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FIRST SPECIAL SESSION

TENTH DAY

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MORNING SESSION

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Senate Chamber, Olympia, Wednesday, May 5, 1993

The Senate was called to order at 10:00 a.m. by President Pritchard. No roll call was taken.

The Sergeant at Arms Color Guard, consisting of Pages Joy Tyler and Brendan Heath, presented the Colors. Reverend Terry L. Kaiser, pastor of the Faith Assembly of Lacey, offered the prayer.

MOTION

On motion of Senator Jesernig, the reading of the Journal of the previous day was dispensed with and it was approved.

MESSAGES FROM THE HOUSE

May 4, 1993

MR. PRESIDENT:

The House has passed ENGROSSED HOUSE BILL NO. 2114, and the same is herewith transmitted.

ALAN THOMPSON, Chief Clerk

May 4, 1993

MR. PRESIDENT:

The House has passed ENGROSSED SENATE BILL NO. 5989, and the same is herewith transmitted.

ALAN THOMPSON, Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

ENGROSSED SENATE BILL NO. 5989.

INTRODUCTION AND FIRST READING OF HOUSE BILL

EHB 2114 by Representative G. Fisher (by request of Office of Financial Management)

Crediting earnings on balances of certain treasury accounts.

MOTION

On motion of Senator Jesernig, Engrossed House Bill No. 2114 was held on the desk.

MOTION

At 10:07 a.m., on motion of Senator Jesernig, the Senate was declared to be at ease.

The Senate was called to order at 3:05 p.m. by President Pritchard.

MOTION

On motion of Senator Jesernig, the Senate advanced to the eighth order of business.

MOTION

On motion of Senator Moore, the following resolution was adopted:

SENATE RESOLUTION 1993-8653

WHEREAS, Former Senator Lady Willie Forbus, died Tuesday, April 27, 1993, in Seattle at her Magnolia home at the age of 100; and

WHEREAS, Senator Forbus was the sixth woman elected to the Washington State Senate, winning her seat in 1942, representing King County and the 44th Legislative District; and

WHEREAS, Lady Willie graduated from the University of Michigan Law School in 1918, thereafter moving to Washington for more opportunities; passed the Washington Bar exam in 1919; was the only woman lawyer in Seattle until 1929 and continued to practice on a limited basis until 1991; and

WHEREAS, Senator Forbus was the first and thus far only female selected as chair of the Senate Judiciary Committee and was the author of legislation removing the word "illegitimate" from birth certificates; and

WHEREAS, Ms. Forbus was very active in community affairs serving as President of the Florence Crittendon Home for Unmarried Mothers, the Magnolia Community Club and the Financial District Women's Business Club; serving on the Boards of Friends of Discovery Park and the ACLU of Washington; and establishing the Lady Willie Forbus Student Scholarship Fund at the University of Washington;

NOW, THEREFORE, BE IT RESOLVED, That the Senate honor the life and achievements of a true pioneer, Senator Lady Willie Forbus; and

BE IT FURTHER RESOLVED, That the Senate sends its condolences to the family and friends of Senator Lady Willie Forbus, and requests that copies of this resolution be immediately transmitted to her family.

MOTION

On motion of Senator Jesernig, the Senate advanced to the ninth order of business.

MOTIONS

On motion of Senator Jesernig, the Committee on Rules was relieved of further consideration of Substitute Senate Bill No. 5753.

On motion of Senator Jesernig, Substitute Senate Bill No. 5753 was placed on the third reading calendar.

MOTION

On motion of Senator Jesernig, the rules were suspended and the following bills which were held on the desk after being introduced, were advanced to second reading and placed on the second reading calendar: House Bill No. 2129, Substitute House Bill No. 1969 and Engrossed House Bill No. 2114.

MOTION

On motion of Senator Oke, Senators Newhouse and McCaslin were excused.

MOTION

On motion of Senator Jesernig, the Senate reverted to the sixth order of business.

STATEMENT FOR THE JOURNAL

Due to attending the funeral of a fellow elected official and friend today, in my legislative district, I was unable to vote on Engrossed Second Substitute Senate Bill No. 5781, Substitute House Bill No. 1969, House Bill No. 2129 and Substitute Senate Bill No. 5753.

Had I been able to be here, I would have voted 'yes' on all.

SENATOR DEAN SUTHERLAND, 17th District

STATEMENT FOR THE JOURNAL

Due to a meeting with the Governor's staff, I missed the votes on Engrossed Second Substitute Senate Bill No. 5781, Substitute House Bill No. 1969 and House Bill No. 2129. I would have voted 'aye' on each measure.

SENATOR PHIL TALMADGE, 34th District

SECOND READING

SECOND SUBSTITUTE SENATE BILL NO. 5781, by Committee on Ways and Means (originally sponsored by Senators Jesernig, Bauer, Moyer, Pelz, Bluechel, Spanel, Hargrove, Drew, von Reichbauer, Snyder, Sheldon, Loveland, McDonald, Erwin, M. Rasmussen, Barr, Prentice, Sutherland, McAuliffe, West, Oke, Amondson, Haugen, Franklin, Sellar, Hochstatter, Fraser, Deccio, A. Smith and Winsley)

Improving access to public institutions of higher education.

The bill was read the second time.

MOTIONS

On motion of Senator Jesernig, the following amendment by Senators Jesernig and Bauer was adopted:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that the proportion of the state budget dedicated to postsecondary educational programs has decreased for two decades. At the same time, major technological, economic, and demographic changes have exacerbated the need for improved training and education to maintain a high-quality, competitive work force, and a well-educated populace to meet the challenges of the twenty-first century. Therefore, the legislature finds that there is increasing need for postsecondary educational opportunities for citizens of the state of Washington.

The legislature declares that the policy of the state of Washington shall be to improve the access to, and the quality of, this state's postsecondary educational system. The budgetary policy of the state of Washington shall be to provide a level of protection and commitment to the state's postsecondary educational system commensurate with the responsibility of this state to the educational and professional improvement of its citizens and work force.

NEW SECTION. Sec. 2. It is the policy of the state of Washington that the essential requirements level budget calculation for institutions of higher education include enrollment levels necessary to maintain, by educational sector, the participation rate funded in the 1993 fiscal year. The participation rate shall be based on the state's estimated population ages seventeen and above by appropriate age groups.

NEW SECTION. Sec. 3. It is the policy of the state of Washington that, for new enrollments provided under section 2 of this act, the essential requirements level budget calculation for those enrollments shall, each biennium, at a minimum, include a funding level per full-time equivalent student that is equal to the rate assumed in the omnibus appropriations act for the last fiscal year of the previous biennium for the instructional, primary support, and library programs, plus an inflation factor. The inflation factor should be equivalent to the inflation factor used to calculate basic education in the common school system budget request submitted by the governor.

NEW SECTION. Sec. 4. It is the policy of the state of Washington that the essential requirements level budget calculation for state institutions of higher education include a funding level per full-time equivalent student that is, each biennium, at a minimum, equal to the general fund--state and tuition fund rate per student assumed in the omnibus appropriations act for the last fiscal year of the previous biennium for the state-funded programs, minus one-time expenditures and plus an inflation factor. The inflation factor should be equivalent to the inflation factor used to calculate basic education in the common school system budget request submitted by the governor.

NEW SECTION. Sec. 5. It is the policy of the state of Washington that higher education enrollments be increased in increments each biennium in order to achieve, by the year 2010, the goals, by educational sector, adopted by the higher education coordinating board in its enrollment plan entitled "Design for the 21st Century: Expanding Higher Education Opportunities in Washington," or subsequent revisions adopted by the board.

Per student costs for additional students to achieve this policy shall be at the same rate per student as enrollments mandated in section 2 of this act.

For each public college and university, and for the community and technical college system, budget documents generated by the governor and the legislature in the development and consideration of the biennial omnibus appropriations act shall display an enrollment target level. The enrollment target level is the biennial state-funded enrollment increase necessary to fulfill the state policy set forth in this section. The budget documents shall compare the enrollment target level with the state-funded enrollment increases contained in the biennial budget proposals of the governor and each house of the legislature. The information required by this section shall be set forth in the budget documents so that enrollment and cost information concerning the number of students and additional funds needed to reach the enrollment goals are prominently displayed and easily understood.

For the governor's budget request, the information required by this section shall be made available in the document entitled "Operating Budget Supporting Data" or its successor document.

NEW SECTION. Sec. 6. The participation rate used to calculate enrollment levels under sections 2 and 5 of this act shall be based on fall enrollment reported in the higher education enrollment report as maintained by the office of financial management, fall enrollment as reported in the management information system of the state board for community and technical colleges, and the corresponding fall population forecast by the office of financial management. Formal estimates of the state participation rates and enrollment levels necessary to fulfill the requirements of sections 2 and 5 of this act shall be determined by the office of financial management as part of its responsibility to develop and maintain student enrollment forecasts for colleges and universities under RCW 43.62.050. Formal estimates of the state participation rates and enrollment levels required by this section shall be based on procedures and standards established by a technical work group consisting of staff from the higher education coordinating board, the public four-year institutions of higher education, the state board for community and technical colleges, the fiscal and higher education committees of the house of representatives and the senate, and the office of financial management. Formal estimates of the state participation rates and enrollment levels required by this section shall be submitted to the fiscal committees of the house of representatives and senate on or before November 15th of each even-numbered year. The higher education coordinating board shall periodically review the enrollment goals set forth in sections 2 and 5 of this act and submit recommendations concerning modification of these goals to the governor and to the higher education committees of the house of representatives and the senate.

NEW SECTION. Sec. 7. It is the policy of the state of Washington that financial need not be a barrier to participation in higher education. It is also the policy of the state of Washington that the essential requirements level budget calculation include funding for state student financial aid programs. The calculation should, at a minimum, include a funding level equal to the amount provided in the second year of the previous biennium in the omnibus appropriations act, adjusted for the percentage of needy resident students, by educational sector, likely to be included in any enrollment increases necessary to maintain, by educational sector, the participation rate funded in the 1993 fiscal year. The calculation should also be adjusted to reflect, by educational sector, any increases in cost of attendance. The cost of attendance figures should be calculated by the higher education coordinating board and provided to the office of financial management and appropriate legislative committees by June 30th of each even-numbered year.

Sec. 8. RCW 28B.15.515 and 1991 c 353 s 1 are each amended to read as follows:

(1) The boards of trustees of the community college districts may operate summer schools on either a self-supporting or a state-funded basis.

If summer school is operated on a self-supporting basis, the fees charged shall be retained by the colleges, and shall be sufficient to cover the direct costs, which are instructional salaries and related benefits, supplies, publications, and records.

Community colleges that have self-supporting summer schools shall continue to receive general fund state support for vocational programs that require that students enroll in a four quarter sequence of courses that includes summer quarter due to clinical or laboratory requirements and for ungraded courses limited to adult basic education, vocational apprenticeship, aging and retirement, small business management, industrial first aid, and parent education.

(2)(((a))) The board of trustees of a community college district may permit the district's state-funded, full-time equivalent enrollment level, as provided in the operating budget appropriations act, to vary ((by plus or minus two percent each fiscal year unless otherwise authorized in the operating budget appropriations act)). If the variance is above the state-funded level, the district may charge those students above the state-funded level a fee equivalent to the amount of tuition and fees that are charged students enrolled in state-funded courses. These fees shall be retained by the colleges.

(((b) Any community college that in 1990-91 has an enrollment above the state-funded level but below the authorized variance may increase its excess enrollments to within the variance.

(c) Community colleges that currently have excess enrollments more than the authorized variance, by means of enrollments that would have otherwise been eligible for state funding, shall reduce those excess enrollments to within the authorized variance by September 1, 1995, in at least equal annual reductions, commencing with the 1991-92 fiscal year.

(d) Except as permitted by (c) of this subsection, should the number of student-supported, full-time equivalent enrollments in any fiscal year fall outside the authorized variance, the college shall return by September 1st to the state general fund, an amount equal to the college's full average state appropriations per full-time equivalent student for such student-funded full-time equivalent outside the variance, unless otherwise provided in the operating budget appropriations act.))

(3) The state board for community and technical colleges ((education)) shall ensure compliance with this section.

NEW SECTION. Sec. 9. Sections 2 through 7 of this act are each added to chapter 28B.10 RCW.

NEW SECTION. Sec. 10. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993."

On motion of Senator Jesernig, the following title amendment was adopted:

On page 1, line 1 of the title, after "education;" strike the remainder of the title and insert "amending RCW 28B.15.515; adding new sections to chapter 28B.10 RCW; creating a new section; providing an effective date; and declaring an emergency.

MOTION

On motion of Senator Jesernig, the rules were suspended, Engrossed Second Substitute Senate Bill No. 5781 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTION

On motion of Senator Spanel, Senators Niemi, Rinehart and Sutherland were excused.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Second Substitute Senate Bill No. 5781.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Second Substitute Senate Bill No. 5781 and the bill passed the Senate by the following vote: Yeas, 38; Nays, 2; Absent, 4; Excused, 5.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, McAuliffe, McDonald, Moore, Moyer, Nelson, Oke, Owen, Pelz, Prentice, Prince, Rasmussen, M., Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Vognild, von Reichbauer, West, Williams and Winsley - 38.

