AN ACT Relating to fiscal matters; amending RCW 50.16.070, 67.70.040, and 67.70.190; amending section 104, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 107, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 109, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 110, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 114, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 120, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 121, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 124, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 131, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 201, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 202, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 203, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 204, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 205, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 206, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 208, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 209, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 210, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 211, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 212, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 213, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 214, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 217, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 218, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 219, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 223, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 224, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 226, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 229, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 230, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 301, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 302, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 303, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 305, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 308, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 310, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 311, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 312, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 313, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 314, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 316, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 318, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 12, chapter 8, Laws of 1987 1st ex. sess. (uncodified); amending section 401, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 402, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 501, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 503, chapter 7, Laws of 1987 1st ex. sess. as amended by section 1, chapter 1, Laws of 1987 3rd ex. sess. (uncodified); amending section 504, chapter 7, Laws of 1987 1st ex. sess. as amended by section 2, chapter 1, Laws of 1987 3rd ex. sess. (uncodified); amending section 505, chapter 7, Laws of 1987 1st ex. sess. as amended by section 3, chapter 1, Laws of 1987 3rd ex. sess. (uncodified); amending section 506, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 507, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 508, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 509, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 510, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 511, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 513, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 514, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 516, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 601, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 602, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 603, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 604, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 605, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 606, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 607, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 608, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 609, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 701, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 702, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 703, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 705, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 712, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 715, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 717, chapter 7, Laws of 1987 1st ex. sess. (uncodified); amending section 3, chapter 272, Laws of 1987 (uncodified); reenacting and amending section 207, chapter 7, Laws of 1987 1st ex. sess. as amended by section 1, chapter 1, Laws of 1987 2nd ex. sess. and by section 1, chapter 2, Laws of 1987 2nd ex. sess. (uncodified); adding new sections to chapter 7, Laws of 1987 1st ex. sess. (uncodified); making appropriations; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF

PART I

GENERAL GOVERNMENT

Sec. 101. Section 104, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEE

General Fund Appropriation................................................................................................................ $

((~~2,503,000~~))

2,538,000

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

(1) The committee shall conduct a study of the common school state-wide data reporting system, including information on class size in kindergarten through twelfth grade((. $100,000 of the general fund appropriation is provided solely to contract with the institute of public policy and management of the University of Washington to conduct research associated with the study. The institute shall work closely with the superintendent of public instruction and the office of financial management to)) and prepare a report to the legislature by December 1, 1988, regarding its findings and recommendations.

(2) $35,000 of the general fund appropriation is provided solely for the purpose of creating a temporary legislative committee to review the salary survey methodology and make recommendations for improvements. The committee shall be composed of representatives of the legislative evaluation and accountability program committee, the office of financial management, and the ways and means committees of the senate and house of representatives and shall contract with an independent consultant to conduct the review.

Sec. 102. Section 107, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE SUPREME COURT

General Fund Appropriation................................................................................................................ $

((~~10,678,000~~))

10,924,000

The appropriation in this section is subject to the following conditions and limitations: ((~~(1)~~)) $3,337,000 is provided solely for the indigent appeals program.

Sec. 103. Section 109, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE COURT OF APPEALS

General Fund Appropriation................................................................................................................ $

((~~12,013,000~~))

12,458,000

Sec. 104. Section 110, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE ADMINISTRATOR FOR THE COURTS

General Fund Appropriation................................................................................................................ $

((~~21,738,000~~))

23,857,000

Public Safety and Education Account Appropriation....................................................................... $

((~~18,828,000~~))

21,178,000

Total Appropriation............................................................................... $

((~~40,566,000~~))

45,035,000

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

(1) $4,162,000 of the general fund appropriation is provided solely for the continuation of the treatment alternatives to street crime programs in Pierce, Snohomish, Clark, King, Spokane, and Yakima counties.

(2) $296,000 of the general fund appropriation is provided solely for allocation to the superior court of Thurston county to relieve the impact of litigation involving the state of Washington.

(3) $((~~50,000~~)) 130,000 of the public safety and education account appropriation is provided solely for the administrator for the courts to initiate measures to prevent gender and minority bias in the courts. Such measures shall include but not be limited to:

(a) A study of the status of women and minorities as litigants, attorneys, judges, and court employees;

(b) Recommendations for implementing reform; and

(4) $260,000 of the general fund appropriation is provided solely for the Snohomish County preprosecution diversion program.

(5) $150,000 of the general fund appropriation is provided solely for the administrator for the courts to contract for the performance of a two-year demonstration project to determine the effectiveness of alternative dispute resolution using the model center approach adopted by the legislature in chapter 7.75 RCW. The project shall be conducted in King and Snohomish counties by centers established under chapter 7.75 RCW as nonprofit corporations having broadly representative boards of directors and which are organized exclusively, as set forth in their articles of incorporation and bylaws, for the resolution of disputes and whose plans of operation have been approved pursuant to RCW 7.75.020 before the effective date of this section. The project shall be conducted in accordance with chapter 7.75 RCW. The focus of the project shall be to provide an alternative forum for the resolution of disputes for the purposes of reducing social tensions which lead to crime, promoting lasting settlements in which all parties to a dispute can be winners, settling disputes more quickly and less expensively than through the judicial process, and helping to reduce congestion in the court systems as contemplated in the court improvement act of 1984. Seventy-five thousand dollars of the appropriation shall be made available for a project in Snohomish county subject to commitments from Snohomish county and the city of Everett to each match the state appropriation. Seventy-five thousand dollars of the appropriation shall be made available for a project in King county subject to commitments from King county and the city of Seattle to each match the state appropriation. The state administrator for the courts shall submit a report to the judiciary committees of the senate and the house of representatives on the results of the project by December 1, 1989.

(6) $14,134,000 of the general fund appropriation is provided solely for the superior court judges program.

(7) $70,000 of the public safety and education account appropriation is provided solely to implement the provisions of Substitute Senate Bill No. 6498. If the bill is not enacted by June 30, 1988, the amount provided in this subsection shall lapse.

(8) A maximum of $2,200,000 of the public safety and education account may be spent on enhancements to the judicial information system including: (a) Development of an information center; (b) implementation of a data administration model; (c) provision of personal computer installations and support services in courts not served by the mainframe system; and (d) planning activities associated with the feasibility of the enhancements listed under (a), (b), and (c) of this subsection as well as planning activities to evaluate the use of local area networks. The funding provided in this subsection is contingent on the administrator for the courts completing by July 1, 1988, a feasibility study in accordance with department of information services procedures and guidelines. It is the intent of the legislature that upon completion of the feasibility study the office of the administrator for the courts will present the study for review by and consultation with the department of information services, the office of financial management, and the legislative evaluation and accountability program committee prior to implementation.

Sec. 105. Section 114, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE SECRETARY OF STATE

General Fund Appropriation................................................................................................................ $

((~~6,374,000~~))

6,457,000

Archives and Records Management Account Appropriation............................................................ $

2,116,000

Total Appropriation............................................................................... $

((~~8,490,000~~))

8,573,000

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

(1) $1,021,000 of the general fund appropriation is provided solely to reimburse counties for the state's share of primary and general election costs and the costs of conducting mandatory recounts on state measures.

(2) $1,661,000 of the general fund appropriation is provided solely for the verification of initiative and referendum petitions and the maintenance of related voter registration records, legal advertising of state measures, and the publication and distribution of the voters and candidates pamphlet.

(3) $60,000 of the archives and records management account appropriation is provided solely for a project that will evaluate the need for, and potential archival requirements of, storage of data contained in magnetic media (tapes and disks). Implementation of an archival program for magnetic media shall not begin prior to approval of the findings and recommendations of the project by the office of financial management.

(4) $83,000 of the general fund appropriation is provided solely for advertising Washington state's March 8, 1988, precinct caucuses.

Sec. 106. Section 120, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE ATTORNEY GENERAL

General Fund Appropriation................................................................................................................ $	5,143,000
Legal Services Revolving Fund Appropriation.................................................................................. $	46,142,000
Total Appropriation............................................................................... $	51,285,000

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

(1) $840,000 of the legal services revolving fund appropriation is provided solely to support additional attorneys to defend an increased number of cases expected from an increase in the number of industrial appeals board staff.

(2) $10,233,000 of the legal services revolving fund appropriation is provided solely for legal services augmentation; of which a maximum of $3,933,000, including the state-wide salary increase allocation, is for salary increases consistent with the Price Waterhouse recommendation of March 19, 1987, for assistant attorneys general, $((~~5,000,000~~)) 3,295,000 is for additional funding for the defense of tort actions, $((~~400,000~~)) 700,000 is for increased legal services for the department of corrections and the indeterminate sentence review board, $((~~200,000~~)) 675,000 is for increased legal services for the department of ((~~ecology, $200,000 is for increased legal services for the department of transportation, and~~)) social and health services, $((~~500,000~~)) 1,230,000 is for increased legal services for the department of licensing, and $400,000 is provided solely for implementation of an attorney time accounting and billing system.

(3) Pursuant to chapter 365, Laws of 1985, the attorney general shall transmit to the judiciary committees of the senate and house of representatives and the human rights commission by January 1, 1988, and by January 1 of every year thereafter a progress report which states the agency's progress in meeting its affirmative action goals and timetables. The agency's goals for assistant attorneys general and other exempt employees shall be based on the percentage of each and every minority group's representation in the state labor force population.

(4) No part of the appropriations provided in this section may be used to move any attorney co-located with an agency for which the attorney provides legal services away from the agency without prior approval of the agency and the office of financial management.

(5) The legal services revolving fund program shall be split into an agency legal services program and a torts program beginning July 1, 1989. The agency request budget for the 1989-91 biennium shall be presented using this program structure and expenditure history, consistent with LEAP requirements, no later than July 1, 1988.

Sec. 107. Section 121, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT

General Fund Appropriation‑-State..................................................................................................... $

((~~18,281,000~~))

18,131,000

General Fund Appropriation‑-Federal................................................................................................ $	60,000
Motor Vehicle Fund Appropriation..................................................................................................... $	100,000
Medical Aid Fund Appropriation......................................................................................................... $	98,000
Local Jail Improvement and Construction Fund Appropriation..................................................... $	780,000
Total Appropriation............................................................................... $	((~~19,319,000~~))

19,169,000

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

(1) $40,000 of the general fund‑-state appropriation is provided solely for the services of an actuarial consultant.

(((4) $250,000 of the general fund‑-state appropriation is provided solely for one-time costs of establishing a state-wide inventory of school facilities, using surveys conducted by qualified engineers and architects. The inventory shall be developed jointly and in cooperation with the state board of education and the superintendent of public instruction and shall be designed to yield consistent and easily accessible information intended to facilitate administrative decisions on school construction projects and analysis of long-term facilities needs.

~~(5)~~)) (2) $205,000, of which $145,000 is from the general fund‑-state appropriation, is provided solely for the purposes of implementing the agency's responsibilities under Substitute House Bill No. 738. If Substitute House Bill No. 738 is not enacted by June 30, 1987, the amount provided in this subsection shall lapse.

((~~(6)~~)) (3) The office of financial management, in cooperation with the state board for community college education, shall study the cost of community college faculty salary increments, including savings from full time faculty turnover, identify the faculty salary increment policy at each college district, and report the findings and recommendations to the 1989 regular session of the legislature.

(4) $100,000 of the general fund‑-state appropriation is provided solely for the operations of the Washington state commission for efficiency and accountability in government.

Sec. 108. Section 124, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF PERSONNEL

Department of Personnel Service Fund Appropriation..................................................................... $

13,618,000

State Employees' Insurance Fund Appropriation.............................................................................. $

((~~2,164,000~~))

2,204,000

Total Appropriation............................................................................... $

((~~15,782,000~~))

15,822,000

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

(1) $150,000 of the state employees' insurance fund appropriation is provided solely for the revision of the automated insurance eligibility system.

(2) All funds appropriated under this section for lease or lease development office space may be used to lease new office space only if the lease is for a period not exceeding three years and does not extend beyond June 30, 1991.

(3) $40,000 of the state employees' insurance fund appropriation is provided solely for brokerage services.

Sec. 109. Section 131, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

General Fund Appropriation‑-State..................................................................................................... $

((~~8,312,000~~))

8,278,000

General Fund Appropriation‑-Federal................................................................................................ $	1,623,000
General Fund Appropriation‑-Private/Local...................................................................................... $	93,000
Motor Vehicle Fund Appropriation..................................................................................................... $	179,000
State Patrol Highway Account Appropriation................................................................................... $	124,000
Motor Transport Account Appropriation............................................................................................ $	10,925,000
General Administration Facilities and Services Revolving Fund Appropriation.......................... $	19,562,000
Total Appropriation............................................................................... $	((~~40,515,000~~))

40,784,000

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

(1) The motor vehicle fund appropriation and state patrol highway account appropriation are provided solely for risk management activities related to the motor vehicle fund and the state patrol highway account.

(2) The department is authorized to participate in the Olympia parking and business improvement district.

Sec. 110. Section 136, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF RETIREMENT SYSTEMS‑-OPERATIONS

Department of Retirement Systems Expense Fund Appropriation.................................................. $

20,666,000

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

(1) $554,000 is provided solely for the purposes of Engrossed Substitute Senate Bill No. 5150.

(2) Not more than $877,000 of this appropriation may be expended for the expenses of the office of the state actuary, including interagency reimbursements for services and statutory reports.

(3) All funds appropriated under this section for lease or lease development office space may be used to lease new office space only if the lease is for a period not exceeding three years and does not extend beyond June 30, 1991.

(End of part)

PART II

HUMAN SERVICES

Sec. 201. Section 201, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

(1) COMMUNITY SERVICES

General Fund Appropriation................................................................................................................ $

((~~59,605,000~~))

62,559,000

Public Safety and Education Account Appropriation....................................................................... $

100,000

Total Appropriation............................................................................... $

62,659,000

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

((~~(b)~~)) (a) $2,071,000 of the general fund appropriation is provided solely for the support of the office of the director of community services.

((~~(c)~~)) (b) $200,000 of the general fund appropriation is provided solely for the notification of victims and witnesses of any parole, work release placement, furlough, or unescorted leave of absence from a state correctional facility of any inmate convicted of a violent offense.

((~~(e)~~)) (c) A maximum of $285,000 of the general fund appropriation may be spent for the replacement of used equipment within the community services division.

(d) $100,000 of the public safety and education account appropriation is provided solely for training community corrections officers in the identification and prevention of child abuse by offenders under their supervision.

(2) INSTITUTIONAL SERVICES

General Fund Appropriation................................................................................................................ $

((~~269,824,000~~))

273,329,000

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

(a) $1,725,000 is provided solely for the implementation of the sex offender treatment program within the division of prisons.

(b) $1,049,000 is provided solely for the operation of the new in-patient floor at the Monroe reformatory hospital.

(d) A maximum of $1,898,000 may be spent for the replacement of used equipment within the institutional services division.

(e) $200,000 is provided solely for alleviation of parking problems experienced by McNeil Island corrections personnel.

(3) ADMINISTRATION AND PROGRAM SUPPORT

General Fund Appropriation................................................................................................................ $

((~~17,961,000~~))

17,331,000

Institutional Impact Account Appropriation..................................................................................... $	317,000
Total Appropriation............................................................................... $	((~~18,278,000~~))

17,648,000

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

(a) The department shall report to the ways and means committees of the senate and house of representatives on January 1, 1988, and January 1, 1989, regarding its progress toward employing more minorities and women in top-level management positions.

(b) A maximum of $1,258,000 of the general fund appropriation may be transferred to the tort claims revolving fund for tort claims against the department. The department shall develop a report, including brief descriptions and estimated amounts of all outstanding tort claims. The report is due to the ways and means committees of the senate and house of representatives on January 1, 1988. During the 1987-89 biennium, the department shall report on a quarterly basis the tort claim payments resulting from settlements and court judgments. New claims against the state shall be included in the quarterly updates.

((~~(d)~~)) (c) A maximum of $150,000 may be spent for the replacement of used equipment within the administration division.

(4) INSTITUTIONAL INDUSTRIES

General Fund Appropriation................................................................................................................ $

((~~2,268,000~~))

2,218,000

The appropriation in this subsection is subject to the following conditions and limitations: A maximum of $500,000 may be spent for the replacement of used equipment within the institutional industries division.

Sec. 202. Section 202, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES

(1) Appropriations made in this act to the department of social and health services shall be initially allotted as required by this act. Subsequent allotment modifications shall not include transfers of moneys between sections of this act, nor shall allotment modifications permit moneys which are provided solely for a specified purpose to be used for other than that purpose.

(2) The department of social and health services shall not initiate any services that will require expenditure of state general fund moneys except as expressly authorized in this act, unless the services were provided on March 1, 1987. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act, and an equal amount of appropriated state general fund moneys shall lapse. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on explicitly defined projects or matched on a formula basis by state funds.

(3) The department of social and health services is authorized to expend federal funds made available by the federal immigration reform and control act, P.L. 99-603, for the purposes contained in that act.

((~~(5)~~)) (4) If Engrossed Senate Bill No. 5097 is enacted by June 30, 1987, the department shall administer the lifeline fund established under the bill and shall recover its administrative costs from the fund. Payments to local exchange companies shall not exceed amounts available in the lifeline fund.

((~~(6)~~)) (5) The department shall implement the plan for performance-based contracts developed under sections 203(6) and 204(1)(c), chapter 6, Laws of 1985 ex. sess., whereby a portion of vendor payments for private group care and other community residential placements shall reflect achievement of client outcome standards. The department shall report on implementation of the plan to the ways and means committees of the senate and house of representatives by December 15, 1987, and December 15, 1988.

((~~(7)~~)) (6) The appropriations in sections 203, 208, 210, 213, 214, and 215 of this act shall be expended as provided in each section, except that the department may expend money, appropriated for other purposes, for the family independence program only after approval by the director of financial management. The director of financial management shall notify the ways and means committees of the senate and house of representatives regarding deviation from the legislative program appropriation levels.

(7) The department of social and health services shall study the cost effectiveness of adopting a hospice benefit for Title XIX recipients. The department shall report by November 1, 1988, to the health care and ways and means committees of both houses of the legislature on the results of the study.

Sec. 203. Section 203, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-CHILDREN AND FAMILY SERVICES PROGRAM

General Fund Appropriation‑-State..................................................................................................... $

((~~165,009,000~~))

180,288,000

General Fund Appropriation‑-Federal................................................................................................ $

((~~58,552,000~~))

59,847,000

Public Safety and Education Account Appropriation....................................................................... $

400,000

Total Appropriation............................................................................... $

((~~223,561,000~~))

240,535,000

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

(1) Vendor rate increases shall average 2.0 percent on September 1, 1987, and 4.0 percent on September 1, 1988. Department contracts for group home services, therapeutic day care, seasonal day care, and domestic violence shelters shall provide for and assure payment of compensation for staff of no less than $4.76 per hour beginning September 1, 1987, and $5.15 per hour beginning September 1, 1988.

(2) $7,500,000 of the general fund‑-state appropriation is provided solely for the improvement of services to protect children. $5,035,000 of the amount provided in this subsection is provided solely for increased child protective services and child welfare casework staff, necessary support and supervisory staff, and assistant attorneys general to provide legal services for child protective services cases. The department shall conduct intensive recruitment and priority hiring of qualified multi-ethnic casework staff. $40,000 of the amount provided in this subsection is provided solely for training for child protective services and child welfare staff who investigate and serve child abuse and neglect cases. $2,425,000 of the amount provided in this subsection is provided solely to implement the provisions of Engrossed Second Substitute House Bill No. 586 which establish a pilot project in order to guide the state in developing a comprehensive system of children and family services. If the bill is not enacted by June 30, 1987, this amount shall lapse. The department shall report to the ways and means and human services committees of the senate and house of representatives on implementation of this section by January 15, 1988. The report shall include the following information:

(a) The effectiveness of providing additional casework, support staff, and other services provided in this section in reducing and refocusing the workload of child protective services caseworkers;

(b) The impact on caseloads of hiring child protective services support staff, including clerical support, assistant attorneys general, eligibility determination specialists, and public health nurses; and

(c) The number and classifications of staff and the level and types of additional services for which the moneys in this section are used.

(3) $1,000,000 of the general fund‑-state appropriation is provided solely for the expansion of therapeutic day care.

(4) $2,160,000 of the general fund‑-state appropriation is provided solely for public health nurses to provide prevention and early intervention services for the protection of children, and to assist in the investigation of low-risk child abuse and neglect referrals.

(5) $600,000 of the general fund‑-state appropriation is provided solely to increase private agency fees in connection with foster care placements, effective July 1, 1987.

(6) $400,000 of the general fund‑-state appropriation is provided solely for expansion of current contracted community services to prevent the occurrence or recurrence of family conflict, abuse, or out-of-home placements.

(7) $1,000,000 of the general fund‑-state appropriation is provided solely for training and support for families providing foster care services.

(8) $((~~300,000~~)) 310,000 of the general fund‑-state appropriation is provided solely to fund counseling, education, and support for victims of sexual abuse. A maximum of $10,000 of the amount provided in this subsection may be spent for counseling for teenaged parents who are victims of sexual and physical abuse. The department shall contract for the counseling to be provided to participants in school-sponsored teen parent programs.

(9) $500,000 of the general fund‑-state appropriation is provided solely to increase contracted Indian child welfare services.

(10) $1,298,000 of the general fund‑-state appropriation is provided solely for financial eligibility workers to ensure that every child in foster care who is eligible for federal financial participation under Title IV, Part B, or Title IV, Part E of the federal social security act is identified. Any federal moneys generated by this activity in excess of the amount appropriated in this section shall be expended for foster care services and a like amount of state moneys shall lapse.

(11) $93,000 of the general fund‑-state appropriation is provided solely for implementation of Engrossed Substitute Senate Bill No. 6013. If the bill is not enacted by June 30, 1987, the amount provided in this subsection shall lapse.

(12) A maximum of $332,000, of which $275,000 is from the general fund‑-state appropriation, and 7.8 full time equivalent staff may be transferred from the division of children and family services to the administration and supporting services program to consolidate the social service payment system. If this transfer affects the comparability of historical expenditure information at the program, category, or budget-unit level, the department shall reconstruct historical data for the preceding six years.

(13) $125,000 is provided solely for the purpose of implementing Engrossed Second Substitute Senate Bill No. 5252. If the bill is not enacted by June 30, 1987, the amount provided in this subsection shall lapse.

(14) The department shall maintain the current level of support for the dropout prevention project in the Seattle school district.

(15) $9,000,000 of the general fund‑-state appropriation is provided solely for foster care services and services designed to reduce the number of children requiring family or group foster care, and to expedite the process of returning children home from placement. Not more than $2,450,000 of the amount provided in this subsection may be spent for increased recruitment efforts and services to family foster care providers; additional child welfare caseworkers and support staff to provide intensive case services designed to reunify families and prevent out-of-home placement; managed health care services for children in foster care; and other services meeting the goals of this subsection. Of the amount provided in this subsection, $550,000 is provided solely to expand the homebuilders program to provide assistance to families. The department shall submit a progress report to the appropriate committees of the legislature by January 1, 1989, describing the efforts taken to implement projects to reduce the number of children requiring foster care and to expedite the return to home process. The report shall include a description of the projects initiated, the cost of each project, and a preliminary assessment of their effectiveness. The department shall also prepare a report which examines the entire foster care rate structure, including provisions for respite or day care services, costs of private agency management of children in care, and the criteria for special and exceptional rates. The department shall coordinate with appropriate legislative fiscal and policy staff in preparing the report and shall submit its findings and recommendations to the legislature by December 1, 1988.

