fish, wildlife, wild rivers, wilderness, natural beauty, scenery and open space;
     "Conservation" includes conservation, development, improvement, maintenance, preservation, protection and use, and alleviation of floodwater and sediment damages, and the disposal of excess surface waters.
     "Farm and agricultural land" means either (a) land in any contiguous ownership of twenty or more acres devoted primarily to agricultural uses; (b) any parcel of land five acres or more but less than twenty acres devoted primarily to agricultural uses, which has produced a gross income from agricultural uses equivalent to one hundred dollars or more per acre per year for three of the five calendar years preceding the date of application for classification under this chapter; or (c) any parcel of land of less than five acres devoted primarily to agricultural uses which has produced a gross income of one thousand dollars or more per year for three of the five calendar years preceding the date of application for classification under this chapter. Agricultural lands shall also include farm woodlots of less than twenty and more than five acres and the land on which appurtenances necessary to production, preparation or sale of the agricultural products exist in conjunction with the lands producing such products. Agricultural lands shall also include any parcel of land of one to five acres, which is not contiguous, but which otherwise constitutes an integral part of farming operations being conducted on land qualifying under this section as "farm and agricultural lands".

Sec. 121   RCW 89.08.070 and 1973 1st ex.s. c 184 s 8 are each amended to read as follows:
     In addition to the duties and powers hereinafter conferred upon the ((commission)) department, it shall have the following duties and powers:
     (1) To offer such assistance as may be appropriate to the supervisors of conservation districts organized under the provisions of chapter 184, Laws of 1973 1st ex. sess., in the carrying out of any of their powers and programs:
     (a) to assist and guide districts in the preparation and carrying out of programs for resource conservation authorized under chapter 184, Laws of 1973 1st ex. sess.;
     (b) to review district programs;
     (c) to coordinate the programs of the several districts and resolve any conflicts in such programs;
     (d) to facilitate, promote, assist, harmonize, coordinate, and guide the resource conservation programs and activities of districts as they relate to other special purpose districts, counties, and other public agencies.
     (2) To keep the supervisors of each of the several conservation districts organized under the provisions of chapter 184, Laws of 1973 1st ex. sess. informed of the activities and experience of all other districts organized hereunder, and to facilitate an interchange of advice and experience between such districts and cooperation between them.
     (3) To review agreements, or forms of agreements, proposed to be entered into by districts with other districts or with any state, federal, interstate, or other public or private agency, organization, or individual, and advise the districts concerning such agreements or forms of agreements.
     (4) To secure the cooperation and assistance of the United States and any of its agencies, and of agencies of this state in the work of such districts.
     (5) To recommend the inclusion in annual and longer term budgets and appropriation legislation of the state of Washington of funds necessary for appropriation by the legislature to finance the activities of the ((commission)) department and the conservation districts; to administer the provisions of any law hereinafter enacted by the legislature appropriating funds for expenditure in connection with the activities of conservation districts; to distribute to conservation districts funds, equipment, supplies and services received by the ((commission)) department for that purpose from any source, subject to such conditions as shall be made applicable thereto in any state or federal statute or local ordinance making available such funds, property or services; to issue regulations establishing guidelines and suitable controls to govern the use by conservation districts of such funds, property and services; and to review all budgets, administrative procedures and operations of such districts and advise the districts concerning their conformance with applicable laws and regulations.
     (6) To encourage the cooperation and collaboration of state, federal, regional, interstate and local public and private agencies with the conservation districts, and facilitate arrangements under which the conservation districts may serve county governing bodies and other agencies as their local operating agencies in the administration of any activity concerned with the conservation of renewable natural resources.
     (7) To disseminate information throughout the state concerning the activities and programs of the conservation districts organized ((hereunder)) under this chapter, and to encourage the formation of such districts in areas where their organization is desirable; to make available information concerning the needs and the work of the conservation district and the ((commission)) department to the governor, the legislature, executive agencies of the government of this state, political subdivisions of this state, cooperating federal agencies, and the general public.
     (8) Pursuant to procedures developed mutually by the ((commission)) department and other state and local agencies that are authorized to plan or administer activities significantly affecting the conservation of renewable natural resources, to receive from such agencies for review and comment suitable descriptions of their plans, programs and activities for purposes of coordination with district conservation programs; to arrange for and participate in conferences necessary to avoid conflict among such plans and programs, to call attention to omissions, and to avoid duplication of effort.
     (9) To compile information and make studies, summaries and analysis of district programs in relation to each other and to other resource conservation programs on a statewide basis.
     (10) To assist conservation districts in obtaining legal services from state and local legal officers.
     (11) To require annual reports from conservation districts, the form and content of which shall be developed by the ((commission)) department.
     (12) To establish by ((regulations)) rule, with the assistance and advice of the state auditor's office, adequate and reasonably uniform accounting and auditing procedures which shall be used by conservation districts.

Sec. 122   RCW 89.08.080 and 1999 c 305 s 2 are each amended to read as follows:
     To form a conservation district, twenty percent of the voters within the area to be affected may file a petition with the ((commission)) department asking that the area be organized into a district.
     The petition shall give the name of the proposed district, state that it is needed in the interest of the public health, safety, and welfare, give a general description of the area proposed to be organized and request that the ((commission)) department determine that it be created, and that it define the boundaries thereof and call an election on the question of creating the district.
     If more than one petition is filed covering parts of the same area, the ((commission)) department may consolidate all or any of them.

Sec. 123   RCW 89.08.090 and 1973 1st ex.s. c 184 s 10 are each amended to read as follows:
     Within thirty days after a petition is filed, the ((commission)) department shall give due notice of the time and place of a public hearing thereon. At the hearing all interested persons shall be heard.
     If it appears to the ((commission)) department that additional land should be included in the district, the hearing shall be adjourned and a new notice given covering the entire area and a new date fixed for further hearing, unless waiver of notice by the owners of the additional land is filed with the ((commission)) department.
     No district shall include any portion of a railroad right of way, or another similar district. The lands included in a district need not be contiguous.

Sec. 124   RCW 89.08.100 and 1973 1st ex.s. c 184 s 11 are each amended to read as follows:
     After the hearing, if the ((commission)) department finds that the public health, safety, and welfare warrant the creation of the district, it shall enter an order to that effect and define the boundaries thereof by metes and bounds or by legal subdivisions.
     In making its findings the ((commission)) department shall consider the topography of the particular area and of the state generally; the composition of the soil; the distribution of erosion; the prevailing land use practices; the effects upon and benefits to the land proposed to be included; the relation of the area to existing watersheds and agricultural regions and to other similar districts organized or proposed; and consider such other physical, geographical, and economic factors as are relevant.
     If the ((commission)) department finds there is no need for the district, it shall enter an order denying the petition, and no petition covering the same or substantially the same area may be filed within six months thereafter.

Sec. 125   RCW 89.08.110 and 1999 c 305 s 3 are each amended to read as follows:
     If the ((commission)) department finds that the district is needed, it shall then determine whether it is practicable. To assist the ((commission)) department in determining this question, it shall, within a reasonable time, submit the proposition to a vote of the district electors in the proposed district.
     The ((commission)) department shall fix the date of the election, designate the polling places, fix the hours for opening and closing the polls, and appoint the election officials. The election shall be conducted, the vote counted and returns canvassed and the results published by the ((commission)) department.

Sec. 126   RCW 89.08.120 and 1973 1st ex.s. c 184 s 13 are each amended to read as follows:
     The ((commission)) department shall provide the ballots for the election which shall contain the words

     "□ For creation of a conservation district of the lands below described and lying in the county or counties of . . . . . ., . . . . . . and . . . . . .," and
     "□ Against creation of a conservation district of the lands below described and lying in the county or counties of . . . . . ., . . . . . . and . . . . . ."

     The ballot shall set forth the boundaries of the proposed district, and contain a direction to insert an X in the square of the voter's choice.

Sec. 127   RCW 89.08.130 and 1999 c 305 s 4 are each amended to read as follows:
     The ((commission)) department shall give due notice of the election, which shall state generally the purpose of the election, the date thereof, the place and hours of voting, and set forth the boundaries of the proposed district.
     Only qualified district electors within the proposed district as determined by the ((commission)) department may vote at the election. Each voter shall vote in the polling place nearest the voter's residence.

Sec. 128   RCW 89.08.140 and 1973 1st ex.s. c 184 s 15 are each amended to read as follows:
     The ((commission)) department shall bear all expense of giving the notices and conducting the hearings and election, and shall issue ((regulations)) rules governing all hearings and elections and supervise the conduct thereof. It shall provide for registration of eligible voters or prescribe the procedure to determine the eligible voters. No informality in connection with the election shall invalidate the results, if the notice thereof was substantially given, and the election fairly conducted.

Sec. 129   RCW 89.08.150 and 1999 c 305 s 5 are each amended to read as follows:
     If a majority of the votes cast at the election are against the creation of the district, the ((commission)) department shall deny the petition. If a majority favor the district, the ((commission)) department shall determine the practicability of the project.
     In making such determination, the ((commission)) department shall consider the attitude of the voters of the district; the number of eligible voters who voted at the election; the size of the majority vote; the wealth and income of the land occupiers; the probable expense of carrying out the project; and any other economic factors relevant thereto.
     If the ((commission)) department finds that the project is impracticable it shall enter an order to that effect and deny the petition. When the petition has been denied, no new petition covering the same or substantially the same area may be filed within six months therefrom.