Voting nay: Senators Quigley and Wojahn - 2.

Absent: Senators Franklin, Loveland, Smith, L. and Talmadge - 4.

Excused: Senators McCaslin, Newhouse, Niemi, Rinehart and Sutherland - 5.

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5781, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTIONS

On motion of Senator Oke, Senator Linda Smith was excused.

On motion of Senator Spanel, Senators Loveland and Talmadge were excused.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1969, by House Committee on Trade, Economic Development and Housing (originally sponsored by Representatives Wang, Locke, Silver, Wineberry, Sommers, Forner, Kremen, Jones, Springer, Patterson, Ogden and J. Kohl)

Creating the "Washington serves" voluntary service program.

The bill was read the second time.

MOTION

On motion of Senator Jesernig, the rules were suspended, Substitute House Bill No. 1969 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1969.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1969 and the bill passed the Senate by the following vote: Yeas, 33; Nays, 8; Absent, 0; Excused, 8.

Voting yea: Senators Amondson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hochstatter, Jesernig, McAuliffe, McDonald, Moore, Moyer, Nelson, Owen, Pelz, Prentice, Prince, Rasmussen, M., Roach, Sellar, Sheldon, Smith, A., Snyder, Vognild, von Reichbauer, West, Winsley and Wojahn - 33.

Voting nay: Senators Anderson, Hargrove, Haugen, Oke, Quigley, Skratek, Spanel and Williams - 8.

Excused: Senators Loveland, McCaslin, Newhouse, Niemi, Rinehart, Smith, L., Sutherland and Talmadge - 8.

SUBSTITUTE HOUSE BILL NO. 1969, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

HOUSE BILL NO. 2129, by Representatives Mastin, Finkbeiner, Locke, Patterson, Linville, Foreman, Forner and J. Kohl

Allowing state agencies to make purchases based on the lowest cost.

The bill was read the second time.

MOTION

On motion of Senator Jesernig, the rules were suspended, House Bill No. 2129 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

POINT OF INQUIRY

Senator Fraser: "Senator Spanel, is the language in Section 2 of the bill intended to overturn or modify the ruling of the Supreme Court in the Washington Federation of State Employees versus Spokane Community College case?"

Senator Spanel: "No, the language is not intended to affect that decision or any other civil service employee rights."

POINT OF INQUIRY

Senator Cantu: "Senator Jesernig, I have a question on the summary in our calendar. Things are moving rather quickly and it is hard to look at this. I am looking on page 2, the second paragraph on the right hand side--second from the bottom. It says, 'The department if directed to develop a standard notification form for use by the agencies.' It sounds like the agencies are supposed to notify the Department of General Administration when they buy items and I'm wondering if we are going to get into a real horrendous paper mill where every time they go buy a single item, they have to fill out a form and then process a form to notify the agency.

"One of the things that the Efficiency Commission looked at is the cost of a piece of paper on a request for procurement and we found out that it is very close to fifty dollars. So, if we are not careful, I am afraid that this form--I guess my question, Senator Jesernig, I'm sorry, is whether or not this would have to be done for each and every single item that they buy?"

Senator Jesernig: "Well, thank you, Senator Cantu. As I read it here, it would simply require the notification so that the Department of General Administration would be able to better warehouse what it thinks it needs to have. I don't think the intent, as I understand it, is to require every pencil to have a piece of paper for it, but I think any purchases that are

significant, the GA is going to have to know about it, so they are not stocking those items. That was the intent as I understood it of the notification requirement. It was simply to make sure that GA doesn't buy a bunch of paper or pencils, because they think orders are going to come in."

Senator Cantu: "O.K., you can see my concern and that is if an agency--say I want to go buy a half dozen pencils that they then have to fill out a form, send it to GA and say I bought a half dozen pencils. We're going to get into that paper mill and I'm sorry for not giving you the advance notice, but I just now had a chance to look at it."

Senator Jesernig: "Senator Cantu, if that occurs, I will co-sponsor the bill with you to make sure that it doesn't. Thank you."

The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 2129.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 2129 and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, McAuliffe, McDonald, Moore, Moyer, Nelson, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 42.

Excused: Senators Loveland, McCaslin, Newhouse, Niemi, Smith, L., Sutherland and Talmadge - 7.

HOUSE BILL NO. 2129, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

There being no objection, the President advanced the Senate to the seventh order of business.

THIRD READING

SUBSTITUTE SENATE BILL NO. 5753, by Committee on Ways and Means (originally sponsored by Senators Snyder and L. Smith)

Creating a new judgeship for Cowlitz County.

The bill was read the third time.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5753.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5753 and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, McAuliffe, McDonald, Moore, Moyer, Nelson, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 43.

Excused: Senators Loveland, McCaslin, Newhouse, Niemi, Smith, L. and Sutherland - 6.

SUBSTITUTE SENATE BILL NO. 5753, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

There being no objection, the President returned the Senate to the sixth order of business.

SECOND READING

ENGROSSED HOUSE BILL NO. 2123, by Representatives Jacobsen, Quall and Brumsickle (by request of Office of Financial Management)

Allowing insurance benefits for graduate service appointments.

The bill was read the second time.

MOTIONS

Senator Jesernig moved that the following amendment be adopted:

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 28B.10.660 and 1979 ex.s. c 88 s 1 are each amended to read as follows:

(1) The ((regents or trustees)) governing boards of any of the state's institutions of higher education may make available liability, life, health, health care, accident, disability and salary protection or insurance or any one of, or a combination of, the enumerated types of insurance, or any other type of insurance or protection, for the regents or trustees and students of the institution. Except as provided in subsection (2) of this section, the premiums due on such protection or insurance shall be borne by the assenting regents, trustees, or students. The regents or trustees of any of the state institutions of higher education may make liability insurance available for employees of the institutions. The premiums due on such liability insurance shall be borne by the university or college.

(2) A governing board of a public four-year institution of higher education may make available, and pay the costs of, health benefits for graduate students holding graduate service appointments, designated as such by the institution. Such health benefits may provide coverage for spouses and dependents of such graduate student appointees."

Senator Prince moved that the following amendment to the amendment be adopted:

On page 1, line 22, after "education" strike "may" and insert "shall"

Debate ensued.

POINT OF INQUIRY

Senator West: "Senator Jesernig, is there anything in the budget or anything in statute that would prevent a Board of Regents from taking the money we provide in the budget for this purpose and spending it on some other purpose? Is there anything restricting them in the expenditure of these funds requiring that it go for this purpose?"

Senator Jesernig: "Thank you, Senator West. I think the Budget Accounting Act will make sure that they spend it for what it's meant to be spent on and I think that not only the Board of Regents, but the Presidents of the institutions would have a very hard time in the Legislature if they, in fact, took this money and spent it on something other than what we appropriated it directly for."

Senator West: "I'm glad that is stated in that fashion, so it is on the record to show some legislative intent. The problem is every year we pass a budget, giving money to agencies, giving them direction in that budget and every year when they need money for something else, they rob it from this section and put it over there. They come back and they say, 'Now, we don't have enough to do what you originally gave us the money to do, so we need more money.'

"I think without passing Senator Prince's amendment making this mandatory on the Regents, making this mandatory on the schools and the administration of schools, you run the real risk of this money not getting to where it is intended and you run the real risk of putting out there a false promise--a false hope for people that were actually putting these benefits in law, actually giving them these benefits. This is simply a 'may,' it is not a 'shall.' I think we should go the 'shall' route if that is actually our intention. We should not leave this to any question, so I would encourage you to vote for Senator Prince's amendment."

Further debate ensued.

The President declared the question before the Senate to be the adoption of the amendment by Senator Prince on page 1, line 22, to the striking amendment by Senator Jesernig to Engrossed House Bill No. 2123.

The motion by Senator Prince failed and the amendment to the striking amendment was not adopted.

The President declared the question before the Senate to be the adoption of the striking amendment by Senator Jesernig to Engrossed House Bill No. 2123.

The motion by Senator Jesernig carried and the striking amendment was adopted.

MOTIONS

On motion of Senator Jesernig, the following title amendment was adopted:

On page 1, line 1 of the title, after "appointments;" strike the remainder of the title and insert "and amending RCW 28B.10.660."

MOTION

On motion of Senator Jesernig, the rules were suspended, Engrossed House Bill No. 2123, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 2123, as amended by the Senate.2

ROLL CALL

The Secretary called the roll on the final passage of Engrossed House Bill No. 2123, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 37; Nays, 8; Absent, 0; Excused, 4.

Voting yea: Senators Bauer, Bluechel, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 37.

Voting nay: Senators Amondson, Anderson, Barr, Cantu, Deccio, Hochstatter, Oke and Sellar - 8.

Excused: Senators McCaslin, Newhouse, Niemi and Smith, L. - 4.

ENGROSSED HOUSE BILL NO. 2123, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

There being no objection, the President advanced the Senate to the seventh order of business.

THIRD READING

ENGROSSED SENATE BILL NO. 5983, by Senators M. Rasmussen and Loveland (by request of Department of Agriculture)

Altering fees related to agriculture.

MOTIONS

On motion of Senator Rinehart, the rules were suspended and Engrossed Senate Bill No. 5983 was returned to second reading and read the second time.

On motion of Senator Rinehart, the following amendments by Senators Rasmussen and Barr were considered simultaneously and were adopted:

On page 3, after line 33, strike all of sections 3 through 7

Renumber the remaining sections consecutively and correct any internal references accordingly.

On page 6, after line 13, strike all of sections 9 through 21

Renumber the remaining sections consecutively and correct any internal references accordingly.

On page 17, after line 25, strike all of sections 31 and 32

Correct any internal references accordingly.

MOTIONS

On motion of Senator Rinehart, the following title amendments were considered simultaneously and were adopted:

On page 1, line 1 of the title, after "fees;" insert "and"

On page 1, beginning on line 2 of the title, after "15.58.415," strike all material through "16.65.090," on line 4

On page 1, beginning on line 5 of the title, after "69.25.250" strike all material through "15.54.320" on line 6

On motion of Senator Rinehart, the rules were suspended, Reengrossed Senate Bill No. 5983, under suspension of the rules, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Reengrossed Senate Bill No. 5983, under suspension of the rules.

ROLL CALL

The Secretary called the roll on the final passage of Reengrossed Senate Bill No. 5983, under suspension of the rules, and the bill passed the Senate by the following vote: Yeas, 27; Nays, 19; Absent, 0; Excused, 3.

Voting yea: Senators Bauer, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, McAuliffe, Moore, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams and Wojahn - 27.

Voting nay: Senators Amondson, Anderson, Barr, Bluechel, Cantu, Deccio, Erwin, Hochstatter, Loveland, McDonald, Moyer, Nelson, Oke, Prince, Roach, Sellar, von Reichbauer, West and Winsley - 19.

Excused: Senators McCaslin, Newhouse and Smith, L. - 3.

REENGROSSED SENATE BILL NO. 5983, under suspension of the rules, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

THIRD READING

ENGROSSED SUBSTITUTE SENATE BILL NO. 5982, by Committee on Ways and Means (originally sponsored by Senator Rinehart) (by request of Office of Financial Management)

Changing higher education tuition provisions.

MOTIONS

On motion of Senator Rinehart, the rules were suspended and Engrossed Substitute Senate Bill No. 5982 was returned to second reading and read the second time.

Senator Rinehart moved that the following amendment be adopted:

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 28B.10.265 and 1992 c 231 s 2 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, The Evergreen State College, and the community colleges may waive all or a portion of the tuition, operating, and services and activities fees for children of any person who was a Washington domiciliary and who within the past eleven years has been determined by the federal government to be a prisoner of war or missing in action in Southeast Asia, including Korea, or who shall become so hereafter, if the children meet such other educational qualifications as such institution of higher education shall deem reasonable and necessary under the circumstances. Applicants for free or reduced tuition shall provide institutional administrative personnel with documentation of their rights under this section.

((Before June 30, 1995, no individual waiver program under this section may be reduced by more than twice the percentage reduction required in operating fee foregone revenue from tuition waivers in the biennial state appropriations act.))

Sec. 2. RCW 28B.10.800 and 1969 ex.s. c 222 s 7 are each amended to read as follows:

The sole purpose of RCW 28B.10.800 through 28B.10.824 is to establish a state of Washington student financial aid program, thus assisting financially needy or disadvantaged students domiciled in Washington to obtain the opportunity of attending an accredited institution of higher education, as defined in RCW 28B.10.802(1). Financial aid under RCW 28B.10.800 through 28B.10.824 is available only to students who are resident students as defined in RCW 28B.15.012(2) (a) through (d).