(16) $2,600,000 from the general fund‑-state appropriation is provided solely to increase the level of funding for day care services. $110,000 of the amount provided in this subsection is for the seasonal day care program to serve an additional 50 children. The department is authorized to implement regulations for the employment day care program requiring that waiting lists be established if necessary to ensure that employment day care services are provided within allotted funds. The department is further authorized to implement day care reimbursement rates which vary by area of the state. $100,000 of the amount provided in this subsection may be spent for pilot day care subsidy programs in one or more areas of the state. The department may provide a monthly subsidy no greater than $50.00 per child to licensed day care providers caring for children of recipients of aid to families with dependent children--regular. Subsidies shall not be provided for children whose parents are employed less than full time.

(17) $1,064,000, of which $200,000 is from the general fund‑-state appropriation, is provided solely to increase services in the women, infants, and children program.

(18) $100,000 of the general fund‑-state appropriation is provided solely for the department to develop and provide day care providers and foster parents with an educational program on positive discipline, and training in recognizing and reporting child abuse. Implementation of the program shall begin on July 1, 1988.

(19) $400,000 of the public safety and education account appropriation is provided solely for training programs under chapter 70.125 RCW for criminal justice, medical, and child protective services personnel regarding victims of sexual abuse. Training programs under this subsection shall focus on the following:

(a) Training child protective service workers on recognition of signs of potential sexual abuse and on medical techniques available to confirm abuse or establish legal evidence, and developing policies and procedures for use by such workers in responding to claims or reports of sexual abuse;

(b) Developing regional medical expertise on identification, verification and retention of evidence in cases of child sexual abuse; and

(c) Providing prosecutors, public defenders, judges, and other criminal justice personnel with information on available medical techniques for confirming abuse or establishing legal evidence.

Sec. 204. Section 204, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-JUVENILE REHABILITATION PROGRAM

(1) COMMUNITY SERVICES

General Fund Appropriation‑-State..................................................................................................... $

((~~27,988,000~~))

26,847,000

General Fund Appropriation‑-Federal................................................................................................ $	78,000
Total Appropriation............................................................................... $	((~~28,066,000~~))

26,925,000

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

(a) Vendor rate increases shall average 2.0 percent on September 1, 1987, and 4.0 percent on September 1, 1988. Privately contracted group home providers shall provide for and assure payment of compensation for staff of no less than $4.76 per hour beginning September 1, 1987, and $5.15 per hour beginning September 1, 1988.

(b) The seven state-operated group homes shall collectively average 100 youths in residential status per month. Residential status includes youths in actual residence, those on leave up to 14 days, and those in the process of being transferred or paroled. If the average number of youths in residential status falls below 100 per month, the general fund‑-state support shall be reduced by an average monthly amount per resident as determined by the office of financial management.

(c) In fiscal year 1989, the department shall not reduce support levels for consolidated juvenile services programs below fiscal year 1988 levels.

(2) INSTITUTIONAL SERVICES

General Fund Appropriation‑-State..................................................................................................... $

((~~44,385,000~~))

44,285,000

General Fund Appropriation‑-Federal................................................................................................ $	890,000
Total Appropriation............................................................................... $	((~~45,275,000~~))

45,175,000

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

(a) $536,000 of the general fund‑-state appropriation is provided solely for the implementation of a mentally ill offender unit at Echo Glen children's center.

(b) The department shall develop a ten-year plan to include operating and capital costs of using Green Hill school to house level I and the more serious level II offenders. The plan may include other viable options to handle the increasing numbers of violent offenders entering the juvenile rehabilitation institutions. The plan shall be presented to the ways and means committees of the senate and house of representatives by January 15, 1988.

(3) PROGRAM SUPPORT

General Fund Appropriation‑-State..................................................................................................... $

2,788,000

Sec. 205. Section 205, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-MENTAL HEALTH PROGRAM

(1) COMMUNITY SERVICES

General Fund Appropriation‑-State..................................................................................................... $

((~~118,388,000~~))

113,421,000

General Fund Appropriation‑-Federal................................................................................................ $

((~~40,738,000~~))

41,442,000

General Fund Appropriation‑-Local................................................................................................... $	1,580,000
Total Appropriation............................................................................... $	((~~160,706,000~~))

156,443,000

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

(a) Vendor rate increases shall average 2.0 percent on September 1, 1987, and 4.0 percent on September 1, 1988. Community mental health centers and residential services providers shall provide for and assure payment of compensation for staff of no less than $4.76 per hour beginning September 1, 1987, and $5.15 per hour beginning September 1, 1988.

(b) $2,690,000, of which $2,383,000 is from the general fund‑-state appropriation is provided solely for the Kitsap mental health services residential treatment alternative project. The state reimbursement rate shall not exceed $200 per client day and treatment for individual clients shall not exceed 180 days. All eligible involuntary treatment referrals shall be made to the project. No involuntary treatment referrals of Kitsap county residents may be made to Western state hospital, with the exception of persons who meet all the following criteria, as established by a licensed psychiatrist and involving consultation with a state certificated geriatric mental health specialist: (i) Diagnosis of organic mental disorder (nontransient); (ii) established behavior abnormalities directly associated with the organic disorder; (iii) admittance to the residential treatment center at least twice during the prior six-month period; (iv) expulsion from two or more residential placements during the prior six-month period resulting from behaviors directly associated with the presence of the established organic mental disorder; and (v) denial of admission by all appropriate residential settings in the Puget Sound area. The maximum reimbursement rate to Kitsap county hospitals shall be $250 per day per patient. Within the amount provided in this subsection, in an effort to reduce recommitments to psychiatric hospitals and evaluation and treatment facilities, $500,000, of which $443,000 is from the general fund‑-state appropriation, is provided solely for a Kitsap mental health services outreach case management team. The services provided shall include participation with the court in formulation of conditions of conditional release and less restrictive alternative placement, participation in development of an individualized treatment plan with the treatment team, assistance with housing, financial management, medication management, nutrition, system advocacy, mental health services and monitoring the person receiving treatment to ensure that the person abides by the requirements of the person's individualized treatment plan. The case managers shall be mental health professionals, or shall be supervised by mental health professionals as defined in RCW 71.05.020(11). Kitsap mental health services shall participate in the state and county client tracking system required by RCW 71.24.035(4)(h) and 71.24.045(6). Kitsap mental health services shall provide quarterly reports to the committees on ways and means of the senate and house of representatives describing the numbers and characteristics of clients served and the resulting diversions from psychiatric hospitals and evaluation and treatment facilities. In addition, the department shall present an annual report to the same legislative committees by January 1, 1988, and January 1, 1989, indicating progress made toward meeting the long-term residential bed needs of Kitsap county.

(c) $4,375,000, of which $3,500,000 is from the general fund‑-state appropriation, is provided solely for a state-wide pilot demonstration project as provided for in Second Substitute Senate Bill No. 5074. These funds include 2 percent for costs of administration for participating counties. The plan for the pilot project shall be developed by the department in cooperation with interested counties, mental health providers, other interested members of the community, and legislative staff and shall be submitted to the legislature by September 1, 1987. The plan shall include specific criteria for inclusion in the project for counties choosing to participate and shall meet the conditions set forth in Second Substitute Senate Bill No. 5074. The plan shall provide for evaluation of the effects of case management on the treatment of involuntarily committed persons. The evaluation shall incorporate an experimental design. Evaluation support of no more than $125,000 of the general fund‑-state appropriation is from the emergency and technical assistance funds provided for in RCW 71.24.155. The plan shall assure that case management services are administered in a manner which recognizes client needs within the availability of funds provided in this subsection (c). If Second Substitute Senate Bill No. 5074 is not enacted by June 30, 1987, the amount provided in this subsection shall be provided solely for case management services for persons ordered to a fourteen-day less restrictive treatment setting as provided for in RCW 71.05.240.

(d) $1,000,000 of the general fund‑-state appropriation is provided solely for the support of involuntary treatment act administration.

(e) The mental health division, in conjunction with county officials and other affected parties, shall develop a fair and equitable formula for distributing involuntary treatment act administration funding to counties. The formula shall incorporate workload estimates and any other relevant factors required to reflect actual county administration costs. The mental health division shall present the proposed formula to the ways and means committees of the senate and house of representatives by November 15, 1987. Implementation of the formula may take effect immediately after legislative review but no later than January 1, 1988. Of the funding provided in this section for involuntary treatment act administration, $3,400,000 is placed in reserve status pending legislative review of the new formula. No county allocation of funds for fiscal year 1988 may be less than its fiscal year 1987 allocation. Counties shall continue to fund current maintenance of effort funding levels during the ensuing biennium.

(f) Grants to counties for community mental health programs shall total not less than $55,957,000 of the general fund‑-state appropriation under RCW 71.24.155. Of this amount, $2,000,000 is provided solely for expanded services to children.

(g) $480,000 of the general fund‑-state appropriation is provided solely for continuation of the community psychiatric training program at the University of Washington.

(h) The department shall maintain the current level of support for the dropout prevention project in the Seattle school district.

(2) INSTITUTIONAL SERVICES

General Fund Appropriation‑-State..................................................................................................... $

((~~150,711,000~~))

150,808,000

General Fund Appropriation‑-Federal................................................................................................ $

((~~7,948,000~~))

7,851,000

Total Appropriation............................................................................... $

158,659,000

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

((~~(b)~~)) (a) $300,000 of the general fund‑-state appropriation is provided solely for equipment and operating costs related to two additional PORTAL cottages on the Northern state hospital campus. Of this amount, a maximum of $44,000 may be used to contract with local community mental health centers to provide services to clients who have exited the PORTAL program and reside locally in the community.

((~~(c)~~)) (b) The legislative budget committee shall evaluate the PORTAL program as to its treatment outcomes and general effectiveness. The legislative budget committee shall report its findings to the senate and house of representatives ways and means committees by December 1, 1987.

(3) PROGRAM SUPPORT

General Fund Appropriation‑-State..................................................................................................... $	3,477,000
General Fund Appropriation‑-Federal................................................................................................ $	1,341,000
Total Appropriation............................................................................... $	4,818,000

The appropriations in this subsection are subject to the following conditions and limitations: $78,600 from the general fund‑-state appropriation is provided solely for allocations to nonprofit agencies advocating for the mentally ill. Such funds are for providing technical assistance to state agencies, mental health education programs, outreach and family support, and self-help support groups.

(4) SPECIAL PROJECTS

General Fund Appropriation‑-Federal................................................................................................ $

1,059,000

Sec. 206. Section 206, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-DEVELOPMENTAL DISABILITIES PROGRAM

(1) COMMUNITY SERVICES

General Fund Appropriation‑-State..................................................................................................... $

((~~79,041,000~~))

80,944,000

General Fund Appropriation‑-Federal................................................................................................ $

((~~61,998,000~~))

62,524,000

Total Appropriation............................................................................... $

((~~141,039,000~~))

143,468,000

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

(a) $278,000 of the general fund‑-state appropriation is provided solely for the deaf-blind service center.

(b) $2,185,000 of the general fund‑-state appropriation and $385,000 of the general fund‑-federal appropriation are provided solely to increase rates paid for county contracted employment services for developmentally disabled adults receiving such services as of July 1, 1987. No county administrative charge shall be deducted from the amount specified in this subparagraph.

(c) The division of developmental disabilities shall fund the DECOD dental program at the University of Washington with $224,000 of the general fund‑-state appropriation.

(d) The secretary may transfer funds between the appropriations in subsections (1) and (2) of this section in order to provide program options as authorized in RCW 72.33.125. Any transfer of funds shall not reduce the level of services to existing clients.

(e) $1,169,000 is appropriated solely for the division of developmental disabilities to contract for an additional twenty-four group home beds and associated services in King county.

(f) Vendor rate increases shall average 2.0 percent on September 1, 1987, and 4.0 percent on September 1, 1988. Respite care providers shall provide for and assure payment of compensation for staff of no less than $4.76 per hour beginning September 1, 1987, and $5.15 per hour beginning September 1, 1988.

(g) $1,400,000 of the general fund‑-state appropriation is provided solely to fund additional staff at the Bellevue center, Highline care center, and the united cerebral palsy center; and to provide additional support for an autism program in Pierce county, a teletype relay system at the Yakima valley center for the deaf, the L'Arche facility in Spokane, the Sunnyhaven facility, and the Sumner lodge.

(2) INSTITUTIONAL SERVICES

General Fund Appropriation‑-State..................................................................................................... $

((~~100,635,000~~))

98,402,000

General Fund Appropriation‑-Federal................................................................................................ $

((~~94,952,000~~))

100,885,000

Total Appropriation............................................................................... $

((~~195,587,000~~))

199,287,000

(3) SPECIAL PROJECTS

General Fund Appropriation‑-Federal................................................................................................ $	1,199,000
Total Appropriation............................................................................... $	1,199,000

(4) PROGRAM SUPPORT

General Fund Appropriation‑-State..................................................................................................... $	3,991,000
General Fund Appropriation‑-Federal................................................................................................ $	479,000
Total Appropriation............................................................................... $	4,470,000

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

(a) A maximum of $46,000, of which $38,000 is from the general fund‑-state appropriation, and two biennial full time equivalent staff may be transferred from the division of developmental disabilities to the administration and supporting services program to consolidate the social service payment system. If this transfer affects the comparability of historical expenditure information at the program, category, or budget-unit level, the department shall reconstruct historical data for the preceding six years.

(b) If Engrossed Second Substitute House Bill No. 221 is enacted by June 30, 1987, the department is authorized to expend the proceeds of the telecommunication devices for the deaf excise tax established under the bill for the distribution and maintenance of telecommunication devices, signal devices, and amplifying accessories to hearing-impaired persons as provided in the bill.

Sec. 207. Section 207, chapter 7, Laws of 1987 1st ex. sess. as amended by section 1, chapter 1, Laws of 1987 2nd ex. sess. and by section 1, chapter 2, Laws of 1987 2nd ex. sess. (uncodified) is reenacted and amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-LONG-TERM CARE SERVICES

General Fund Appropriation‑-State..................................................................................................... $

((~~330,946,000~~))

337,886,000

General Fund Appropriation‑-Federal................................................................................................ $

((~~334,686,000~~))

339,370,000

Total Appropriation............................................................................... $

((~~665,632,000~~))

677,256,000

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

(1) The department shall provide an integrated system of long-term care services which will allow for the most efficient, equitable, and appropriate use of available resources. The department shall endeavor to provide these services in the least restrictive and most cost-effective manner appropriate for individual clients.

(2) Vendor rate increases shall average 2.0 percent on September 1, 1987, and 4.0 percent on September 1, 1988, for the adult residential care, contracted chore, adult day health, and senior citizens services act programs.

(3) $3,000,000 of which $1,400,000 is from the general fund‑-state appropriation is provided solely for nonadministrative wages and benefits enhancements above the money necessary to fund the minimum wage.

(4) Department-contracted nursing homes shall provide for and assure payment of compensation for staff of no less than $4.76 per hour beginning January 1, 1988, and $5.15 per hour beginning January 1, 1989.

(5) $3,000,000 of the general fund‑-state appropriation, and $1,500,000 of the general fund‑-federal appropriation, are provided solely to increase the number of persons served in the chore services program and the community options program entry system (COPES). To the extent possible, the department shall maximize use of the community options program entry system for all new clients requiring chore or personal care services.

(6) Nursing home rates shall be adjusted for inflation under RCW 74.46.495 by 3.7 percent on July 1, 1987 and 3.6 percent on July 1, 1988.

(7) $650,000, of which $312,000 is from the general fund‑-state appropriation, is provided solely for laundry services to state clients residing in skilled nursing facilities and intermediate care facilities.

(8) Grant payment standards shall be increased by 2.0 percent on September 1, 1987 and 4.0 percent on September 1, 1989, for adult residential care clients.

(9) $1,090,000 of the general fund‑-state appropriation is provided solely for the respite care demonstration project.

(10) At least $((~~14,766,000~~)) 14,966,000 of the general fund‑-state appropriation shall be initially allotted for implementation of the senior citizens services act. At least ((~~7 percent of the amount allotted for the senior citizens services act in each fiscal year~~)) $1,265,000 of the amount provided in this subsection shall be used for programs that utilize volunteer workers for the provision of chore services to persons whose need for chore services is not being met by the chore services program. (11) The department shall encourage the development of working agreements between county mental health authorities, mental health providers, and the area agencies on aging which provide access to comprehensive treatment for geriatric mentally ill persons.

Sec. 208. Section 208, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-INCOME ASSISTANCE PROGRAM

General Fund Appropriation‑-State..................................................................................................... $

((~~465,361,000~~))

454,658,000

General Fund Appropriation‑-Federal................................................................................................ $

((~~442,371,000~~))

405,514,000

Total Appropriation............................................................................... $

((~~907,732,000~~))

860,172,000

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

(1) Vendor rate increases shall average 2.0 percent on September 1, 1987, and 4.0 percent on September 1, 1988.

(2) The department shall continue the aid to families with dependent children program for two-parent families through June 30, 1989.

(3) The department shall adopt by rule medical criteria for general assistance eligibility to ensure that eligibility decisions are consistent with statutory requirements and are based on clear, objective medical information.

(a) The process implementing such medical criteria shall involve consideration of opinions of the treating or consulting physicians or health care professionals regarding incapacity, and any eligibility decision which rejects uncontradicted medical opinion must set forth clear and convincing reasons for doing so.

(b) Recipients of general assistance who remain otherwise eligible shall not have their benefits terminated absent a clear showing of material improvement in their medical or mental condition or specific error in the prior determination that found the recipient eligible by reason of incapacitation.

(4) $5,316,000, of which $2,658,000 is from the general fund‑-state appropriation, is provided solely to increase day care, transportation, and other support services for participants in the opportunities program.

(5) Payment levels in the aid to families with dependent children, general assistance, and refugee assistance programs shall contain an energy allowance to offset the costs of energy and such allowance shall be excluded from consideration as income for the purpose of determining eligibility and benefit levels of the food stamp program to the maximum extent such exclusion is authorized under federal law and RCW 74.08.046. To this end, up to $150,000,000 is so designated for exemptions of the following amounts:

Family size: 1 2 3 4 5 6 7 8 or more

Exemption: $30 39 46 56 63 72 84 92

(6) Persons who are unemployable due to alcohol or drug addiction who are not otherwise eligible for general assistance shall be referred to the alcoholism and drug addiction treatment and support program established by Substitute House Bill No. 646.

Sec. 209. Section 209, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-COMMUNITY SOCIAL SERVICES PROGRAM

General Fund Appropriation‑-State..................................................................................................... $

((~~62,580,000~~))

61,180,000

General Fund Appropriation‑-Federal................................................................................................ $	16,866,000
General Fund Appropriation‑-Local................................................................................................... $	166,000
Total Appropriation............................................................................... $	((~~79,612,000~~))

78,212,000

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

(1) Vendor rate increases shall average 2.0 percent on September 1, 1987, and 4.0 percent on September 1, 1988.

(2) $195,000 of the general fund‑-state appropriation is provided solely to increase the annual base level of grants for county alcohol and drug abuse treatment services to $40,000 per county.

(3) $((~~24,565,000~~)) 23,165,000 of the general fund‑-state appropriation is provided solely for implementation of ((~~Substitute House Bill No. 646, establishing~~)) the alcohol and drug addiction treatment and support act. ((~~If Substitute House Bill No. 646 is not enacted by July 1, 1987, the funds in this subsection shall be transferred to the division of income assistance.~~

(5) The department shall report to the appropriate committees of the legislature by January 5, 1988, on implementation of the alcohol and drug addiction treatment and shelter act. The report shall include at least the following information:

~~(a) The number of persons receiving client assessment services, including the number receiving assistance in the application process for supplemental security income benefits;~~

(b) The number of persons receiving treatment services, including the number receiving inpatient and outpatient treatment, and the number receiving a living allowance while undergoing outpatient treatment;

~~(c) The number of persons receiving shelter services and the type of shelter services provided;~~

~~(d) The number of applicants for general assistance payments referred to the program and the number of recipients of general assistance transferred to the program; and~~

~~(e) An assessment of the need to revise projected funding levels of $2,700,000 for client assessment services, $11,378,000 for treatment services, and $10,487,000 for shelter services.~~))

Sec. 210. Section 210, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-MEDICAL ASSISTANCE PROGRAM

General Fund Appropriation‑-State..................................................................................................... $

((~~528,288,000~~))

540,548,000

General Fund Appropriation‑-Federal................................................................................................ $

((~~481,926,000~~))

473,933,000

Total Appropriation............................................................................... $

((~~1,010,214,000~~))

1,014,481,000

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

(1) $13,864,000 of the general fund‑-state appropriation and $16,927,000 of the general fund‑-federal appropriation are provided solely for an adult dental program for Title XIX categorically eligible and medically needy persons, effective January 1, 1988. If Substitute House Bill No. 1225 is enacted by June 30, 1987, the department shall by January 1, 1989, enroll 20,000 categorically eligible and medically needy persons in prepaid capitated dental programs.

(2) The department of social and health services may increase the medically needy income level under RCW 74.09.700 to the maximum level allowable for federal financial participation under Title XIX of the federal social security act within funds appropriated for this purpose.

(3) $8,338,000 of the general fund‑-state appropriation and $9,823,000 of the general fund‑-federal appropriation are provided solely for medical assistance for categorically needy pregnant women and children up to two years of age whose household income does not exceed 90 percent of the federal poverty level, whose resources do not exceed reasonable standards established by the department, and whose coverage qualifies for federal financial participation under Title XIX of the federal social security act. Any part of the amounts provided in this subsection which are not needed for the purposes of this subsection may be spent for the purposes outlined in subsection (2) of this section.

(4) Vendor rate increases shall average 2.0 percent on September 1, 1987, and 4.0 percent on September 1, 1988.

(5) $3,000,000 of the general fund‑-state appropriation is provided solely for matching grants to hospitals under Engrossed Second Substitute House Bill No. 477. If the bill is not enacted by June 30, 1987, the amount provided in this subsection shall lapse.

(6) The department may provide payment for chiropractic services under RCW 74.09.035 and 74.09.520.

(7) The department is authorized under 42 U.S.C. Sec. 1396b(a)(1) to pay third party health insurance premiums for categorically needy medical assistance recipients upon a determination that payment of the health insurance premium is cost effective. In determining cost effectiveness, the department shall compare the amount, duration, and scope of coverage offered under the medical assistance program.

(8) The department is authorized to provide community-based long-term care services to persons with AIDS or AIDS-related conditions, on the condition that the department obtain a waiver under section 1915(c) (1) and (2) of the federal social security act.

Sec. 211. Section 211, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-PUBLIC HEALTH PROGRAM

General Fund Appropriation‑-State..................................................................................................... $

((~~58,177,000~~))

63,001,000

General Fund Appropriation‑-Federal................................................................................................ $

((~~73,551,000~~))

75,132,000

General Fund Appropriation‑-Local................................................................................................... $

((~~8,025,000~~))

8,967,000

Public Safety and Education Account Appropriation....................................................................... $

200,000

Total Appropriation............................................................................... $

((~~139,753,000~~))

147,300,000

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

(1) Vendor rates shall be increased by 2.0 percent on September 1, 1987, and 4.0 percent on September 1, 1988.

(2) Public and private community health clinics providing dental services under this section shall give priority to populations that lack access to federally supported dental services. The department shall prepare contracts which implement this requirement.

(3) $1,919,000 of the general fund‑-state appropriation is provided solely to carry out the department's responsibilities contained in the Puget Sound water quality plan and perform corresponding state-wide activities, including $50,000 for a review of the alternative on-site sewage program at both the state and local levels. The review shall address, but not be limited to, the process and procedures associated with the review and application of alternative systems. Recommendations shall include, but not be limited to:

(a) Ways to expedite review of applications;

(b) Changes in rules and statutes to address unique alternative on-site system applications;

(d) Any additional issues that are necessary for an effective and efficient alternative on-site sewage system program.

The department shall report to the legislature no later than January 30, 1988.

(4) $5,500,000 of the general fund‑-state appropriation is provided solely to continue prenatal care services for low-income pregnant women who do not qualify for full coverage under the medical assistance program.