Sec. 130   RCW 89.08.160 and 1973 1st ex.s. c 184 s 17 are each amended to read as follows:
     If the ((commission)) department finds the project practicable, it shall appoint two supervisors, one of whom shall be a landowner or operator of a farm, who shall be qualified by training and experience to perform the specialized skilled services required of them. They, with the three elected supervisors, two of whom shall be landowners or operators of a farm, shall constitute the governing board of the district.
     The two appointed supervisors shall file with the secretary of state a sworn application, reciting that a petition was filed with the ((commission)) department for the creation of the district; that all required proceedings were had thereon; that they were appointed by the ((commission)) department as such supervisors; and that the application is being filed to complete the organization of the district. It shall contain the names and residences of the applicants, a certified copy of their appointments, the name of the district, the location of the office of the supervisors and the term of office of each applicant.
     The application shall be accompanied by a statement of the ((commission)) department, reciting that a petition was filed, notice issued, and hearing held thereon as required; that it determined the need for the district and defined the boundaries thereof; that notice was given and an election held on the question of creating the district; that a majority vote favored the district, and that the ((commission)) department had determined the district practicable; and shall set forth the boundaries of the district.

Sec. 131   RCW 89.08.170 and 1973 1st ex.s. c 184 s 18 are each amended to read as follows:
     If the secretary of state finds that the name of the proposed district is such as will not be confused with that of any other district, he shall enter the application and statement in his records. If he finds the name may be confusing, he shall certify that fact to the ((commission, which)) director, who shall submit a new name free from such objections, and he shall enter the application and statement as modified, in his records. Thereupon the district shall be considered organized into a body corporate.
     The secretary of state shall then issue to the supervisors a certificate of organization of the district under the seal of the state, and shall record the certificate in his office. Proof of the issuance of the certificate shall be evidence of the establishment of the district, and a certified copy of the certificate shall be admissible as evidence and shall be proof of the filing and contents thereof. The name of a conservation district may be changed upon recommendation by the supervisors of a district and approval by the ((state conservation commission)) director and the secretary of state. The new name shall be recorded by the secretary of state following the same general procedure as for the previous name.

Sec. 132   RCW 89.08.180 and 1999 c 305 s 6 are each amended to read as follows:
     Territory may be added to an existing district upon filing a petition as in the case of formation with the ((commission)) department by twenty percent of the voters of the affected area to be included. The same procedure shall be followed as for the creation of the district.
     As an alternate procedure, the ((commission)) department may upon the petition of a majority of the voters in any one or more districts or in unorganized territory adjoining a conservation district change the boundaries of a district, or districts, if such action will promote the practical and feasible administration of such district or districts.
     Upon petition of the boards of supervisors of two or more districts, the ((commission)) department may approve the combining of all or parts of such districts and name the district, or districts, with the approval of the name by the secretary of state. A public hearing and/or a referendum may be held if deemed necessary or desirable by the ((commission)) department in order to determine the wishes of the voters.
     When districts are combined, the joint boards of supervisors will first select a chairman, secretary and other necessary officers and select a regular date for meetings. All elected supervisors will continue to serve as members of the board until the expiration of their current term of office, and/or until the election date nearest their expiration date. All appointed supervisors will continue to serve until the expiration of their current term of office, at which time the ((commission)) department will make the necessary appointments. In the event that more than two districts are combined, a similar procedure will be set up and administered by the ((commission)) department.
     When districts are combined or territory is moved from one district to another, the property, records and accounts of the districts involved shall be distributed to the remaining district or districts as approved by the ((commission)) department. A new certificate of organization, naming and describing the new district or districts, shall be issued by the secretary of state.

Sec. 133   RCW 89.08.185 and 1999 c 305 s 7 are each amended to read as follows:
     The local governing body of any city or incorporated town within an existing district may approve by majority vote a petition to withdraw from the district. The petition shall be submitted to the district for its approval. If approved by the district, the petition shall be sent to the ((commission)) department. The ((commission)) department shall approve the petition and forward it to the secretary of state and the boundary of the district shall be adjusted accordingly. If the petition is not approved by the district, the district shall adopt a resolution specifying the reasons why the petition is not approved. The petition and the district's resolution shall be sent to the ((commission)) department for its review. The ((commission)) department shall approve or reject the petition based upon criteria it has adopted for the evaluation of petitions in dispute. If the ((commission)) department approves the petition, it shall forward the petition to the secretary of state and the boundaries of the district shall be adjusted accordingly. The criteria used by the ((commission)) department to evaluate petitions which are in dispute shall be adopted as rules by the ((commission)) department under chapter 34.05 RCW, the administrative procedure act.

Sec. 134   RCW 89.08.200 and 1973 1st ex.s. c 184 s 21 are each amended to read as follows:
     The term of office of each supervisor shall be three years and until his successor is appointed or elected and qualified, except that the supervisors first appointed shall serve for one and two years respectively from the date of their appointments, as designated in their appointments.
     In the case of elected supervisors, the term of office of each supervisor shall be three years and until his successor is elected and qualified, except that for the first election, the one receiving the largest number of votes shall be elected for three years; the next largest two years; and the third largest one year. Successors shall be elected for three-year terms.
     Vacancies in the office of appointed supervisors shall be filled by the ((state conservation commission)) director. Vacancies in the office of elected supervisors shall be filled by appointment made by the remaining supervisors for the unexpired term.
     A majority of the supervisors shall constitute a quorum and the concurrence of a majority is required for any official action or determination.
     Supervisors shall serve without compensation, but they shall be entitled to expenses, including traveling expenses, necessarily incurred in discharge of their duties. A supervisor may be removed by the ((state conservation commission)) director upon notice and hearing, for neglect of duty or malfeasance in office, but for no other reason.
     The governing board shall designate a chairman from time to time.

Sec. 135   RCW 89.08.210 and 2000 c 45 s 1 are each amended to read as follows:
     The supervisors may employ a secretary, treasurer, technical experts, and such other officers, agents, and employees, permanent and temporary, as they may require, and determine their qualifications, duties, and compensation. It may call upon the attorney general for legal services, or may employ its own counsel and legal staff. The supervisors may delegate to their chairman, to one or more supervisors, or to one or more agents or employees such powers and duties as it deems proper. The supervisors shall furnish to the ((commission)) department, upon request, copies of such internal rules, regulations, orders, contracts, forms, and other documents as they shall adopt or employ, and such other information concerning their activities as the ((commission)) department may require in the performance of its duties under chapter 184, Laws of 1973 1st ex. sess. The supervisors shall provide for the execution of surety bonds for officers and all employees who shall be entrusted with funds or property.
     The supervisors shall provide for the keeping of a full and accurate record of all proceedings, resolutions, regulations, and orders issued or adopted. The supervisors shall provide for an annual audit of the accounts of receipts and disbursements in accordance with procedures prescribed by ((regulations)) rules of the ((commission)) department.
     The board may invite the legislative body of any municipality or county near or within the district, to designate a representative to advise and consult with it on all questions of program and policy which may affect the property, water supply, or other interests of such municipality or county. The governing body of a district shall appoint such advisory committees as may be needed to assure the availability of appropriate channels of communication to the board of supervisors, to persons affected by district operations, and to local, regional, state and interstate special-purpose districts and agencies responsible for community planning, zoning, or other resource development activities. The district shall keep such committees informed of its work, and such advisory committees shall submit recommendations from time to time to the board of supervisors.