Sec. 3. RCW 28B.12.060 and 1987 c 330 s 202 are each amended to read as follows:

The higher education coordinating board shall adopt rules and regulations as may be necessary or appropriate for effecting the provisions of this chapter, and not in conflict with this chapter, in accordance with the provisions of chapter 34.05 RCW, the state higher education administrative procedure act. Such rules and regulations shall include provisions designed to make employment under such work-study program reasonably available, to the extent of available funds, to all eligible students in eligible post-secondary institutions in need thereof. Such rules and regulations shall include:

(1) Providing work under the college work-study program which will not result in the displacement of employed workers or impair existing contracts for services.

(2) Furnishing work only to a student who:

(a) Is capable, in the opinion of the eligible institution, of maintaining good standing in such course of study while employed under the program covered by the agreement; and

(b) Has been accepted for enrollment as at least a half-time student at the eligible institution or, in the case of a student already enrolled in and attending the eligible institution, is in good standing and in at least half-time attendance there either as an undergraduate, graduate or professional student; and

(3) Placing priority on the securing of work opportunities for students who are residents of the state of Washington as defined in RCW ((28B.15.011 through 28B.15.014)) 28B.15.012 and 28B.15.013 except resident students defined in RCW 28B.15.012(2)(e).

(4) Provisions to assure that in the state institutions of higher education utilization of this student work-study program:

(a) Shall only supplement and not supplant classified positions under jurisdiction of chapter 28B.16 RCW;

(b) That all positions established which are comparable shall be identified to a job classification under the higher education personnel board's classification plan and shall receive equal compensation;

(d) That work study positions shall only be established at entry level positions of the classified service.

Sec. 4. RCW 28B.15.012 and 1987 c 137 s 1 and 1987 c 96 s 1 are each reenacted and amended to read as follows:

Whenever used in chapter 28B.15 RCW:

(1) The term "institution" shall mean a public university, college, or community college within the state of Washington.

(2) The term "resident student" shall mean: (a) A financially independent student who has had a domicile in the state of Washington for the period of one year immediately prior to the time of commencement of the first day of the semester or quarter for which the student has registered at any institution and has in fact established a bona fide domicile in this state primarily for purposes other than educational; (b) a dependent student, if one or both of the student's parents or legal guardians have maintained a bona fide domicile in the state of Washington for at least one year immediately prior to commencement of the semester or quarter for which the student has registered at any institution; (c) a student classified as a resident based upon domicile by an institution on or before May 31, 1982, who was enrolled at a state institution during any term of the 1982-1983 academic year, so long as such student's enrollment (excepting summer sessions) at an institution in this state is continuous; ((or)) (d) any student who has spent at least seventy-five percent of both his or her junior and senior years in high schools in this state, whose parents or legal guardians have been domiciled in the state for a period of at least one year within the five-year period before the student graduates from high school, and who enrolls in a public institution of higher education within six months of leaving high school, for as long as the student remains continuously enrolled for three quarters or two semesters in any calendar year; or (e) a student who is the spouse or a dependent of a person who is on active military duty stationed in the state: PROVIDED, That a nonresident student enrolled for more than six hours per semester or quarter shall be considered as attending for primarily educational purposes, and for tuition and fee paying purposes only such period of enrollment shall not be counted toward the establishment of a bona fide domicile of one year in this state unless such student proves that the student has in fact established a bona fide domicile in this state primarily for purposes other than educational.

(3) The term "nonresident student" shall mean any student who does not qualify as a "resident student" under the provisions of RCW ((28B.15.011 through 28B.15.014 and 28B.15.015, each as now or hereafter amended)) 28B.15.012 and 28B.15.013. A nonresident student shall include:

(a) A student attending an institution with the aid of financial assistance provided by another state or governmental unit or agency thereof, such nonresidency continuing for one year after the completion of such semester or quarter.

(b) A person who is not a citizen of the United States of America who does not have permanent or temporary resident status or does not hold "Refugee-Parolee" or "Conditional Entrant" status with the United States immigration and naturalization service or is not otherwise permanently residing in the United States under color of law and who does not also meet and comply with all the applicable requirements in RCW ((28B.15.011 through 28B.15.014 and 28B.15.015, each as now or hereafter amended)) 28B.15.012 and 28B.15.013.

(4) The term "domicile" shall denote a person's true, fixed and permanent home and place of habitation. It is the place where the student intends to remain, and to which the student expects to return when the student leaves without intending to establish a new domicile elsewhere. The burden of proof that a student, parent or guardian has established a domicile in the state of Washington primarily for purposes other than educational lies with the student.

(5) The term "dependent" shall mean a person who is not financially independent. Factors to be considered in determining whether a person is financially independent shall be set forth in rules and regulations adopted by the higher education coordinating board and shall include, but not be limited to, the state and federal income tax returns of the person and/or the student's parents or legal guardian filed for the calendar year prior to the year in which application is made and such other evidence as the board may require.

Sec. 5. RCW 28B.15.014 and 1992 c 231 s 3 are each amended to read as follows:

(1) Any person who resides in the state of Washington and who holds a graduate service appointment designated as such by a public institution of higher education or is employed for an academic department in support of the instructional or research programs involving not less than twenty hours per week during the term such person shall hold such appointment.

(2) Any faculty member, classified staff member or administratively exempt employee holding not less than a half time appointment at an institution who resides in the state of Washington, and the dependent children and spouse of such persons.

(3) Active-duty military personnel stationed in the state of Washington ((and the spouses and dependents of such military personnel)).

(4) Any immigrant refugee and the spouse and dependent children of such refugee, if the refugee (a) is on parole status, or (b) has received an immigrant visa, or (c) has applied for United States citizenship.

(5) Domestic exchange students participating in the program created under RCW 28B.15.725.

(6) Any dependent of a member of the United States congress representing the state of Washington.

Sec. 6. RCW 28B.15.031 and 1987 c 15 s 2 are each amended to read as follows:

The term "operating fees" as used in this chapter shall include the fees, other than building fees, charged all students registering at the state's colleges and universities but shall not include fees for short courses, self-supporting degree credit programs and courses, marine station work, experimental station work, correspondence or extension courses, and individual instruction and student deposits or rentals, disciplinary and library fines, which colleges and universities shall have the right to impose, laboratory, gymnasium, health, and student activity fees, or fees, charges, rentals, and other income derived from any or all revenue producing lands, buildings and facilities of the colleges or universities heretofore or hereafter acquired, constructed or installed, including but not limited to income from rooms, dormitories, dining rooms, hospitals, infirmaries, housing or student activity buildings, vehicular parking facilities, land, or the appurtenances thereon, or such other special fees as may be established by any college or university board of trustees or regents from time to time. All moneys received as operating fees at any institution of higher education shall be ((transmitted to the state treasurer within thirty-five days of receipt to be deposited in the state general fund)) deposited in a local account containing only operating fees revenue and related interest: PROVIDED, That two and one-half percent of ((moneys received as)) operating fees ((be exempt from such deposit and)) shall be retained by the institutions, except the technical colleges, for the purposes of RCW 28B.15.820((: PROVIDED FURTHER, That money received by institutions of higher education from the periodic payment plan authorized by RCW 28B.15.411 shall be transmitted to the state treasurer within five days following the close of registration of the appropriate quarter or semester)). Local operating fee accounts shall not be subject to appropriation by the legislature or allotment procedures under chapter 43.88 RCW.

Sec. 7. RCW 28B.15.100 and 1992 c 231 s 6 are each amended to read as follows:

(1) The governing boards of the state universities, the regional universities, The Evergreen State College, and the community colleges shall charge to and collect from each of the students registering at the particular institution for any quarter or semester such tuition fees and services and activities fees, and other fees as such board shall in its discretion determine. The total of all fees shall be rounded to the nearest whole dollar amount: PROVIDED, That such tuition fees for other than the summer term shall be in the amounts for the respective institutions as otherwise set forth in this chapter.

(2) Part time students shall be charged tuition and services and activities fees proportionate to full time student rates established for residents and nonresidents: PROVIDED, That students registered for fewer than two credit hours shall be charged tuition and services and activities fees at the rate established for two credit hours: PROVIDED FURTHER, That, subject to the limitations of RCW 28B.15.910, residents of Idaho or Oregon who are enrolled in community college district number twenty for six or fewer credits during any quarter or semester may be exempted from payment of all or a portion of the nonresident tuition fees differential upon a declaration by the higher education coordinating board that it finds Washington residents from the community college district are afforded substantially equivalent treatment by such other states.

(3) Full-time students registered for more than eighteen credit hours shall be charged an additional operating fee for each credit hour in excess of eighteen hours at the applicable established per credit hour tuition fee rate for part-time students: PROVIDED, That, subject to the limitations of RCW 28B.15.910, the governing boards of the state universities and the community colleges may exempt all or a portion of the additional charge, for students who are registered exclusively in first professional programs in medicine, dental medicine, veterinary medicine, or law, or who are registered exclusively in required courses in vocational preparatory programs.

(((4) Before June 30, 1995, no individual waiver program under this section may be reduced by more than twice the percentage reduction required in operating fee foregone revenue from tuition waivers in the biennial state appropriations act.))

Sec. 8. RCW 28B.15.202 and 1992 c 231 s 7 are each amended to read as follows:

Tuition fees and maximum services and activities fees at the University of Washington and at Washington State University for other than the summer term shall be as follows:

(1) For full time resident undergraduate students and all other full time resident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, the total tuition fees for the 1993-94 academic year shall be ((thirty-three)) thirty-six and three-tenths percent and thereafter total tuition fees shall be forty-one and one-tenth percent of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be one hundred and twenty dollars. Beginning with the 1995-96 academic year the building fee for each academic year shall be a percentage of total tuition fees. This percentage shall be calculated by the higher education coordinating board and be based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(2) For full time resident graduate and law students not enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, the total tuition fees for the 1993-94 academic year shall be ((twenty-three)) twenty-five and two-tenths percent and thereafter total tuition fees shall be twenty-eight and four-tenths percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be one hundred and twenty dollars. Beginning with the 1995-96 academic year the building fee for each academic year shall be a percentage of total tuition fees. This percentage shall be calculated by the higher education coordinating board and be based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(3) For full time resident students enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, the total tuition fees shall be one hundred sixty-seven percent of such fees charged in subsection (2) of this section: PROVIDED, That the building fees for each academic year shall be three hundred and forty-two dollars. Beginning with the 1995-96 academic year the building fee for each academic year shall be a percentage of total tuition fees. This percentage shall be calculated by the higher education coordinating board and be based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(4) For full time nonresident undergraduate students and such other full time nonresident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, or doctor of veterinary medicine, the total tuition fees for the 1993-94 academic year shall be one hundred nine and three-tenths percent and thereafter total tuition fees shall be one hundred twenty-two and nine-tenths percent of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be three hundred and fifty-four dollars. Beginning with the 1995-96 academic year the building fee for each academic year shall be a percentage of total tuition fees. This percentage shall be calculated by the higher education coordinating board and be based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(5) For full time nonresident graduate and law students not enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, the total tuition fees for the 1993-94 academic year shall be sixty-five and six- tenths percent and thereafter total tuition fees shall be seventy-three and six-tenths percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be three hundred and fifty-four dollars. Beginning with the 1995-96 academic year the building fee for each academic year shall be a percentage of total tuition fees. This percentage shall be calculated by the higher education coordinating board and be based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(6) For full time nonresident students enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, the total tuition fees shall be one hundred sixty-seven percent of such fees charged in subsection (5) of this section: PROVIDED, That the building fees for each academic year shall be five hundred and fifty-five dollars. Beginning with the 1995-96 academic year the building fee for each academic year shall be a percentage of total tuition fees. This percentage shall be calculated by the higher education coordinating board and be based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(7) The governing boards of the state universities shall charge to and collect from each student, a services and activities fee. The governing board may increase the existing fee annually, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the annual percentage increase in resident undergraduate tuition fees: PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. For the 1993-94 academic year, services and activities fees shall not exceed two hundred forty-three dollars per student. For the 1994-95 academic year, services and activities fees shall not exceed two hundred forty-nine dollars per student. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

Sec. 9. RCW 28B.15.225 and 1992 c 231 s 8 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing board of the University of Washington may exempt the following students from the payment of all or a portion of the nonresident tuition fees differential: Students admitted to the university's school of medicine pursuant to contracts with the states of Alaska, Montana, or Idaho, or agencies thereof, providing for a program of regionalized medical education conducted by the school of medicine; or students admitted to the university's school of dentistry pursuant to contracts with the states of Utah, Idaho, or any other western state which does not have a school of dentistry, or agencies thereof, providing for a program of regionalized dental education conducted by the school of dentistry. The proportional cost of the program, in excess of resident student tuition and fees, will be reimbursed to the university by or on behalf of participating states or agencies. Subject to the limitations of RCW 28B.15.910, the governing board of Washington State University may exempt from payment all or a portion of the nonresident tuition ((fee[s])) fees differential for any student admitted to the University of Washington's school of medicine and attending Washington State University as a participant in the Washington, Alaska, Montana, or Idaho program in this section. Washington State University may reduce the professional student tuition for students enrolled in this program by the amount the student pays the University of Washington as a registration fee.