(5) A maximum of $86,842,000, of which $24,437,000 is from the general fund‑-state appropriation, and 132 biennial full time equivalent staff may be transferred from the public health program to the division of children and family services to provide parent and child health services, dental health care for children, women, infant and children services, crippled children's services, nutrition services to children, family planning services, and program and category support services. If this transfer affects the comparability of historical expenditure information at the program, category, or budget-unit level, the department shall reconstruct historical data for the preceding six fiscal years.

(6) $3,100,000 of the general fund‑-state appropriation is provided solely to continue the kidney disease program.

(7) $300,000 of the general fund‑-state appropriation is provided solely to enhance high-risk infant tracking.

(8) $41,000 of the general fund‑-state appropriation is provided solely to expand PKU testing.

(9) $1,500,000, of which $300,000 is from the general fund‑-state appropriation, is provided solely for enhancing the women, infants, and children programs.

(10) $850,000 of the general fund‑-local appropriation is provided solely for the monitoring and enforcement of emissions of radionuclides to the air, pursuant to chapter 70.94 RCW.

(11) A maximum of $300,000 from the general fund‑-state appropriation may be spent for the purposes of establishing a centralized AIDS unit within the division of public health. This unit shall be responsible for pursuing activities to maximize the receipt of federal and private sources of funding, program coordination, and development of the implementation plan.

(12) $50,000 of the general fund‑-state appropriation is provided solely for the state board of health to promulgate necessary rules and establish reporting requirements on sexually transmitted diseases, including the clinical syndrome of HIV-related illness.

(13) $4,250,000 from the general fund‑-state appropriation and $200,000 of the public safety and education account appropriation are provided solely to fund the regional AIDS service network.

(a) Seventy-five percent of the amount provided in this subsection shall be allocated per capita based on the number of persons residing within each region, but in no case less than one hundred fifty thousand dollars for each regional AIDS network per fiscal year. This amount shall be expended for testing, counseling, education, case management, notification of sexual partners of infected persons, planning, coordination, and other services.

(b) Twenty-five percent of the amount provided in this subsection shall be allocated for intervention strategies specifically addressing groups that are at a high risk of being infected with the human immunodeficiency virus. The allocation shall be made by the office on AIDS based on documented need as specified in regional AIDS network plans.

(14) $100,000 of the general fund‑-state appropriation is provided solely for enhancing health services provided through public and private community health clinics.

(15) $516,000 of the general fund‑-state appropriation is provided solely to sustain current radiation monitoring.

Sec. 212. Section 212, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-VOCATIONAL REHABILITATION PROGRAM

General Fund Appropriation‑-State..................................................................................................... $

((~~13,583,000~~))

12,783,000

General Fund Appropriation‑-Federal................................................................................................ $

((~~32,654,000~~))

36,110,000

Total Appropriation............................................................................... $

((~~46,237,000~~))

48,893,000

The appropriations in this section are subject to the following condition and limitations: Vendor rates shall be increased by 2.0 percent on September 1, 1987, and 4.0 percent on September 1, 1988.

Sec. 213. Section 213, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-ADMINISTRATION AND SUPPORTING SERVICES PROGRAM

General Fund Appropriation‑-State..................................................................................................... $

((~~46,280,000~~))

43,630,000

General Fund Appropriation‑-Federal................................................................................................ $	32,045,000
Institutional Impact Account Appropriation..................................................................................... $	78,000
Total Appropriation............................................................................... $	((~~78,403,000~~))

75,753,000

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

(1) $108,000 of the general fund‑-state appropriation is transferred within the office of constituent relations for an additional 2 biennial FTE staff for the office of the long-term care ombudsman.

(2) $1,000,000 of the general fund‑-state appropriation and $1,000,000 of the general fund‑-federal appropriation may be transferred from sections referenced in section 202(7) of this act solely for the evaluation of the aid to families with dependent children and the family independence programs as provided in Engrossed Second Substitute House Bill No. 448. The department may contract with objective independent evaluators subject to legislative budget committee approval, as specified in Engrossed Second Substitute House Bill No. 448. The department shall contract with the Washington state institute for public policy to conduct a longitudinal study of public assistance recipients. $652,000 of the general fund‑-state moneys and $652,000 of the general fund‑-federal moneys provided in this subsection are provided solely for the longitudinal study.

(3) $50,000 of the general fund‑-state appropriation is provided solely for the Washington council for the prevention of child abuse and neglect to establish voluntary community-based programs on early parenting skills in at least three geographically balanced areas around the state. The programs shall be designed to serve families with children ranging from infants through three years old and also to serve expectant parents.

(4) The department may transfer up to $2,700,000 of the general fund‑-state appropriations for its various programs into the administration and support services program. The department may transfer out of each program only those amounts attributable to reductions in administrative costs.

Sec. 214. Section 214, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-COMMUNITY SERVICES ADMINISTRATION PROGRAM

General Fund Appropriation‑-State..................................................................................................... $

((~~156,570,000~~))

156,770,000

General Fund Appropriation‑-Federal................................................................................................ $

((~~174,029,000~~))

174,529,000

General Fund Appropriation‑-Local................................................................................................... $	705,000
Total Appropriation............................................................................... $	((~~331,304,000~~))

332,004,000

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

(1) $283,000 of the general fund‑-state appropriation and $270,000 of the general fund‑-federal appropriation are provided solely for administrative costs associated with the provision of medical assistance to categorically needy pregnant women and children up to two years of age whose household income does not exceed 90 percent of the federal poverty level, whose incomes do not exceed reasonable standards established by the department, and whose coverage qualifies for federal financial participation under Title XIX of the federal social security act.

(2) $4,922,000, of which $2,461,000 is from the general fund‑-state appropriation, is provided solely to increase services for participants in the opportunities program.

(3) $69,000 of the general fund‑-state appropriation and $70,000 of the general fund‑-federal appropriation are provided solely for discharge planning case management for clients in nursing homes, congregate care facilities, and adult family homes.

(4) $708,000 of the general fund‑-state appropriation is provided solely for establishing a supplemental security income referral pilot program as provided for in Engrossed Substitute House Bill No. 665.

(5) A maximum of $554,000, of which $460,000 is from the general fund‑-state appropriation, and 14.2 biennial full time equivalent staff may be transferred from the community services administration program to the administration and supporting services program to consolidate the social service payment system.

(6) If any transfer under this section affects the comparability of historical expenditure information at the program, category or budget-unit level, the department shall reconstruct historical data for the preceding six fiscal years.

(7) The department shall submit a plan to the human services committees of the senate and house of representatives by January 15, 1988, regarding continuation of services provided at its satellite office at 2106 Second Avenue, Seattle. The plan shall identify any proposed changes to the service level in effect on July 1, 1988, and methods of assuring reasonable access to a full array of services for area clients.

(8) $350,000 of the general fund‑-state appropriation is provided solely for providing matching grants on a one-to-one state/local basis to regional health councils as established in RCW 70.38.085, or to the successor agencies. Grants shall be distributed equitably on the basis of need in order to preserve regional health planning.

Sec. 215. Section 217, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY DEVELOPMENT

General Fund Appropriation‑-State..................................................................................................... $

((~~32,765,000~~))

34,357,000

General Fund Appropriation‑-Federal................................................................................................ $

((~~143,939,000~~))

143,389,000

Building Code Council Account Appropriation.................................................................................. $

407,000

Fire Service Training Account Appropriation................................................................................... $

500,000

Low Income Weatherization Account Appropriation....................................................................... $

((~~4,000,000~~))

6,000,000

Total Appropriation............................................................................... $

((~~181,611,000~~))

184,653,000

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

(1) $3,576,000 of the general fund‑-state appropriation is provided solely for grants to public and private nonprofit organizations to operate food banks, food distribution centers, and emergency shelters.

(2) $100,000 of the general fund‑-state appropriation may be used for increased department administrative staff if the department receives federal grants in excess of $1,000,000 under U.S. House of Representatives Resolution 558. If the department does not receive grants of at least $1,000,000, the amount provided in this subsection shall lapse.

(3) $12,136,000 of the general fund‑-state appropriation is provided solely for early childhood education and assistance programs under Substitute Senate Bill No. 5476 or Engrossed Second Substitute House Bill No. 456. These moneys shall be used to provide services to at least 2,000 children. If neither bill is enacted by June 30, 1987, the amount provided in this subsection shall lapse.

(4) The department shall conduct a state-wide housing needs study. The study, with preliminary recommendations, shall be submitted to the housing committee of the house of representatives and the commerce and labor committee of the senate no later than December 31, 1987, and a final report shall be submitted by December 31, 1988.

(5) $325,000 of the general fund‑-state appropriation is provided solely for pilot demonstrations and development of model vocational programs, including a study of a technology demonstration skills center, in Lewis county.

(6) $708,000 of the general fund‑-state appropriation is provided solely for grants to public broadcast stations under section 3 of Engrossed Substitute Senate Bill No. 5285. $42,000 of the general fund‑-state appropriation is provided solely for grants to public broadcast stations under section 4 of Engrossed Substitute Senate Bill No. 5285. If the bill is not enacted by June 30, 1987, the amounts provided in this subsection shall lapse.

(7) The department shall review the needs of low-income migrant and seasonal workers. To the extent that funds are available, the legislature encourages the department to give special attention to low-income migrant and seasonal workers.

(8) $360,000 of the general fund‑-state appropriation is provided solely for grants to three nonprofit agencies and local government agencies for local reemployment centers. In order to provide a breadth of experience and geographic dispersion, one center shall be located in King county, one center shall be located in a southwest Washington county in which the unemployment rate was at least 20 percent above the state average during the preceding calendar year, and one center shall be located in an eastern Washington standard metropolitan statistical area in which the unemployment rate was at least 20 percent above the state average during the preceding calendar year. Each center shall provide direct and referral services to the unemployed. These services may include reemployment assistance, medical services, social services including marital counseling, psychotherapy, mortgage foreclosure and utility problem counseling, drug and alcohol abuse counseling, credit counseling, and other services deemed appropriate. These services are designed to supplement and not supplant the on-going efforts of local job centers administered by the employment security department. Each grant recipient must match state dollars on a one-for-one basis with nonstate dollars.

(9) $118,000 of the general fund‑-state appropriation is provided solely for a study to determine the economic contribution of sport and commercial salmon and sturgeon fishing.

(10) $100,000 of the general fund‑-state appropriation is provided solely to implement Substitute House Bill No. 430. If the bill is not enacted by June 30, 1987, the amount provided in this subsection shall lapse.

(11) $173,000 of the general fund‑-state appropriation is provided solely for a study of the uses, structure, and operation of a state-wide video telecommunications network. The department shall submit a report to the house of representatives and senate by January 1, 1989, recommending a plan for using video telecommunications in state government and assessing the potential of a state-wide public affairs satellite/cable television network broadcasting programs on state government to Washington state citizens. The department shall consult with the telecommunications division of the department of general administration for technical assistance in preparing this report.

(12) $250,000 of the general fund‑-state appropriation is provided solely for the border town impact mitigation program.

(13) $25,000 is provided solely for the purpose of implementing Engrossed Second Substitute Senate Bill No. 5252. If Engrossed Second Substitute Senate Bill No. 5252 is not enacted by June 30, 1987, the amount provided in this subsection shall lapse.

(14) In addition to the fee imposed under RCW 19.27.085, there is imposed through June 30, 1989, a fee of two dollars on each building permit issued by a county or a city. Quarterly, each county and city shall remit moneys collected under this subsection to the state treasury for deposit in the building code council account. However, no remittance is required until at least fifty dollars has accumulated pursuant to this subsection.

(15) $((~~187,000~~)) 212,000 of the general fund‑-state appropriation is provided solely for technical assistance to Okanogan county for the preparation of plans and permits, including enforcement, relating to winter sports facilities development.

(16) $58,000 of the general fund‑-state appropriation is provided solely for the state's share of the cost of the acquisition, installation, and maintenance of a Mt. St. Helen's flood warning system in Cowlitz county.

(17) $125,000 of the general fund‑-state appropriation is provided solely for grants to the city of Omak and Okanogan county for enhanced surveillance and investigation needed because of school-related arson incidents. The department shall make grants based on demonstration of impact by the city and county.

(18) $45,000 of the general fund‑-state appropriation is provided solely for a study assessing the positive and negative economic impacts of state correctional institutions on communities in which they are located. A report on the findings of the study shall be made to the legislature no later than December 31, 1988.

(19) $250,000 of the general fund‑-state appropriation is provided solely for continuing Lewis county pilot demonstrations and model vocational programs under subsection (5) of this section, including such projects as career education and assessment, technology partnership on-site programs, centers for teaching the principles of technology, and a business partnership in medical technology program.

(20) $30,000 of the general fund‑-state appropriation is provided solely for gathering, developing, and disseminating informational materials on the impacts of seismic occurrences and ways to protect people and property from them, and for other work to increase the public's awareness of the potential for a seismic event, including but not limited to, audio, visual, and written information, meetings, workshops, and seminars.

(21) $1,000,000 of the general fund appropriation is provided solely for deposit in the housing trust fund under chapter 43.185 RCW for eligible housing activities to benefit the homeless. This may include the funding of shelters and transitional and permanent housing for homeless families and individuals.

(22) The department shall develop an analysis and report on homelessness and self-sufficiency in the manner specified in Substitute House Bill No. 1564 as passed by the house of representatives.

Sec. 216. Section 218, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF VETERANS AFFAIRS

General Fund Appropriation‑-State..................................................................................................... $

((~~17,889,000~~))

17,769,000

General Fund Appropriation‑-Federal................................................................................................ $	4,690,000
General Fund Appropriation‑-Local................................................................................................... $	6,167,000
Total Appropriation............................................................................... $	((~~28,746,000~~))

28,626,000

Sec. 217. Section 219, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE HUMAN RIGHTS COMMISSION

General Fund Appropriation‑-State..................................................................................................... $

((~~3,199,000~~))

3,258,000

General Fund Appropriation‑-Federal................................................................................................ $	964,000
Total Appropriation............................................................................... $	((~~4,163,000~~)))

4,222,000

Sec. 218. Section 223, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LABOR AND INDUSTRIES

General Fund Appropriation................................................................................................................ $

((~~8,384,000~~))

8,227,000

Public Safety and Education Account Appropriation....................................................................... $

10,866,000

Accident Fund Appropriation............................................................................................................... $

((~~85,037,000~~))

85,159,000

Electrical License Fund Appropriation.............................................................................................. $

((~~9,620,000~~))

9,907,000

Farm Labor Revolving Account Appropriation................................................................................. $

((~~292,000~~))

58,000

Medical Aid Fund Appropriation......................................................................................................... $

((~~81,983,000~~))

82,105,000

Plumbing Certificate Fund Appropriation......................................................................................... $

((~~640,000~~))

660,000

Pressure Systems Safety Fund Appropriation.................................................................................... $

((~~1,111,000~~))

1,148,000

Worker and Community Right to Know Fund Appropriation........................................................ $

2,059,000

Total Appropriation............................................................................... $

((~~199,992,000~~))

200,190,000

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

(1) The department shall study the feasibility of establishing an independent ((~~ombuds~~)) ombudsman office to aid employers and employees, including self-insured employees, in dealing with the workers' compensation system. The study shall include an evaluation of the need for the office, the recommended functions of the office, and the mechanisms for oversight and funding. The department shall submit its findings and recommendations to the commerce and labor committees of the senate and house of representatives by January 11, 1988.

(2) The department shall evaluate the effectiveness of the workers' compensation vocational rehabilitation program, including the effectiveness of a worker resource center to provide injured worker adjustment services. The study shall be conducted in consultation with the workers' compensation advisory committee and interested groups representing injured workers, labor, and employers. The department shall submit its findings and recommendations to the commerce and labor committees of the senate and house of representatives by January 11, 1988.

(3) The department shall study, in cooperation with the employment security department and the department of social and health services, the potential impact in the state of a state minimum wage based on ninety percent of the federal poverty level. The results of the study shall be submitted to the commerce and labor committees of the senate and house of representatives by January 11, 1988.

(4) The department shall prepare a report on workers' compensation caseload information including, but not limited to, the average number of claims by type by adjudicator compared to optimal caseloads used in the private sector and any recommendations concerning improvement of caseloads. The report shall be submitted to the commerce and labor committees of the senate and house of representatives by January 11, 1988.

(5) All funds appropriated under this section for lease or lease development office space may be used to lease new office space only if the lease is for a period not exceeding three years and does not extend beyond June 30, 1991.

(6) The department shall establish an office of information and assistance to aid workers, employers, health care providers, and other department clients. The department shall report on the activities of the office to the appropriate committees of the legislature by January 1, 1989.

Sec. 219. Section 224, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE INDETERMINATE SENTENCE REVIEW BOARD

General Fund Appropriation................................................................................................................ $

((~~4,042,000~~))

3,804,000

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

(1) $166,000 is provided solely for payments to private attorneys representing indigent parolees.

(2) $727,000 is provided solely for addressing inmate litigation resulting from the transition from the indeterminate sentencing laws to the determinate sentencing laws and to enable the board to review all remaining cases falling under the indeterminate sentencing laws.

(3) ((~~Of the amount provided in subsection (2) of this section, $363,500 shall be placed in reserve status until the legislature authorizes its release.~~)) The board shall report to the legislature on January 1, 1988, regarding its progress toward completing at least one-half of the workload outlined in subsection (2) of this section. It is the intent of the legislature that the indeterminate sentencing review board terminate on June 30, 1989, and any remaining functions transfer to the department of corrections and the judiciary.

Sec. 220. Section 226, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE EMPLOYMENT SECURITY DEPARTMENT

General Fund Appropriation‑-State..................................................................................................... $	5,700,000
General Fund Appropriation‑-Federal................................................................................................ $	146,257,000
General Fund Appropriation‑-Local................................................................................................... $	18,373,000
Administrative Contingency Fund Appropriation‑-Federal............................................................. $	((~~6,918,000~~))

8,353,000

Unemployment Compensation Administration Fund Appropriation‑-Federal.............................. $	110,569,000
Employment Service Administration Account Appropriation‑-Federal......................................... $	2,334,000
Federal Interest Payment Fund Appropriation.................................................................................. $	2,080,000
Total Appropriation............................................................................... $	((~~290,151,000~~))

293,666,000

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

(1) The department shall submit a plan to the commerce and labor committees of the senate and house of representatives by January 15, 1988, regarding continuation of services provided at its satellite office at 2106 Second Avenue, Seattle. The plan shall identify any proposed changes to the service level in effect on July 1, 1988, and methods of assuring reasonable access to a full array of services for area clients.

(2) The department shall produce local area labor market information packages for the state's economically distressed counties.

(3) $75,000 of the administrative contingency fund‑-federal appropriation is provided solely for a computerized database of labor market information that is accessible by telephone to employers, economic development organizations, and employee organizations.

(4) $150,000 of the administrative contingency fund‑-federal appropriation is provided solely to establish Washington service corps internship positions with private corporations for young adults from eighteen to twenty-five years of age, especially members of ethnic minority groups or enrollees in the family independence program. Internship positions shall be part-time during the school year and full-time during the summer.

(5) The department shall produce an annual state economic report to the legislature and the governor that includes but is not limited to:

(a) Identification and analysis of industries in the United States, Washington state, and local labor markets with high levels of seasonal, cyclical, and structural unemployment;

(b) The industries and local labor markets with plant closures and mass lay-offs and the number of affected workers;

(d) The number of dislocated workers and persons who have exhausted their unemployment benefits, classified by industry, occupation, and local labor markets;

(e) The experience of the unemployed in their efforts to become reemployed. This should include research conducted on the continuous wage and benefit history;

(f) Five-year industry and occupational employment projections; and

(g) Annual and hourly average wage rates by industry and occupation.

((~~(4)~~)) (6) The department shall establish a counter-cyclical employment program.

(a) This program shall provide employment for unemployed forest product workers. "Forest products industries" means industries within the standard industrial classification code numbers 8, 24, and 26. The program shall operate, on a pilot basis in two locations in Washington state, with preference given to distressed areas in the state.

(b) Eligibility for employment under the counter-cyclical employment program shall occur only upon exhaustion of unemployment insurance benefits received upon termination of employment in the Washington forest products industry and eligibility shall be limited to only those persons who are either currently unemployed, employed part time, or whose employment in the Washington forest products industry was terminated within the previous year. No one shall be employed by the program for longer than six months in a two-year period, except as to administrative and supervisory employees.

(c) The program shall begin after completion of two consecutive quarters of below-average employment in forest products industries in Washington state and shall cease sixty days after the completion of two consecutive quarters of above-average timber products employment in Washington state. If, on the effective date of this act, forest products employment in the state has been below average for two consecutive quarters, the program shall begin immediately. In order to determine average forest products employment, the department shall calculate the trend of forest products employment in Washington state by the number of forest products employees, as reported by the department, during the fifteen years prior to the date the calculation is made. "Average forest products employment" means the level of employment indicated by this trend line.

(d) Employment under the counter-cyclical employment program shall consist of activities which enhance the value of state, county, and local government lands and waters and associated improvements, with priority given to enhancing state lands and waters. Eligible activities shall include, but are not limited to, thinning, slash removal, reforestation, fire suppression, trail maintenance, maintenance of recreational facilities, dike repair, tourist facilities, stream enhancement, water quality enhancement, irrigation repair, and the building of shellfish beds.

(e) Employees under the counter-cyclical employment program, except administrative employees, shall not be considered state employees for the purposes of existing provisions of law with respect to hours of work, sick leave and civil service. Employees under the program shall receive the same medical and dental benefits and holiday and vacation benefits as state employees. Compensation for employees under the counter-cyclical employment program shall be at least eight dollars per hour of employment, except as to administrative and supervisory personnel. Employment under the program shall not result in the displacement or partial displacement, such as reduction of hours of nonovertime work, wages, or other employment benefits, of currently employed workers, including but not limited to state civil service employees, or of currently or normally contracted services. The services of counter-cyclical employment members are exempt from unemployment compensation coverage under RCW 50.44.040 and the members shall be so advised by the department.

(f) The department shall administer the program in consultation with the state natural resource agencies. The employment security department may enter into contracts and agreements with state agencies and private and public individuals and organizations to carry out the program.

((~~(5)~~)) (7) $120,000 of the administrative contingency fund‑-federal appropriation is provided solely for a reemployment bonus demonstration project, contingent on the availability of federal or private funding of no less than $500,000. The employment security department shall evaluate the effectiveness of the reemployment bonus in returning unemployed workers to employment and report to the commerce and labor committees of the senate and house of representatives by January 15, 1989. If federal or private moneys do not become available before June 30, 1988, the amount provided in this subsection shall lapse.

(8) $670,000 of the administrative contingency fund‑-federal appropriation is provided solely for transfer through interagency agreement as follows:

(a) $300,000 to the department of trade and economic development for the establishment of a business and job retention program. No more than $75,000 of the amount provided in this subsection (a) may be used for administrative costs including staff to carry out the responsibilities under this subsection (a). The director of the department of trade and economic development shall appoint six people to an advisory committee by July 1, 1988, including equal representation from business and labor, and may also appoint up to four additional nonvoting members from other interested parties. No more than $5,000 of the amount provided in this subsection (a) may be used for the advisory committee. The department of trade and economic development shall select, with the approval of the advisory committee, local organizations to undertake local business and job retention activities, including: The identification of local firms at risk of closure, mass layoff, or relocation out-of-state through the administration of local business surveys or other appropriate methods; initial assessments of firms or workforces; and the coordination and provision of technical and training assistance to businesses, unions, employee groups, and workforces. A minimum of $170,000 of the amount provided in this subsection (a) shall be used for contracts to local development organizations for local business and job retention activities. The department of trade and economic development shall: (i) Provide training programs for local organizations that receive contracts for local business and job retention activities and for other interested parties such as local government, unions, and community-based economic development organizations, including training in the use of local business surveys and other methods of identifying and assessing firms at risk of shutdown, mass layoff, or relocation out of state; (ii) develop model local business surveys to gather information about business needs, expansion plans, relocation decisions, training needs, potential layoffs, financing needs, and other appropriate information; and (iii) develop and administer grants, in consultation with the advisory committee, to study the feasibility of various options for continuing or renewing the operation of industrial facilities that are threatened with closure or have closed, making funds available to local governments, local associate development organizations, unions, or local nonprofit community organizations. The department of trade and economic development may require that money be matched at least dollar-for-dollar with nonstate money. No more than $25,000 of the amount provided in this subsection (a) may be made available for any one study or any one business facility. No more than $50,000 of the amount provided in this subsection (a) may be used for the feasibility grants. The department of trade and economic development shall draw upon its existing resources and existing data from other sources to do nonduplicative analyses of trends in the state's industries and workforces. The director of the department of trade and economic development shall publish an annual report in conjunction with the annual state economic report prepared by the employment security department.