Sec. 136   RCW 89.08.220 and 1999 c 305 s 8 are each amended to read as follows:
     A conservation district organized under the provisions of chapter 184, Laws of 1973 1st ex. sess. shall constitute a governmental subdivision of this state, and a public body corporate and politic exercising public powers, but shall not levy taxes or issue bonds and such district, and the supervisors thereof, shall have the following powers, in addition to others granted in other sections of chapter 184, Laws of 1973 1st ex. sess.:
     (1) To conduct surveys, investigations, and research relating to the conservation of renewable natural resources and the preventive and control measures and works of improvement needed, to publish the results of such surveys, investigations, or research, and to disseminate information concerning such preventive and control measures and works of improvement: PROVIDED, That in order to avoid duplication of research activities, no district shall initiate any research program except in cooperation with the government of this state or any of its agencies, or with the United States or any of its agencies;
     (2) To conduct educational and demonstrational projects on any lands within the district upon obtaining the consent of the occupier of such lands and such necessary rights or interests in such lands as may be required in order to demonstrate by example the means, methods, measures, and works of improvement by which the conservation of renewable natural resources may be carried out;
     (3) To carry out preventative and control measures and works of improvement for the conservation of renewable natural resources, within the district including, but not limited to, engineering operations, methods of cultivation, the growing of vegetation, changes in use of lands, and the measures listed in RCW 89.08.010, on any lands within the district upon obtaining the consent of the occupier of such lands and such necessary rights or interests in such lands as may be required;
     (4) To cooperate or enter into agreements with, and within the limits of appropriations duly made available to it by law, to furnish financial or other aid to any agency, governmental or otherwise, or any occupier of lands within the district in the carrying on of preventive and control measures and works of improvement for the conservation of renewable natural resources within the district, subject to such conditions as the supervisors may deem necessary to advance the purposes of chapter 184, Laws of 1973 1st ex. sess. For purposes of this subsection only, land occupiers who are also district supervisors are not subject to the provisions of RCW 42.23.030;
     (5) To obtain options upon and to acquire in any manner, except by condemnation, by purchase, exchange, lease, gift, bequest, devise, or otherwise, any property, real or personal, or rights or interests therein; to maintain, administer, and improve any properties acquired, to receive income from such properties and to expend such income in carrying out the purposes and provisions of chapter 184, Laws of 1973 1st ex. sess.; and to sell, lease, or otherwise dispose of any of its property or interests therein in furtherance of the purposes and the provisions of chapter 184, Laws of 1973 1st ex. sess.;
     (6) To make available, on such terms, as it shall prescribe, to land occupiers within the district, agricultural and engineering machinery and equipment, fertilizer, seeds, seedlings, and such other equipment and material as will assist them to carry on operations upon their lands for the conservation of renewable natural resources;
     (7) To prepare and keep current a comprehensive long-range program recommending the conservation of all the renewable natural resources of the district. Such programs shall be directed toward the best use of renewable natural resources and in a manner that will best meet the needs of the district and the state, taking into consideration, where appropriate, such uses as farming, grazing, timber supply, forest, parks, outdoor recreation, potable water supplies for urban and rural areas, water for agriculture, minimal flow, and industrial uses, watershed stabilization, control of soil erosion, retardation of water run-off, flood prevention and control, reservoirs and other water storage, restriction of developments of flood plains, protection of open space and scenery, preservation of natural beauty, protection of fish and wildlife, preservation of wilderness areas and wild rivers, the prevention or reduction of sedimentation and other pollution in rivers and other waters, and such location of highways, schools, housing developments, industries, airports and other facilities and structures as will fit the needs of the state and be consistent with the best uses of the renewable natural resources of the state. The program shall include an inventory of all renewable natural resources in the district, a compilation of current resource needs, projections of future resource requirements, priorities for various resource activities, projected timetables, descriptions of available alternatives, and provisions for coordination with other resource programs.
     The district shall also prepare an annual work plan, which shall describe the action programs, services, facilities, materials, working arrangements and estimated funds needed to carry out the parts of the long-range programs that are of the highest priorities.
     The districts shall hold public hearings at appropriate times in connection with the preparation of programs and plans, shall give careful consideration to the views expressed and problems revealed in hearings, and shall keep the public informed concerning their programs, plans, and activities. Occupiers of land shall be invited to submit proposals for consideration to such hearings. The districts may supplement such hearings with meetings, referenda and other suitable means to determine the wishes of interested parties and the general public in regard to current and proposed plans and programs of a district. They shall confer with public and private agencies, individually and in groups, to give and obtain information and understanding of the impact of district operations upon agriculture, forestry, water supply and quality, flood control, particular industries, commercial concerns and other public and private interests, both rural and urban.
     Each district shall submit to the ((commission)) department its proposed long-range program and annual work plans for review and comment.
     The long-range renewable natural resource program, together with the supplemental annual work plans, developed by each district under the foregoing procedures shall have official status as the authorized program of the district, and it shall be published by the districts as its "renewable resources program". Copies shall be made available by the districts to the appropriate counties, municipalities, special purpose districts and state agencies, and shall be made available in convenient places for examination by public land occupier or private interest concerned. Summaries of the program and selected material therefrom shall be distributed as widely as feasible for public information;
     (8) To administer any project or program concerned with the conservation of renewable natural resources located within its boundaries undertaken by any federal, state, or other public agency by entering into a contract or other appropriate administrative arrangement with any agency administering such project or program;
     (9) Cooperate with other districts organized under chapter 184, Laws of 1973 1st ex. sess. in the exercise of any of its powers;
     (10) To accept donations, gifts, and contributions in money, services, materials, or otherwise, from the United States or any of its agencies, from this state or any of its agencies, or from any other source, and to use or expend such moneys, services, materials, or any contributions in carrying out the purposes of chapter 184, Laws 1973 1st ex. sess.;
     (11) To sue and be sued in the name of the district; to have a seal which shall be judicially noticed; have perpetual succession unless terminated as hereinafter provided; to make and execute contracts and other instruments, necessary or convenient to the exercise of its powers; to borrow money and to pledge, mortgage and assign the income of the district and its real or personal property therefor; and to make, amend rules and regulations not inconsistent with chapter 184, Laws of 1973 1st ex. sess. and to carry into effect its purposes;
     (12) Any two or more districts may engage in joint activities by agreement between or among them in planning, financing, constructing, operating, maintaining, and administering any program or project concerned with the conservation of renewable natural resources. The districts concerned may make available for purposes of the agreement any funds, property, personnel, equipment, or services available to them under chapter 184, Laws of 1973 1st ex. sess.;
     Any district may enter into such agreements with a district or districts in adjoining states to carry out such purposes if the law in such other states permits the districts in such states to enter into such agreements.
     The ((commission)) department shall have authority to propose, guide, and facilitate the establishment and carrying out of any such agreement;
     (13) Every district shall, through public hearings, annual meetings, publications, or other means, keep the general public, agencies and occupiers of land within the district, informed of the works and activities planned and administered by the district, of the purposes these will serve, of the income and expenditures of the district, of the funds borrowed by the district and the purposes for which such funds are expended, and of the results achieved annually by the district; and
     (14) The supervisors of conservation districts may designate an area, state, and national association of conservation districts as a coordinating agency in the execution of the duties imposed by this chapter, and to make gifts in the form of dues, quotas, or otherwise to such associations for costs of services rendered, and may support and attend such meetings as may be required to promote and perfect the organization and to effect its purposes.

Sec. 137   RCW 89.08.341 and 1973 1st ex.s. c 184 s 24 are each amended to read as follows:
     Any agency of the government of this state and any local political subdivision of this state is hereby authorized to make such arrangements with any district, through contract, regulation or other appropriate means, wherever it believes that such arrangements will promote administrative efficiency or economy.
     In connection with any such arrangements, any state or local agency or political subdivision of this state is authorized, within the limits of funds available to it, to contribute funds, equipment, property or services to any district; and to collaborate with a district in jointly planning, constructing, financing or operating any work or activity provided for in such arrangements and in the joint acquisition, maintenance and operation of equipment or facilities in connection therewith.
     State agencies, the districts, and other local agencies are authorized to make available to each other maps, reports and data in their possession that are useful in the preparation of their respective programs and plans for resource conservation. The districts shall keep the state and local agencies fully informed concerning the status and progress of the preparation of their resource conservation programs and plans.
     The ((state conservation commission)) department and the counties of the state may provide respective conservation districts such administrative funds as will be necessary to carry out the purpose of chapter 184, Laws of 1973 1st ex. sess.

Sec. 138   RCW 89.08.350 and 1999 c 305 s 9 are each amended to read as follows:
     At any time after five years from the organization of a district, twenty percent of the voters in the district may file with the ((commission)) department a petition, praying that the district be dissolved. The ((commission)) department may hold public hearings thereon, and within sixty days from receipt of the petition, shall give due notice of an election on the question of dissolution. It shall provide appropriate ballots, conduct the election, canvass the returns, and declare the results in the same manner as for elections to create a district.
     All district electors may vote at the election. No informality relating to the election shall invalidate it if notice is substantially given and the election is fairly conducted.

Sec. 139   RCW 89.08.370 and 1999 c 305 s 11 are each amended to read as follows:
     If the district is ordered dissolved, the supervisors shall forthwith terminate the affairs of the district and dispose of all district property at public auction, and pay the proceeds therefrom to pay any debts of the district and any remaining balance to the state treasurer.
     They shall then file a verified application with the secretary of state for the dissolution of the district, accompanied by a certificate of the ((commission)) department reciting the determination that further operation of the district is impracticable. The application shall recite that the property of the district has been disposed of, that the proceeds therefrom have been used to pay any debts of the district and any remaining balance paid to the treasurer, and contain a full accounting of the property and proceeds. Thereupon the secretary shall issue to the supervisors a certificate of dissolution and file a copy thereof in his or her records.

Sec. 140   RCW 89.08.410 and 1989 c 18 s 2 are each amended to read as follows:
     The ((state conservation commission)) director may authorize grants to conservation districts from moneys appropriated to the ((commission)) department for such purposes as provided in this section. Such grants shall be made annually on or before the last day of June of each year and shall be made only to those conservation districts that apply for the grants. After all the grant requests have been submitted, the initial grants in any year shall be made so that a conservation district shall not receive a grant in excess of the lesser of: (1) an amount equal to the total moneys obtained by the conservation district from all other sources, other than any grants obtained from the state, during the preceding calendar year; or (2) twenty-two thousand five hundred dollars. If the appropriated moneys are insufficient to make the maximum level of the initial grants, each grant amount shall be reduced by an equal dollar amount until the total amount of the grants is equal to the amount of the appropriation.
     However, further grants shall be made to those conservation districts that were limited to grants of twenty-two thousand five hundred dollars if the appropriated moneys are in excess of the amount of the initial distribution of grants, but the total of both grants to any conservation district in any year shall not exceed an amount equal to the total moneys obtained by that conservation district from all other sources, other than any grants obtained from the state, during the preceding calendar year. If the appropriated moneys are insufficient to make the second distribution of grants, each grant under the second distribution shall be reduced by an equal dollar amount until the total amount of all the grants is equal to the amount of the appropriation.