Sec. 10. RCW 28B.15.380 and 1992 c 231 s 9 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, and The Evergreen State College may exempt the following students from the payment of all or a portion of tuition fees and services and activities fees:

(1) All veterans as defined in RCW 41.04.005: PROVIDED, That such persons are no longer entitled to federal vocational or educational benefits conferred by virtue of their military service: AND PROVIDED FURTHER, That if any such veterans have not resided in this state for one year prior to registration, the board may exempt the student from paying up to fifty percent of the nonresident tuition fees differential. Such exemptions may be provided only to those persons otherwise covered who were enrolled in universities on or before October 1, 1977.

(2) Children of any law enforcement officer or fire fighter who lost his or her life or became totally disabled in the line of duty while employed by any public law enforcement agency or full time or volunteer fire department in this state: PROVIDED, That such persons may receive the exemption only if they begin their course of study at a state-supported college or university within ten years of their graduation from high school.

Sec. 11. RCW 28B.15.402 and 1992 c 231 s 10 are each amended to read as follows:

Tuition fees and maximum services and activities fees at the regional universities and The Evergreen State College for other than the summer term shall be as follows:

(1) For full time resident undergraduate students and all other full time resident students not in graduate study programs, the total tuition fees for the 1993-94 academic year shall be ((twenty-five)) twenty-seven and seven-tenths percent and thereafter total tuition fees shall be thirty-one and five-tenths percent of the per student undergraduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be seventy-six dollars and fifty cents. Beginning with the 1995-96 academic year the building fee for each academic year shall be a percentage of total tuition fees. This percentage shall be calculated by the higher education coordinating board and be based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(2) For full time resident graduate students, the total tuition fees for the 1993-94 academic year shall be ((twenty-three)) twenty-five and three-tenths percent and thereafter total tuition fees shall be twenty-eight and six-tenths percent of the per student graduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be seventy-six dollars and fifty cents. Beginning with the 1995-96 academic year the building fee for each academic year shall be a percentage of total tuition fees. This percentage shall be calculated by the higher education coordinating board and be based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(3) For full time nonresident undergraduate students and all other full time nonresident students not in graduate study programs, the total tuition fees for the 1993-94 academic year shall be one hundred nine and four-tenths percent and thereafter total tuition fees shall be one hundred twenty-three percent of the per student undergraduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be two hundred and ninety-five dollars and fifty cents. Beginning with the 1995-96 academic year the building fee for each academic year shall be a percentage of total tuition fees. This percentage shall be calculated by the higher education coordinating board and be based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(4) For full time nonresident graduate students, the total tuition fees for the 1993-94 academic year shall be ((seventy-five)) eighty-two percent and thereafter total tuition fees shall be ninety-two percent of the per student graduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be two hundred and ninety-five dollars and fifty cents. Beginning with the 1995-96 academic year the building fee for each academic year shall be a percentage of total tuition fees. This percentage shall be calculated by the higher education coordinating board and be based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(5) The governing boards of each of the regional universities and The Evergreen State College shall charge to and collect from each student, a services and activities fee. The governing board may increase the existing fee annually, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the annual percentage increase in resident undergraduate tuition fees: PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. For the 1993-94 academic year, services and activities fees shall not exceed two hundred eight-four dollars per student. For the 1994-95 academic year, services and activities fees shall not exceed two hundred ninety dollars per student. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

Sec. 12. RCW 28B.15.502 and 1992 c 231 s 11 are each amended to read as follows:

Tuition fees and maximum services and activities fees at each community college for other than the summer term shall be set by the state board for community and technical colleges as follows:

(1) For full time resident students, the total tuition fees for the 1993-94 academic year shall be ((twenty-three)) twenty-five and four-tenths percent and thereafter total tuition fees shall be twenty-eight and eight-tenths percent of the per student educational costs at the community colleges computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be one hundred and twenty-seven dollars and fifty cents. Beginning with the 1995-96 academic year the building fee for each academic year shall be a percentage of total tuition fees. This percentage shall be calculated by the higher education coordinating board and be based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(2) For full time nonresident students, the total tuition fees for the 1993-94 academic year shall be one hundred nine and three-tenths percent and thereafter total tuition fees shall be one hundred twenty-two and seven-tenths percent of the per student educational costs at the community colleges computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That the building fees for each academic year shall be four hundred and three dollars and fifty cents. Beginning with the 1995-96 academic year the building fee for each academic year shall be a percentage of total tuition fees. This percentage shall be calculated by the higher education coordinating board and be based on the actual percentage the building fee is of total tuition in the 1994-95 academic year, rounded up to the nearest half percent.

(3) The governing boards of each of the state community colleges shall charge to and collect from each student a services and activities fee. Each governing board may increase the existing fee annually, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the annual percentage increase in resident student tuition fees: PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. For the 1993-94 academic year, services and activities fees shall not exceed one hundred twenty-eight dollars per student. For the 1994-95 academic year, services and activities fees shall not exceed one hundred thirty-one dollars per student. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

(4) Tuition and services and activities fees consistent with subsection (3) of this section shall be set by the state board for community and technical colleges for summer school students unless the community college charges fees in accordance with RCW 28B.15.515.

Subject to the limitations of RCW 28B.15.910, each governing board may charge such fees for ungraded courses, noncredit courses, community services courses, and self-supporting courses as it, in its discretion, may determine, consistent with the rules and regulations of the state board for community and technical colleges.

Sec. 13. RCW 28B.15.515 and 1991 c 353 s 1 are each amended to read as follows:

(1) The boards of trustees of the community college districts may operate summer schools on either a self-supporting or a state-funded basis.

(2)(((a))) The board of trustees of a community college district may permit the district's state-funded, full-time equivalent enrollment level, as provided in the ((operating budget)) omnibus state appropriations act, to vary ((by plus or minus two percent each fiscal year unless otherwise authorized in the operating budget appropriations act)). If the variance is above the state-funded level, the district may charge those students above the state-funded level a fee equivalent to the amount of tuition and fees that are charged students enrolled in state-funded courses. These fees shall be retained by the colleges.

(((b) Any community college that in 1990-91 has an enrollment above the state-funded level but below the authorized variance may increase its excess enrollments to within the variance.

(3) The state board for community and technical colleges ((education)) shall ensure compliance with this section.

NEW SECTION. Sec. 14. The following acts or parts of acts are each repealed:

(1) RCW 28B.15.824 and 1992 c 231 s 36;

(2) RCW 28B.35.361 and 1990 c 154 s 3, 1985 c 390 s 46, 1977 ex.s. c 322 s 12, & 1977 ex.s. c 169 s 59; and

(3) RCW 28B.40.361 and 1990 c 154 s 4, 1985 c 390 s 53, 1977 ex.s. c 322 s 11, 1977 ex.s. c 169 s 78, 1973 1st ex.s. c 191 s 3, 1971 ex.s. c 279 s 16, & 1969 ex.s. c 269 s 9.

NEW SECTION. Sec. 15. All moneys in the accounts established under RCW 28B.15.824 on the effective date of this section are hereby appropriated to the respective institutions of higher education for deposit in the institution's local account established under RCW 28B.15.031.

Sec. 16. RCW 28B.15.520 and 1992 c 231 s 12 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the community colleges may:

(1) Waive all or a portion of tuition fees and services and activities fees for:

(a) Students nineteen years of age or older who are eligible for resident tuition and fee rates as defined in RCW 28B.15.012 through 28B.15.015 and who enroll in a course of study or program which will enable them to finish their high school education and obtain a high school diploma or certificate; and

(b) Children of any law enforcement officer or fire fighter who lost his or her life or became totally disabled in the line of duty while employed by any public law enforcement agency or full time or volunteer fire department in this state: PROVIDED, That such persons may receive the waiver only if they begin their course of study at a community college within ten years of their graduation from high school;

(2) Waive all or a portion of the nonresident tuition fees differential for:

(a) Nonresident students enrolled in a community college course of study or program which will enable them to finish their high school education and obtain a high school diploma or certificate. The waiver shall be in effect only for those courses which lead to a high school diploma or certificate; and

(b) Up to forty percent of the students enrolled in the regional education program for deaf students, subject to federal funding of such program.

(((3) Before June 30, 1995, no individual waiver program under this section may be reduced by more than twice the percentage reduction required in operating fee foregone revenue from tuition waivers in the biennial state appropriations act.))

Sec. 17. RCW 28B.15.522 and 1992 c 231 s 13 are each amended to read as follows:

(1) The governing boards of the community colleges may waive all or a portion of the tuition and services and activities fees for persons under subsection (2) of this section pursuant to the following conditions:

(a) Such persons shall register for and be enrolled in courses on a space available basis and new course sections shall not be created as a result of the registration;

(b) Enrollment information on persons registered pursuant to this section shall be maintained separately from other enrollment information and shall not be included in official enrollment reports, nor shall such persons be considered in any enrollment statistics which would affect budgetary determinations; and

(c) Persons who enroll under this section shall have the same access to support services as do all other students and shall be subject to all course prerequisite requirements.

(2) A person is eligible for the waiver under subsection (1) of this section if the person:

(a) Meets the requirements for a resident student under RCW 28B.15.011 through 28B.15.015;

(b) Is twenty-one years of age or older;

(c) At the time of initial enrollment under subsection (1) of this section, has not attended an institution of higher education for the previous six months;

(d) Is not receiving or is not entitled to receive unemployment compensation of any nature under Title 50 RCW; and

(e) Has an income at or below the need standard established under chapter 74.04 RCW by the department of social and health services.

(3) The state board for community and technical colleges shall adopt rules to carry out this section.

Sec. 18. RCW 28B.15.527 and 1992 c 231 s 14 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the community colleges may waive all or a portion of the nonresident tuition fees differential for undergraduate students of foreign nations as follows:

(1) Priority in the awarding of waivers shall be given to students on academic exchanges and students participating in special programs recognized through formal agreements between states, cities, or institutions;

(2) The waiver programs under this section shall promote reciprocal placements and waivers in foreign nations for Washington residents. The number of foreign students granted waivers through this program shall not exceed the number of that institution's own students enrolled in approved study programs abroad during the same period;

(3) No reciprocal placements shall be required for up to thirty students participating in the Georgetown University scholarship program funded by the United States agency for international development;

(4) Participation shall be limited to one hundred full-time foreign students each year.

(((5) Before June 30, 1995, no individual waiver program under this section may be reduced by more than twice the percentage reduction required in operating fee foregone revenue from tuition waivers in the biennial state appropriations act.))

Sec. 19. RCW 28B.15.543 and 1992 c 231 s 17 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, The Evergreen State College, and the community colleges shall waive tuition and service and activities fees for recipients of the Washington scholars award under RCW 28A.600.100 through 28A.600.150 who received their awards before June 30, ((1992)) 1994. The governing boards may waive all or a portion of tuition and services and activities fees for those recipients of the Washington scholars award who received their awards after June 30, ((1992)) 1994. The waivers shall be used only for undergraduate studies. To qualify for the waiver, recipients shall enter the college or university within three years of high school graduation and maintain a minimum grade point average at the college or university equivalent to 3.30. Students shall be eligible for waivers for a maximum of twelve quarters or eight semesters and may transfer among state-supported institutions of higher education during that period and continue to have the tuition and services and activities fees waived by the state-supported institution of higher education that the student attends. Should the student's cumulative grade point average fall below 3.30 during the first three quarters or two semesters, that student may petition the higher education coordinating board which shall have the authority to establish a probationary period until such time as the student's grade point average meets required standards.

Sec. 20. RCW 28B.15.545 and 1992 c 231 s 18 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, The Evergreen State College, and the community colleges shall waive tuition and services and activities fees for those recipients of the Washington award for vocational excellence established under RCW 28C.04.520 through 28C.04.540 who received their awards before June 30, ((1992)) 1994. The governing boards may waive all or a portion of tuition and services and activities fees for those recipients of the Washington award for vocational excellence who received their awards after June 30, ((1992)) 1994. Each recipient shall not receive a waiver for more than six quarters or four semesters. To qualify for the waiver, recipients shall enter the college or university within three years of receiving the award. A minimum grade point average at the college or university equivalent to 3.00, or an above-average rating at a technical college, shall be required in the first year to qualify for the second-year waiver. The tuition waiver shall be granted for undergraduate studies only.

Sec. 21. RCW 28B.15.556 and 1992 c 231 s 19 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, and The Evergreen State College may waive all or a portion of the tuition, and services and activities fees for undergraduate or graduate students of foreign nations subject to the following limitations:

(1) No more than the equivalent of one hundred waivers may be awarded to undergraduate or graduate students of foreign nations at each of the two state universities;

(2) No more than the equivalent of twenty waivers may be awarded to undergraduate or graduate students of foreign nations at each of the regional universities and The Evergreen State College;

(3) Priority in the awarding of waivers shall be given to students on academic exchanges or academic special programs sponsored by recognized international educational organizations; and

(4) An undergraduate or graduate student of a foreign nation receiving a waiver under this section is not eligible for any other waiver.