(b) $110,000 to the department of trade and economic development for the establishment of a Washington marketplace program. The department of trade and economic development shall contract with and provide technical assistance to local nonprofit organizations in two economically distressed areas of the state, as defined in RCW 82.60.020(3), to contact local businesses to identify goods and services currently purchased out of state and determine which of these goods and services could be purchased on competitive terms within the state, inform local businesses about local market opportunities, and undertake other activities necessary to implement the Washington marketplace program at the local level. A maximum of $30,000 of the amount provided in this subsection (b) may be used for contracts with no more than two nonprofit organizations in nondistressed areas of the state that are currently operating local marketplace programs to provide technical assistance for local marketplace programs in distressed areas.

(c) $60,000 to the department of trade and economic development to implement Engrossed Second Substitute Senate Bill No. 6220. If the bill is not enacted by June 30, 1988, the amount provided in this subsection (c) shall lapse.

(d) $200,000 to the department of trade and economic development for contracts with the Washington research foundation for hiring licensing and university liaison staff and for patents and other licensing-related expenses. Any contract with the Washington research foundation shall include, but is not limited to, the following conditions:

(i) Washington research foundation activities shall increase the transfer to Washington businesses of new technologies developed by state university researchers.

(ii) At least fifty percent of licenses issued through the Washington research foundation shall go to firms with headquarters in Washington state.

(iii) Washington research foundation activities shall be coordinated with the business assistance and financing services provided by the departments of community development and trade and economic development.

(iv) The Washington research foundation shall make a report to the legislature by December 31, 1988. This report shall include, but is not limited to, the following information: The number of licenses issued during the preceding year, the number of licenses issued during the preceding year to firms with headquarters in Washington state, nonconfidential information on the financial outcome of technologies in which the foundation has invested, and the financial status of the foundation.

(e) None of the moneys provided in this subsection (8) may be used for administrative expenses of the employment security department.

(9) $500,000 of the administrative contingency fund‑-federal appropriation is provided solely for the purpose of addressing state impacts due to the federal immigration reform act. The funds shall be expended to carry out employee work eligibility certification, agricultural worker recruitment, supply and demand projects, and overall agricultural labor market analysis.

(10) $2,080,000 of the federal interest payment fund appropriation may be expended by the department only if the governor authorizes the expenditure in order to avoid or mitigate across-the-board allotment reductions under RCW 43.88.110. If the governor authorizes the expenditure, $2,080,000 of the general fund‑-state appropriation shall lapse. The amount expended by the department from the federal interest payment fund appropriation shall not exceed the amount lapsed from the general fund‑-state appropriation. Any moneys from the federal interest payment fund appropriation remaining unexpended on June 30, 1989, shall be deposited in the unemployment insurance trust fund.

(11) $40,000 of the administrative contingency fund‑-federal appropriation is provided solely to contract with the Washington institute for public policy for a study to investigate the impact of the state's reliance on the defense industry and to investigate methods to promote greater economic diversification of the state's economy. The study shall focus primarily on identifying companies and workers at risk from defense cutbacks over the next five years; reviewing existing state and federal programs available to provide reemployment and retraining assistance to affected workers; identifying potential government and private sector contracts and clients that could help firms diversify; and examining alternative production technologies and occupations that could easily be converted from defense use such as light rail mass transit, alternative energy, low-cost housing, and new product development. The department shall cooperate and provide whatever assistance is needed in the completion of the study. The institute shall submit a final report to the legislature no later than January 1, 1989. The institute shall contract with Washington State University for the study.

Sec. 221. Section 229, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE SENTENCING GUIDELINES COMMISSION

General Fund Appropriation................................................................................................................ $

((~~525,000~~))

513,000

Sec. 222. Section 230, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE WASHINGTON BASIC HEALTH PLAN

General Fund Appropriation................................................................................................................ $

((~~19,109,000~~))

14,609,000

The appropriation in this section is subject to the following conditions and limitations: The appropriation is provided solely to develop and operate the basic health plan under Engrossed Second Substitute House Bill No. 477. If the bill is not enacted by June 30, 1987, this appropriation shall lapse.

(End of part)

PART III

NATURAL RESOURCES

Sec. 301. Section 301, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE STATE ENERGY OFFICE

General Fund Appropriation‑-State..................................................................................................... $	1,874,000
General Fund Appropriation‑-Federal................................................................................................ $	16,528,000
General Fund Appropriation‑-Private/Local...................................................................................... $	20,000
Geothermal Account Appropriation‑-Federal..................................................................................... $	45,000
Building Code Council Account Appropriation.................................................................................. $	((~~632,000~~))

682,000

Total Appropriation............................................................................... $

((~~19,099,000~~))

19,149,000

The appropriations in this section are subject to the following conditions and limitations: $40,000 of the general fund‑-state appropriation is provided solely to contract with the institute for public policy at The Evergreen State College to complete a comprehensive state hydropower study. The study shall: (1) Be developed in consultation with other state agencies (2) be completed by December 1, 1987, and (3) result in recommendations for a state hydropower plan for the balanced protection and development of the state's waterways.

Sec. 302. Section 302, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE COLUMBIA RIVER GORGE COMMISSION

General Fund Appropriation‑-State..................................................................................................... $

((~~463,000~~))

509,000

General Fund Appropriation‑-Private/Local...................................................................................... $	468,000
Total Appropriation............................................................................... $	((~~931,000~~))

977,000

Sec. 303. Section 303, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

General Fund Appropriation‑-State..................................................................................................... $

((~~51,666,000~~))

51,886,000

General Fund Appropriation‑-Federal................................................................................................ $

((~~59,846,000~~))

40,846,000

General Fund Appropriation‑-Private/Local...................................................................................... $	398,000
Hazardous Waste Control and Elimination Account Appropriation.............................................. $	2,616,000
Flood Control Account Appropriation................................................................................................. $	3,999,000
Wood Stove Public Education Account Appropriation..................................................................... $	366,000
Special Grass Seed Burning Research Account Appropriation........................................................ $	40,000
State Toxics Control Account............................................................................................................... $	620,000
Reclamation Revolving Account Appropriation................................................................................ $	836,000
Emergency Water Project Revolving Account Appropriation: Appropriated pursuant to chapter 1, Laws of 1977 ex. sess............................................................................................. $	((~~175,000~~))

907,000

Litter Control Account Appropriation................................................................................................ $

6,395,000

State and Local Improvements Revolving Account‑-Waste Disposal Facilities: Appropriated pursuant to chapter 127, Laws of 1972 ex. sess. (Referendum 26)...................... $

761,000

State and Local Improvements Revolving Account‑-Waste Disposal Facilities 1980: Appropriated pursuant to chapter 159, Laws of 1980 (Referendum 39)............. $

((~~2,095,000~~))

2,575,000

State and Local Improvements Revolving Account‑-Water Supply Facilities: Appropriated pursuant to chapter 234, Laws of 1979 ex. sess. (Referendum 38)...................... $

((~~1,071,000~~))

1,111,000

Stream Gaging Basic Data Fund Appropriation................................................................................ $	139,000
Tire Recycling Account Appropriation............................................................................................... $	548,000
Water Quality Account Appropriation................................................................................................ $	2,398,000
Workers and Community Right to Know Fund Appropriation....................................................... $	229,000
Total Appropriation............................................................................... $	((~~133,578,000~~))

116,670,000

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

(1) The department shall implement the Nisqually river task force recommendations. $150,000 of the general fund‑-state appropriation is provided solely for this purpose.

((~~(3)~~)) (2) $985,000 of the general fund‑-state appropriation is provided solely for allocation to local air pollution control authorities.

((~~(4)~~)) (3) The appropriation from the wood stove public education account is contingent upon the enactment of House Bill No. 16. If the bill is not enacted by June 30, 1987, this appropriation shall lapse.

((~~(5)~~)) (4) $9,250,000 of the general fund‑-state appropriation is provided solely to carry out the department's responsibilities contained in the Puget Sound water quality plan and perform corresponding state-wide water quality activities

((~~(6)~~)) (5) $715,000 of the general fund‑-state appropriation is provided for the purposes of solid waste management.

((~~(7)~~)) (6) $553,000 of the general fund‑-state appropriation is provided solely for implementing the timber, fish, and wildlife agreement. If Senate Bill No. 5845 is not enacted by June 30, 1987, the amount provided in this subsection shall lapse.

((~~(8) If House Bill No. 434 is enacted by June 30, 1987, the appropriation from the hazardous waste control and elimination account shall lapse.~~

~~(9)~~)) (7) $225,000 of the general fund‑-state appropriation and $50,000 of the hazardous waste control and elimination account appropriation are provided solely to: (a) Contract with the University of Washington college of ocean and fisheries sciences to develop a damage assessment methodology for determining damages as a result of oil spills, and (b) contract with the department of community development to design a model oil spill contingency plan.

((~~(10)~~)) (8) Within the general fund appropriation, the department shall prepare penalty regulations for waste disposal permit violations, including minimum penalties, based upon severity and frequency of violation.

((~~(11)~~)) (9) $302,000 of the general fund‑-state appropriation is provided solely for operating the Padilla Bay estuarine sanctuary interpretive center.

(((12) Within the general fund appropriation, the department shall phase out state hazardous waste remedial action sites currently in progress and meet emergency response actions. This subsection does not apply if House Bill No. 434 is enacted by June 30, 1987.

~~(13)~~)) (10) $288,000 of the general fund‑-state appropriation is provided solely to implement Senate Bill No. 5570. If the bill is not enacted by June 30, 1987, the amount provided in this subsection shall lapse.

(11) $392,000 of the emergency water project revolving account appropriation (emergency water supply) is provided solely for the purpose of planning and administering drought relief activities as required by Second Substitute Senate Bill No. 6513. If the bill is not enacted by June 30, 1988, the amount provided in this subsection shall lapse.

(12) $200,000 of the emergency water project revolving account appropriation (emergency water supply) is provided solely for staff support and contract services as required by Engrossed Second Substitute Senate Bill No. 6724. If the bill is not enacted by June 30, 1988, the amount provided in this subsection shall lapse.

(13) $140,000 of the emergency water project revolving account appropriation (emergency water supply) is provided solely for a comprehensive state water use efficiency study as required by Engrossed Substitute House Bill No. 1594. If the bill is not enacted by June 30, 1988, the amount provided in this subsection shall lapse.

(14) $20,000 of the general fund--state appropriation and $100,000 of the general fund--federal appropriation are provided solely for a grant to Pend Oreille county for the purpose of controlling milfoil in the Pend Oreille river. In addition to the funds provided in this subsection, the department shall provide up to $75,000 from other appropriate state fund sources. These amounts, when combined with local matching funds, shall equal a total project cost of at least $200,000.

(15) $200,000 of the general fund--state appropriation is provided solely for the completion of phase two of the site closure and perpetual care report required by RCW 43.200.190.

Sec. 304. Section 305, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE STATE PARKS AND RECREATION COMMISSION

General Fund Appropriation‑-State..................................................................................................... $

((~~35,258,000~~))

35,308,000

General Fund Appropriation‑-Federal................................................................................................ $	999,000
General Fund Appropriation‑-Private/Local...................................................................................... $	745,000
Trust Land Purchase Account Appropriation.................................................................................... $	8,784,000
Winter Recreation Parking Account Appropriation......................................................................... $	322,000
Snowmobile Account Appropriation................................................................................................... $	922,000
Public Safety and Education Account Appropriation....................................................................... $	10,000
ORV (Off-Road Vehicle) Appropriation............................................................................................. $	159,000
Motor Vehicle Fund Appropriation..................................................................................................... $	1,000,000
Total Appropriation............................................................................... $	((~~48,199,000~~))

48,249,000

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

(1) $416,000 of the general fund‑-state appropriation is provided solely for carrying out the Puget Sound water quality plan.

(2) $50,000 of the general fund‑-state appropriation is provided solely to improve and provide recreational access for Doug's Beach.

Sec. 305. Section 308, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE CONSERVATION COMMISSION

General Fund Appropriation................................................................................................................ $	602,000
Water Quality Account Appropriation................................................................................................ $	78,000
Total Appropriation............................................................................... $	680,000

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

(1) $182,000 is provided solely for carrying out the Puget Sound water quality plan.

(2) No more than eight percent of the water quality account moneys administered by the commission may be used by the commission for administration and program activities related to the grant and loan program.

Sec. 306. Section 310, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FISHERIES

General Fund Appropriation‑-State..................................................................................................... $

((~~47,465,000~~))

47,595,000

General Fund Appropriation‑-Federal................................................................................................ $	14,057,000
General Fund Appropriation‑-Private/Local...................................................................................... $	3,651,000
Aquatic Lands Enhancement Account Appropriation...................................................................... $	425,000
Total Appropriation............................................................................... $	((~~65,598,000~~))

65,728,000

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

(1) $106,000 of the general fund‑-state appropriation is provided solely for carrying out the Puget Sound water quality plan.

(2) ((~~$40,000 of the general fund‑-state appropriation is provided solely for the purposes of reintroducing an early coho salmon run to the Tilton river and Winston creek.~~

~~(3)~~)) $587,000 of the general fund‑-state appropriation is provided solely for implementing the timber, fish, and wildlife agreement. If Senate Bill No. 5845 is not enacted by June 30, 1987, the amount provided in this subsection shall lapse.

((~~(4)~~)) (3) $150,000 of the general fund‑-state appropriation is provided solely for shellfish enforcement on Hood Canal.

((~~(5)~~)) (4) $150,000 of the aquatic lands enhancement account appropriation is provided solely for the preparation of an ecological impact statement on the guidelines for the management of salmon net pens in Puget Sound.

((~~(6)~~)) (5) The department shall present to the natural resource committees of the senate and house of representatives no later than February 1988 a report on the department's watershed plan, with specific identification of the benefits associated with the Queets hatchery and other Indian tribal agreements.

((~~(7)~~)) (6) $194,000 of the general fund‑-state appropriation may be expended for additional feed for the Deschutes hatchery.

((~~(8)~~)) (7) $400,000 of the general fund‑-state appropriation is provided solely for the purpose of a comprehensive biological study conducted by the department in conjunction with the University of Washington and Grays Harbor community college to determine what is affecting the survival of salmon in the Grays Harbor area.

((~~(9)~~)) (8) $150,000 of the general fund‑-state appropriation is provided solely to maintain and operate the Toutle river fish collection facility.

(9) $45,000 of the general fund‑-state appropriation is provided solely for the operation of a twenty-four hour per day hotline for user groups or individuals to obtain up-to-date information on departmental rules and regulations. The department may charge fees to recover the cost of operation of the hotline.

(10) $125,000 of the general fund‑-state appropriation is provided solely for the purpose of developing a salmon and steelhead rehabilitation plan for the Stillaguamish river in cooperation with the Tulalip Indian tribe and the department of wildlife.

Sec. 307. Section 311, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ((~~GAME~~)) WILDLIFE

ORV (Off-Road Vehicle) Account Appropriation............................................................................. $

256,000

Aquatic Lands Enhancement Account Appropriation...................................................................... $

275,000

Public Safety and Education Account Appropriation....................................................................... $

((~~515,000~~))

533,000

((~~Game~~)) Wildlife Fund Appropriation‑-State.................................................................................. $

((~~36,821,000~~))

37,137,000

((~~Game~~)) Wildlife Fund Appropriation‑-Federal............................................................................. $	15,142,000
((~~Game~~)) Wildlife Fund Appropriation‑-Private/Local................................................................... $	1,856,000
((~~Game~~)) Wildlife Fund‑-Special Wildlife Account Appropriation............................................... $	423,000
Total Appropriation............................................................................... $	((~~55,288,000~~))

55,622,000

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

(1) The department shall, in carrying out its responsibilities under the timber, fish, and wildlife agreement, accomplish the following:

(a) Perform the necessary data collection, research, and monitoring programs which examine the differences, and make provisions for those differences, between eastern and western Washington; and

(b) Conduct a study on the department's cooperative road closure program and landowner education program in eastern Washington.

(2) Of the $8,000,000 general fund‑-state appropriation in chapter 508, Laws of 1987, $711,000 is provided solely for implementation of the timber, fish, and wildlife agreement and $59,000 is provided solely for carrying out the Puget Sound water quality plan.

(3) $36,000 of the public safety and education account appropriation is provided solely for transfer to the state wildlife conservation reward fund for the purpose of paying rewards. In making payments for rewards, the department shall make payments directly to the recipient.

Sec. 308. Section 312, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

General Fund Appropriation‑-State..................................................................................................... $

((~~36,170,000~~))

42,574,000

General Fund Appropriation‑-Federal................................................................................................ $	78,000
General Fund Appropriation‑-Private/Local...................................................................................... $	20,000
ORV (Off-Road Vehicle) Account Appropriation‑-Federal.............................................................. $	3,086,000
Geothermal Account Appropriation‑-Federal..................................................................................... $	16,000
Forest Development Account Appropriation...................................................................................... $	((~~21,136,000~~))

21,294,000

Survey and Maps Account Appropriation........................................................................................... $

((~~773,000~~))

838,000

Aquatic Land Dredged Material Disposal Site Account Appropriation.......................................... $

106,000

Landowner Contingency Forest Fire Suppression Account Appropriation.................................... $

1,636,000

Resource Management Cost Account Appropriation......................................................................... $

((~~52,495,000~~))

55,279,000

Total Appropriation............................................................................... $

((~~115,516,000~~))

124,927,000

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

(1) $((~~2,706,000~~)) 8,721,000 of the general fund‑-state appropriation is provided solely for the emergency fire suppression subprogram.

(2) $2,649,000 of the general fund‑-state appropriation is provided solely for implementing the provisions of the timber fish wildlife agreement. This amount is contingent on: (a) The department reorganizing existing staff in the forest practices subprogram so that the majority of the staff positions are dedicated to regulating forest practices and are not responsible for state land management; and (b) the enactment of Senate Bill No. 5845. If the bill is not enacted by June 30, 1987, this amount shall lapse.

(3) $270,000 of the general fund‑-state appropriation is provided solely for the department's responsibilities in implementing the recommendations contained in the Puget Sound water quality plan.

(4) From the resource management cost account and general fund‑-state appropriations in this section, the department shall create an additional one hundred full time equivalent jobs, providing employment opportunities for a total of 200 people, 50 each for a period not to exceed six months, under the provisions of the employment security department's counter-cyclical employment program in section 226 of this act. These jobs shall pay at least eight dollars per hour, excluding benefits. Work performed under this subsection must provide economic benefits to state trust lands.

(5) $193,000 of the general fund‑-state and the aquatic land dredged material disposal site account appropriations are provided solely for the purposes of Senate Bill No. 5501. If the bill is not enacted by June 30, 1987, this appropriation shall lapse.

(6) (($100,000 of the general fund‑-state appropriation is provided solely for interim relocation of all department staff presently located in the John A. Cherberg building. The department shall vacate the John A. Cherberg building no later than February 29, 1988.)) $439,000 of the general fund‑-state appropriation is provided solely for spraying to control spruce budworm infestations.

(7) $75,000 of the resource management cost account appropriation is provided solely for a feasibility study, under the guidance of the office of financial management and the department of information systems, directed at the development of a cost allocation system.

(8) Based on schedules submitted by the director of financial management, the state treasurer shall transfer from the general fund‑-state or such other funds as the state treasurer deems appropriate to the Clarke McNary fund such amounts as are necessary to meet unbudgeted forest fire fighting expenses. All amounts borrowed under the authority of this section shall be repaid to the appropriate fund, together with interest at a rate determined by the state treasurer to be equivalent to the return on investments of the state treasury during the period the amounts are borrowed.

Sec. 309. Section 313, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF AGRICULTURE

General Fund Appropriation‑-State..................................................................................................... $

((~~16,021,000~~))

16,073,000

General Fund Appropriation‑-Federal................................................................................................ $	601,000
Feed and Fertilizer Account Appropriation........................................................................................ $	22,000
Fertilizer, Agricultural, Mineral and Lime Fund Appropriation.................................................... $	455,000
Commercial Feed Fund Appropriation................................................................................................ $	409,000
Seed Fund Appropriation...................................................................................................................... $	979,000
Nursery Inspection Fund Appropriation............................................................................................. $	1,011,000
Livestock Security Interest Account Appropriation.......................................................................... $	34,000
Total Appropriation............................................................................... $	((~~19,532,000~~))

19,584,000

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

(1) $48,000 of the general fund‑-state appropriation is provided solely for carrying out the water quality plan.

(2) $53,000 of the general fund‑-state appropriation is provided solely for the control of starlings as a part of the predatory animal control program.

(3) $20,000 of the general fund‑-state appropriation is provided solely to purchase poultry disease diagnostic laboratory equipment through a cooperative agreement with Washington State University.

(4) $120,000 of the general fund‑-state appropriation is provided solely for the continuation of the brucellosis vaccination program.

(5) $200,000 of the general fund‑-state appropriation is provided solely for enhancement of the noxious weed control program.

((~~(7)~~)) (6) $200,000 of the general fund‑-state appropriation is provided solely to initiate a marketing program for Washington-bred horses.

((~~(8) $80,000~~)) (7) $120,000 of the general fund‑-state appropriation is provided solely for the aquaculture program.

(8) $12,000 of the general fund--state appropriation is provided solely for the implementation of Substitute Senate Bill No. 6240. If the bill is not enacted by June 30, 1988, the amount provided in this subsection shall lapse.

Sec. 310. Section 314, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT

General Fund Appropriation................................................................................................................ $	23,650,000
Motor Vehicle Fund Appropriation..................................................................................................... $	532,000
Total Appropriation............................................................................... $	24,182,000

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

(1) $600,000 of the general fund appropriation is provided solely for the business assistance center. The center, in concert with participating state agencies, shall develop a reporting system to document the work and results of state business assistance programs. The center shall forward annual reports to the ways and means committees of the house of representatives and senate, the trade and economic development committee of the house of representatives and the commerce and labor committee of the senate, including but not limited to jobs created, investment generated, and measures of technical assistance provided and other program activities.

(2) $195,000 of the general fund appropriation is provided solely for contracts with Washington State University small business development center programs. State funds for small business development center programs in Lewis county shall not be reduced from the level provided in the 1985-1987 biennium.

(3) $625,000 of the general fund appropriation is provided solely for contracts with the small business export finance assistance center of Washington. At least $100,000 of the amount provided in this subsection shall be used by the department and the small business export finance assistance center for the development of a coordinated outreach program for trade information services and export finance assistance. In developing this program, the department and the small business export finance assistance center shall work with the business assistance center, ports, and other users and suppliers of trade services.

(4) The department shall analyze market trends and investment opportunities in at least eight key sectors of the Washington economy. The department shall publish five-year projections of selected mature and growth industries with current or potentially large impacts on the state economy, including barriers to competitiveness, potential market niches, investment trends, and their relationship to state economic development efforts. The department shall work in concert with the Washington state economic development board, the department of community development, CENTRAFOR, IMPACT, the employment security department, and the private sector to develop these industry studies and to analyze strategies for the retention and development of high-wage jobs.