Sec. 141   RCW 89.08.470 and 1998 c 249 s 13 are each amended to read as follows:
     (1) ((By January 1, 1996, the Washington conservation commission)) The department shall develop, in consultation with other state agencies, tribes, and local governments, a consolidated application process for permits for a watershed restoration project developed by an agency or sponsored by an agency on behalf of a volunteer organization. The consolidated process shall include a single permit application form for use by all responsible state and local agencies. The ((commission)) department shall encourage use of the consolidated permit application process by any federal agency responsible for issuance of related permits. The permit application forms to be consolidated shall include, at a minimum, applications for: (a) Approvals related to water quality standards under chapter 90.48 RCW; (b) hydraulic project approvals under chapter ((75.20)) 77.55 RCW; and (c) section 401 water quality certifications under 33 U.S.C. Sec. 1341 and chapter 90.48 RCW.
     (2) If a watershed restoration project is also a fish habitat enhancement project that meets the criteria of RCW ((75.20.350(1))) 77.55.290(1), the project sponsor shall instead follow the permit review and approval process established in RCW ((75.20.350)) 77.55.290 with regard to state and local government permitting requirements. The sponsor shall so notify state and local permitting authorities.

Sec. 142   RCW 89.08.480 and 1995 c 378 s 4 are each amended to read as follows:
     Each agency of the state and unit of local government that claims jurisdiction or the right to require permits, other approvals, or fees as a condition of allowing a watershed restoration project to proceed shall designate an office or official as a designated recipient of project applications and shall inform the ((conservation commission)) department of the designation.

Sec. 143   RCW 89.08.520 and 2001 c 227 s 3 are each amended to read as follows:
     In administering grant programs to improve water quality and protect habitat, the ((commission)) department shall require grant recipients to incorporate the environmental benefits of the project into their grant applications, and the ((commission)) department shall utilize the statement of environmental ((benefit[s])) benefits in its grant prioritization and selection process. The ((commission)) department shall also develop appropriate outcome-focused performance measures to be used both for management and performance assessment of the grant program. The ((commission)) department shall work with the districts to develop uniform performance measures across participating districts. To the extent possible, the ((commission)) department should coordinate its performance measure system with other natural resource-related agencies as defined in RCW 43.41.270. The ((commission)) department shall consult with affected interest groups in implementing this section.

Sec. 144   RCW 89.08.530 and 2002 c 280 s 2 are each amended to read as follows:
     (1) The agricultural conservation easements program is created. The ((state conservation commission)) department shall manage the program and adopt rules as necessary to implement the legislature's intent.
     (2) The ((commission)) department shall report to the legislature on an ((on-going)) ongoing basis regarding potential funding sources for the purchase of agricultural conservation easements under the program and recommend changes to existing funding authorized by the legislature.
     (3) All funding for the program shall be deposited into the agricultural conservation easements account created in RCW 89.08.540. Expenditures from the account shall be made to local governments and private nonprofits on a match or no match required basis at the discretion of the ((commission)) director.
     (4) Easements purchased with money from the agricultural conservation easements account run with the land.

Sec. 145   RCW 89.08.540 and 2002 c 280 s 3 are each amended to read as follows:
     (1) The agricultural conservation easements account is created in the custody of the state treasurer. All receipts from legislative appropriations, other sources as directed by the legislature, and gifts, grants, or endowments from public or private sources must be deposited into the account. Expenditures from the account may be used only for the purchase of easements under the agricultural conservation easements program. Only the ((state conservation commission, or the executive director of the commission on the commission's behalf,)) director may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.
     (2) The ((commission)) department is authorized to receive and expend gifts, grants, or endowments from public or private sources that are made available, in trust or otherwise, for the use and benefit of the agricultural conservation easements program.

Sec. 146   RCW 90.64.005 and 1998 c 262 s 1 are each amended to read as follows:
     The legislature finds that there is a need to establish a clear and understandable process that provides for the proper and effective management of dairy nutrients that affect the quality of surface or ground waters in the state of Washington. The legislature finds that there is a need for a program that will provide a stable and predictable business climate upon which dairy farms may base future investment decisions.
     The legislature finds that federal regulations require a permit program for dairies with over seven hundred head of mature cows and, other specified dairy farms that directly discharge into waters or are otherwise significant contributors of pollution. The legislature finds that significant work has been ongoing over a period of time and that the intent of this chapter is to take the consensus that has been developed and place it into statutory form.
     It is also the intent of this chapter to establish an inspection and technical assistance program for dairy farms to address the discharge of pollution to surface and ground waters of the state that will lead to water quality compliance by the industry. A further purpose is to create a balanced program involving technical assistance, regulation, and enforcement with coordination and oversight of the program by a committee composed of industry, agency, and other representatives. Furthermore, it is the objective of this chapter to maintain the administration of the water quality program as it relates to dairy operations at the state level.
     It is also the intent of this chapter to recognize the existing working relationships between conservation districts, the ((conservation commission)) department of agriculture, and the department of ecology in protecting water quality of the state. A further purpose of this chapter is to provide statutory recognition of the coordination of the functions of conservation districts, the ((conservation commission)) department of agriculture, and the department of ecology pertaining to development of dairy waste management plans for the protection of water quality.

Sec. 147   RCW 90.64.010 and 1998 c 262 s 2 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Advisory and oversight committee" means a balanced committee of agency, dairy farm, and interest group representatives convened to provide oversight and direction to the dairy nutrient management program.
     (2) "Bypass" means the intentional diversion of waste streams from any portion of a treatment facility.
     (3) "Catastrophic" means a tornado, hurricane, earthquake, flood, or other extreme condition that causes an overflow from a required waste retention structure.
     (4) "Certification" means:
     (a) The acknowledgment by a local conservation district that a dairy producer has constructed or otherwise put in place the elements necessary to implement his or her dairy nutrient management plan; and
     (b) The acknowledgment by a dairy producer that he or she is managing dairy nutrients as specified in his or her approved dairy nutrient management plan.
     (5) "Chronic" means a series of wet weather events that precludes the proper operation of a dairy nutrient management system that is designed for the current herd size.
     (6) (("Conservation commission" or "commission" means the conservation commission under chapter 89.08 RCW.
     (7))) "Conservation districts" or "district" means a subdivision of state government organized under chapter 89.08 RCW.
     (((8))) (7) "Concentrated dairy animal feeding operation" means a dairy animal feeding operation subject to regulation under this chapter which the director designates under RCW 90.64.020 or meets the following criteria:
     (a) Has more than seven hundred mature dairy cows, whether milked or dry cows, that are confined; or
     (b) Has more than two hundred head of mature dairy cattle, whether milked or dry cows, that are confined and either:
     (i) From which pollutants are discharged into navigable waters through a manmade ditch, flushing system, or other similar manmade device; or
     (ii) From which pollutants are discharged directly into surface or ground waters of the state that originate outside of and pass over, across, or through the facility or otherwise come into direct contact with the animals confined in the operation.
     (((9))) (8) "Dairy animal feeding operation" means a lot or facility where the following conditions are met:
     (a) Dairy animals that have been, are, or will be stabled or confined and fed for a total of forty-five days or more in any twelve-month period; and
     (b) Crops, vegetation forage growth, or postharvest residues are not sustained in the normal growing season over any portion of the lot or facility. Two or more dairy animal feeding operations under common ownership are considered, for the purposes of this chapter, to be a single dairy animal feeding operation if they adjoin each other or if they use a common area for land application of wastes.
     (((10))) (9) "Dairy farm" means any farm that is licensed to produce milk under chapter 15.36 RCW.
     (((11))) (10) "Dairy nutrient" means any organic waste produced by dairy cows or a dairy farm operation.
     (((12))) (11) "Dairy nutrient management plan" means a plan meeting the requirements established under RCW 90.64.026.
     (((13))) (12) "Dairy nutrient management technical assistance team" means one or more professional engineers and local conservation district employees convened to serve one of four distinct geographic areas in the state.
     (((14))) (13) "Dairy producer" means a person who owns or operates a dairy farm.
     (((15))) (14) "Department" means the department of ecology under chapter 43.21A RCW.
     (((16))) (15) "Director" means the director of the department of ecology, or his or her designee.
     (((17))) (16) "Upset" means an exceptional incident in which there is an unintentional and temporary noncompliance with technology-based permit effluent limitations because of factors beyond the reasonable control of the dairy. An upset does not include noncompliance to the extent caused by operational error, improperly designed treatment facilities, inadequate treatment facilities, lack of preventive maintenance, or careless or improper operation.
     (((18))) (17) "Violation" means the following acts or omissions:
     (a) A discharge of pollutants into the waters of the state, except those discharges that are due to a chronic or catastrophic event, or to an upset as provided in 40 C.F.R. Sec. 122.41, or to a bypass as provided in 40 C.F.R. Sec. 122.41, and that occur when:
     (i) A dairy producer has a current national pollutant discharge elimination system permit with a wastewater system designed, operated, and maintained for the current herd size and that contains all process-generated wastewater plus average annual precipitation minus evaporation plus contaminated storm water runoff from a twenty-five year, twenty-four hour rainfall event for that specific location, and the dairy producer has complied with all permit conditions, including dairy nutrient management plan conditions for appropriate land application practices; or
     (ii) A dairy producer does not have a national pollutant discharge elimination system permit, but has complied with all of the elements of a dairy nutrient management plan that: Prevents the discharge of pollutants to waters of the state, is commensurate with the dairy producer's current herd size, and is approved and certified under RCW 90.64.026;
     (b) Failure to register as required under RCW 90.64.017; or
     (c) The lack of an approved dairy nutrient management plan by July 1, 2002; or
     (d) The lack of a certified dairy nutrient management plan for a dairy farm after December 31, 2003.