The waiver programs under this section, to the greatest extent possible, shall promote reciprocal placements and waivers in foreign nations for Washington residents. The number of waivers awarded by each institution shall not exceed the number of that institution's own students enrolled in approved study programs abroad during the same period.

Sec. 22. RCW 28B.15.600 and 1991 c 164 s 5 are each amended to read as follows:

The ((boards of regents)) governing boards of the ((state's)) state universities ((and the boards of trustees of)), the regional universities ((and)), The Evergreen State College, and the community colleges may refund or cancel in full the tuition and services and activities fees if the student withdraws from a university or college course or program prior to the sixth day of instruction of the quarter or semester for which ((said)) the fees have been paid or are due. If the student withdraws on or after the sixth day of instruction, ((said)) the governing boards ((of regents and trustees)) may refund or cancel up to one-half of ((said)) the fees, provided such withdrawal occurs within the first thirty calendar days following the beginning of instruction. However, if a different policy is required by federal law in order for the institution of higher education to maintain eligibility for federal funding of programs, the governing board may adopt a refund policy that meets the minimum requirements of the federal law, and the policy may treat all students attending the institution in the same manner.

The ((regents or trustees)) governing boards of the respective universities and colleges may adopt rules for the refund of tuition and fees for courses or programs that begin after the start of the regular quarter or semester. ((Said)) The governing boards ((of regents and trustees)) may adopt rules to comply with RCW 28B.15.623 and may extend the refund or cancellation period for students who withdraw for medical reasons or who are called into the military service of the United States((.

Said boards of regents and trustees)) and may refund other fees pursuant to such rules as they may prescribe.

Sec. 23. RCW 28B.15.615 and 1992 c 231 s 21 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities and the regional universities may exempt the following students from paying all or a portion of the resident operating fee: Students granted a graduate service appointment, designated as such by the institution, involving not less than twenty hours of work per week. The exemption shall be for the term of the appointment. The stipend paid to persons holding graduate student appointments from nonstate funds shall be reduced and the institution reimbursed from such funds in an amount equal to the resident operating fee which funds shall be transmitted to the general fund.

Sec. 24. RCW 28B.15.620 and 1992 c 231 s 22 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, The Evergreen State College, and the community colleges may exempt veterans of the Vietnam conflict who have served in the southeast Asia theater of operations from the payment of any increase in tuition and fees otherwise applicable to any other resident or nonresident student. In such cases, the veteran shall not be required to pay more than the total amount of tuition and fees paid by veterans of the Vietnam conflict on October 1, 1977: PROVIDED, That for the purposes of this exemption, "veterans of the Vietnam conflict" shall be those persons who have been on active federal service as a member of the armed military or naval forces of the United States between a period commencing August 5, 1964, and ending on May 7, 1975, and who qualify as a resident student under RCW 28B.15.012, and who enrolled in state institutions of higher education on or before May 7, 1990. This section shall expire June 30, 1995.

Sec. 25. RCW 28B.15.628 and 1992 c 231 s 23 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, The Evergreen State College, and the community colleges may exempt veterans of the Persian Gulf combat zone from increases in tuition and fees that occur during and after their period of service. In such cases, the veteran shall not be required to pay more than the total amount of tuition and fees established for the 1990-91 academic year, if the veteran could have qualified as a Washington resident student under RCW 28B.15.012(2), had he or she been enrolled as a student on August 1, 1990, and if the veteran's adjusted gross family income as most recently reported to the internal revenue service does not exceed Washington state's median family income as established by the federal bureau of the census. For the purposes of this section, "a veteran of the Persian Gulf combat zone" means a person who during any portion of calendar year 1991, served in active federal service as a member of the armed military or naval forces of the United States in a combat zone as designated by the president of the United States by executive order.

Sec. 26. RCW 28B.15.725 and 1992 c 231 s 24 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, and The Evergreen State College may enter into undergraduate upper division student exchange agreements with comparable public four-year institutions of higher education of other states and agree to exempt participating undergraduate upper division students from payment of all or a portion of the nonresident tuition fees differential subject to the following restrictions:

(1) In any given academic year, the number of students receiving a waiver at a state institution shall not exceed the number of that institution's students receiving nonresident tuition waivers at participating out-of-state institutions. Waiver imbalances that may occur in one year shall be off-set in the year immediately following.

(2) Undergraduate upper division student participation in an exchange program authorized by this section is limited to one academic year.

Sec. 27. RCW 28B.15.730 and 1992 c 231 s 25 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the state board for community and technical colleges and the governing boards of the state universities, the regional universities, the community colleges, and The Evergreen State College may waive all or a portion of the nonresident tuition fees differential for residents of Oregon, upon completion of and to the extent permitted by an agreement between the higher education coordinating board and appropriate officials and agencies in Oregon granting similar waivers for residents of the state of Washington.

Sec. 28. RCW 28B.15.740 and 1992 c 231 s 26 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section, the total dollar amount of tuition and fee waivers awarded by the governing boards shall not exceed four percent, except for the community colleges considered as a whole, such amount shall not exceed three percent of an amount determined by estimating the total collections from tuition and services and activities fees had no such waivers been made, and deducting the portion of that total amount that is attributable to the difference between resident and nonresident fees: PROVIDED, That at least three-fourths of the dollars waived shall be for needy students who are eligible for resident tuition and fee rates pursuant to RCW 28B.15.012 ((through 28B.15.015)) and 28B.15.013: PROVIDED FURTHER, That the remainder of the dollars waived, not to exceed one-fourth of the total, may be applied to other students at the discretion of the governing boards, except on the basis of participation in intercollegiate athletic programs: PROVIDED FURTHER, That the waivers for undergraduate and graduate students of foreign nations under RCW 28B.15.556 are not subject to the limitation under this section.

(2) In addition to the tuition and fee waivers provided in subsection (1) of this section and subject to the provisions of RCW 28B.15.455 and 28B.15.460, a total dollar amount of tuition and fee waivers awarded by any state university, regional university, or state college under this chapter, not to exceed one percent, as calculated in subsection (1) of this section, may be used for the purpose of achieving or maintaining gender equity in intercollegiate athletic programs. At any institution that has an underrepresented gender class in intercollegiate athletics, any such waivers shall be awarded:

(a) First, to members of the underrepresented gender class who participate in intercollegiate athletics, where such waivers result in saved or displaced money that can be used for athletic programs for the underrepresented gender class. Such saved or displaced money shall be used for programs for the underrepresented gender class; and

(b) Second, (i) to nonmembers of the underrepresented gender class who participate in intercollegiate athletics, where such waivers result in saved or displaced money that can be used for athletic programs for members of the underrepresented gender class. Such saved or displaced money shall be used for programs for the underrepresented gender class; or (ii) to members of the underrepresented gender class who participate in intercollegiate athletics, where such waivers do not result in any saved or displaced money that can be used for athletic programs for members of the underrepresented gender class.

Sec. 29. RCW 28B.15.750 and 1992 c 231 s 27 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, and The Evergreen State College and the state board for community and technical colleges may waive all or a portion of the nonresident tuition fees differential for residents of Idaho, upon completion of and to the extent permitted by an agreement between the higher education coordinating board and appropriate officials and agencies in Idaho granting similar waivers for residents of the state of Washington.

Sec. 30. RCW 28B.15.756 and 1992 c 231 s 28 are each amended to read as follows:

Subject to the limitations of RCW 28B.15.910, the governing boards of the state universities, the regional universities, and The Evergreen State College and the state board for community and technical colleges may waive all or a portion of the nonresident tuition fees differential for residents of the Canadian province of British Columbia, upon completion of and to the extent permitted by an agreement between the higher education coordinating board and appropriate officials and agencies in the Canadian province of British Columbia providing for enrollment opportunities for residents of the state of Washington without payment of tuition or fees in excess of those charged to residents of British Columbia.

Sec. 31. RCW 28B.15.910 and 1992 c 231 s 33 are each amended to read as follows:

(1) Except for revenue waived under programs listed in subsection (3) of this section, and unless otherwise expressly provided in the omnibus state appropriations act, the total amount of operating fees revenue waived, exempted, or reduced by a state university, a regional university, The Evergreen State College, or the community colleges as a whole, shall not exceed the percentage of total ((net)) gross authorized operating fees revenue set forth below. As used in this section, "((net)) gross authorized operating fees revenue" means the estimated gross operating fees revenue as estimated under RCW 82.33.020 or as revised by the office of financial management, before granting any waivers((, minus obligations under RCW 28B.15.820)). This limitation applies to all tuition waiver programs established before or after July 1, 1992.

(a) University of Washington 21 percent

(b) Washington State University 20 percent

(d) Central Washington University 8 percent

(e) Western Washington University 10 percent

(f) The Evergreen State College 6 percent

(g) Community colleges as a whole 35 percent

(2) The limitations in subsection (1) of this section apply to waivers, exemptions, or reductions in operating fees contained in the following:

(a) RCW 28B.10.265;

(b) RCW 28B.15.014;

(d) RCW 28B.15.225;

(e) RCW 28B.15.380;

(f) Ungraded courses under RCW 28B.15.502(4);

(g) RCW 28B.15.520;

(h) RCW 28B.15.526;

(i) RCW 28B.15.527;

(j) RCW 28B.15.543;

(k) RCW 28B.15.545;

(l) RCW 28B.15.555;

(m) RCW 28B.15.556;

(n) RCW 28B.15.615;

(o) RCW 28B.15.620;

(p) RCW 28B.15.628;

(q) RCW 28B.15.725;

(r) RCW 28B.15.730;

(s) RCW 28B.15.740;

(t) RCW 28B.15.750;

(u) RCW 28B.15.756;

(v) RCW 28B.50.259;

(w) RCW 28B.70.050; and

(x) RCW 28B.80.580.

(3) The limitations in subsection (1) of this section do not apply to waivers, exemptions, or reductions in services and activities fees contained in the following:

(a) RCW 28B.15.522;

(b) RCW 28B.15.535;

(d) RCW 28B.15.558.

Sec. 32. RCW 28B.50.259 and 1992 c 231 s 29 are each amended to read as follows:

(1) The state board for community and technical colleges shall administer a program designed to provide higher education opportunities to dislocated forest products workers and their unemployed spouses who are enrolled in a community or technical college for ten or more credit hours per quarter. In administering the program, the college board shall have the following powers and duties:

(a) With the assistance of an advisory committee, design a procedure for selecting dislocated forest products workers to participate in the program;

(b) Allocate funding to community and technical colleges attended by participants;

(d) Report to the legislature by December 1, 1993, on the status of the program.

(2) Unemployed spouses of eligible dislocated forest products workers may participate in the program, but tuition and fees may be waived under the program only for the worker or the spouse and not both.

(3) Subject to the limitations of RCW 28B.15.910, the governing boards of the community and technical colleges may waive all or a portion of tuition and fees for program participants, for a maximum of six quarters within a two-year period.

(4) During any biennium, the number of full-time equivalent students to be served in this program shall be determined by the applicable omnibus appropriations act, and shall be in addition to the community college enrollment level funded by the applicable omnibus appropriations act.

Sec. 33. RCW 28B.70.050 and 1992 c 231 s 30 are each amended to read as follows:

When said compact becomes operative the governing board of each institution of higher education in this state, to the extent necessary to conform with the terms of the contractual agreement, subject to the limitations of RCW 28B.15.910, may exempt from payment all or a portion of the nonresident tuition fees differential, any student admitted to such institution under the terms of a contractual agreement entered into with the commission in accord with the provisions of Article VIII(a) of the compact.

Sec. 34. RCW 28B.80.580 and 1992 c 231 s 31 are each amended to read as follows:

(1) The board shall contract with institutions of higher education to provide upper division classes to serve additional placebound students in the timber impact areas meeting the following criteria, as determined by the employment security department: (a) A lumber and wood products employment location quotient at or above the state average; (b) a direct lumber and wood products job loss of one hundred positions or more; and (c) an annual unemployment rate twenty percent above the state average; and which are not served by an existing state-funded upper division degree program. The number of full-time equivalent students served in this manner shall be determined by the applicable omnibus appropriations act. The board may direct that all the full-time equivalent enrollments be served in one of the eligible timber impact areas if it should determine that this would be the most viable manner of establishing the program and using available resources. The institutions shall utilize telecommunication technology, if available, to carry out the purposes of this section. Subject to the limitations of RCW 28B.15.910, the institutions providing the service may waive all or a portion of the tuition, (([and])) and service and activities fees for dislocated forest products workers or their unemployed spouses enrolled as one of the full-time equivalent students allocated to the college under this section.

(3) Subject to the limitations of RCW 28B.15.910, for any eligible participant, all or a portion of tuition may be waived for a maximum of four semesters or six quarters within a two-year time period. The participant must be enrolled for a minimum of ten credits per semester or quarter.