(5) The following amounts of the general fund appropriation are provided solely for matching funds to equal amounts of private-sector, federal, and in-kind contributions:

(a) Washington high technology center, $7,000,000; and

(b) Center for international trade in forest products, $297,000.

(6) $225,000 of the general fund appropriation is provided solely for preparation, if warranted, of a proposal to the federal department of energy that the proposed superconducting supercollider be located in Washington state.

(7) The director shall form an interagency task force charged with gathering information on entrepreneurial development, formulating interagency agreements to promote entrepreneurial activity, and designing programs and policy options. The task force shall be composed of representatives from the department of community development, the employment security department, the department of labor and industries, the department of social and health services, the state board for vocational education, the state board for community college education, the higher education coordinating board, and the superintendent of public instruction.

(8) The department shall establish the Washington investment opportunities office as a clearinghouse for entrepreneurs seeking capital and investments. The office shall keep a list of entrepreneurs in the state looking for capital resources, provide prospective investors with information about these entrepreneurs, and coordinate the delivery of assistance to entrepreneurs developing business plans.

Sec. 311. Section 318, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE WINTER RECREATION COMMISSION

General Fund Appropriation................................................................................................................ $

27,000

The appropriation in this section is subject to the following conditions and limitations: $5,000 of the appropriation is provided solely as partial funding of a study of the effect of the ski industry on the economy of the state.

Sec. 312. Section 12, chapter 8, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

$((~~9,320,000~~)) 11,956,000 or so much thereof as may be necessary, is appropriated from the state convention and trade center operations account to the state convention and trade center corporation, for the fiscal biennium ending June 30, 1989, for the purposes of operation and promotion of the center. The appropriation in this section is subject to the following conditions and limitations: $1,540,000 is provided solely for marketing the facilities and services of the convention center, for promoting the locale as a convention and visitor destination, and for related activities. Unless a bill increasing the special excise tax under RCW 67.40.090 to six percent in the city of Seattle and two and four-tenths percent in King county outside the city of Seattle is enacted by June 30, 1988, the amount provided in the previous sentence shall lapse.

Sec. 313. Section 316, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE WASHINGTON CENTENNIAL COMMISSION

General Fund Appropriation................................................................................................................ $

7,377,000

State Centennial Commission Account Appropriation...................................................................... $

2,540,000

Total Appropriation............................................................................... $

9,917,000

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

(1) State agencies, at the request of the centennial commission, may develop programs or activities related to the Washington state centennial. Agencies that develop programs or activities in conjunction with the centennial commission shall not charge the commission for overhead or administrative costs.

(2) The commission may contract with Pacific Celebration '89 for promotion of Washington state's future trade and economic ties with nations in the Pacific rim. Any contract with Pacific Celebration '89 shall include, but is not limited to, the following conditions:

(a) Pacific Celebration '89 activities shall create increased opportunities for marketing Washington state products and services, include a series of leadership conferences on emerging issues of the Pacific economy, promote Washington state as the focus of trade activity within the Pacific basin, recognize the contributions to the development of Washington state by people of Pacific heritage, and increase knowledge and understanding of Pacific cultures by Washington citizens. Activities shall be staged in communities throughout the state during the centennial year.

(b) Each $1.00 in state funds provided to Pacific Celebration shall be matched over the course of the biennium by at least $1.60 in private contributions and event sponsorships. If, at any point during the biennium, the centennial commission determines that private contributions and event sponsorships will, by the end of the biennium, amount to less than $1.60 for each $1.00 of state money provided, it shall reduce disbursements proportionally.

(c) Any state money used for contracts with Pacific Celebration shall be repaid, to the greatest extent possible, from net revenue of Pacific Celebration activities. Net revenues from these activities shall be maximized and returned to the general fund according to a financial plan approved by the commission.

(3) The general fund appropriation is intended to be the final state contribution to the funding of centennial commission projects.

(4) If the commission terminates the contracts authorized under subsection (2) of this section prior to the effective date of this 1988 section, the commission shall use all money that had been committed to but will not be expended for these contracts on the following activities: (a) Efforts to increase opportunities for marketing Washington state products and services; (b) a series of leadership conferences on emerging issues of the Pacific economy; (c) promotion of Washington state as the focus of trade activity within the Pacific basin; (d) recognition of the contributions to the development of Washington state by people of Pacific heritage; and (e) efforts to increase knowledge and understanding of Pacific cultures by Washington citizens.

(5) $50,000 of the general fund appropriation is provided solely for staff and administrative services by the department of community development for a 20:20 commission. The 20:20 commission shall develop a plan to prepare the state to respond positively to the economic, social, and environmental changes which will face its citizens as they enter the next century.

(End of Part)

PART IV

TRANSPORTATION

Sec. 401. Section 401, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE STATE PATROL

Death Investigations Account Appropriation..................................................................................... $	24,000
General Fund Appropriation‑-State..................................................................................................... $	((~~16,938,000~~))

19,306,000

General Fund Appropriation‑-Federal................................................................................................ $	2,974,000
General Fund Appropriation‑-Private/Local...................................................................................... $	((~~1,769,000~~))

146,000

Total Appropriation............................................................................... $

((~~21,705,000~~))

22,450,000

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

(1) ((At least $471,000 of the general fund‑-state appropriation shall be spent on crime labs. $1,424,000 of the general fund‑-federal appropriation is provided solely for crime labs if federal narcotics enforcement moneys are granted to the state. If these moneys are not granted to the state, an additional $471,000 of the general fund‑-state appropriation shall be spent on crime labs. If the additional $471,000 is spent on crime labs, the expenditure for the narcotics section shall not exceed the expenditures for that purpose during the 1985-1987 biennium.)) $721,000 of the general fund‑-state appropriation shall be spent on crime labs. $1,000,000 of the general fund‑-federal appropriation is provided solely for crime labs to the extent federal narcotics moneys are provided to the state.

(2) $431,000 of the general fund‑-state appropriation is provided solely to implement Second Substitute Senate Bill No. 5063. If the bill is not enacted by June 30, 1987, the amount provided in this subsection shall lapse. Fees resulting from implementation of the bill shall be placed in the state general fund.

(3) Notwithstanding subsection (1) of this section, an additional $500,000 of the general fund‑-state appropriation shall be spent on crime labs. $275,000 of this amount shall be used for additional personnel and related costs. The remainder shall be used for salary adjustments as approved by the department of personnel.

(4) $300,000 of the general fund‑-state appropriation is provided solely to support existing narcotics task forces state-wide that are experiencing decreasing federal revenues.

(5) $300,000 of the general fund‑-state appropriation is provided solely to establish a separate unit to provide expertise in the investigation of major crimes and to provide assistance to law enforcement entities throughout the state at their request. The state patrol shall develop a computer database and record system to store crime scene information to assist in major crimes investigations and to make such data readily available to all law enforcement agencies.

Sec. 402. Section 402, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING

General Fund Appropriation................................................................................................................ $

((~~15,508,000~~))

15,704,000

Architects' License Account Appropriation........................................................................................ $	765,000
Health Professions Account Appropriation....................................................................................... $	((~~9,601,000~~))

9,709,000

Medical Disciplinary Account Appropriation.................................................................................... $	1,195,000
Professional Engineers' Account Appropriation............................................................................... $	1,207,000
Real Estate Commission Account Appropriation.............................................................................. $	4,936,000
Total Appropriation............................................................................... $	((~~33,212,000~~))

33,516,000

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

(1) A maximum of $426,000 from the health professions account appropriation may be used to contract with the board of pharmacy for drug-related investigations regarding licensed health care professionals.

(2) $750,000 of the general fund appropriation is provided solely for expansion of the master license system. ((This funding is contingent on interagency transfers totaling $548,000 in value. The office of financial management shall determine: (a) Which agencies shall make transfers to the department of licensing; (b) how much each agency shall transfer; and (c) whether the transfers shall be money or in-kind.

~~(4)~~)) (3) $42,000 of the general fund appropriation is provided solely for implementation of Engrossed House Bill No. 713. If the bill is not enacted by June 30, 1987, the amount provided in this subsection shall lapse.

(4) $64,000 of the general fund appropriation is provided solely for enhanced regulation and scrutiny of debenture companies under the provisions of Substitute House Bill No. 1525. If the bill is not enacted by June 30, 1988, the amount provided in this subsection shall lapse.

(5) $28,000 of the general fund appropriation is provided solely for recording federal liens under Engrossed Senate Bill No. 6563. If the bill is not enacted by June 30, 1988, the amount provided in this subsection shall lapse. The amount spent under this subsection shall not exceed the amount of additional fee revenue generated under the bill.

(6) $83,000 of the health professions account appropriation is provided solely for certifying and registering nursing assistants under Engrossed Substitute House Bill No. 1530. If the bill is not enacted by June 30, 1988, the amount provided in this subsection shall lapse.

(7) $25,000 of the health professions account appropriation is provided solely for adopting rules governing the use of sedation and anesthesia for dental practice under Engrossed House Bill No. 668. If the bill is not enacted by June 30, 1988, the amount provided in this subsection shall lapse.

(8) $104,000 of the general fund appropriation is provided solely for regulation of camping clubs under Substitute House Bill No. 791. If the bill is not enacted by June 30, 1988, the amount provided in this subsection shall lapse.

(End of part)

PART V

EDUCATION

Sec. 501. Section 501, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR STATE ADMINISTRATION

General Fund Appropriation‑-State..................................................................................................... $

((~~17,701,000~~))

17,601,000

General Fund Appropriation‑-Federal................................................................................................ $

10,683,000

Public Safety and Education Account Appropriation....................................................................... $

456,000

Total Appropriation............................................................................... $

((~~28,840,000~~))

28,740,000

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

(1) The public safety and education account appropriation is provided solely for administration of the traffic safety education program, including in-service training related to instruction in the risks of driving while under the influence of alcohol and other drugs.

(2) $364,000 of the general fund‑-state appropriation is provided solely for the continuation of the international education and teacher exchange programs. $50,000 of this amount shall be used to contract for services to expand the program to include Latin America.

(3) $18,000 of the general fund‑-state appropriation is provided solely for the continuation of the environmental education program.

(4) $50,000 of the general fund‑-state appropriation is provided solely for pilot programs for Hispanic dropout prevention and retrieval.

(5) $43,000 of the general fund‑-state appropriation is provided solely for the purchase of multi-cultural/multi-ethnic instructional materials to be distributed to all elementary and secondary school buildings in the state.

(6) The superintendent of public instruction shall, jointly with the state board for community college education, develop an integrated state plan for all state and federally funded vocational education services. The superintendent of public instruction and the state board for community college education shall also jointly develop a consistent and reliable data base on public vocational education, including enrollments, costs, program activities, and job placement. Such data shall be made available to the office of the governor and the legislature.

(7) $35,000 of the general fund‑-state appropriation is provided solely for the development of a horticulture greenhouse project within the Sequim school district.

Sec. 502. Section 503, chapter 7, Laws of 1987 1st ex. sess. as amended by section 1, chapter 1, Laws of 1987 3rd ex. sess. (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR GENERAL APPORTIONMENT (BASIC EDUCATION)

General Fund Appropriation................................................................................................................ $

((~~3,814,863,000~~))

3,834,946,000

Revenue Accrual Account Appropriation........................................................................................... $	55,100,000
Total Appropriation............................................................................... $	((~~3,869,963,000~~))

3,890,046,000

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

(1) $((~~367,786,000~~)) 367,323,000 is provided solely for the remaining months of the 1986-87 school year.

(2) Allocations for certificated staff salaries for the 1987-88 and 1988-89 school years shall be determined by multiplying each district's average basic education certificated instructional and administrative salaries as determined under section 504, chapter 7, Laws of 1987 1st ex. sess., as amended, by the districts' formula-generated staff units as follows:

(a) On the basis of average annual full time equivalent enrollments, excluding handicapped full time equivalent enrollment as recognized for funding purposes under section 507, chapter 7, Laws of 1987 1st ex. sess., and excluding full time equivalent enrollment otherwise recognized for certificated staff unit allocations under (d) through (i) of this subsection:

(i) Forty-six certificated instructional staff units for each one thousand full time equivalent kindergarten through twelfth grade students.

(ii) Four certificated administrative staff units for each one thousand full time equivalent kindergarten through twelfth grade students.

(b)(i) For the 1987-88 school year, an additional two certificated instructional staff units for each one thousand average annual full time equivalent students in kindergarten through third grade.

(ii) For the 1988-89 school year, an additional three certificated instructional staff units for each one thousand average annual full time equivalent students in kindergarten through third grade.

(c)(i) For school districts with a minimum enrollment of 250 full time equivalent students, whose full time equivalent student enrollment count in a given month exceeds the first of the month full time equivalent enrollment count by 5 percent, an additional state allocation of 110 percent of the share that such increased enrollment would have generated had such additional full time equivalent students been included in the normal enrollment count for that particular month.

(ii) For school districts that are located in a special economic distress impact area as defined in this subsection, and that experienced a decline in average annual full time equivalent enrollment between the 1987-88 and 1988-89 school years of at least two hundred full time equivalent students or four percent, whichever is less, additional staff unit allocations for the 1988-89 school year equivalent to the number of staff units generated under (a) of this subsection by half of the enrollment difference between the two school years. "Special economic distress impact area" shall mean a county that had an average unemployment rate for fiscal year 1988 which exceeded the average state unemployment rate for the same period by fifteen percent, and which is located in whole or in part within a fifty mile radius of a nuclear reactor scheduled to be placed in inoperative standby status.

(d) 0.92 certificated instructional staff units and 0.08 certificated administrative staff units for each seventeen and one-half full time equivalent students enrolled in a vocational education program approved by the superintendent of public instruction. However, for skill center programs, the ratio shall be 0.92 certificated instructional staff units and 0.08 certificated administrative staff units for each annual average 16.67 full time equivalent students enrolled in an approved vocational education program.

(e) For districts enrolling not more than twenty-five average annual full time equivalent students in kindergarten through grade eight, and for small school plants within any school district which enroll not more than twenty-five average annual full time equivalent kindergarten through eighth grade students and have been judged to be remote and necessary by the state board of education:

(i) For those enrolling no students in grades seven or eight, 1.76 certificated instructional staff units and 0.24 certificated administrative staff units for enrollment of not more than five students, plus one-twentieth of a certificated instructional staff unit for each additional student enrolled; and

(ii) For those enrolling students in either grades seven or eight, 1.68 certificated instructional staff units and 0.32 certificated administrative staff units for enrollment of not more than five students, plus one-tenth of a certificated instructional staff unit for each additional student enrolled.

(f) For districts enrolling more than twenty-five but not more than one hundred average annual full time equivalent students in kindergarten through grade eight, and for small school plants within any school district which enroll more than twenty-five average annual full time equivalent kindergarten through eighth grade students and have been judged to be remote and necessary by the state board of education, in the following cases:

(i) For districts and small school plants with enrollments of up to sixty annual average full time equivalent students in kindergarten through grade six, 2.76 certificated instructional staff units and 0.24 certificated administrative staff units;

(ii) For districts and small school plants with enrollments of up to twenty annual average full time equivalent students in grades seven and eight, 0.92 certificated instructional staff units and 0.08 certificated administrative staff units.

(g) For each nonhigh school district having an enrollment of more than seventy annual average full time equivalent students and less than one hundred eighty students, operating a grades K-8 program or a grades 1-8 program, an additional one-half of a certificated instructional staff unit.

(h) For each nonhigh school district having an enrollment of more than fifty annual average full time equivalent students and less than one hundred eighty students, operating a grades K-6 program or a grades 1-6 program, an additional one-half of a certificated instructional staff unit.

(i) For districts that operate no more than two high schools with enrollments of not more than three hundred average annual full time equivalent students, for enrollments in each such high school, excluding handicapped and vocational full time equivalent enrollments for the 1987-88 school year only:

(i) Nine certificated instructional staff units and one-half of a certificated administrative staff unit for the first sixty annual average full time equivalent students; ((~~and~~))

(ii) Additional certificated staff units based upon a ratio of 0.8732 certificated instructional staff units and 0.1268 certificated administrative staff units per forty-three and one-half average annual full time equivalent students; and

(iii) For the 1988-89 school year, excluding certificated staff units at the rate of 46 certificated instructional staff units and 4 certificated administrative staff units per 1,000 vocational and handicapped full time equivalent students.

(3) Allocations for classified salaries for the 1987-88 and 1988-89 school years shall be calculated by multiplying each district's average basic education classified salary allocation as determined under section 504(2), chapter 7, Laws of 1987 1st ex. sess., as amended, by the district's formula-generated classified staff units determined as follows:

(a) For enrollments generating certificated staff unit allocations under subsections (2) (e) through (i) of this section, one classified staff unit per each three certificated staff units allocated under such subsections.

(b) For all other enrollment in grades kindergarten through twelve, including vocational but excluding handicapped full time equivalent enrollments, one classified staff unit for each sixty average annual full time equivalent students.

(c) For each nonhigh school district with an enrollment of more than fifty annual average full time equivalent students and less than one hundred eighty students, an additional one-half of a classified staff unit.

(4) Fringe benefit allocations shall be calculated at a rate of 19.41 percent in the 1987-88 school year and 19.53 percent in the ((~~1987-88~~)) 1988-89 school year of certificated salary allocations provided under subsection (2) of this section, and a rate of 17.00 percent in the 1987-88 school year and 17.12 percent in the 1988-89 school year of classified salary allocations provided under subsection (3) of this section.

(5) Insurance benefit allocations for the 1987-88 and 1988-89 school years shall be calculated at a rate of $167 per month for the number of certificated staff units determined in subsection (2) of this section and for the number of classified staff units determined in subsection (3) of this section multiplied by 1.152.

(6)(a) For nonemployee related costs with each certificated staff unit allocated under subsections (2) (a), (b), (c), and (e) through (i) of this section, there shall be provided a maximum of $5,973 per certificated staff unit in the 1987-88 school year and a maximum of $6,188 per certificated staff unit in the 1988-89 school year.

(b) For nonemployee related costs with each certificated staff unit allocated under subsection (2)(d) of this section, there shall be provided a maximum of $11,382 per certificated staff unit in the 1987-88 school year and a maximum of $11,792 per certificated staff unit in the 1988-89 school year.

(7) Allocations for costs of substitutes for classroom teachers shall be distributed at a maximum rate of $275 per full time equivalent basic education classroom teacher during the 1987-88 and 1988-89 school years.

(8) The superintendent may distribute a maximum of $3,209,000 outside the basic education formula during fiscal years 1988 and 1989 as follows:

(a) For fire protection for school districts located in a fire protection district as now or hereafter established pursuant to chapter 52.04 RCW, a maximum of $342,000 may be expended in fiscal year 1988 and a maximum of $342,000 in fiscal year 1989.

(b) For summer vocational programs at skills centers, a maximum of $1,099,000 may be expended in fiscal year 1988 and a maximum of $1,135,000 may be expended in fiscal year 1989.

(9) Formula enhancements are provided under this section which are not attributable to enrollment or workload changes, compensation increases, or inflationary adjustments. For the purposes of ((~~section 101, chapter 2, Laws of 1987 1st ex. sess.~~)) RCW 84.52.0531, the following allocations ((~~for the 1987-88 school year~~)) shall be recognized as levy reduction funds:

(a) For the 1987-88 school year, for certificated instructional staff units generated under subsection (2)(b)(i) of this section, all allocations for nonemployee-related costs and one-half of all allocations for certificated salaries and benefits.

(b) For the 1988-89 school year, for certificated instructional staff units generated under subsection (2)(b)(ii) of this section, one-third of all allocations including nonemployee-related costs and certificated staff salaries and benefits.

(10) For the purposes of section 101, chapter 2, Laws of 1987 1st ex. sess., the increase per full time equivalent student in the state basic education appropriation provided under this section and section 514 of this 1988 act is 2.75 percent between the 1986-87 and 1987-88 school years, and ((~~3.52~~)) 4.93 percent between the 1987-88 and 1988-89 school years.

(11) The revenue accrual account appropriation is provided solely for allocations for employer contributions to the teachers' retirement system included under subsection (4) of this section.

(12) A maximum of $372,000 may be distributed to enhance funding provided in subsections (1) through (8) of this section for remote and necessary school plants on islands without scheduled public transportation which are the sole school plants serving students in elementary grades on these islands. ((Any school district receiving an allocation under this subsection must certify that funding distributed for its remote and necessary school plants under this subsection and subsection (2)(e) of this section is used solely for programs for students enrolled in these school plants.)) To be eligible in any school year for an allocation under this subsection, a school district must demonstrate that, either on an aggregate or per pupil basis, the percentage growth from the prior year in the district's expenditures for programs for students enrolled in the remote school plant is not less than the percentage growth from the prior school year in the district's operating expenditures district-wide. The superintendent of public instruction shall ensure compliance with this subsection, including appropriate distribution of school district overhead costs. The superintendent shall study and, in a report submitted to the legislature prior to December 1, 1988, make recommendations on adequate but not excessive funding formulas for remote and necessary school plants serving less than twenty-five students.

(13) The appropriations in this section include $119,343,000 allocated for compensation increases for basic education staff, as provided pursuant to section 504, chapter 7, Laws of 1987 1st ex. sess., as amended.

Sec. 503. Section 504, chapter 7, Laws of 1987 1st ex. sess. as amended by section 2, chapter 1, Laws of 1987 3rd ex. sess. (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-BASIC EDUCATION EMPLOYEE COMPENSATION

For the purposes of section 503, chapter 7, Laws of 1987 1st ex. sess., as amended, and this section, the following conditions and limitations apply:

(1) (a) Districts shall certify to the superintendent of public instruction such information as may be necessary regarding the years of service and educational experience of basic education certificated instructional employees for the purposes of calculating certificated instructional staff salary allocations pursuant to this section. Any change in information previously certified, on the basis of additional years of experience or educational credits, shall be reported and certified to the superintendent of public instruction at the time such change takes place.

(b) For the purposes of ((~~subsection (2) of~~)) this section, "basic education certificated instructional staff" is defined as provided in ((~~section 203, chapter 2, Laws of 1987 1st ex. sess~~)) RCW 28A.41.110.

(c) "LEAP Document 1" means the computerized tabulation establishing staff mix factors for basic education certificated instructional staff according to education and years of experience, as developed by the legislative evaluation and accountability program committee on August 18, 1987, at 13:26 hours.

(d) "LEAP Document 10" means the computerized tabulation of 1986-87 average salary allocations for basic education certificated administrative staff and basic education classified staff, as developed by the legislative evaluation and accountability program committee on May 11, 1987, at 11:06 hours.

(e) "LEAP Document 11" means the computerized tabulation of 1986-87 derived base salaries for basic education certificated instructional staff, as developed by the legislative evaluation and accountability program committee on August 19, 1987, at 10:29 hours.

(f) "Derived base salary" means a school district's average salary for basic education certificated instructional staff, divided by the district's average staff mix factor for such staff computed using LEAP Document 1.

(2)(a)(i) For the 1987-88 school year, average salary allocations for basic education certificated administrative staff under section 503, chapter 7, Laws of 1987 1st ex. sess., as amended, shall be the district's 1986-87 certificated administrative average salary shown on LEAP Document 10, increased by 2.1 percent of the 1986-87 LEAP Document 10 state-wide average salary for certificated administrative staff.

(ii) For the 1988-89 school year, average salary allocations for basic education certificated administrative staff under section 503, chapter 7, Laws of 1987 1st ex. sess., as amended, shall be the district's certificated administrative average salary allocation for the 1987-88 school year provided under this section, further increased by 2.14 percent of the 1986-87 LEAP Document 10 state-wide average salary.

(b)(i) For the 1987-88 school year, average salary allocations for basic education classified staff under section 503, chapter 7, Laws of 1987 1st ex. sess., as amended, shall be the district's 1986-87 classified average salary shown on LEAP Document 10, increased by 2.7 percent of the 1986-87 LEAP Document 10 state-wide average salary for classified staff.