Sec. 148   RCW 90.64.026 and 1998 c 262 s 6 are each amended to read as follows:
     (1) Except for those producers who already have a certified dairy nutrient management plan as required under the terms and conditions of an individual or general national pollutant discharge elimination system permit, all dairy producers licensed under chapter 15.36 RCW, regardless of size, shall prepare a dairy nutrient management plan. If at any time a dairy nutrient management plan fails to prevent the discharge of pollutants to waters of the state, it shall be required to be updated.
     (2) ((By November 1, 1998, the conservation commission)) The department of agriculture, in conjunction with the advisory and oversight committee established under section 8 ((of this act)), chapter 262, Laws of 1998 shall develop a document clearly describing the elements that a dairy nutrient management plan must contain to gain local conservation district approval.
     (3) In developing the elements that an approved dairy nutrient management plan must contain, the ((commission)) department of agriculture may authorize the use of other methods and technologies than those developed by the natural resources conservation service when such alternatives have been evaluated by the advisory and oversight committee. Alternative methods and technologies shall meet the standards and specifications of:
     (a) The natural resources conservation service as modified by the geographically based standards developed under RCW 90.64.140; or
     (b) A professional engineer with expertise in the area of dairy nutrient management.
     (4) In evaluating alternative technologies and methods, the principal objectives of the committee's evaluation shall be determining:
     (a) Whether there is a substantial likelihood that, once implemented, the alternative technologies and methods would not violate water quality requirements;
     (b) Whether more cost-effective methods can be successfully implemented in some or all categories of dairy operations; and
     (c) Whether the technologies and methods approved or provided by the natural resources conservation service for use by confined animal feeding operations are necessarily required for other categories of dairy operations.
     In addition, the committee shall encourage the ((conservation commission)) department of agriculture and the conservation districts to apply in dairy nutrient management plans technologies and methods that are appropriate to the needs of the specific type of operation and the specific farm site and to avoid imposing requirements that are not necessary for the specific dairy producer to achieve compliance with water quality requirements.
     (5) Such plans shall be submitted for approval to the local conservation district where the dairy farm is located, and shall be approved by conservation districts no later than by July 1, 2002. The ((conservation commission)) department of agriculture, in conjunction with conservation districts, shall develop a statewide schedule of plan development and approval to ensure adequate resources are available to have all plans approved by July 1, 2002.
     (6) If a dairy producer leases land for dairy production from an owner who has prohibited the development of capital improvements, such as storage lagoons, on the leased property, the dairy producer shall indicate in his or her dairy nutrient management plan that such improvements are prohibited by the landowner and shall describe other methods, such as land application, that will be employed by the dairy producer to manage dairy nutrients.
     (7) Notwithstanding the timelines in this section, any dairy farm licensed after September 1, 1998, shall have six months from the date of licensing to develop a dairy nutrient management plan and another eighteen months to fully implement that plan.
     (8) If a plan contains the elements identified in subsection (2) of this section, a conservation district shall approve the plan no later than ninety days after receiving the plan. If the plan does not contain the elements identified in subsection (2) of this section, the local conservation district shall notify the dairy producer in writing of modifications needed in the plan no later than ninety days after receiving the plan. The dairy producer shall provide a revised plan that includes the needed modifications within ninety days of the date of the local conservation district notification. If the dairy producer does not agree with, or otherwise takes exception to, the modifications requested by the local conservation district, the dairy producer may initiate the appeals process described in RCW 90.64.028 within thirty days of receiving the letter of notification.
     (9) An approved plan shall be certified by a conservation district and a dairy producer when the elements necessary to implement the plan have been constructed or otherwise put in place, and are being used as designed and intended. A certification form shall be developed by the ((conservation commission)) department of agriculture for use statewide and shall provide for a signature by both a conservation district representative and a dairy producer. Certification forms shall be signed by December 31, 2003, and a copy provided to the department for recording in the data base established in RCW 90.64.130.
     (10) The ability of dairy producers to comply with the planning requirements of this chapter depends, in many cases, on the availability of federal and state funding to support technical assistance provided by local conservation districts. Dairy producers shall not be held responsible for noncompliance with the planning requirements of this chapter if conservation districts are unable to perform their duties under this chapter because of insufficient funding.

Sec. 149   RCW 90.64.028 and 1998 c 262 s 7 are each amended to read as follows:
     (1) Conservation district decisions pertaining to denial of approval or denial of certification of a dairy nutrient management plan; modification or amendment of a plan; conditions contained in a plan; application of any dairy nutrient management practices, standards, methods, and technologies to a particular dairy farm; and the failure to adhere to plan review and approval timelines identified in RCW 90.64.026 are appealable under this chapter. Department actions pertaining to water quality violations are appealable under chapter 90.48 RCW.
     In addition, a dairy producer who is constrained from complying with the planning requirements of this chapter because of financial hardship or local permitting delays may request a hearing before the ((conservation commission)) department of agriculture and may request an extension of up to one year beyond the approval and certification dates prescribed in this chapter for plan approval and certification.
     (2) Within thirty days of receiving a local conservation district notification regarding any of the decisions identified in subsection (1) of this section, a dairy producer who disagrees with any of these decisions may request an informal hearing before the ((conservation commission)) department of agriculture or may appeal directly to the pollution control hearings board. The ((commission)) department of agriculture shall issue a written decision no later than thirty days after the informal hearing.
     (3) If the ((conservation commission)) department of agriculture reverses the decision of the conservation district, the conservation district may appeal this reversal to the pollution control hearings board according to the procedure in chapter 43.21B RCW within thirty days of receipt of the ((commission's)) department of agriculture's decision.
     (4) When an appeals process is initiated under this section, the length of time extending from the start of the appeals process to its conclusion shall be added onto the timelines provided in this chapter for plan development, approval, and certification only if an appeal is heard by the pollution control hearings board.

Sec. 150   RCW 90.64.080 and 1998 c 262 s 14 are each amended to read as follows:
     (1) ((The conservation commission)) Under this chapter, the department of agriculture has the following duties:
     (a) Provide assistance as may be appropriate to the conservation districts in the discharge of their responsibilities as management agencies in dairy nutrient management program implementation;
     (b) Provide coordination for conservation district programs at the state level through special arrangements with appropriate federal and state agencies, including oversight of the review, approval, and certification of dairy nutrient management plans;
     (c) Inform conservation districts of activities and experiences of other conservation districts relative to agricultural water quality protection, and facilitate an interchange of advice, experience, and cooperation between the districts;
     (d) Provide an informal hearing for disputes between dairy producers and local conservation districts pertaining to: (i) Denial of approval or denial of certification of dairy nutrient management plans; (ii) modification or amendment of plans; (iii) conditions contained in plans; (iv) application of any dairy nutrient management practices, standards, methods, and technologies to a particular dairy farm; and (v) the failure to adhere to the plan review and approval timelines identified in RCW 90.64.026. An informal hearing may also provide an opportunity for dairy producers who are constrained from timely compliance with the planning requirements of this chapter because of financial hardship or local permitting delays to petition for additional time to comply;
     (e) Encourage communication between the conservation district personnel and local department personnel;
     (f) Accept nominations and appoint members to serve on the advisory and oversight committee with advice of the Washington association of conservation districts and the department;
     (g) Provide a cochair to the advisory and oversight committee;
     (h) Report to the legislature by December 1st of each year until 2003 on the status of dairy nutrient management planning and on the technical assistance provided to dairy producers in carrying out the requirements of this chapter; and
     (i) Work with the department to provide communication outreach to representatives of agricultural and environmental organizations to receive feedback on implementation of this chapter.
     (2) The ((commission's)) department of agriculture's capability to carry out its responsibilities under this chapter is contingent upon the availability of funding and resources to implement a dairy nutrient management program.

Sec. 151   RCW 90.64.140 and 1998 c 262 s 10 are each amended to read as follows:
     (1) The ((conservation commission)) department of agriculture shall establish four dairy nutrient management technical assistance teams by June 1, 1998. The teams shall be geographically located throughout the state. Each team shall consist of one or more professional engineers, local conservation district employees, and dairy nutrient management experts from Washington State University. The purpose of the teams is to:
     (a) Actively develop and promote new cost-effective approaches for managing dairy nutrients; and
     (b) Assist dairy farms in developing dairy nutrient management plans.
     (2) By January 1, 1999, each team shall develop one or more initial sets of standards and specifications to assist dairy producers in developing and implementing dairy nutrient management plans. Standards and specifications developed by a technical assistance team shall be appropriate to the soils and other conditions within that geographic area and shall be reviewed by the advisory and oversight committee.

Sec. 152   RCW 90.64.800 and 1998 c 262 s 17 are each amended to read as follows:
     The department, in conjunction with the ((conservation commission)) department of agriculture and advisory and oversight committee, shall report to the legislature by December 1st of each year until 2003, on progress made in implementing chapter 262, Laws of 1998. At a minimum, the reports shall include data on inspections, the status of dairy nutrient planning, compliance with water quality standards, and enforcement actions. The report shall also provide recommendations on how implementation of chapter 262, Laws of 1998 could be facilitated for dairy producers and generally improved.
     ((The conservation commission shall include in the report to the legislature filed December 1, 1999, an evaluation of whether the fiscal resources available to the commission, to conservation districts, and to Washington State University dairy nutrient management experts are adequate to fund the technical assistance teams established under RCW 90.64.140 and to develop and certify plans as required by the schedule established in RCW 90.64.026. If the funding is insufficient, the report shall include an estimate of the amount of funding necessary to accomplish the schedule contained in RCW 90.64.026.))