Sec. 35. RCW 28B.101.040 and 1990 c 288 s 6 are each amended to read as follows:

Grants may be used by eligible participants to attend any public or private college or university in the state of Washington that has an existing unused capacity. Grants shall not be used to attend any branch campus or educational program established under chapter 28B.45 RCW. The participant shall not be eligible for a grant if it will be used for any programs that include religious worship, exercise, or instruction or to pursue a degree in theology. Each participating student may receive up to two thousand five hundred dollars per academic year, not to exceed the student's demonstrated financial need for the course of study. Resident students as defined in RCW 28B.15.012(2)(e) are not eligible for grants under this chapter.

Sec. 36. RCW 28B.102.020 and 1987 c 437 s 2 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Conditional scholarship" means a loan that is forgiven in whole or in part if the recipient renders service as a teacher in the public schools of this state.

(2) "Institution of higher education" or "institution" means a college or university in the state of Washington which is accredited by an accrediting association recognized as such by rule of the higher education coordinating board.

(3) "Board" means the higher education coordinating board.

(4) "Eligible student" means a student who is registered for at least ten credit hours or the equivalent, demonstrates achievement of at least a 3.30 grade point average for students entering an institution of higher education directly from high school or maintains at least a 3.00 grade point average or the equivalent for each academic year in an institution of higher education, is a resident student as defined by RCW 28B.15.012 ((through 28B.15.015)) and 28B.15.013, and has a declared intention to complete an approved preparation program leading to initial teacher certification or required for earning an additional endorsement, or a college or university graduate who meets the same credit hour requirements and is seeking an additional teaching endorsement or initial teacher certification. Resident students defined in RCW 28B.15.012(2)(e) are not eligible students under this chapter.

(5) "Public school" means an elementary school, a middle school, junior high school, or high school within the public school system referred to in Article IX of the state Constitution.

(6) "Forgiven" or "to forgive" or "forgiveness" means to render service as a teacher at a public school in the state of Washington in lieu of monetary repayment.

(7) "Satisfied" means paid-in-full.

(8) "Participant" means an eligible student who has received a conditional scholarship under this chapter.

(9) "Targeted ethnic minority" means a group of Americans with a common ethnic or racial heritage selected by the board for program consideration due to societal concerns such as high dropout rates or low rates of college participation by members of the group.

Sec. 37. RCW 82.04.170 and 1992 c 206 s 1 are each amended to read as follows:

"Tuition fee" includes library, laboratory, health service and other special fees, and amounts charged for room and board by an educational institution when the property or service for which such charges are made is furnished exclusively to the students or faculty of such institution. "Educational institution," as used in this section, means only those institutions created or generally accredited as such by the state and includes educational programs that such educational institution cosponsors with a nonprofit organization, as defined by the internal revenue code Sec. 501(c)(3), if such educational institution grants college credit for coursework successfully completed through the educational program, or defined as a degree granting institution under RCW 28B.85.010(3) and accredited by an accrediting association recognized by the United States secretary of education, and offering to students an educational program of a general academic nature or those institutions which are not operated for profit and which are privately endowed under a deed of trust to offer instruction in trade, industry, and agriculture, but not including specialty schools, business colleges, other trade schools, or similar institutions.

NEW SECTION. Sec. 38. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993."

POINT OF INQUIRY

Senator Prince: "Senator Rinehart, what I would like to know, in the case of military personnel, what do they pay? Do they pay out-of-state or in-state--military personnel--under this, as written, because the waiver part has been stricken and made optional at the school and we can't get the staff to agree on what they end up now expected to pay?"

Senator Rinehart: "Senator Prince, if you would give me just a few minutes, I will get you the most accurate answer, rather than alibiing."

There being no objection, the President declared the Senate to be at ease.

The Senate was called to order by President Pritchard.

There being no objection, the Senate resumed consideration of Engrossed Substitute Senate Bill No. 5982 and the pending point of inquiry by Senator Prince to Senator Rinehart.

FURTHER REMARKS BY SENATOR RINEHART

Senator Rinehart: "Thank you, Mr. President. Senator Prince, active duty military will receive a waiver and they will pay resident tuition plus a slight surcharge--the community colleges would apply to them. Military spouses and dependents pay strictly the resident tuition. The rationale is that the military also contributes to the education of the active military duty personnel themselves, but not to the spouses and dependents."

Senator Prince: "Could I ask for one more clarification? To what extent does this waiver extend? It used to be thirteen point two. How much can the waiver be now?"

Senator Rinehart: "I believe that is the option of the local institution."

Senator Prince: "So, they can have like fifty percent or eighty percent?"

Senator Rinehart: "Of what?"

Senator Prince: "Of the base tuition. That's the way the original waiver worked."

Senator Rinehart: "Active duty military personnel receive a waiver and pay resident tuition plus a slight surcharge, so that would be the resident tuition plus whatever percentage--"

Senator Prince: "O.K., but what is the maximum surcharge?"

Senator Rinehart: "That is an institutional decision."

Senator Prince: "So, it could be as much as the waiver?"

Senator Rinehart: "One would assume not or there would have been no cause to give a waiver."

Senator Prince: "Well, that is my question, but beings we've stricken that part of the law, I am concerned, so I just wanted to kind of clarify what our intent is."

Senator Rinehart: "Well, it is not clear to me that the conversation we've just had is going to clarify anything."

Senator Prince: "Well, it isn't to me there, except on the dependents and I do appreciate that."

The President declared the question before the Senate to be the adoption of the striking amendment by Senator Rinehart to Engrossed Substitute Senate Bill No. 5982.

The motion by Senator Rinehart carried and the striking amendment was adopted.

MOTIONS

On motion of Senator Rinehart, the following title amendment was adopted:

On page 1, line 1 of the title, after "tuition;" strike the remainder of the title and insert "amending RCW 28B.10.265, 28B.10.800, 28B.12.060, 28B.15.014, 28B.15.031, 28B.15.100, 28B.15.202, 28B.15.225, 28B.15.380, 28B.15.402, 28B.15.502, 28B.15.515, 28B.15.520, 28B.15.522, 28B.15.527, 28B.15.543, 28B.15.545, 28B.15.556, 28B.15.600, 28B.15.615, 28B.15.620, 28B.15.628, 28B.15.725, 28B.15.730, 28B.15.740, 28B.15.750, 28B.15.756, 28B.15.910, 28B.50.259, 28B.70.050, 28B.80.580, 28B.101.040, 28B.102.020, and 82.04.170; reenacting and amending RCW 28B.15.012; creating a new section; repealing RCW 28B.15.824, 28B.35.361, and 28B.40.361; providing an effective date; and declaring an emergency."

On motion of Senator Rinehart, the rules were suspended, Reengrossed Substitute Senate Bill No. 5982, under suspension of the rules, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Reengrossed Substitute Senate Bill No. 5982, under suspension of the rules.

ROLL CALL

The Secretary called the roll on the final passage of Reengrossed Substitute Senate Bill No. 5982 and the bill passed the Senate by the following vote: Yeas, 29; Nays, 17; Absent, 0; Excused, 3.

Voting yea: Senators Bauer, Bluechel, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Moyer, Niemi, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Vognild and Williams - 29.

Voting nay: Senators Amondson, Anderson, Barr, Cantu, Deccio, Erwin, Hochstatter, McDonald, Nelson, Oke, Roach, Sellar, Talmadge, von Reichbauer, West, Winsley and Wojahn - 17.

Excused: Senators McCaslin, Newhouse and Smith, L. - 3.

REENGROSSED SUBSTITUTE SENATE BILL NO. 5982, under suspension of the rules, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

THIRD READING

SUBSTITUTE SENATE BILL NO. 5966, by Committee on Ways and Means (originally sponsored by Senators Rinehart, Haugen and M. Rasmussen) (by request of Department of Veterans Affairs)

Concerning the state veterans' homes.

MOTIONS

On motion of Senator Rinehart, the rules were suspended and Substitute Senate Bill No. 5966 was returned to second reading and read the second time.

On motion of Senator Rinehart, the following amendment was adopted:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that continued operation of state veterans' homes is necessary to meet the needs of eligible veterans for shelter, personal and nursing care, and related services; that certain residents of veterans' homes or services provided to them may be eligible for participation in the state's medicaid reimbursement system; and that authorizing medicaid participation is appropriate to address the homes' long-term funding needs. The legislature also finds that it is important to maintain the dignity and self-respect of residents of veterans' homes, by providing for continued resident involvement in the homes' operation, and through retention of current law guaranteeing a minimum amount of allowable personal income necessary to meet the greater costs for these residents of transportation, communication, and participation in family and community activities that are vitally important to their maintenance and rehabilitation.

NEW SECTION. Sec. 2. A new section is added to chapter 72.36 RCW to read as follows:

Qualifying operations at state veterans' homes operated by the department of veterans affairs, may be provided under the state's medicaid reimbursement system as administered by the department of social and health services.

The department of veterans affairs may contract with the department of social and health services under the authority of RCW 74.09.120 but shall be exempt from RCW 74.46.660(6), and the provisions of RCW 74.46.420 through 74.46.590 shall not apply to the medicaid rate-setting and reimbursement systems. The nursing care operations at the state veterans' homes shall be subject to inspection by the department of social and health services. This includes every part of the state veterans' home's premises, an examination of all records, including financial records, methods of administration, general and special dietary programs, the disbursement of drugs, methods of supply, and any other records the department of social and health services deems relevant.

NEW SECTION. Sec. 3. A new section is added to chapter 72.36 RCW to read as follows:

The department of veterans affairs shall provide by rule for the annual election of a resident council for each state veterans' home. The council shall annually elect a chair from among its members, who shall call and preside at council meetings. The resident council shall serve in an advisory capacity to the director of the department of veterans affairs and to the superintendent in all matters related to policy and operational decisions affecting resident care and life in the home.

By October 31, 1993, the department shall adopt rules that provide for specific duties and procedures of the resident council which create an appropriate and effective relationship between residents and the administration. These rules shall be adopted after consultation with the resident councils and the state long-term care ombuds, and shall include, but not be limited to the following:

(1) Provision of staff technical assistance to the councils;

(2) Provision of an active role for residents in developing choices regarding activities, foods, living arrangements, personal care, and other aspects of resident life;

(3) A procedure for resolving resident grievances; and

(4) The role of the councils in assuring that resident rights are observed.

The development of these rules should include consultation with all residents through the use of both questionnaires and group discussions.

The resident council for each state veterans' home shall annually review the proposed expenditures from the benefit fund that shall contain all private donations to the home, all bequeaths, and gifts. Disbursements from each benefit fund shall be for the benefit and welfare of the residents of the state veterans' homes. Disbursements from the benefits funds shall be on the authorization of the superintendent or his or her authorized representative after approval has been received from the home's resident council.

The superintendent or his or her designated representative shall meet with the resident council at least monthly. The director of the department of veterans affairs shall meet with each resident council at least three times each year.

Sec. 4. RCW 72.36.020 and 1977 c 31 s 2 are each amended to read as follows:

The director of the department of veterans affairs shall appoint a superintendent for ((the state soldiers' home and colony, and a superintendent for the Washington veterans' home, who, with the consent of the director, may be styled, respectively, "commandant of the home")) each state veterans' home. The superintendent shall exercise management and control of the institution in accordance with either policies ((and/or)) or procedures promulgated by the director of the department of veterans affairs, or both, and rules and regulations of the department. In accordance with chapter 18.52 RCW, the individual appointed as superintendent for either state veterans' home shall be a licensed nursing home administrator. The department may request a waiver to, or seek an alternate method of compliance with, the federal requirement for a licensed on-site administrator during a transition phase from July 1, 1993, to June 30, 1994.