(ii) For the 1988-89 school year, average salary allocations for basic education classified staff under section 503, chapter 7, Laws of 1987 1st ex. sess., as amended, shall be the district's classified average salary allocation for the 1987-88 school year provided under this section, further increased by 2.77 percent of the 1986-87 LEAP Document 10 state-wide average classified salary.

(c) Allocations for certificated instructional salaries in the 1987-88 school year under section 503(2), chapter 7, Laws of 1987 1st ex. sess., as amended, shall be the greater of:

(i) The district's average salary as determined by placing the district's actual full time equivalent basic education certificated instructional staff for that school year on the 1987-88 state-wide salary allocation schedule established in subsection (3)(a) of this section; or

(ii) The district's actual average annual basic education certificated instructional staff salary for the 1986-87 school year, as reported to the superintendent of public instruction prior to June 1, 1987, improved by 2.1 percent; or

(iii) The district's 1986-87 derived base salary for basic education certificated instructional staff as shown on LEAP Document 11, multiplied by the district's average staff mix factor determined using LEAP Document 1 for 1987-88 basic education certificated instructional staff, and further increased by 2.1 percent.

(d) Allocations for certificated instructional salaries in the 1988-89 school year under section 503(2), chapter 7, Laws of 1987 1st ex. sess., as amended, shall be the greater of:

(i) The district's average salary as determined by placing the district's actual full time equivalent basic education certificated instructional staff for that school year on the 1988-89 state-wide salary allocation schedule established in subsection (3)(b) of this section; or

(ii) For districts which received salary allocations for the 1987-88 school year under subsection (2)(c)(ii) or (iii) of this section, the district's actual 1987-88 derived base salary for basic education certificated instructional staff computed by the superintendent of public instruction using LEAP Document 1, multiplied by the district's average staff mix factor determined using LEAP Document 1 for 1988-89 basic education certificated instructional staff, and further increased by 2.1 percent. In no case shall the actual 1987-88 derived base salary recognized in this subsection exceed the average salary used for state allocations in the 1987-88 school year for basic education certificated instructional staff under section 502 of this 1988 act, including the increases provided under this section and section 504(4) of this 1988 act, divided by the district's average staff mix factor for 1987-88 basic education certificated instructional staff.

(3) Pursuant to ((~~section 204, chapter 2, Laws of 1987 1st ex. sess.~~)) RCW 28A.41.112, the following state-wide salary allocation schedules for certificated instructional staff, for allocation purposes only, are established:

1987-88 STATE-WIDE SALARY ALLOCATION SCHEDULE FOR INSTRUCTIONAL STAFF

Years of Service	BA	BA+15	BA+30	BA+45
0	17,050	17,510	17,988	18,465
1	17,681	18,158	18,653	19,164
2	18,329	18,823	19,335	19,897
3	19,011	19,522	20,051	20,648
4	19,710	20,255	20,801	21,432
5	20,443	21,006	21,568	22,250
6	21,210	21,773	22,370	23,103
7	21,995	22,574	23,188	23,972
8	22,796	23,410	24,041	24,893
9		24,279	24,944	25,831
10			25,865	26,820
11				27,843
12
13
14 or more

STATE-WIDE SALARY ALLOCATION SCHEDULE FOR INSTRUCTIONAL STAFF

Years of Service	BA+90	BA+135	MA	MA+45	MA+90 or PHD
0	20,000	20,989	20,000	21,210	22,250
1	20,750	21,756	20,750	21,995	23,069
2	21,517	22,557	21,517	22,813	23,921
3	22,301	23,393	22,301	23,648	24,808
4	23,137	24,262	23,137	24,518	25,728
5	23,989	25,166	23,989	25,439	26,666
6	24,876	26,087	24,876	26,376	27,655
7	25,797	27,058	25,797	27,348	28,678
8	26,751	28,064	26,751	28,354	29,752
9	27,740	29,104	27,740	29,411	30,843
10	28,763	30,179	28,763	30,502	31,986
11	29,838	31,287	29,838	31,628	33,162
12	30,946	32,446	30,946	32,804	34,390
13	32,088	33,640	32,088	34,015	35,669
14 or more		34,884	33,265	35,276	36,981

1988-89 STATE-WIDE SALARY ALLOCATION SCHEDULE FOR INSTRUCTIONAL STAFF

Years of Service	BA	BA+15	BA+30	BA+45
0	17,600	18,075	18,568	19,061
1	18,251	18,744	19,254	19,782
2	18,920	19,430	19,958	20,539
3	19,624	20,152	20,698	21,314
4	20,346	20,909	21,472	22,123
5	21,102	21,683	22,264	22,968
6	21,894	22,475	23,091	23,848
7	22,704	23,302	23,936	24,746
8	23,531	24,165	24,816	25,696
9		25,062	25,749	26,664
10			26,699	27,685
11				28,741
12
13
14 or more

STATE-WIDE SALARY ALLOCATION SCHEDULE FOR INSTRUCTIONAL STAFF

Years of Service	BA+90	BA+135	MA	MA+45	MA+90 or PHD
0	20,645	21,666	20,645	21,894	22,968
1	21,419	22,458	21,419	22,704	23,813
2	22,211	23,285	22,211	23,549	24,693
3	23,021	24,147	23,021	24,411	25,608
4	23,883	25,045	23,883	25,309	26,558
5	24,763	25,978	24,763	26,259	27,526
6	25,678	26,928	25,678	27,227	28,547
7	26,629	27,931	26,629	28,230	29,603
8	27,614	28,970	27,614	29,269	30,712
9	28,635	30,043	28,635	30,360	31,838
10	29,691	31,152	29,691	31,486	33,018
11	30,800	32,296	30,800	32,648	34,232
12	31,944	33,493	31,944	33,862	35,499
13	33,123	34,725	33,123	35,112	36,819
14 or more		36,010	34,338	36,414	38,174

(i) "BA" means a baccalaureate degree;

(ii) "MA" means a masters degree;

(iii) "PHD" means a doctorate degree;

(iv) "+(N)" means the number of college quarter hour credits and inservice credits earned since the highest degree. Inservice hours shall be converted to equivalent college quarter hour credits in accordance with RCW 28A.71.110.

(4) (a) Prior to August 31st of each school year, each school district shall report to the superintendent of public instruction the following information for each certificated instructional employee employed by the district as of October 1st of that school year:

(i) The full time equivalency of the employee by duty code and program assignment;

(ii) The number of days in the employee's base contract;

(iii) The finalized salary amount provided for the employee's base contract;

(iv) The amount contributed by the school district for the employee's fringe benefits as defined in RCW 28A.58.0951(3)(b); and

(v) The finalized amount paid to the employee for any supplemental contracts under RCW 28A.58.0951(4).

Districts shall also confirm this data and submit any necessary revisions prior to December 1st of the subsequent school year.

(b) Prior to August 31st of each school year, each school district shall submit to the superintendent of public instruction copies of the district's finalized salary schedules used for compensation of certificated instructional employees.

(c) The superintendent of public instruction shall make available to school districts, the legislature, and the governor the information submitted by the school districts under this subsection (4), including calculation of average amounts provided by each school district for base salary contracts, supplemental contracts, and fringe benefits of basic education certificated instructional staff and of other certificated instructional staff.

Sec. 504. Section 505, chapter 7, Laws of 1987 1st ex. sess. as amended by section 3, chapter 1, Laws of 1987 3rd ex. sess. (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR MINIMUM SALARIES AND CATEGORICAL PROGRAM SALARY INCREASES

General Fund Appropriation................................................................................................................ $

((~~22,549,000~~))

23,264,000

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

(1) "Incremental fringe benefits" means 18.77 percent in the 1987-88 school year and 18.89 percent in the 1988-89 school year for certificated staff, and 13.47 percent in the 1987-88 school year and 13.59 percent in the 1988-89 school year for classified staff, which percentages shall be the fringe benefit rates applied to the respective salary adjustments provided in subsections (3) and (4) of this section.

(2) A maximum of $((~~8,431,000~~)) 8,185,000 is provided to implement salary increases for each school year for state-supported school employees in the following categorical programs: Transitional bilingual instruction, learning assistance, education of highly capable students, vocational technical institutes, and pupil transportation. Moneys provided by this subsection include costs of incremental fringe benefits and shall be distributed by increasing allocation rates for each school year by the amounts specified:

(a) Transitional bilingual instruction: The rates specified in section 509, chapter 7, Laws of 1987 1st ex. sess. shall be increased by $10.51 per pupil for the 1987-88 school year and by $((~~21.60~~)) 21.68 per pupil for the 1988-89 school year.

(b) Learning assistance: The rates specified in section 510, chapter 7, Laws of 1987 1st ex. sess. shall be increased by $9.15 per pupil for the 1987-88 school year and by $((~~18.60~~)) 16.72 per pupil for the 1988-89 school year.

(c) Education of highly capable students: The rates specified in section 511, chapter 7, Laws of 1987 1st ex. sess. shall be increased by $6.23 per pupil for the 1987-88 school year and by $12.84 per pupil for the 1988-89 school year.

(d) Vocational technical institutes: The rates for vocational programs specified in section 513, chapter 7, Laws of 1987 1st ex. sess. shall be increased by $57.15 per full time equivalent student for the 1987-88 school year, and by $((~~117.45~~)) 114.91 per full time equivalent student for the 1988-89 school year.

(e) Pupil transportation: The rates provided under section 516, chapter 7, Laws of 1987 1st ex. sess. shall be increased by $0.47 per weighted pupil-mile for the 1987-88 school year, and by $((~~0.95~~)) 0.86 per weighted pupil-mile for the 1988-89 school year.

(3) A maximum of $((~~13,118,000~~)) 14,979,000 is provided for salary increases and incremental fringe benefits for state-supported staff unit allocations in the handicapped program, section 507, and for state-supported staff in institutional education programs, section 508, and in educational service districts, section 502. The superintendent of public instruction shall distribute salary increases for these programs not to exceed the percentage salary increases provided for basic education staff under section 504, chapter 7, Laws of 1987 1st ex. sess.

(4) A maximum of $((~~1,000,000~~)) 100,000 is provided solely to implement minimum salaries, distributed as follows:

(a) For any certificated instructional employee in the 1987-88 school year, the superintendent of public instruction may allocate additional salary moneys equal to:

(i) The minimum salary required for the employee under RCW 28A.58.0951(2); minus

(ii) The salary that the school district would have paid to such an employee in the 1986-87 school year at the employee's 1987-88 level of experience and education, increased by the average percentage increase provided in the district's derived base salary for basic education certificated instructional staff under section 2 of this 1987 act between the 1986-87 and 1987-88 school years. For the purposes of this section, no salary which an employee would have been paid in the 1986-87 school year shall be considered to be less than $16,500 on a full time equivalent basis if the district had received funds under section 502(3)(f) of chapter 7, Laws of 1987, to establish a minimum certificated salary of $16,500.

(b) For any certificated instructional employee in the 1988-89 school year, the superintendent of public instruction may allocate additional salary moneys equal to:

(i) The minimum salary required for the employee under RCW 28A.58.0951(2); minus

(ii) The salary that the school district would have paid to such an employee during the 1987-88 school year at the employee's 1988-89 level of experience and education, increased by the average percentage increase provided in the district's derived base salary for basic education certificated instructional staff under section 2 of this 1987 act between the 1987-88 and 1988-89 school years.

(c) The superintendent of public instruction shall allocate incremental fringe benefits as defined in subsection (1) of this section for additional salary moneys allocated under (a) and (b) of this subsection.

Sec. 505. Section 506, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-LOCAL EDUCATION PROGRAM ENHANCEMENT FUNDS

General Fund Appropriation................................................................................................................ $

((~~49,500,000~~))

45,042,000

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

(1) The purpose of this section is to provide a grant, in addition to the district's basic education allocation, to each school district based on full time equivalent student enrollment to meet the educational needs of each district.

(2) School districts shall be eligible to receive a grant in addition to their basic education allocation. This additional grant shall be distributed to local school districts from the superintendent of public instruction on the basis of full time equivalent students. For districts enrolling not more than one hundred average annual full time equivalent students, except as otherwise specified, and for small school plants within any school district, which small plants have been judged to be remote and necessary by the state board of education, the grant shall be distributed as follows:

(a) For grades K-6, for districts enrolling not more than sixty average full time equivalent students, the grant shall be based on sixty full time equivalent students;

(b) For grades 7 and 8, for districts enrolling not more than twenty average full time equivalent students, the grant shall be based on twenty full time equivalent students; and

(c) For districts that have high schools with sixty or fewer full time equivalent students, the grant shall be based on sixty full time equivalent students.

(3) For each school year beginning in the 1987-89 biennium, each school district shall receive, in addition to the basic education allocation, a grant ((~~of no less than $67.50~~)) per full time equivalent student of a maximum of $33.75. Grants shall be distributed on a school year basis. A maximum of $((~~24,750,000~~)) 24,900,000 may be allocated for the 1987-88 school year.

(4) For the purposes of this section, each school board shall:

(a) Assess the needs of the schools within the district;

(b) Assign priority to addressing the identified needs; and

((~~(d)~~)) (c) Develop an evaluation methodology to assess specifically how the expenditure of the grants demonstrate a direct educational benefit to the pupils within the district.

(5) New or existing programs enhanced by the funds provided to districts by a grant under this chapter shall not become a part of the state's basic education obligation as set forth by the Constitution.

((~~(8)~~)) (6) Local district grants may be used to fund any or all of the following activities:

(a) Innovative programs to increase the adult-pupil ratio without increasing the number of certificated staff, including but not limited to:

(i) Providing stipends to competent retired teachers to return them to the classroom as "team teachers" or classroom assistants;

(ii) Providing stipends to teachers' aides;

(iii) Providing incentives to administrators who spend a portion of their work day in the classroom team teaching or providing classroom assistance;

(iv) Providing recognition to citizen volunteers who assist in the classroom;

(v) Providing training programs for classroom assistants, including volunteers; and

(vi) Purchasing equipment that directly relates to classroom instruction or assists the teacher in minimizing time away from teaching.

(b) Dropout prevention and retrieval programs, including, but not limited to:

(i) Curriculum development;

(ii) Public and private sector partnerships in expanding offerings in programs such as "Choices" and the "Registry" program;

(iii) Alternative learning program development;

(iv) Enhancement of vocational, career, college, and pupil advisory programs;

(v) Elementary school advisory programs;

(vi) Mentor pupil programs such as "Natural Helpers"; and

(vii) Curriculum materials and equipment purchases.

(i) In-service staff training programs for the identification of students at-risk; and

(ii) Community services networking to direct students who are substance abusers to appropriate treatment facilities.

(d) Early childhood programs, including but not limited to:

(i) A parents as first teachers program that provides for resource materials on home learning activities, private and group educational guidance, individual and group learning experiences for the parent and child, and other appropriate activities to enable parents to improve learning in the home, understand the relationship between developmental stages and behavior, and monitor their children's growth and development relating to understanding and use of language; perception through sight and hearing; motor development and hand-eye coordination; and health, physical development, and emotional, social, and mental development;

(ii) Nutritional programs;

(iii) Parental participation programs; and

(iv) Child day-care programs.

(e) In-service training programs for staff development including, but not limited to:

(i) Funding speakers or group leaders to deliver in-service training to staff;

(ii) Program materials and equipment;

(iii) Tuition, registration fees, and associated fees for attendance at seminars, workshops, or courses that directly relate to enhancing adult training for classroom duties; and

(iv) Travel reimbursement directly related to in-service training.

(f) Programs that develop and promote logical reasoning and improved analytical skills, including programs for highly capable students.

((~~(10)~~)) (7) Small or rural districts may enter into cooperative agreements to provide educational enhancements through the sharing of grant funds.

((~~(11)~~)) (8) The superintendent of public instruction shall make a comprehensive report to the legislature on the use of the local district grants and the educational benefits derived therefrom by January 31, 1989.

Sec. 506. Section 507, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR HANDICAPPED EDUCATION PROGRAMS

General Fund Appropriation‑-State..................................................................................................... $

((~~407,476,000~~))

423,035,000

General Fund Appropriation‑-Federal................................................................................................ $	45,318,000
Total Appropriation............................................................................... $	((~~452,794,000~~))

468,353,000

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

(1) $((~~41,565,000~~)) 41,570,000 of the general fund‑-state appropriation is provided solely for the remaining months of the 1986-87 school year.

(2) The superintendent of public instruction shall distribute state funds for the 1987-88 and 1988-89 school years in accordance with districts' actual handicapped enrollments and the allocation model established in LEAP Document 9 as developed by the legislative evaluation and accountability program committee on April 27, 1987, at 14:43 hours.

(3) A maximum of $411,000 may be expended from the general fund‑-state appropriation to fund 4.66 full time equivalent teachers and one aide at Children's Orthopedic Hospital and Medical Center. This amount is in lieu of money provided through the home and hospital allocation and the handicapped program.

(4) From state or federal funds appropriated under this section, the superintendent of public instruction shall allocate a total of $130,000 for the early childhood home instruction program for hearing impaired infants and their families.

Sec. 507. Section 508, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR INSTITUTIONAL EDUCATION PROGRAMS

General Fund Appropriation‑-State..................................................................................................... $

((~~20,121,000~~))

21,445,000

General Fund Appropriation‑-Federal.............................................................................................. $	7,034,000
Total Appropriation............................................................................... $	((~~27,155,000~~))

28,479,000

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

(1) $((~~3,577,000~~)) 3,462,000 of the general fund‑-state appropriation is provided solely for the remaining months of the 1986-87 school year.

(2) $((~~10,094,000~~)) 10,908,000 of the general fund‑-state appropriation is provided solely for the 1987-88 school year, distributed as follows:

(a) $4,128,000 is provided solely for programs in state institutions for the handicapped or emotionally disturbed. These moneys may be distributed for that school year at a maximum rate averaged over all of these programs of $10,294 per full time equivalent student.

(b) $((~~2,978,000~~)) 3,368,000 is provided solely for programs in state institutions for delinquent youth. These moneys may be distributed for that school year at a maximum rate averaged over all of these programs of $((~~5,405~~)) 6,112 per full time equivalent student.

(c) $((~~370,000~~)) 390,000 is provided solely for programs in state group homes for delinquent youth. These moneys may be distributed for that school year at a maximum rate averaged over all of these programs of $((~~3,492~~)) 3,678 per full time equivalent student.

(d) $((~~564,000~~)) 733,000 is provided solely for juvenile parole learning center programs. These moneys may be distributed for that school year at a maximum rate averaged over all of these programs of $((~~1,395~~)) 1,815 per full time equivalent student, and are in addition to moneys allocated for these students through the basic education formula established in section 503 of this act.

(e) $((~~2,054,000~~)) 2,289,000 is provided solely for programs in county detention centers. These moneys may be distributed for that school year at a maximum rate averaged over all of these programs of $((~~4,012~~)) 4,471 per full time equivalent student.

(3) Distribution of state funding for the 1988-89 school year shall be based upon the following overall limitations for that school year including expenditures anticipated for July and August of 1989:

(a) State funding for programs in state institutions for the handicapped or emotionally disturbed may be distributed at a maximum rate averaged over all of these programs of $10,296 per full time equivalent student and a total allocation of no more than $3,735,000 for that school year.

(b) State funding for programs in state institutions for delinquent youth may be distributed at a maximum rate averaged over all of these programs of $((~~5,410~~)) 6,116 per full time equivalent student and a total allocation of no more than $((~~2,894,000~~)) 3,272,000 for that school year.

(c) State funding for programs in state group homes for delinquent youth may be distributed in that school year at a maximum rate averaged over all of these programs of $((~~3,502~~)) 3,688 per full time equivalent student and a total allocation of no more than $((~~371,000~~)) 391,000 for that school year.

(d) State funding for juvenile parole learning center programs may be distributed at a maximum rate averaged over all of these programs of $((~~1,387~~)) 1,808 per full time equivalent student and a total allocation of no more than $((~~560,000~~)) 730,000 for that school year, excluding funds provided through the basic education formula established in section 503 of this act.

(e) State funding for programs in county detention centers may be distributed at a maximum rate averaged over all of these programs of $((~~4,022~~)) 4,482 per full time equivalent student and a total allocation of no more than $((~~2,059,000~~)) 2,295,000 for that school year.

(4) The superintendent of public instruction may distribute a maximum of $((~~153,000~~)) 33,000 from the general fund‑-state appropriation to supplement moneys provided under subsections (1) through (3) of this section, for the purpose of addressing enrollment variations or other program needs, including increases in summer school programs.

(5) $100,000 of the general fund‑-state appropriation is provided solely for grants for the establishment of job search skills, preemployment training, and job placement programs at state institutions for delinquent youth. Grants provided under this subsection shall not exceed twenty-five thousand dollars for any individual institution.

(6) $120,000 of the general fund‑-state appropriation is provided solely to increase the teacher/student ratio for programs at mentally ill offender units within the state institutions for delinquent youth.

(7) Notwithstanding any other provision of this section, the superintendent of public instruction may transfer funds between the categories of institutions identified in subsections (2) and (3) of this section, so long as the maximum expenditures per full time equivalent student for each category of institution are not thereby exceeded.

Sec. 508. Section 509, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR TRANSITIONAL BILINGUAL PROGRAMS

General Fund Appropriation................................................................................................................ $

((~~11,294,000~~))

12,175,000

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

(1) $((~~1,174,000~~)) 1,111,000 is provided solely for the remaining months of the 1986-87 school year.

(2) The superintendent shall distribute funds for the 1987-88 and 1988-89 school years at a rate for each year of $420 per eligible student.

Sec. 509. Section 510, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR THE LEARNING ASSISTANCE PROGRAM

General Fund Appropriation................................................................................................................ $

((~~48,011,000~~))

48,886,000

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

(1) $((~~3,982,000~~)) 3,929,000 is provided solely for the remaining months of the 1986-87 school year.

(2) Funding for school district learning assistance programs serving kindergarten through grade nine shall be distributed during the 1987-88 and 1988-89 school years at a maximum rate of $356 per unit as calculated pursuant to this subsection. The number of units for each school district in each school year shall be the sum of: (a) The number of full time equivalent students enrolled in kindergarten through grade six in the district multiplied by the percentage of the district's students taking the fourth grade basic skills test who scored in the lowest quartile as compared to national norms, and then reduced by the number of students ages eleven and below in the district who are identified as specific learning disabled and are served through programs established pursuant to chapter 28A.13 RCW; and (b) the number of full time equivalent students enrolled in grades seven through nine in the district multiplied by the percentage of the district's students taking the eighth grade basic skills test who scored in the lowest quartile as compared to national norms, and then reduced by the number of students ages twelve through fourteen in the district who are identified as specific learning disabled and are served through programs established pursuant to chapter 28A.13 RCW. For the purposes of allocating funds for the 1987-88 school year, the superintendent shall use the most recent prior five-year average scores on the fourth grade test and the most recent prior three-year average scores on the eighth grade test. For the purposes of allocating funds for the 1988-89 school year, the superintendent shall use the most recent prior five-year average scores on the fourth grade test and the most recent prior four-year average scores on the eighth grade test.

Sec. 510. Section 511, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR PROGRAMS FOR HIGHLY CAPABLE STUDENTS

General Fund Appropriation................................................................................................................ $

((~~5,272,000~~))

5,275,000

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

(1) $((~~482,000~~)) 458,000 is provided solely for distribution to school districts for the remaining months of the 1986-87 school year.

(2) $((~~2,483,000~~)) 2,458,000 is provided solely for allocations for school district programs for highly capable students during the 1987-88 school year, distributed at a maximum rate of $338 per student for up to one percent of each district's 1987-88 full time equivalent enrollment.

(3) Allocations for school district programs for highly capable students in the 1988-89 school year are to be calculated at a maximum rate for that school year of $341 per student for up to one percent of each district's 1988-89 full time equivalent enrollment.

(4) A maximum of $340,000 is provided to contract for gifted programs to be conducted at Fort Worden state park.