Sec. 153   RCW 90.64.810 and 2000 c 147 s 1 are each amended to read as follows:
     (1) A dairy nutrient management task force is created that shall be comprised of no more than fifteen members, who are appointed as follows:
     (a) Two members of the house of representatives, one from each major caucus, appointed by the co-speakers of the house of representatives;
     (b) Two members of the senate, one from each major caucus, appointed by the president of the senate;
     (c) A representative of the department of ecology, appointed by the director of ecology;
     (d) A representative of the ((state conservation commission)) department of agriculture, appointed by ((its executive secretary)) the director of agriculture;
     (e) A representative of local conservation districts, appointed by the president of a statewide association of conservation districts;
     (f) A representative of local health departments, appointed by the Washington state association of local public health officials;
     (g) A representative of commercial shellfish growers, appointed by a statewide organization representing oyster growers;
     (h) Four representatives of the dairy industry, appointed by a statewide organization representing the dairy industry in the state;
     (i) A representative of an environmental interest organization with familiarity and expertise in water quality issues, appointed by a statewide organization representing environmental interests;
     (j) A representative of the United States environmental protection agency, appointed by the regional director of the agency if the agency chooses to be represented on the task force; and
     (k) A representative of the United States natural resources conservation service, appointed by the state conservationist of that agency for this state, if the agency chooses to be represented on the task force.
     (2) The task force shall convene as soon as possible upon appointment of its members. The task force shall elect a chair and adopt rules for conducting the business of the task force. Staff support for the task force shall be provided by the ((Washington state conservation commission)) department of agriculture.
     (3) This section expires June 30, 2004.

Sec. 154   RCW 90.71.020 and 1998 c 246 s 14 are each amended to read as follows:
     (1) The Puget Sound action team is created. The action team shall consist of: The directors of the departments of ecology; agriculture; natural resources; fish and wildlife; and community, trade, and economic development; the secretaries of the departments of health and transportation; the director of the parks and recreation commission; the director of the interagency committee for outdoor recreation; ((the administrative officer of the conservation commission designated in RCW 89.08.050;)) one person representing cities, appointed by the governor; one person representing counties, appointed by the governor; one person representing federally recognized tribes, appointed by the governor; and the chair of the action team. The action team shall also include the following ex officio nonvoting members: The regional director of the United States environmental protection agency; the regional administrator of the national marine fisheries service; and the regional supervisor of the United States fish and wildlife service. The members representing cities and counties shall each be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.
     (2) The action team shall:
     (a) Prepare a Puget Sound work plan and budget for inclusion in the governor's biennial budget;
     (b) Coordinate monitoring and research programs as provided in RCW 90.71.060;
     (c) Work under the direction of the action team chair as provided in RCW 90.71.040;
     (d) Coordinate permitting requirements as necessary to expedite permit issuance for any local watershed plan developed pursuant to rules adopted under this chapter;
     (e) Identify and resolve any policy or rule conflicts that may exist between one or more agencies represented on the action team;
     (f) Periodically amend the Puget Sound management plan;
     (g) Enter into, amend, and terminate contracts with individuals, corporations, or research institutions for the purposes of this chapter;
     (h) Receive such gifts, grants, and endowments, in trust or otherwise, for the use and benefit of the purposes of the action team. The action team may expend the same or any income therefrom according to the terms of the gifts, grants, or endowments;
     (i) Promote extensive public participation, and otherwise seek to broadly disseminate information concerning Puget Sound;
     (j) Receive and expend funding from other public agencies;
     (k) To reduce costs and improve efficiency, review by December 1, 1996, all requirements for reports and documentation from state agencies and local governments specified in the plan for the purpose of eliminating and consolidating reporting requirements; and
     (l) Beginning in December 1998, and every two years thereafter, submit a report to the appropriate policy and fiscal committees of the legislature that describes and evaluates the successes and shortcomings of the current work plan relative to the priority problems identified for each geographic area of Puget Sound.
     (3) By July 1, 1996, the action team shall begin developing its initial work plan, which shall include the coordination of necessary support staff.
     (4) The action team shall incorporate, to the maximum extent possible, the recommendations of the council regarding amendments to the Puget Sound management plan and the work plan.
     (5) All proceedings of the action team are subject to the open public meetings act under chapter 42.30 RCW.

NEW SECTION.  Sec. 155   A new section is added to chapter 39.19 RCW to read as follows:
     (1) The office of minority and women's business enterprises is hereby abolished. All remaining references to the office of minority and women's business enterprises in the Revised Code of Washington shall be construed to mean the department of community, trade, and economic development.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the office of minority and women's business enterprises shall be delivered to the custody of the department of community, trade, and economic development, except that materials related to the certified business data base and other information technology systems and applications shall be delivered to the custody of the department of general administration. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the office of minority and women's business enterprises shall be made available to the department of community, trade, and economic development and the department of general administration. All funds, credits, or other assets held by the office of minority and women's business enterprises shall be assigned to the office of financial management for division between the department of community, trade, and economic development and the department of general administration as required to implement this section.
     (b) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) All rules and all pending business before the office of minority and women's business enterprises shall be continued and acted upon by the department of community, trade, and economic development. All existing contracts, agreements, and obligations shall remain in full force and shall be performed by the department of community, trade, and economic development.
     (4) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (5) The abolishment of the office of minority and women's business enterprises shall not affect the validity of any act performed before the effective date of this section.

Sec. 156   RCW 39.19.020 and 1996 c 69 s 4 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) (("Advisory committee" means the advisory committee on minority and women's business enterprises.
     (2))) "Broker" means a person that provides a bona fide service, such as professional, technical, consultant, brokerage, or managerial services and assistance in the procurement of essential personnel, facilities, equipment, materials, or supplies required for performance of a contract.
     (2) "Department" means the department of community, trade, and economic development.
     (3) "Director" means the director of the ((office of minority and women's business enterprises)) department of community, trade, and economic development.
     (4) "Educational institutions" means the state universities, the regional universities, The Evergreen State College, and the community colleges.
     (5) "Goals" means annual overall agency goals, expressed as a percentage of dollar volume, for participation by minority and women-owned and controlled businesses and shall not be construed as a minimum goal for any particular contract or for any particular geographical area. It is the intent of this chapter that such overall agency goals shall be achievable and shall be met on a contract-by-contract or class-of-contract basis.
     (6) "Goods and/or services" includes professional services and all other goods and services.
     (7) (("Office" means the office of minority and women's business enterprises.
     (8))) "Person" includes one or more individuals, partnerships, associations, organizations, corporations, cooperatives, legal representatives, trustees and receivers, or any group of persons.
     (((9))) (8) "Procurement" means the purchase, lease, or rental of any goods or services.
     (((10))) (9) "Public works" means all work, construction, highway and ferry construction, alteration, repair, or improvement other than ordinary maintenance, which a state agency or educational institution is authorized or required by law to undertake.
     (((11))) (10) "State agency" includes the state of Washington and all agencies, departments, offices, divisions, boards, commissions, and correctional and other types of institutions.

Sec. 157   RCW 39.19.030 and 1996 c 69 s 5 are each amended to read as follows:
     ((There is hereby created the office of minority and women's business enterprises. The governor shall appoint a director for the office, subject to confirmation by the senate. The director may employ a deputy director and a confidential secretary, both of which shall be exempt under chapter 41.06 RCW, and such staff as are necessary to carry out the purposes of this chapter.
     The office shall consult with the minority and women's business enterprises advisory committee to:
     (1) Develop, plan, and implement programs to provide an opportunity for participation by qualified minority and women-owned and controlled businesses in public works and the process by which goods and services are procured by state agencies and educational institutions from the private sector;
     (2) Develop a comprehensive plan insuring that qualified minority and women-owned and controlled businesses are provided an opportunity to participate in public contracts for public works and goods and services;
     (3) Identify barriers to equal participation by qualified minority and women-owned and controlled businesses in all state agency and educational institution contracts;
     (4) Establish annual overall goals for participation by qualified minority and women-owned and controlled businesses for each state agency and educational institution to be administered on a contract-by-contract basis or on a class-of-contracts basis;
     (5) Develop and maintain a central minority and women's business enterprise certification list for all state agencies and educational institutions. No business is entitled to certification under this chapter unless it meets the definition of small business concern as established by the office. All applications for certification under this chapter shall be sworn under oath;
     (6) Develop, implement, and operate a system of monitoring compliance with this chapter;
     (7) Adopt rules under chapter 34.05 RCW, the Administrative Procedure Act, governing: (a) Establishment of agency goals; (b) development and maintenance of a central minority and women's business enterprise certification program, including a definition of "small business concern" which shall be consistent with the small business requirements defined under section 3 of the Small Business Act, 15 U.S.C. Sec. 632, and its implementing regulations as guidance; (c) procedures for monitoring and enforcing compliance with goals, regulations, contract provisions, and this chapter; (d) utilization of standard clauses by state agencies and educational institutions, as specified in RCW 39.19.050; and (e) determination of an agency's or educational institution's goal attainment consistent with the limitations of RCW 39.19.075;
     (8) Submit an annual report to the governor and the legislature outlining the progress in implementing this chapter;
     (9) Investigate complaints of violations of this chapter with the assistance of the involved agency or educational institution; and
     (10) Cooperate and act jointly or by division of labor with the United States or other states, and with political subdivisions of the state of Washington and their respective minority, socially and economically disadvantaged and women business enterprise programs to carry out the purposes of this chapter. However, the power which may be exercised by the office under this subsection permits investigation and imposition of sanctions only if the investigation relates to a possible violation of chapter 39.19 RCW, and not to violation of local ordinances, rules, regulations, however denominated, adopted by political subdivisions of the state.))
     The director shall:
     (1) Adopt rules under chapter 34.05 RCW governing development and maintenance of a central socially and economically disadvantaged, minority, and women's business enterprise certification program, consistent with enabling such businesses and state and local government entities to establish and maintain eligibility for any federal program, if ineligibility would result in a loss of federal funds; and
     (2) Submit a biennial report to the governor and the appropriate committees of the legislature outlining the progress implementing this section, commencing on December 1, 2004.