Sec. 5. RCW 72.36.030 and 1977 ex.s. c 186 s 1 are each amended to read as follows:

((All honorably discharged veterans who have served the United States government in any of its wars, and members of the state militia disabled while in the line of duty, may be admitted to the state soldiers' home at Orting under such rules and regulations as may be adopted by the department: PROVIDED, That such applicants have been actual bona fide residents of this state at the time of their application, and are indigent and unable to support themselves: PROVIDED FURTHER, That the surviving spouses of all veterans and members of the state militia disabled while in the line of duty, who were members of a soldiers' home or colony or veterans' home in this state or entitled to admission thereto at the time of death, and surviving spouses of all such veterans and members of the state militia, who would have been entitled to admission to a soldiers' home or colony or veterans' home in this state at the time of death, but for the fact that they were not indigent and unable to earn a support for themselves and families, which spouses have since the death of their husbands or wives, become indigent and unable to earn a support for themselves shall be admitted to such home: PROVIDED, FURTHER, That such spouses are not less than fifty years of age and were married and living with their husbands or wives on or before three years prior to the date of their application, and have not been married since the decease of their husbands or wives to any person not a member of a soldiers' home or colony or veterans' home in this state or entitled to admission thereto: AND PROVIDED, FURTHER, That sufficient facilities and resources are available to accommodate such applicant.)) All of the following persons who have been actual bona fide residents of this state at the time of their application, and who are indigent and unable to support themselves and their families may be admitted to a state veterans' home under rules as may be adopted by the director of the department, unless sufficient facilities and resources are not available to accommodate these people:

(1)(a) All honorably discharged veterans of a branch of the armed forces of the United States or merchant marines; (b) members of the state militia disabled while in the line of duty; and (c) the spouses of these veterans, merchant marines, and members of the state militia. However, it is required that the spouse was married to and living with the veteran three years prior to the date of application for admittance, or, if married to him or her since that date, was also a resident of a state veterans' home in this state or entitled to admission thereto;

(2)(a) The spouses of: (i) All honorably discharged veterans of the United States armed forces; (ii) merchant marines; and (iii) members of the state militia who were disabled while in the line of duty and who were residents of a state veterans' home in this state or were entitled to admission to one of this state's state veteran homes at the time of death; (b) the spouses of: (i) All honorably discharged veterans of a branch of the United States armed forces; (ii) merchant marines; and (iii) members of the state militia who would have been entitled to admission to one of this state's state veterans' homes at the time of death, but for the fact that the spouse was not indigent, but has since become indigent and unable to support himself or herself and his or her family. However, the included spouse shall be at least fifty years old and have been married to and living with their husband or wife for three years prior to the date of their application. The included spouse shall not have been married since the death of his or her husband or wife to a person who is not a resident of one of this state's state veterans' homes or entitled to admission to one of this state's state veterans' homes; and

(3) All applicants for admission to a state veterans' home shall apply for all federal and state benefits for which they may be eligible, including medical assistance under chapter 74.09 RCW.

Sec. 6. RCW 72.36.035 and 1991 c 240 s 2 are each amended to read as follows:

For purposes of this chapter, unless the context clearly indicates otherwise((,)):

(1) "Actual bona fide residents of this state" ((shall mean)) means persons who have a domicile in the state of Washington immediately prior to application for ((membership in the soldiers' home or colony or veterans')) admission to a state veterans' home.

((The term)) (2) "Department" means the Washington state department of veterans affairs.

(3) "Domicile" ((shall mean)) means a person's true, fixed, and permanent home and place of habitation, and shall be the place where the person intends to remain, and to which the person expects to return when the person leaves without intending to establish a new domicile elsewhere.

(4) "State veterans' home" means either the Washington soldiers' home and colony in Orting, or the Washington veterans' home in Retsil, or both.

(5) "Veteran" has the same meaning established in RCW 41.04.005.

Sec. 7. RCW 72.36.120 and 1977 ex.s. c 186 s 7 are each amended to read as follows:

((All income of members of the soldiers' home in excess of allowable income shall be deposited in the soldiers' home revolving fund as established in section 55, chapter 269, Laws of 1975 1st ex. sess. (uncodified, and herein continued and reenacted).

(1) Allowable income shall be defined by the rules and regulations adopted by the department: PROVIDED, That the allowable income of members accepted for membership shall not be decreased below one hundred sixty dollars per month during periods that such members are resident thereat.

(2) Disbursements from the soldiers' home revolving fund shall be for the benefit and welfare of all members of the soldiers' home and such disbursements shall be on the authorization of the superintendent or his authorized representative after approval has been received from a duly constituted body representative of the members.

(3) In order to maintain an effective expenditure and revenue control, the soldiers' home revolving fund shall be subject in all respects to chapter 43.88 RCW, but no appropriation shall be required to permit expenditures from such funds.)) All income of residents of a state veterans' home, other than the personal needs allowance and income from therapeutic employment, shall be deposited in the state general fund--local and be available to apply against the cost of care provided by the state veterans' homes. The resident council created under section 3 of this act may make recommendations on expenditures under this section. All expenditures and revenue control shall be subject to chapter 43.88 RCW.

Sec. 8. RCW 74.09.120 and 1992 c 8 s 1 are each amended to read as follows:

The department shall purchase necessary physician and dentist services by contract or "fee for service." The department shall purchase nursing home care by contract. The department shall establish regulations for reasonable nursing home accounting and reimbursement systems which shall provide that no payment shall be made to a nursing home which does not permit inspection by the department of social and health services of every part of its premises and an examination of all records, including financial records, methods of administration, general and special dietary programs, the disbursement of drugs and methods of supply, and any other records the department deems relevant to the establishment of such a system.

The department may purchase nursing home care by contract in veterans' homes operated by the state department of veterans affairs. The department shall establish rules for reasonable accounting and reimbursement systems for such care.

The department may purchase care in institutions for the mentally retarded, also known as intermediate care facilities for the mentally retarded. The department shall establish rules for reasonable accounting and reimbursement systems for such care. Institutions for the mentally retarded include licensed nursing homes, public institutions, licensed boarding homes with fifteen beds or less, and hospital facilities certified as intermediate care facilities for the mentally retarded under the federal medicaid program to provide health, habilitative, or rehabilitative services and twenty-four hour supervision for mentally retarded individuals or persons with related conditions and includes in the program "active treatment" as federally defined.

The department may purchase care in institutions for mental diseases by contract. The department shall establish rules for reasonable accounting and reimbursement systems for such care. Institutions for mental diseases are certified under the federal medicaid program and primarily engaged in providing diagnosis, treatment, or care to persons with mental diseases, including medical attention, nursing care, and related services.

The department may purchase all other services provided under this chapter by contract or at rates established by the department.

NEW SECTION. Sec. 9. A new section is added to chapter 72.36 RCW to read as follows:

The legislature finds that to meet the objectives of section 1, chapter ...., Laws of 1993 1st sp. sess. (section 1 of this act), the personal needs allowance for all nursing care residents of the state veterans' homes shall be an amount approved by the federal health care financing authority, but not less than ninety dollars or more than one hundred sixty dollars per month during periods of residency. For all domicilliary residents, the personal needs allowance shall be one hundred sixty dollars per month, or a higher amount defined in rules adopted by the department.

NEW SECTION. Sec. 10. A new section is added to chapter 72.36 RCW to read as follows:

No reduction in the allowable income provided for in current department rules may take effect until the effective date of certification of qualifying operations at state veterans' homes for participation in the state's medicaid reimbursement system.

NEW SECTION. Sec. 11. The following acts or parts of acts are each repealed:

(1) RCW 72.36.080 and 1977 ex.s. c 186 s 5, 1975 c 13 s 2, 1973 1st ex.s. c 154 s 104, & 1959 c 28 s 72.36.080; and

(2) RCW 72.36.130 and 1977 ex.s. c 186 s 8.

NEW SECTION. Sec. 12. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993."

MOTIONS

On motion of Senator Rinehart, the following title amendment was adopted:

On page 1, line 1 of the title, after "institutions;" strike the remainder of the title and insert "amending RCW 72.36.020, 72.36.030, 72.36.035, 72.36.120, and 74.09.120; adding new sections to chapter 72.36 RCW; creating a new section; repealing RCW 72.36.080 and 72.36.130; providing an effective date; and declaring an emergency."

On motion of Senator Rinehart, the rules were suspended, Engrossed Substitute Senate Bill No. 5966, under suspension of the rules, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5966, under suspension of the rules.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5966, under suspension of the rules, and the bill passed the Senate by the following vote: Yeas, 38; Nays, 8; Absent, 0; Excused, 3.

Voting yea: Senators Amondson, Barr, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams and Wojahn - 38.

Voting nay: Senators Anderson, Cantu, Oke, Prince, Roach, von Reichbauer, West and Winsley - 8.

Excused: Senators McCaslin, Newhouse and Smith, L. - 3.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5966, under suspension of the rules, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

THIRD READING

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5521, by Committee on Ways and Means (originally sponsored by Senators Loveland, Prince, Vognild, Sheldon, Quigley, Jesernig, Skratek, McAuliffe and Snyder)

Concerning criminal justice programs.

MOTION

On motion of Senator Vognild, the rules were suspended and Engrossed Second Substitute Senate Bill No. 5521 was returned to second reading and read the second time.

MOTIONS

Senator Rinehart moved that the following amendment by Senators Loveland, Rinehart, Vognild, Wojahn, Drew, McAuliffe, Franklin, Quigley and Fraser be adopted:

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 82.14.310 and 1991 c 311 s 1 are each amended to read as follows:

(1) The county criminal justice assistance account is created in the state treasury. ((The account shall consist of all motor vehicle excise tax receipts deposited into the account under chapter 82.44 RCW.))

(2) The moneys deposited in the county criminal justice assistance account for distribution under this section shall be distributed at such times as distributions are made under RCW 82.44.150 and on the relative basis of each county's funding factor as determined under this subsection.

(a) A county's funding factor is the sum of:

(i) The population of the county, divided by one thousand, and multiplied by two-tenths;

(ii) The crime rate of the county, multiplied by three-tenths; and

(iii) The annual number of criminal cases filed in the county superior court, for each one thousand in population, multiplied by five-tenths.

(b) Under this section and RCW 82.14.320 and 82.14.330:

(i) The population of the county or city shall be as last determined by the office of financial management;

(ii) The crime rate of the county or city is the annual occurrence of specified criminal offenses, as calculated in the most recent annual report on crime in Washington state as published by the Washington association of sheriffs and police chiefs, for each one thousand in population;

(iii) The annual number of criminal cases filed in the county superior court shall be determined by the most recent annual report of the courts of Washington, as published by the office of the administrator for the courts.

(iv) Distributions and eligibility for distributions in the 1989-91 biennium shall be based on 1988 figures for both the crime rate as described under (ii) of this subsection and the annual number of criminal cases that are filed as described under (iii) of this subsection. Future distributions shall be based on the most recent figures for both the crime rate as described under (ii) of this subsection and the annual number of criminal cases that are filed as described under (iii) of this subsection.

(3) Moneys distributed under this section shall be expended exclusively for criminal justice purposes and shall not be used to replace or supplant existing funding. Criminal justice purposes are defined as activities that substantially assist the criminal justice system, which may include circumstances where ancillary benefit to the civil justice system occurs, and which includes domestic violence services such as those provided by domestic violence programs, community advocates, and legal advocates, as defined in RCW 70.123.020. Existing funding for purposes of this subsection is defined as calendar year 1989 actual operating expenditures for criminal justice purposes. Calendar year 1989 actual operating expenditures for criminal justice purposes exclude the following: Expenditures for extraordinary events not likely to reoccur, changes in contract provisions for criminal justice services, beyond the control of the local jurisdiction receiving the services, and major nonrecurring capital expenditures.

(((4) This section expires January 1, 1994.))

Sec. 2. RCW 82.14.320 and 1992 c 55 s 1 are each amended to read as follows:

(1) The municipal criminal justice assistance account is created in the state treasury. ((The account shall consist of all motor vehicle excise tax receipts deposited into the account under chapter 82.44 RCW.))

(2) No city may receive a distribution under this section from the municipal criminal justice assistance account unless:

(a) The city has a crime rate in excess of one hundred twenty-five percent of the state-wide average as calculated in the most recent annual report on crime in Washington state as published by the Washington association of sheriffs and police chiefs;

(b) The city has levied the tax authorized in RCW 82.14.030(2) at the maximum rate or the tax authorized in RCW 82.46.010(((2))) (3) at the maximum rate; and

(c) The city has a per capita yield from the tax imposed under RCW 82.14.030(1) at the maximum rate of less than one hundred fifty percent of the state-wide average per capita yield for all cities from such local sales and use tax.

(3) The moneys deposited in the municipal criminal justice assistance account for distribution under this section shall be distributed at such times as distributions are made under RCW 82.44.150. The distributions shall be made as follows:

(a) Unless reduced by this subsection, thirty percent of the moneys shall be distributed ratably based on population as last determined by the office of financial management to those cities eligible under subsection (2) of this section that have a crime rate determined under subsection (2)(a) of this section which is greater than one hundred seventy-five percent of the state-wide average crime rate. No city may receive more than fifty percent of any moneys distributed under this subsection (a) but, if a city distribution is reduced as a result of exceeding the fifty percent limitation, the amount not distributed shall be distributed under (b) of this subsection.

(b) The remainder of the moneys, including any moneys not distributed in subsection (2)(a) of this section, shall be distributed to all cities eligible under subsection (2) of this section ratably based on population as last determined by the office of financial management.

(4) No city may receive more than thirty percent of all moneys distributed under subsection (3) of this section.

(5) Notwithstanding other provisions of this section, the distributions to any city that substantially decriminalizes or repeals its criminal code after July 1, 1990, and that does not reimburse the county for costs associated with criminal cases under RCW 3.50.800 or 3.50.805(2), shall be made to the county in which the city is located.

(6) Moneys distributed under this section shall be expended exclusively for criminal justice purposes and shall not be used to replace or supplant existing funding. Criminal justice purposes are defined as activities that substantially assist the criminal justice system, which may include circumstances where ancillary benefit to the civil justice system occurs, and which includes domestic violence services such as those provided by domestic violence programs, community advocates, and legal advocates, as defined in RCW 70.123.020. Existing funding for purposes of this subsection is defined as calendar year 1989 actual operating expenditures for criminal justice purposes. Calendar year 1989 actual operating expenditures for criminal justice purposes exclude the following: Expenditures for extraordinary events not likely to reoccur, changes in contract provisions for criminal justice services, beyond the control of the local jurisdiction receiving the services, and major nonrecurring capital expenditures.