Sec. 511. Section 513, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR VOCATIONAL-TECHNICAL INSTITUTES AND ADULT EDUCATION AT VOCATIONAL-TECHNICAL INSTITUTES

General Fund Appropriation................................................................................................................ $

((~~75,138,000~~))

75,023,000

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

(1) Funding for vocational programs during the 1987-88 school year shall be distributed at a rate of $2,888 per student for a maximum of 12,050 full time equivalent students.

(2) Funding for vocational programs during the 1988-89 school year shall be distributed at a rate of $2,930 per student for a maximum of 12,050 full time equivalent students.

(3) Funding for adult basic education programs during the 1987-88 school year shall be distributed at a rate of $1.40 per hour of student service for a maximum of 288,690 hours.

(4) Funding for adult basic education programs during the 1988-89 school year shall be distributed at a rate of $1.41 per hour of student service for a maximum of 288,690 hours.

(5) $2,000,000 is provided solely for purchase and replacement of equipment to be used in vocational courses.

(6) $((~~3,000,000~~)) 2,700,000 is provided solely for the establishment and operation of the Washington institute of applied technology within the Seattle area. This program shall be administered under a cooperative agreement between the Seattle school district, Seattle community college district No. 6, and the Seattle private business community. If Engrossed Senate Bill No. 5996 is not enacted by June 30, 1987, the amount provided in this subsection shall lapse.

(7) $185,000 is provided solely to increase the funding rate for vocational programs, effective May 1, 1989, by $147 per full time equivalent student. The increase is provided to assist vocational-technical institutes in replacing out-of-date or worn-out equipment used for vocational training.

Sec. 512. Section 514, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR SPECIAL AND PILOT PROGRAMS

General Fund Appropriation‑-State..................................................................................................... $

((~~13,434,000~~))

13,808,000

General Fund Appropriation‑-Federal................................................................................................ $	4,000,000
Total Appropriation............................................................................... $	((~~17,434,000~~))

17,808,000

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

(1) $855,000 of the general fund‑-state appropriation is provided solely for a contract with the Pacific Science Center for travelling van programs and other educational services for public schools. The Pacific Science Center shall work towards an equitable distribution of program activities state-wide. The center shall also determine the extent to which the state-wide need for science enrichment for K-12 students and teachers is being met by the outreach programs partially funded by this appropriation. The Pacific Science Center shall examine the geographical and demographic distribution of the populations served by these activities and recommend methods for efficiently reaching underserved student and teacher populations. These findings and recommendations shall be reported to the legislature by July 1, 1988.

(2) $84,000 of the general fund‑-state appropriation is provided solely for a contract with the Cispus learning center for environmental education programs.

(3) $4,000,000 of the general fund‑-federal appropriation is provided solely for the implementation of the substance abuse prevention programs.

(4) $5,500,000 of the general fund‑-state appropriation is provided for solely for the implementation of the drop-out prevention and retrieval provisions of ((~~Engrossed Second Substitute House Bill No. 456. If the bill is not enacted by June 30, 1987, this amount shall lapse~~)) RCW 28A.120.060 through 28A.120.072.

(5) $2,020,000 of the general fund‑-state appropriation is provided solely for the implementation of the schools for the twenty-first century pilot programs established by ((~~Engrossed Substitute Senate Bill No. 5479. If the bill is not enacted by June 30, 1987, this amount shall lapse~~)) RCW 28A.100.030 through 28A.100.068.

(6) $2,900,000 of the general fund‑-state appropriation is provided solely for the beginning teachers assistance program established under ((~~Substitute Senate Bill No. 5622. If the bill is not enacted by June 30, 1987, this amount shall lapse~~)) RCW 28A.67.240. For fiscal year 1989, moneys shall be distributed under this subsection at a maximum rate of $1,700 per mentor/beginning teacher team.

(7) $225,000 of the general fund‑-state appropriation is provided solely for child abuse education provisions of ((~~Engrossed Substitute Senate Bill No. 5252. If the bill is not enacted by June 30, 1987, the amount provided in this subsection shall lapse~~)) RCW 28A.03.512 through 28A.03.514.

(8) $1,600,000 of the general fund‑-state appropriation is provided solely for grants to public or private nonprofit organizations for scholarships or support services, including but not limited to child care or transportation, for parents of children in headstart or early childhood education and assistance programs who are enrolled in adult literacy classes or tutoring programs under ((~~Engrossed Second Substitute House Bill No. 456. If the bill is not enacted by June 30, 1987, the amount provided in this subsection shall lapse~~)) RCW 28A.130.010 through 28A.130.020.

(9) $250,000 of the general fund‑-state appropriation is provided solely for the implementation of the student teaching pilot project established by ((~~Engrossed Substitute Senate Bill No. 5479. If the bill is not enacted by June 30, 1987, the amount provided in this subsection shall lapse~~)) RCW 28A.100.030 through 28A.100.068.

(10) $314,000 of the general fund‑-state appropriation is provided solely for in-service training and other costs associated with the development of a comprehensive K-12 health education curriculum, including an integral component relating to acquired immunodeficiency syndrome.

(11) $60,000 of the general fund‑-state appropriation is provided solely to establish and operate a toll free telephone number at the Lifeline Institute to assist school districts in youth suicide prevention.

Sec. 513. Section 516, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR PUPIL TRANSPORTATION

General Fund Appropriation................................................................................................................ $

((~~216,956,000~~))

221,840,000

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

(1) $((~~20,678,000~~)) 20,422,000 is provided solely for distribution to school districts for the remaining months of the 1986-87 school year.

(2) A maximum of $((~~95,546,000~~)) 97,507,000 may be distributed for pupil transportation operating costs in the 1987-88 school year.

(3) A maximum of $800,000 may be expended for regional transportation coordinators.

(4) A maximum of $60,000 may be expended for bus driver training.

(5) A maximum of $152,000 may be expended for the state school for the deaf and the state school for the blind to contract for transportation of day students enrolled in those schools. Transportation services funded under this subsection are not eligible for additional state reimbursement provided through the allocation formulas for school district or educational service district pupil transportation programs, but shall, to the maximum extent feasible, be reimbursed on the same basis.

NEW SECTION. Sec. 514. A new section is added to chapter 7, Laws of 1987 1st ex. sess. to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR SCHOOL EMPLOYEE INSURANCE BENEFIT INCREASES

General Fund Appropriation................................................................................................................ $

31,878,000

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

(1) Effective October 1, 1988, allocations for insurance benefits for school district and education service district employees are increased to a rate of $224.75 per month for each full time equivalent certificated employee, and $224.75 per month for each full time equivalent classified employee as calculated pursuant to this subsection. For the purposes of allocations of insurance benefits, full time equivalent classified employees shall be calculated on the basis of 1440 hours of work per year, with no individual employee counted as more than one full time equivalent.

(2) The appropriation in this section is provided solely to increase insurance benefit allocations for state-funded certificated and classified staff units in the 1988-89 school year, distributed as follows:

(a) A maximum of $25,717,000 may be expended to increase insurance benefit allocations for basic education staff units under section 502(5) of this act by $57.75 per month.

(b) A maximum of $3,303,000 may be expended to increase insurance benefit allocations for handicapped program staff units as calculated under section 506 of this act by $57.75 per month.

(c) A maximum of $174,000 may be expended to increase insurance benefit allocations for state-funded staff in educational service districts and institutional education programs by $57.75 per month.

(d) A maximum of $2,684,000 may be expended to fund insurance benefit increases in the following categorical programs by increasing state funding rates for the 1988-89 school year as follows:

(i) For pupil transportation, an increase of $0.48 per weighted pupil mile;

(ii) For learning assistance, an increase of $13.23 per pupil;

(iii) For education of highly capable students, an increase of $4.54 per pupil;

(iv) For transitional bilingual education, an increase of $8.59 per pupil;

(v) For vocational-technical institutes, an increase of $35.22 per full time equivalent pupil.

(End of part)

PART VI

HIGHER EDUCATION

Sec. 601. Section 601, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

The appropriations in sections 602 through 608 of this act are subject to the following conditions and limitations:

(1) For the purposes of this section and sections 602 through 608 of this act, "institutions of higher education" means the institutions receiving appropriations pursuant to sections 602 through 608 of this act.

(2) Student Quality Standard: During the 1987-89 fiscal biennium, each institution of higher education shall not expend less than the average biennial amount listed in this subsection per full time equivalent student. The amounts include total appropriated operating expenses for the institution, less expenditures for plant maintenance and operations, with the exception of Washington State University, where cooperative extension and agriculture research are also excluded from the per student expenditures. This expenditure per student requirement may vary by two percent if the director of financial management certifies that the failure to meet the minimum expenditures per student is attributable to circumstances beyond the control of the institution.

University of Washington.................................................................................................................... $	7,763
Washington State University............................................................................................................... $	6,549
Central Washington University, Eastern Washington University, The Evergreen State College, and Western Washington University:
The first 3000 FTE Students................................................................ $	5,974
Each Student over 3000 FTE................................................................ $	3,895
State Board for Community College Education................................................................................. $	2,793

(3) Each institution of higher education and the state board for community college education shall report to the 1989 regular session of the legislature the following information:

(a) The number of minority students attending the institution or the community college system and the measures taken by such institution or system during the 1987-89 fiscal biennium to increase the number of minority students and reduce the drop-out rates for minority and other students;

(b) The number of women employed by the institution or system and the actions taken by the institution or system to increase the number of women in managerial and senior-level positions;

(c) Actions taken by the institution or community college system to improve the quality of undergraduate and graduate education programs;

(d) Actions taken by the institution or system to expand or improve educational services off the campus and the process for evaluating the need for educational services in locations away from the campus;

(e) The process for evaluating and accepting students for admission into the institution or the system;

(f) Any process developed by the institution or the system for evaluating student performance;

(g) Actions taken by the institution or system to operate programs jointly with another public or private institution;

(h) How the faculty and exempt salary increase funds were distributed among the faculty and staff at each institution and the results of the increased salary levels on faculty and staff recruitment and retention;

(i) The annual faculty turnover rates experienced by the institution or the system; and

(j) The amount spent on instructional equipment, the type of equipment purchased, and the instructional enhancements that resulted from the additional equipment.

The state board for community college education shall collect and report the information required of the community college system under this subsection.

(4) The state board for community college education shall, jointly with the superintendent of public instruction, develop an integrated state plan for all state and federally funded vocational education services. The superintendent of public instruction and the state board for community college education shall also jointly develop a consistent and reliable data base on public vocational education, including enrollments, costs, program activities, and job placement. Such data shall be made available to the office of the governor and the legislature.

((~~(6)~~)) (5) Central Washington University, Eastern Washington University, and Western Washington University shall each collect summer term tuition fees at the same rates established for the regular academic quarter and shall transfer the fees to the state treasury in accordance with RCW 28B.15.031.

((~~(7)~~)) (6) The appropriations in sections 602 through 608 of this act provide the following amounts to identify and recruit minority students from junior high and high schools in the state, to foster minority student interest in a college education, to provide support services such as counseling and tutorial assistance, and to improve the retention of such students in higher education through and beyond the baccalaureate level. At least $147,000 of the amount appropriated to the University of Washington shall go to increase the efforts of the math, engineering, and science achievement program.

University of Washington.................................................................................................................... $	522,000
Washington State University............................................................................................................... $	225,000
Central Washington University........................................................................................................... $	113,000
Eastern Washington University.......................................................................................................... $	150,000
The Evergreen State College................................................................................................................. $	75,000
Western Washington University......................................................................................................... $	150,000

((~~(8)~~)) (7) The following are the maximum amounts that may be expended at each institution of higher education from the appropriations in sections 602 through 608 of this act for continuing the salary increases authorized by section 604, chapter 7, Laws of 1987 (ESSB 5351) from July 1, 1987, through February 29, 1988:

University of Washington.................................................................................................................... $	3,893,000
Washington State University............................................................................................................... $	2,083,000
Central Washington University........................................................................................................... $	405,000
Eastern Washington University.......................................................................................................... $	489,000
The Evergreen State College................................................................................................................. $	212,000
Western Washington University......................................................................................................... $	575,000
State Board for Community College Education................................................................................. $	((~~4,036,000~~))

3,196,000

Expenditures under this subsection shall be consistent with all terms and conditions contained in section 604, chapter 7, Laws of 1987 (ESSB 5351), which are hereby incorporated by reference.

((~~(9)~~)) (8) The following are maximum amounts which each institution may spend from the appropriations in sections 602 through 608 of this act for faculty and exempt staff salary increases and are subject to all the limitations contained in this section. For the purpose of allocating these funds, "faculty" includes all instructional and research faculty, academic deans, department chairpersons, and community college librarians and counselors who are not part of the state classified service system. "Exempt staff" includes presidents, chancellors, vice-presidents, administrative deans and professional personnel, and four-year institution librarians and counselors who are exempt from the classified service system.

University of Washington.................................................................................................................... $

((~~19,266,000~~))

19,058,000

Washington State University............................................................................................................... $

((~~9,493,000~~))

9,330,000

Central Washington University........................................................................................................... $

((~~2,159,000~~))

2,152,000

Eastern Washington University.......................................................................................................... $

((~~2,469,000~~))

2,441,000

The Evergreen State College................................................................................................................. $

((~~1,069,000~~))

1,060,000

Western Washington University......................................................................................................... $

((~~2,893,000~~))

2,851,000

State Board for Community College Education................................................................................. $

((~~14,283,000~~))

14,667,000

Higher Education Coordinating Board............................................................................................... $

55,000

These amounts are intended to provide full time faculty and teaching and research assistants, and medical residents at each four-year institution and the community college system as a whole the average percentage increase, including increments, enumerated below on the effective dates indicated:

	March 1, 1988	January 1, 1989
University of Washington	8.5%	8.4%
Washington State University	8.2%	8.1%
Central Washington University	7.6%	7.6%
Eastern Washington University	7.6%	7.6%
The Evergreen State College	7.6%	7.6%
Western Washington University	7.6%	7.6%
State Board for Community College Education	6.3%	6.0%

Exempt staff and part time faculty at each four-year institution, the community college system as a whole, and the higher education coordinating board are entitled to receive the average salary increases enumerated below on the effective dates indicated:

	March 1, 1988	January 1, 1989
University of Washington	5%	3%
Washington State University	5%	3%
Central Washington University	4.5%	3%
Eastern Washington University	4.5%	3%
The Evergreen State College	4.5%	3%
Western Washington University	4.5%	3%
State Board for Community College Education	4.0%	3%
Higher Education Coordinating Board	3%	3%

However, exempt librarians and counselors may be given the same percentage salary increase as the faculty at their institution if the total amount paid out for faculty and exempt salary increases is within the amounts provided in this subsection.

The salary increase authorized under this subsection may be granted to state employees at Washington State University who are supported in full or in part by federal land grant formula funds.

((~~(10)~~)) (9) In addition to the 6.3 and 6.0 percent salary increases provided to community college faculty in subsection ((~~(9)~~)) (8) of this section, $1,129,000 is provided solely to reduce the disparity in full time faculty salaries among community colleges. No funds in this subsection may be expended on administrative staff salaries. The state board for community college education shall allocate one third of these funds in fiscal year 1988 and two thirds in fiscal year 1989 as follows:

Lower Columbia College....................................................................................................................... $	124,000
Shoreline Community College.............................................................................................................. $	242,000
Community College of Spokane............................................................................................................ $	533,000
Skagit Valley College............................................................................................................................. $	115,000
Whatcom Community College.............................................................................................................. $	18,000
Community College District 12............................................................................................................. $	52,000
Walla Walla Community College........................................................................................................ $	18,000
Highline Community College............................................................................................................... $	27,000

((~~(11)~~)) (10) From the appropriations in sections 602 through 609 of this act, the following amounts for each institution are provided solely for higher education personnel board classified employees to provide a 2.65 percent or $50 per month, whichever is greater, salary increase effective January 1, 1988, and an additional 3.0 percent salary increase effective January 1, 1989. These increases shall be implemented in compliance and conformity with all requirements of the comparable worth agreement ratified by 1986 Senate Concurrent Resolution No. 126.

University of Washington.................................................................................................................... $	3,501,000
Washington State University............................................................................................................... $	2,365,000
Central Washington University........................................................................................................... $	478,000
Eastern Washington University.......................................................................................................... $	583,000
The Evergreen State College................................................................................................................. $	337,000
Western Washington University......................................................................................................... $	652,000
State Board for Community College Education................................................................................. $	((~~3,166,000~~))

3,350,000

Higher Education Coordinating Board............................................................................................... $

23,000

No salary increase may be paid under this subsection to any person whose salary has been Y-rated pursuant to rules adopted by the higher education personnel board.

((~~(12)~~)) (11) Any institution that grants an average salary increase in excess of the amounts authorized in subsection ((~~(9)~~)) (8) of this section is ineligible to receive any funds appropriated for salary increases in sections 603 through 608 of this act. Any community college district that grants an average salary increase in excess of the amounts authorized in subsections ((~~(9) and (10)~~)) (8) and (9) of this section is ineligible to receive any funds appropriated for salary increases in section 602 of this act. The office of financial management shall adjust an institution's allotment as necessary to enforce the restrictions imposed by this section.

Sec. 602. Section 602, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE STATE BOARD FOR COMMUNITY COLLEGE EDUCATION

General Fund Appropriation................................................................................................................ $

((~~531,174,000~~))

530,902,000

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

(1) At least $170,000 shall be spent solely for necessary expenditures attributable to the fire of February 16, 1987, at Everett Community College.

(2) At least $480,000 shall be spent by the state board for community college education for the literacy tutor coordination project.

Sec. 603. Section 603, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

General Fund Appropriation................................................................................................................ $

((~~516,799,000~~))

516,089,000

Medical Aid Fund Appropriation......................................................................................................... $	2,553,000
Accident Fund Appropriation............................................................................................................... $	2,553,000
Death Investigations Account Appropriation..................................................................................... $	594,000
Total Appropriation............................................................................... $	((~~522,499,000~~))

521,789,000

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

(1) $10,500,000 of the general fund appropriation is provided solely for equipment.

(2) A maximum of $75,000 may be spent to identify suitable spaces in the vicinity of the University of Washington for use as child day care centers for the children of university civil service employees and for start-up costs of the day care centers.

(3) $400,000 is provided solely to conduct a study of the potential environmental and economic impacts of oil and mineral exploration off the coast of Washington.

(4) At least $75,000 of the appropriations in this section shall be spent for research on the health and safety hazards of video display terminals in the workplace.

(5) $200,000 of the general fund appropriation is provided solely for rental costs on a building to house clinical and laboratory space for the treatment of patients with AIDS and the training of health care professionals in such treatment.

(6) The University of Washington shall take whatever actions are necessary to maximize refunds from the social security administration during the 1987-89 biennium and shall transfer to the general fund the refund received from the social security administration for graduate teaching and research assistants paid from the state general fund from January 1, 1980, through June 30, 1987.

(7) At least $10,000 shall be spent for a study on the predation of sockeye smolt in Lake Washington.

(8) $300,000 of the general fund‑-state appropriation is provided solely to conduct an assessment, in consultation with local community organizations in the Puget Sound area, of higher education needs and programs to be offered at branch campuses in accordance with the higher education coordinating board master plan.

Sec. 604. Section 604, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR WASHINGTON STATE UNIVERSITY

General Fund Appropriation................................................................................................................ $

((~~287,150,000~~))

287,152,000

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

(1) $4,717,000 is provided solely for equipment.

(2) Funds are provided to Washington State University to continue the Yakima nursing training program.

(3) $500,000 of the appropriation is provided solely to initiate upper division programs and expand graduate programs at the Southwest Washington joint center for education.

(4) $165,000 of the appropriation is provided solely for additional training of education professionals at the Southwest Washington joint center for education.

(5) $427,000 is provided solely for start-up and operation of the health research and education center in Spokane.

((~~(5)~~)) (6) $750,000 is provided solely to enhance and operate the Washington higher education telecommunications system (WHETS) for the purpose of allowing the delivery of university courses directly to Spokane, Vancouver, Seattle, and the Tri-Cities.

Sec. 605. Section 605, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR EASTERN WASHINGTON UNIVERSITY

General Fund Appropriation................................................................................................................ $

((~~81,688,000~~))

81,559,000

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

(1) $1,157,000 is provided solely for equipment.

(2) $150,000 is provided solely for start-up and operation of the health research and education center in Spokane.

Sec. 606. Section 606, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR CENTRAL WASHINGTON UNIVERSITY

General Fund Appropriation................................................................................................................ $

((~~68,969,000~~))

68,962,000

The appropriation in this section is subject to the following conditions and limitations: ((~~(1)~~)) $1,015,000 is provided solely for equipment.

Sec. 607. Section 607, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE EVERGREEN STATE COLLEGE

General Fund Appropriation................................................................................................................ $

((~~40,269,000~~))

40,260,000

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

(1) $945,000 is provided solely for equipment.

(2) $400,000 of the general fund appropriation is provided solely for the Washington state center for the improvement of the quality of undergraduate education.

(3) $300,000 of the general fund appropriation is provided solely for summer seminars in coordination with the national faculty of humanities, arts and sciences to improve the quality of teaching in high schools and community colleges.

(4) At least $200,000 shall be spent for a labor center. The college shall endeavor to obtain additional funds for the labor center from nonstate sources.

Sec. 608. Section 608, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR WESTERN WASHINGTON UNIVERSITY

General Fund Appropriation................................................................................................................ $

((~~87,675,000~~))

87,231,000

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

(1) $2,421,000 is provided solely for equipment.

(2) $96,000 of the general fund appropriation is provided solely for development of a value-added testing program to measure educational attainment of students while enrolled at the university.

Sec. 609. Section 609, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE HIGHER EDUCATION COORDINATING BOARD

General Fund Appropriation‑-State..................................................................................................... $

((~~52,344,000~~))

52,324,000

General Fund Appropriation‑-Federal................................................................................................ $	3,471,000
State Educational Grant Appropriation.............................................................................................. $	40,000
Total Appropriation............................................................................... $	((~~55,855,000~~))

55,835,000

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

(1) $43,392,000 of the general fund‑-state appropriation is provided solely for student financial aid, including administrative costs. Of that amount, a minimum of $18,100,000 shall be expended for work study grants and $50,000 shall be expended for implementation of Senate Bill No. 6638, the nursing student scholarship program. The state need grant program shall emphasize, to the extent possible, the provision of aid to low-income single parents with dependents.

(2) $((~~5,000,000~~)) 4,750,000 of the general fund‑-state appropriation is provided solely for the distinguished professorship trust fund.

(3) $300,000 of the general fund appropriation is provided solely for the implementation of House Bill No. 857, the teachers conditional scholarship program.

(4) $900,000 of the general fund‑-state appropriation is provided solely for the displaced homemaker program.

(5) Prior to January 1, 1989, $50,000 of the general fund‑-state appropriation is provided solely to support the special joint study group created by Senate Concurrent Resolution No. 8429. The money shall be transferred to the office of financial management via interagency reimbursement and shall be used for contracted services and other support activities of the study group. After January 1, 1989, these funds may be used for any expenses of the higher education coordinating board or its staff.

(6) $200,000 of the general fund‑-state appropriation is provided solely for grants for Washington scholars authorized by Senate Bill No. 5558. If the bill is not enacted by July 1, 1988, the amount provided in this subsection shall lapse.

(7) A maximum of $30,000 of the general fund‑-state appropriation may be used to provide one staff person to coordinate the minority recruitment efforts of the state institutions of higher education. The amount provided in this subsection is contingent on the board matching the $30,000 with an equal amount of money from nonstate sources other than student financial aid funds.

(End of part)

PART VII

SPECIAL APPROPRIATIONS

Sec. 701. Section 701, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE GOVERNOR‑-COMPENSATION‑-SALARY AND INSURANCE BENEFITS

General Fund Appropriation‑-State..................................................................................................... $

((~~45,845,000~~))

70,853,000

General Fund Appropriation‑-Federal................................................................................................ $

((~~9,645,000~~))

13,973,000

Special Fund Salary and Insurance Contribution Increase Revolving Fund Appropriation........ $

((~~36,835,000~~))

46,935,000

Total Appropriation............................................................................... $

((~~92,325,000~~))

131,761,000

The appropriations in this section, or so much thereof as may be necessary, shall be expended exclusively for the purposes designated in this section and are subject to the conditions and limitations specified in this section.