Sec. 158   RCW 39.19.090 and 1987 c 328 s 6 are each amended to read as follows:
     If a person, firm, corporation, or business does not comply with any provision of this chapter or with a contract requirement established under this chapter, the state may withhold payment, debar the contractor, suspend, or terminate the contract and subject the contractor to civil penalties of up to ten percent of the amount of the contract or up to five thousand dollars for each violation. The ((office)) director shall adopt, by rule, criteria for the imposition of penalties under this section. Wilful repeated violations, exceeding a single violation, may disqualify the contractor from further participation in state contracts for a period of up to three years. An apparent low-bidder must be in compliance with the contract provisions required under this chapter as a condition precedent to the granting of a notice of award by any state agency or educational institution.
     The ((office)) director shall follow administrative procedures under chapter 34.05 RCW in determining a violation and imposing penalties under this chapter.
     The procedures and sanctions in this section are not exclusive; nothing in this section prevents the state agency or educational institution administering the contracts from pursuing such procedures or sanctions as are otherwise provided by statute, rule, or contract provision.

Sec. 159   RCW 39.19.120 and 1987 c 328 s 7 are each amended to read as follows:
     (1) The ((office)) director shall be the sole authority to perform certification of minority business enterprises, socially and economically disadvantaged business enterprises, and women's business enterprises throughout the state of Washington. Certification by the ((state office)) director will allow these firms to participate in programs for these enterprises administered by the state of Washington, any city, town, county, special purpose district, public corporation created by the state, municipal corporation, or quasi-municipal corporation within the state of Washington.
     (2) This statewide certification process will prevent duplication of effort, achieve efficiency, and permit local jurisdictions to further develop, implement, and/or enhance comprehensive systems of monitoring and compliance for contracts issued by their agencies. This statewide certification process will also enable state and local governments within the state of Washington to establish or maintain eligibility for any federal program, if ineligibility would result in the loss of federal funds.
     (3) For the benefit of certified socially and economically disadvantaged business enterprises, minority business enterprises, and women's business enterprises, the department shall develop, plan, and implement programs to (a) develop and maintain a certification process; (b) provide technical assistance and training; and (c) facilitate access to business development resources and capital funding. The department shall consult and collaborate in these efforts with private sector entities and other federal, state, and local government agencies engaged in providing services to these businesses.

Sec. 160   RCW 39.19.140 and 1987 c 328 s 9 are each amended to read as follows:
     Implementation of statewide certification shall be effective January 1, 1988, following consultation by the ((office)) director with appropriate state and local officials who currently administer similar certification programs. ((Any business having been certified under any of the programs identified pursuant to RCW 39.19.130 as a minority and women's business enterprise shall be deemed certified by the office as of January 1, 1988.))

Sec. 161   RCW 39.19.150 and 1987 c 328 s 10 are each amended to read as follows:
     (1) Any city, county, town, special purpose district, public corporation created by the state, municipal corporation, or quasi-municipal corporation having reason to believe that a particular minority and women's business enterprise should not have been certified under RCW 39.19.140 may petition the ((office)) director for reconsideration. The basis for the petition may be one or more of the following:
     (a) The ((office's)) rules or regulations pertaining to this chapter were improperly applied; or
     (b) Material facts relating to the minority and women's business enterprise's certification application to the ((office)) director are untrue.
     (2) The petitioner shall carry the burden of persuasion. The affected minority or women's business enterprise shall receive notice of the petition and an opportunity to respond.
     (3) After reviewing the information presented in support of and in opposition to the petition, the ((office)) director shall issue a written decision, granting or denying the petition. If the ((office)) director grants the petition, it may revoke, suspend, or refuse to renew the certification or impose sanctions under this chapter as appropriate.
     (4) The ((office's)) director's decision on a petition is administratively final and the rights of appeal set out in the ((office)) director's regulations shall apply. A certification shall remain in effect while a petition is pending.

Sec. 162   RCW 39.19.160 and 1987 c 328 s 11 are each amended to read as follows:
     Any city, town, county, special purpose district, public corporation created by the state, municipal corporation, or quasi-municipal corporation within the state of Washington utilizing the certification by the ((office)) director retains the responsibility for monitoring compliance with the programs under its jurisdiction. The ((office)) director shall not be responsible for enforcement of local ordinances, rules, or regulations, however titled.

Sec. 163   RCW 39.19.200 and 1993 c 195 s 1 are each amended to read as follows:
     The minority and women's business enterprises account is created in the custody of the state treasurer. All receipts from RCW 39.19.210, 39.19.220, and 39.19.230 shall be deposited in the account. Expenditures from the account may be used only for the purposes defraying all or part of the costs of the ((office)) department in administering this chapter. Only the director ((or the director's designee)) of the department of general administration may authorize expenditures from the account. Moneys in the account may be spent only after appropriation.

Sec. 164   RCW 39.19.240 and 2002 c 305 s 2 are each amended to read as follows:
     (1) The ((office)) department shall, in consultation with the state treasurer ((and the department of community, trade, and economic development)), compile information on minority and women's business enterprises that have received financial assistance through a qualified public depositary under the provisions of RCW 43.86A.060. The information shall include, but is not limited to:
     (a) Name of the qualified public depositary;
     (b) Geographic location of the minority or women's business enterprise;
     (c) Name of the minority or women's business enterprise;
     (d) Date of last certification by the ((office)) department and certification number;
     (e) Type of business;
     (f) Amount and term of the loan to the minority or women's business enterprise; and
     (g) Other information the ((office)) department deems necessary for the implementation of this section.
     (2) The ((office)) department shall notify the state treasurer of minority or women's business enterprises that are no longer certified under the provisions of this chapter. The written notification shall contain information regarding the reason for the decertification and information on financing provided to the minority or women's business enterprise under RCW 43.86A.060.

Sec. 165   RCW 42.17.2401 and 2001 c 36 s 1 and 2001 c 9 s 1 are each reenacted and 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 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 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, salmon recovery funding 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. 166   RCW 43.63A.690 and 2002 c 305 s 3 are each amended to read as follows:
     (1) The department shall provide technical assistance and loan packaging services that enable minority and women-owned business enterprises to obtain financing under the linked deposit program created under RCW 43.86A.060.
     (2) The department shall, in consultation with the state treasurer ((and office of minority and women's business enterprises)), monitor the performance of loans made to minority and women-owned business enterprises under RCW 43.86A.060.
     (3) The department((, in consultation with the office of minority and women's business enterprises,)) shall develop indicators to measure the performance of the linked deposit program in the areas of job creation or retention and providing access to capital to minority or women's business enterprises.

Sec. 167   RCW 43.172.010 and 1993 c 512 s 2 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Minority" means persons of color, including African-Americans, Hispanic/Latino Americans, Native Americans, and Asian/Pacific Islanders Americans;
     (2) "Minority and women-owned business" means any resident minority business enterprise or women's business enterprise, certified as such by the ((office of minority and women's business enterprises)) department of community, trade, and economic development under chapter 39.19 RCW and consistent with subsection (1) of this section.

Sec. 168   RCW 43.172.030 and 1993 c 512 s 18 are each amended to read as follows:
     The department shall seek information, advice, and assistance from regional minority contractor organizations, and the United States small business administration and any other appropriate organization or agency.
     The following departments, offices, and agencies shall, at the request of the department, provide information, advice, and assistance to the department:
     (1) The department of general administration;
     (2) The Washington state business assistance center;
     (3) The office of the insurance commissioner; and
     (4) The Washington state economic development finance authority((; and
     (5) The office of minority and women's business enterprises)).

Sec. 169   RCW 47.28.030 and 1999 c 15 s 1 are each amended to read as follows:
     A state highway shall be constructed, altered, repaired, or improved, and improvements located on property acquired for right of way purposes may be repaired or renovated pending the use of such right of way for highway purposes, by contract or state forces. The work or portions thereof may be done by state forces when the estimated costs thereof ((is [are])) are less than fifty thousand dollars and effective July 1, 2005, sixty thousand dollars: PROVIDED, That when delay of performance of such work would jeopardize a state highway or constitute a danger to the traveling public, the work may be done by state forces when the estimated cost thereof is less than eighty thousand dollars and effective July 1, 2005, one hundred thousand dollars. When the department of transportation determines to do the work by state forces, it shall enter a statement upon its records to that effect, stating the reasons therefor. To enable a larger number of small businesses, and minority, and women contractors to effectively compete for department of transportation contracts, the department may adopt rules providing for bids and award of contracts for the performance of work, or furnishing equipment, materials, supplies, or operating services whenever any work is to be performed and the engineer's estimate indicates the cost of the work would not exceed eighty thousand dollars and effective July 1, 2005, one hundred thousand dollars. The rules adopted under this section:
     (1) Shall provide for competitive bids to the extent that competitive sources are available except when delay of performance would jeopardize life or property or inconvenience the traveling public; and
     (2) Need not require the furnishing of a bid deposit nor a performance bond, but if a performance bond is not required then progress payments to the contractor may be required to be made based on submittal of paid invoices to substantiate proof that disbursements have been made to laborers, materialmen, mechanics, and subcontractors from the previous partial payment; and
     (3) May establish prequalification standards and procedures as an alternative to those set forth in RCW 47.28.070, but the prequalification standards and procedures under RCW 47.28.070 shall always be sufficient.
     The department of transportation shall comply with such goals and rules as may be adopted by the ((office of minority and women's business enterprises)) department of community, trade, and economic development to implement chapter 39.19 RCW with respect to contracts entered into under this chapter. The department may adopt such rules as may be necessary to comply with the rules adopted by the ((office of minority and women's business enterprises)) department of community, trade, and economic development under chapter 39.19 RCW.

Sec. 170   RCW 39.04.160 and 1983 c 120 s 11 are each amended to read as follows:
     All contracts entered into under this chapter by the state on or after September 1, 1983, are subject to the ((requirements)) targets established under chapter ((39.19)) 49.60 RCW.

Sec. 171   RCW 43.19.536 and 1983 c 120 s 13 are each amended to read as follows:
     All contracts entered into and purchases made, including leasing or renting, under this chapter on or after September 1, 1983, are subject to the ((requirements)) targets established under chapter ((39.19)) 49.60 RCW.

NEW SECTION.  Sec. 172   A new section is added to chapter 43.19 RCW to read as follows:
     (1) The department shall support state and local governments in contracting and purchasing by maintaining a centralized vendor registry.
     (2) The department shall house and maintain, on behalf of the department of community, trade, and economic development and other users, a central directory of all businesses certified under chapter 39.19 RCW.
     (3) The department may provide to state agencies, institutions of higher education, and local governments reimbursable technical assistance services and training on improving access to public contracting and purchasing opportunities for certified businesses.
     (4) For purposes of this section, "certified business" means a business that has been certified by the department of community, trade, and economic development as a socially and economically disadvantaged business enterprise, minority enterprise, or women's enterprise under chapter 39.19 RCW.

NEW SECTION.  Sec. 173   A new section is added to chapter 49.60 RCW to read as follows:
     (1) The department of community, trade, and economic development shall:
     (a) Establish annual overall targets for participation by certified businesses for state agencies and institutions of higher education to be administered on a class-of-contracts basis. The targets shall reflect the availability of certified businesses within that class of contracts. These targets are to be integrated into each agency's strategic plan;
     (b) Adopt policies and procedures by June 30, 2004, governing the establishment of overall targets;
     (c) Submit a report each biennium commencing December 1, 2004, describing each state agency's progress in achieving the targets; and
     (d) Review each agency's strategic plan to see that it includes the specific measures the agency will undertake to achieve its targets.
     (2) For purposes of this section, "certified business" means a business that has been certified by the department under chapter 39.19 RCW.

NEW SECTION.  Sec. 174   The following acts or parts of acts are each repealed:
     (1) RCW 43.78.010 (Appointment of public printer) and 1981 c 338 s 6 & 1965 c 8 s 43.78.010;
     (2) RCW 43.78.020 (Bond) and 1965 c 8 s 43.78.020; and
     (3) RCW 43.78.110 (Securing printing from private sources -- Farming out) and 1993 c 379 s 107, 1982 c 164 s 3, 1969 c 79 s 1, & 1965 c 8 s 43.78.110.

NEW SECTION.  Sec. 175   The following acts or parts of acts are each repealed:
     (1) RCW 41.06.030 (Department of personnel established) and 2002 c 354 s 201, 1993 c 281 s 20, & 1961 c 1 s 3;
     (2) RCW 41.50.020 (Department of retirement systems -- Created--Director) and 1975-'76 2nd ex.s. c 105 s 4; and
     (3) RCW 41.50.050 (Powers, duties, and functions of director) and 1995 c 239 s 317, 1993 c 61 s 1, 1987 c 505 s 24, 1981 c 3 s 33, 1977 ex.s. c 251 s 1, & 1975-'76 2nd ex.s. c 105 s 7.

NEW SECTION.  Sec. 176   The following acts or parts of acts are each repealed:
     (1) RCW 9.46.0221 ("Commission.") and 1987 c 4 s 7;
     (2) RCW 9.46.040 (Gambling commission -- Members -- Appointment--Vacancies, filling) and 1974 ex.s. c 155 s 12, 1974 ex.s. c 135 s 12, & 1973 1st ex.s. c 218 s 4;
     (3) RCW 9.46.050 (Gambling commission -- Chairman -- Quorum -- Meetings--Compensation and travel expenses -- Bond -- Removal) and 1984 c 287 s 9, 1975-'76 2nd ex.s. c 34 s 7, & 1973 1st ex.s. c 218 s 5;
     (4) RCW 9.46.085 (Gambling commission -- Members and employees--Activities prohibited) and 1986 c 4 s 1;
     (5) RCW 67.16.012 (Washington horse racing commission -- Creation--Terms -- Vacancies -- Bonds -- Oaths) and 1998 c 345 s 4, 1987 c 453 s 2, 1973 1st ex.s. c 216 s 1, 1969 ex.s. c 233 s 1, & 1933 c 55 s 2;
     (6) RCW 67.16.014 (Washington horse racing commission -- Ex officio nonvoting members) and 1991 c 270 s 2 & 1987 c 453 s 3;
     (7) RCW 67.16.015 (Washington horse racing commission--Organization -- Secretary -- Records -- Annual reports) and 1977 c 75 s 80 & 1933 c 55 s 3; and
     (8) RCW 67.16.017 (Washington horse racing commission -- Compensation and travel expenses) and 1984 c 287 s 100, 1975-'76 2nd ex.s. c 34 s 155, & 1969 ex.s. c 233 s 2.

NEW SECTION.  Sec. 177   The following acts or parts of acts are each repealed:
     (1) RCW 89.08.030 (Conservation commission) and 1987 c 180 s 1, 1983 c 248 s 13, 1973 1st ex.s. c 184 s 4, 1967 c 217 s 1, 1961 c 240 s 3, & 1955 c 304 s 3;
     (2) RCW 89.08.040 (Members -- Compensation and travel expenses--Records, rules, hearings, etc.) and 1984 c 287 s 112, 1975-'76 2nd ex.s. c 34 s 179, 1973 1st ex.s. c 184 s 5, 1961 c 240 s 4, & 1955 c 304 s 4;
     (3) RCW 89.08.050 (Employees -- Delegation -- Quorum) and 1973 1st ex.s. c 184 s 6, 1961 c 240 s 5, & 1955 c 304 s 5; and
     (4) RCW 89.08.060 (Assistance of other state agencies and institutions) and 1973 1st ex.s. c 184 s 7 & 1955 c 304 s 6.

NEW SECTION.  Sec. 178   The following acts or parts of acts are each repealed:
     (1) RCW 39.19.041 (Ad hoc advisory committees) and 1995 c 269 s 1302;
     (2) RCW 39.19.050 (Standard clauses required in requests for proposals, advertisements, and bids) and 1983 c 120 s 5;
     (3) RCW 39.19.060 (Compliance with public works and procurement goals -- Plan to maximize opportunity for minority and women-owned businesses) and 1996 c 288 s 28, 1993 c 512 s 9, & 1983 c 120 s 6;
     (4) RCW 39.19.170 (Prequalification of minority and women-owned businesses -- Waiver of performance bond) and 1993 c 512 s 10;
     (5) RCW 39.19.210 (Businesses using the office -- Fees) and 1993 c 195 s 2;
     (6) RCW 39.19.220 (Political subdivisions -- Fees) and 1993 c 195 s 3;
     (7) RCW 39.19.230 (State agencies and educational institutions--Fees) and 1993 c 195 s 4; and
     (8) RCW 41.06.082 (Office of minority and women's business enterprises -- Certain personnel exempted from chapter) and 1983 c 120 s 14.

NEW SECTION.  Sec. 179   RCW 39.19.200 (Minority and women's business enterprises account -- Created) and 2003 c . . . s 163 (section 163 of this act) & 1993 c 195 s 1 are each repealed.

NEW SECTION.  Sec. 180   Sections 13 through 18 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION.  Sec. 181   Sections 40 through 44 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION.  Sec. 182   Sections 1 through 28, 174, and 175 of this act take effect July 1, 2004.

NEW SECTION.  Sec. 183   Sections 30 through 154, 176, and 177 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 July 1, 2003.

NEW SECTION.  Sec. 184   Section 179 of this act takes effect June 30, 2004.

NEW SECTION.  Sec. 185   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.