(1) $30,722,000 of the general fund‑-state appropriation, $9,644,000 of the general fund‑-federal appropriation, and $25,397,000 of the special fund salary and insurance contribution increase revolving fund appropriation are provided for a 2.65 percent or $50 per month, whichever is greater, salary increase effective January 1, 1988, and an additional 3.0 percent salary increase effective January 1, 1989, for all state personnel board classified and exempt employees. These increases shall be implemented in compliance and conformity with all requirements of the comparable worth agreement ratified by 1986 Senate Concurrent Resolution No. 126.

(2) $1,000 of the general fund‑-federal appropriation and $82,000 of the special fund salary and insurance revolving fund appropriation are provided for a 2.65 percent or $50 per month, whichever is greater, salary increase effective January 1, 1988, and an additional 3.0 percent salary increase effective January 1, 1989, for higher education personnel board classified and exempt employees ((~~employed by the higher education coordinating board and the higher education personnel board~~)). These increases shall be implemented in compliance and conformity with all requirements of the comparable worth agreement ratified by 1986 Senate Concurrent Resolution No. 126.

(3) $123,000 of the general fund‑-state appropriation and $2,056,000 of the special fund salary and insurance contribution increase revolving fund appropriation are provided for a three percent salary increase effective January 1, 1988, followed by an additional three percent salary increase effective January 1, 1989, for commissioned officers of the Washington state patrol.

(4) The governor shall allocate to state agencies from the general fund‑-state appropriation $5,000,000 for fiscal year 1988 and $10,000,000 for fiscal year 1989, and from the special fund salary and insurance contribution increase revolving fund appropriation $3,100,000 for fiscal year 1988 and $6,200,000 for fiscal year 1989 to fulfill the 1987-89 obligations of the comparable worth agreement ratified by 1986 Senate Concurrent Resolution No. 126.

(5) $246,000 of the special fund salary and insurance contribution increase revolving fund appropriation is provided solely for salary increases, equal to the percentage increases identified in section 601 of this 1988 act, for faculty and exempt employees employed by the University of Washington.

(6)(a) The monthly contributions for insurance benefits shall not exceed ((~~$167.00~~)) $224.75 per eligible employee.

(b) Any returns of funds to the state employees' insurance board resulting from favorable claims experienced during the 1987-89 biennium shall be held in reserve within the state employees insurance fund until appropriated by the legislature.

(c) Funds provided under this section, including funds resulting from dividends or refunds, shall not be used to increase employee insurance benefits over the level of services provided on the effective date of this act. Contributions by any county, municipal, or other political subdivision to which coverage is extended after the effective date of this act shall not receive the benefit of any surplus funds attributable to premiums paid prior to the date on which coverage is extended.

((~~(6)~~)) (7) To facilitate the transfer of moneys from dedicated funds and accounts, the state treasurer is directed to transfer sufficient moneys from each dedicated fund or account to the special fund salary and insurance contribution increase revolving fund in accordance with schedules provided by the office of financial management.

((~~(7)~~)) (8) In calculating individual agency allocations for this section, the office of financial management shall calculate the allocation of each subsection separately. The separate allocations for each agency may be combined under a single appropriation code for improved efficiency. The office of financial management shall transmit a list of agency allocations by subsection to the committees on ways and means of the senate and house of representatives.

((~~(8)~~)) (9) No salary increase may be paid under this section to any person whose salary has been Y-rated pursuant to rules adopted by the state personnel board or the higher education personnel board.

(10) The appropriation for ferry workers in this section shall be available for salary and benefit increases in accordance with section 30(4), chapter 10, Laws of 1987 1st ex. sess., as amended by the 1988 legislature.

Sec. 702. Section 702, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF RETIREMENT SYSTEMS‑-CONTRIBUTIONS TO RETIREMENT SYSTEMS

The appropriations in this section are subject to the following conditions and limitations: The appropriations shall be made on a quarterly basis.

(1) There is appropriated for state contributions to the law enforcement officers' and fire fighters' retirement system.

FY 1988 FY 1989

Revenue Accrual Account Appropriation............................................................... $ 57,134,000 ((~~52,866,000~~))

........................................................................................................................... 52,526,000

Total Appropriation........................................................................................ $((~~110,000,000~~))

............................................................................................................................................... 109,660,000

(2) There is appropriated for contributions to the judicial retirement system an amount sufficient to meet the cash flow requirements of all benefit payments made during the 1987-89 biennium.

General Fund Appropriation................................................................................... $ 1,350,000 1,350,000

Total Appropriation........................................................................................ $ 2,700,000

(3) There is appropriated for contributions to the judges retirement system an amount sufficient to meet the cash flow requirements of all benefit payments made during the 1987-89 biennium.

General Fund Appropriation................................................................................... $ 800,000 800,000

Total Appropriation........................................................................................ $ 1,600,000

(4) The initial employer trust fund contribution rate for all employers of members of the retirement system governed by chapter 41.32 RCW (the teachers' retirement system) shall be set at 11.22% of earnable compensation for the 1987-89 biennium.

(5) The initial employer trust fund contribution rate for all employers of members of the retirement system governed by chapter 41.40 RCW (the public employees' retirement system) shall be set at 5.92% of compensation earnable for the 1987-89 biennium.

(6) The employer rate for all employers of members of the retirement system governed by chapter 43.43 RCW (the state patrol retirement system) shall be set at 19.88% of compensation, the level recommended by the state actuary.

Sec. 703. Section 703, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT‑-CONTRIBUTIONS TO RETIREMENT SYSTEMS

General Fund Appropriation................................................................................... $((~~1,300,000~~)) ((~~1,300,000~~))

........................................................................................................................... 1,767,000 1,767,000

Total Appropriation........................................................................................ $ ((~~2,600,000~~))

............................................................................................................................................... 3,534,000

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

(1) $600,000 of the general fund‑-state appropriation shall be distributed to state agencies for the purpose of additional contributions required for the public employees' retirement system as a result of ((~~Senate Bill No. 5150~~)) chapter 192, Laws of 1987.

(2) $((~~2,000,000~~)) 2,559,000 of the general fund‑-state appropriation shall be distributed to the superintendent of public instruction for the purpose of additional contributions required for the teachers' retirement system as a result of ((~~Senate Bill No. 5150~~)) chapter 192, Laws of 1987 and chapter 455, Laws of 1987.

(3) ((~~If Senate Bill No. 5150 is not enacted by June 30, 1987, the appropriations in this section shall lapse~~)) $375,000 of the general fund‑-state appropriation shall be distributed to the superintendent of public instruction for the purpose of additional contributions required for the public employees' retirement system as a result of chapter 136, Laws of 1987, chapter 192, Laws of 1987, and chapter 455, Laws of 1987.

Sec. 704. Section 705, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE GOVERNOR--INDIAN CLAIMS

General Fund Appropriation................................................................................................................ $

4,000,000

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

(1) Before June 30, ((~~1988~~)) 1989, the governor, through the department of community development, in consultation with the attorney general, may use all or any portion of the amount appropriated for the purpose of settling the claims of the Puyallup Indian tribe to lands formerly lying beneath the Puyallup river.

(2) On and after July 1, ((~~1988~~)) 1989, the governor through the department of general administration may provide for purchasing, for current or future public purposes, any land for which the tribal claim remains unsettled, subject to all of the following:

(a) Before March 31, ((~~1989~~)) 1990, the owner of the land must offer in writing to sell the land at a price not exceeding what its market value would be without the tribal claim.

(b) If a parcel lies partially on lands formerly beneath the Puyallup river and partially outside such lands, the department also may elect to purchase all or part of the portion lying outside such lands if the purchase is reasonably necessary to make the purchased land suitable for a public purpose.

(c) The sale to the state of each parcel shall include an assignment of any rights the landowner has against others for defects in title to the land.

(d) In order to facilitate the use of the land for a public purpose, the department may purchase parcels conditioned on access being provided by the seller or other landowners. The department may also use any other lawful means to gain access to the purchased land.

Sec. 705. Section 712, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE STATE TREASURER‑-TRANSFERS

General Fund Appropriation: For transfer to the Institutional Impact Account........................ $	316,600
General Fund Appropriation: For transfer to the Landowner Contingency Forest Fire Suppression Account................................................................................................. $	285,000
General Government Special Revenue Fund‑-State Treasurer's Service Account Appropriation: For transfer to the general fund on or before July 20, 1989, an amount up to $5,000,000 in excess of the cash requirements in the State Treasurer's Service Account for fiscal year 1990, for credit to the fiscal year in which earned........ $	5,000,000
Charitable, Educational, Penal and Reformatory Institutions Account Appropriations: For transfer to the Resource Management Cost Account to the extent that funds are available as determined by the department of natural resources. The department shall provide the state treasurer with a schedule of such transfers. $	3,000,000
General Fund Appropriation: For transfer to the Natural Resources Fund‑-Water Quality Account....................................................................................................................... $	7,913,300
General Fund Appropriation: For transfer to the Miscellaneous Fund‑-Tort Claims Revolving Fund............................................................................................................................ $	((~~2,500,000~~))

5,978,000

Liquor Revolving Fund Appropriation: For Transfer to the Miscellaneous Fund‑-Tort Claims Revolving Fund......................................................................................................... $	573,000
Employment Security Fund‑-Deferred Compensation Revolving Fund: For transfer to the Motor Vehicle Fund.................................................................................................. $	861,000
Ferry System Fund: For transfer to the Tort Claims Revolving Fund for claims paid on behalf of the department of transportation, Washington state ferry system during the period July 1, 1987, through June 30, 1989............................................................. $	884,100
Puget Sound Ferry Operations Account: For transfer to the Tort Claims Revolving Fund for claims paid on behalf of the department of transportation, Washington state ferry system during the period July 1, 1987, through June 30, 1989................... $	378,900
Motor Vehicle Fund: For transfer to the Tort Claims Revolving Fund for claims paid on behalf of the department of transportation and the state patrol during the period July 1, 1987 through June 30, 1989......................................................................... $	14,200,000
State Employees Insurance Principal Account: For transfer to the General Fund..................... $	2,700,000

Sec. 706. Section 715, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE STATE TREASURER‑-STATE REVENUES FOR DISTRIBUTION

General Fund Appropriation for fire insurance premiums tax distribution.................................. $

((~~6,187,000~~))

6,225,000

General Fund Appropriation for public utility district excise tax distribution.............................. $

((~~24,031,000~~))

21,138,000

General Fund Appropriation for prosecuting attorneys' salaries.................................................... $

1,950,000

General Fund Appropriation for motor vehicle excise tax distribution.......................................... $

((~~58,630,000~~))

59,751,000

General Fund Appropriation for local mass transit assistance........................................................ $

((~~177,580,000~~))

185,535,000

General Fund Appropriation for camper and travel trailer excise tax distribution....................... $

((~~2,283,000~~))

2,152,000

Aquatic Lands Enhancement Account Appropriation for harbor improvement revenue distribution................................................................................................................. $

60,000

Liquor Excise Tax Fund Appropriation for liquor excise tax distribution.................................... $

((~~17,807,000~~))

18,233,000

Motor Vehicle Fund Appropriation for motor vehicle fuel tax and overload penalties distribution................................................................................................................. $

((~~272,649,000~~))

268,082,000

Liquor Revolving Fund Appropriation for liquor profits distribution.......................................... $

((~~39,100,000~~))

42,740,000

Timber Tax Distribution Account Appropriation for distribution to "Timber" counties............. $

((~~39,044,000~~))

44,291,000

Municipal Sales and Use Tax Equalization Account Appropriation............................................... $

((~~31,570,000~~))

32,174,000

County Sales and Use Tax Equalization Account Appropriation.................................................... $

((~~10,900,000~~))

11,062,000

Death Investigations Account Appropriation for distribution to counties for public funded autopsies..................................................................................................................... $

((~~592,000~~))

688,000

Total Appropriation............................................................................... $

((~~682,383,000~~))

694,081,000

The appropriations in this section are subject to the following conditions and limitations: $96,000 is provided from the death investigations account appropriation for the purpose of reimbursing counties up to the maximum level authorized by RCW 68.08.104 for expenses incurred in the 1985-87 biennium.

Sec. 707. Section 717, chapter 7, Laws of 1987 1st ex. sess. (uncodified) is amended to read as follows:

FOR THE STATE TREASURER‑-BOND RETIREMENT AND INTEREST, INCLUDING ONGOING BOND REGISTRATION AND TRANSFER CHARGES

Fisheries Bond Redemption Fund 1977 Appropriation..................................................................... $	1,280,467
Salmon Enhancement Bond Redemption Fund 1977 Appropriation.............................................. $	5,479,684
Higher Education Refunding Bond Redemption Fund 1977 Appropriation................................. $	8,773,875
Fire Service Training Center Bond Retirement Fund 1977 Appropriation..................................... $	1,619,731
Highway Bond Retirement Fund Appropriation............................................................................... $	171,910,324
Indian Cultural Center Construction Bond Redemption Fund 1976 Appropriation...................... $	233,575
Higher Education Bond Redemption Fund 1977 Appropriation..................................................... $	19,528,417
Ferry Bond Retirement Fund 1977 Appropriation............................................................................ $	25,627,988
Emergency Water Projects Bond Retirement Fund 1977 Appropriation........................................ $	2,604,490
Public School Building Bond Redemption Fund 1965 Appropriation............................................ $	1,238,790
((~~Spokane River Toll Bridge Account Appropriation....................................................................... $~~	~~889,088~~))
Higher Education Bond Retirement Fund 1979 Appropriation...................................................... $	10,736,990
State General Obligation Bond Retirement Fund 1979 Appropriation........................................... $	((~~327,069,045~~))

307,961,175

Fisheries Bond Redemption Fund 1976 Appropriation..................................................................... $	764,034
State Building Bond Redemption Fund 1967 Appropriation........................................................... $	656,800
Community College Capital Construction Bond Redemption Fund 1975, 1976, 1977 Appropriation............................................................................................................. $	11,423,031
Common School Building Bond Redemption Fund 1967 Appropriation........................................ $	6,890,745
Outdoor Recreation Bond Redemption Fund 1967 Appropriation................................................... $	6,292,542
Water Pollution Control Facilities Bond Redemption Fund 1967 Appropriation......................... $	4,067,765
State Building and Higher Education Construction Bond Redemption Fund 1967 Appropriation..................................................................................................................................... $	10,349,392
State Building and Parking Bond Redemption Fund 1969 Appropriation..................................... $	2,448,830
Waste Disposal Facilities Bond Redemption Fund Appropriation................................................. $	57,944,960
Water Supply Facilities Bond Redemption Fund Appropriation.................................................... $	11,952,815
Social and Health Services Facilities 1972 Bond Redemption Fund Appropriation..................... $	3,705,605
Recreation Improvements Bond Redemption Fund Appropriation................................................. $	5,986,813
Community College Capital Improvement Bond Redemption Fund 1972 Appropriation.............. $	7,499,389
State Building Authority Bond Redemption Fund Appropriation.................................................. $	9,452,680
Office-Laboratory Facilities Bond Redemption Fund Appropriation............................................. $	270,900
University of Washington Hospital Bond Retirement Fund 1975 Appropriation........................ $	1,163,924
Washington State University Bond Redemption Fund 1977 Appropriation.................................. $	559,915
Higher Education Bond Redemption Fund 1975 Appropriation..................................................... $	2,165,785
State Building Bond Redemption Fund 1973 Appropriation........................................................... $	3,794,144
State Building Bond Retirement Fund 1975 Appropriation............................................................. $	424,780
State Higher Education Bond Redemption Fund 1973 Appropriation........................................... $	4,367,163
Social and Health Services Bond Redemption Fund 1976 Appropriation...................................... $	9,475,867
State Building (Expo 74) Bond Redemption Fund 1973A Appropriation...................................... $	372,820
Community College Refunding Bond Retirement Fund 1974 Appropriation................................. $	9,436,996
State Higher Education Bond Redemption Fund 1974 Appropriation........................................... $	1,190,700
Total Appropriation............................................................................... $	((~~749,650,859~~))

729,653,901

NEW SECTION. Sec. 708. A new section is added to chapter 7, Laws of 1987 1st ex. sess. to read as follows:

BOND RETIREMENT‑-STATE TRADE AND CONVENTION CENTER

The following is appropriated from the state trade and convention center account for reimbursement to the general fund for the transfer to the state general obligation bond retirement fund for disbursement of bond retirement and interest, including ongoing bond registration and transfer charges:

State Convention and Trade Center Account Appropriation............................................................. $

19,746,278

NEW SECTION. Sec. 709. A new section is added to chapter 7, Laws of 1987 1st ex. sess. to read as follows:

BOND RETIREMENT‑-SPOKANE RIVER TOLL BRIDGE

The following is appropriated from the Spokane River toll bridge revolving account to the Spokane River toll bridge account for disbursement of bond retirement and interest, including ongoing bond registration and transfer charges:

Spokane River Toll Bridge Revolving Account Appropriation........................................................ $

889,088

Sec. 710. Section 7, chapter 13, Laws of 1983 1st ex. sess. and RCW 50.16.070 are each amended to read as follows:

The federal interest payment fund shall consist of contributions payable by each employer (except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, employers who are required to make payments in lieu of contributions, and employers paying contributions under RCW 50.44.035) for any calendar quarter which begins on or after January 1, 1984, and for which the commissioner determines that the department will have an outstanding balance of accruing federal interest at the end of the calendar quarter. The amount of wages subject to tax shall be determined according to RCW 50.24.010. The tax rate applicable to wages paid during the calendar quarter shall be determined by the commissioner and shall not exceed fifteen one-hundredths of one percent. In determining whether to require contributions as authorized by this section, the commissioner shall consider the current balance in the federal interest payment fund and the projected amount of interest which will be due and payable as of the following September 30. Except as appropriated for the fiscal biennium ending June 30, 1989, any excess moneys in the federal interest payment fund shall be retained in the fund for future interest payments.

Contributions under this section shall become due and be paid by each employer in accordance with such rules as the commissioner may prescribe and shall not be deducted, in whole or in part, from the remuneration of individuals in the employ of the employer. Any deduction in violation of this section is unlawful.

In the payment of any contributions under this section, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

Sec. 711. Section 3, chapter 272, Laws of 1987 (uncodified) is amended to read as follows:

EVERETT HOME PORT

(1) There is hereby appropriated to the office of financial management for the biennium beginning July 1, 1987, and ending June 30, 1989:

(a) ((~~Ten million, four hundred seventy~~)) two million, two hundred sixty-six thousand dollars from the general fund‑-state;

(b) One million, one hundred sixty-nine thousand dollars from the general fund‑-federal;

(d) Five hundred thirty-three thousand dollars from the state accident fund; and

(e) Five hundred thirty-three thousand dollars from the state medical aid fund.

(2) The appropriations in this section are provided solely for the purposes of this act and are subject to the following conditions and limitations:

(a) The appropriations in this section are provided solely for the increased demands for public services as a result of the development or construction of the Everett home port. No funds, except those related to the educational impacts associated with the arrival of the U.S.S. Nimitz, may be spent, except as may be necessary for planning and monitoring to meet the requirements of federal legislation authorizing the construction of the Everett home port, until the following conditions are met: (i) Actual construction or site preparation is started, and (ii) the federal government releases to be obligated, or expended, the $43.5 million appropriated in federal fiscal year 1987 in section 2208 of the national defense authorization act for construction of the home port, and (iii) all required local, state, and federal permits for site construction, preparation, and dredging are obtained.

(b) The governor shall allocate funds to the superintendent of public instruction, the department of social and health services, the department of community development, the department of fisheries, the department of ecology, and the department of labor and industries. The governor shall allocate these appropriations to specific agencies based on increased agency ((~~operating~~)) expenditures and workload directly associated with the Everett home port. The governor may release to the specific agencies only the amount necessary to offset the directly incurred increased costs which have been documented by the agency.

(c) Any appropriation adjustments and actions that the governor has taken related to the Everett home port and pursuant to this appropriation shall be reported to the legislature on January 1, 1988, and January 1, 1989.

(End of part)

PART VIII

MISCELLANEOUS

Sec. 801. Section 4, chapter 7, Laws of 1982 2nd ex. sess. as last amended by section 2, chapter 511, Laws of 1987 and RCW 67.70.040 are each amended to read as follows:

The commission shall have the power, and it shall be its duty:

(1) To promulgate such rules governing the establishment and operation of a state lottery as it deems necessary and desirable in order that such a lottery be initiated at the earliest feasible and practicable time, and in order that such lottery produce the maximum amount of net revenues for the state consonant with the dignity of the state and the general welfare of the people. Such rules shall include, but shall not be limited to, the following:

(a) The type of lottery to be conducted which may include the selling of tickets or shares, or the use of electronic or mechanical devices or video terminals which do not require a printed ticket: PROVIDED, That approval of the legislature shall be required before entering any agreement with other state lotteries to conduct shared games;

(b) The price, or prices, of tickets or shares in the lottery;

(d) The manner of selecting the winning tickets or shares;

(e) The manner and time of payment of prizes to the holder of winning tickets or shares which, at the director's option, may be paid in lump sum amounts or installments over a period of years;

(f) The frequency of the drawings or selections of winning tickets or shares, without limitation;

(g) Without limit as to number, the type or types of locations at which tickets or shares may be sold;

(h) The method to be used in selling tickets or shares, which may include the use of electronic or mechanical devices and video terminals;

(i) The licensing of agents to sell or distribute tickets or shares, except that a person under the age of eighteen shall not be licensed as an agent;

(j) The manner and amount of compensation, if any, to be paid licensed sales agents necessary to provide for the adequate availability of tickets or shares to prospective buyers and for the convenience of the public;

(k) The apportionment of the total revenues accruing from the sale of lottery tickets or shares and from all other sources among: (i) The payment of prizes to the holders of winning tickets or shares, which shall not be less than forty-five percent of the gross annual revenue from such lottery, less amounts of unclaimed prizes deposited in the general fund under RCW 67.70.190 during the fiscal year ending June 30, 1989, (ii) transfers to the lottery administrative account created by RCW 67.70.260, and (iii) transfer to the state's general fund. Transfers to the state general fund shall be made in compliance with RCW 43.01.050;

(l) Such other matters necessary or desirable for the efficient and economical operation and administration of the lottery and for the convenience of the purchasers of tickets or shares and the holders of winning tickets or shares.

(2) To ensure that in each place authorized to sell lottery tickets or shares, on the back of the ticket or share, and in any advertising or promotion there shall be conspicuously displayed an estimate of the probability of purchasing a winning ticket.

(3) To amend, repeal, or supplement any such rules from time to time as it deems necessary or desirable.

(4) To advise and make recommendations to the director for the operation and administration of the lottery.

Sec. 802. Section 19, chapter 7, Laws of 1982 2nd ex. sess. as amended by section 8, chapter 511, Laws of 1987 and RCW 67.70.190 are each amended to read as follows:

(1) Unclaimed prizes shall be retained in the state lottery account for the person entitled thereto for one hundred eighty days after the drawing in which the prize is won, or after the official end of the game for instant prizes. If no claim is made for the prize within this time, the prize shall be retained in the state lottery fund for further use as prizes, except as provided in subsection (2) of this section, and all rights to the prize shall be extinguished.

(2) During the fiscal year ending June 30, 1989, moneys from unclaimed prizes shall be used as follows:

(a) Fifty percent of the moneys, not exceeding one million dollars, shall be deposited quarterly in the general fund.

(b) The remainder of the moneys shall be retained in the state lottery account for further use as prizes.

NEW SECTION. Sec. 803. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 804. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions and shall take effect immediately.