(((6) This section expires January 1, 1994.))

Sec. 3. RCW 82.14.330 and 1991 c 311 s 4 are each amended to read as follows:

(1) The moneys deposited in the municipal criminal justice assistance account for distribution under this section shall be distributed ((at such times as distributions are made under RCW 82.44.150. Such moneys shall be distributed)) to the cities of the state as follows:

(a) ((For fiscal year 1991, each city with a population of under ten thousand shall receive a distribution of three thousand two hundred fifty dollars. Any remaining moneys shall be distributed to all cities ratably on the basis of population as last determined by the office of financial management.

(b) For fiscal year 1992 and thereafter, each city with a population of under ten thousand shall receive a distribution of two thousand seven hundred fifty dollars. Any remaining moneys shall be distributed to all cities ratably on the basis of population as last determined by the office of financial management.

(2))) Twenty percent appropriated for distribution shall be distributed to cities with a three-year average violent crime rate for each one thousand in population in excess of one hundred fifty percent of the state-wide three-year average violent crime rate for each one thousand in population. The three-year average violent crime rate shall be calculated using the violent crime rates for each of the preceding three years from the annual reports on crime in Washington state as published by the Washington association of sheriffs and police chiefs. Moneys shall be distributed under this subsection (1)(a) ratably based on population as last determined by the office of financial management, but no city may receive more than one dollar per capita.

(b) Sixteen percent shall be distributed to cities ratably based on population as last determined by the office of financial management, but no city may receive less than one thousand dollars.

The moneys deposited in the municipal criminal justice assistance account for distribution under this subsection shall be distributed at such times as distributions are made under RCW 82.44.150.

Moneys distributed under this ((section)) subsection shall be expended exclusively for criminal justice purposes and shall not be used to replace or supplant existing funding. Criminal justice purposes are defined as activities that substantially assist the criminal justice system, which may include circumstances where ancillary benefit to the civil justice system occurs, and which includes domestic violence services such as those provided by domestic violence programs, community advocates, and legal advocates, as defined in RCW 70.123.020. Existing funding for purposes of this subsection is defined as calendar year 1989 actual operating expenditures for criminal justice purposes. Calendar year 1989 actual operating expenditures for criminal justice purposes exclude the following: Expenditures for extraordinary events not likely to reoccur, changes in contract provisions for criminal justice services, beyond the control of the local jurisdiction receiving the services, and major nonrecurring capital expenditures.

(2) In addition to the distributions under subsection (1) of this section:

(a) Fourteen percent shall be distributed to cities that have initiated innovative law enforcement strategies, including alternative sentencing and crime prevention programs. No city may receive more than one dollar per capita under this subsection (2)(a).

(b) Twenty percent shall be distributed to cities that have initiated programs to help at-risk children or child abuse victim response programs. No city may receive more than fifty cents per capita under this subsection (2)(b).

(c) Twenty percent shall be distributed to cities that have initiated programs designed to reduce the level of domestic violence within their jurisdictions or to provide counseling for domestic violence victims. No city may receive more than fifty cents per capita under this subsection (2)(c).

(d) Ten percent shall be distributed to cities that contract with another governmental agency for a majority of the city's law enforcement services.

Moneys distributed under this subsection shall be distributed to those cities that submit funding requests under this subsection to the department of community development based on criteria developed under section 4 of this act. Allocation of funds shall be in proportion to the population of qualified jurisdictions, but the distribution to a city shall not exceed the amount of funds requested. Cities shall submit requests for program funding to the department of community development by November 1 of each year for funding the following year. The department shall certify to the state treasurer the cities eligible for funding under this subsection and the amount of each allocation.

One-half of the moneys distributed under (a) through (d) of this subsection shall be distributed on March 1st and the remaining one-half of the moneys shall be distributed on September 1st. Moneys remaining undistributed under this subsection at the end of each calendar year shall be distributed to the criminal justice training commission to reimburse participating city law enforcement agencies with ten or fewer full-time commissioned patrol officers the cost of temporary replacement of each officer who is enrolled in basic law enforcement training, as provided in RCW 43.101.200.

If a city is found by the state auditor to have expended funds received under this subsection in a manner that does not comply with the criteria under which the moneys were received, the city shall be ineligible to receive future distributions under this subsection until the use of the moneys are justified to the satisfaction of the director or are repaid to the state general fund. The director may allow noncomplying use of moneys received under this subsection upon a showing of hardship or other emergent need.

(3) ((This section expires January 1, 1994)) Notwithstanding other provisions of this section, the distributions to any city that substantially decriminalizes or repeals its criminal code after July 1, 1990, and that does not reimburse the county for costs associated with criminal cases under RCW 3.50.800 or 3.50.805(2), shall be made to the county in which the city is located.

NEW SECTION. Sec. 4. A new section is added to chapter 82.14 RCW to read as follows:

The department of community development shall adopt criteria to be used in making grants to cities under RCW 82.14.330(2). In developing the criteria, the department shall create a temporary advisory committee consisting of the director of community development, two representatives nominated by the association of Washington cities, and two representatives nominated by the Washington association of sheriffs and police chiefs.

Sec. 5. RCW 43.101.200 and 1989 c 299 s 2 are each amended to read as follows:

(1) All law enforcement personnel, except volunteers, and reserve officers whether paid or unpaid, initially employed on or after January 1, 1978, shall engage in basic law enforcement training which complies with standards adopted by the commission pursuant to RCW 43.101.080 ((and 43.101.160)). For personnel initially employed before January 1, 1990, such training shall be successfully completed during the first fifteen months of employment of such personnel unless otherwise extended or waived by the commission and shall be requisite to the continuation of such employment. Personnel initially employed on or after January 1, 1990, shall commence basic training during the first six months of employment unless the basic training requirement is otherwise waived or extended by the commission. Successful completion of basic training is requisite to the continuation of employment of such personnel initially employed on or after January 1, 1990.

(2) The commission shall provide the aforementioned training together with necessary facilities, supplies, materials, and the board and room of noncommuting attendees for seven days per week. Additionally, to the extent funds are provided for this purpose, the commission shall reimburse to participating law enforcement agencies with ten or less full-time commissioned patrol officers the cost of temporary replacement of each officer who is enrolled in basic law enforcement training: PROVIDED, That such reimbursement shall include only the actual cost of temporary replacement not to exceed the total amount of salary and benefits received by the replaced officer during his training period.

Sec. 6. RCW 82.14.340 and 1991 c 311 s 5 and 1991 c 301 s 16 are each reenacted and amended to read as follows:

The legislative authority of any county ((with a population of two hundred thousand or more, any county located east of the crest of the Cascade mountains with a population of one hundred fifty thousand or more, and any other county with a population of one hundred fifty thousand or more that has had its population increase by at least twenty-four percent during the preceding nine years, as certified by the office of financial management for the first day of April of each year, may and, if requested by resolution of the governing bodies of cities in the county with an aggregate population equal to or greater than fifty percent of the total population of the county, as last determined by the office of financial management, shall submit an authorizing proposition to the voters of the county and if approved by a majority of persons voting,)) may fix and impose a sales and use tax in accordance with the terms of this chapter, provided that such sales and use tax is subject to repeal by referendum, using the procedures provided in RCW 82.14.036. The referendum procedure provided in RCW 82.14.036 is the exclusive method for subjecting any county sales and use tax ordinance or resolution to a referendum vote.

The tax authorized in this section shall be in addition to any other taxes authorized by law and shall be collected from those persons who are taxable by the state pursuant to chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within such county. The rate of tax shall equal one-tenth of one percent of the selling price (in the case of a sales tax) or value of the article used (in the case of a use tax).

When distributing moneys collected under this section, the state treasurer shall distribute ten percent of the moneys to the county in which the tax was collected. The remainder of the moneys collected under this section shall be distributed to the county and the cities within the county ratably based on population as last determined by the office of financial management. In making the distribution based on population, the county shall receive that proportion that the unincorporated population of the county bears to the total population of the county and each city shall receive that proportion that the city incorporated population bears to the total county population.

Moneys received from any tax imposed under this section shall be expended exclusively for criminal justice purposes and shall not be used to replace or supplant existing funding. Criminal justice purposes are defined as activities that substantially assist the criminal justice system, which may include circumstances where ancillary benefit to the civil justice system occurs, and which includes domestic violence services such as those provided by domestic violence programs, community advocates, and legal advocates, as defined in RCW 70.123.020. Existing funding for purposes of this subsection is defined as calendar year 1989 actual operating expenditures for criminal justice purposes. Calendar year 1989 actual operating expenditures for criminal justice purposes exclude the following: Expenditures for extraordinary events not likely to reoccur, changes in contract provisions for criminal justice services, beyond the control of the local jurisdiction receiving the services, and major nonrecurring capital expenditures. ((Moneys received by the county and the cities within the county from any tax imposed under this section may be expended for domestic violence community advocates, as defined in RCW 70.123.020, if, prior to July 28, 1991, and prior to approval of the voters, the legislative authority of the county, which submitted an authorizing proposition to the voters of the county, adopted by ordinance a financial plan that included expenditure of a portion of the moneys received for domestic violence community advocates.

This section expires January 1, 1994.))

Sec. 7. RCW 82.44.110 and 1993 c ... (Engrossed Senate Bill No. 5978) s 1 are each amended to read as follows:

The county auditor shall regularly, when remitting license fee receipts, pay over and account to the director of licensing for the excise taxes collected under the provisions of this chapter. The director shall forthwith transmit the excise taxes to the state treasurer.

(1) The state treasurer shall deposit the excise taxes collected under RCW 82.44.020(1) as follows:

(a) 1.60 percent into the motor vehicle fund to defray administrative and other expenses incurred by the department in the collection of the excise tax.

(b) 8.15 percent into the Puget Sound capital construction account in the motor vehicle fund.

(d) 8.83 percent into the general fund to be distributed under RCW 82.44.155.

(e) 4.75 percent into the municipal sales and use tax equalization account in the general fund created in RCW 82.14.210.

(f) 1.60 percent into the county sales and use tax equalization account in the general fund created in RCW 82.14.200.

(g) 62.6440 percent into the general fund through ((December 31, 1993, 71 percent into the general fund beginning January 1, 1994)) June 30, 1995, and ((66)) 57.6440 percent into the general fund beginning July 1, 1995.

(h) 5 percent into the transportation fund created in RCW 82.44.180 beginning July 1, 1995.

(i) 5.9686 percent into the county criminal justice assistance account created in RCW 82.14.310 ((through December 31, 1993)).

(j) 1.1937 percent into the municipal criminal justice assistance account for distribution under RCW 82.14.320 ((through December 31, 1993)).

(k) 1.1937 percent into the municipal criminal justice assistance account for distribution under RCW 82.14.330 ((through December 31, 1993)).

Notwithstanding (i) through (k) of this subsection, no more than sixty million dollars shall be deposited into the accounts specified in (i) through (k) of this subsection for the period January 1, 1994, through June 30, 1995. For the fiscal year ending June 30, 1998, and for each fiscal year thereafter, the amounts deposited into the accounts specified in (i) through (k) of this subsection shall not increase by more than the amounts deposited into those accounts in the previous fiscal year increased by the implicit price deflator for the previous fiscal year. Any revenues in excess of this amount shall be deposited into the general fund.

(2) The state treasurer shall deposit the excise taxes collected under RCW 82.44.020(2) into the transportation fund.

(3) The state treasurer shall deposit the excise tax imposed by RCW 82.44.020(3) into the air pollution control account created by RCW 70.94.015.

Sec. 8. RCW 72.09.300 and 1991 c 363 s 148 are each amended to read as follows:

(1) ((A)) Every county legislative authority ((may)) shall by resolution or ordinance establish a local law and justice council. The county legislative authority shall determine the size and composition of the council, which shall include the county sheriff and a representative of the municipal police departments within the county, the county prosecutor and a representative of the municipal prosecutors within the county, a representative of the city legislative authorities within the county, a representative of the county's superior, district, and municipal courts, the county jail administrator, the county clerk, the county risk manager, and the secretary of corrections. Officials designated may appoint representatives.

(2) A combination of counties may establish a local law and justice council by intergovernmental agreement. The agreement shall comply with the requirements of this section.

(3) The local law and justice council shall develop a local law and justice plan for the county. The council shall design the elements and scope of the plan, subject to final approval by the county legislative authority. The general intent of the plan shall include seeking means to maximize local resources including personnel and facilities, reduce duplication of services, and share resources between local and state government in order to accomplish local efficiencies without diminishing effectiveness. The plan shall also include a section on jail management. This section may include the following elements:

(a) A description of current jail conditions, including whether the jail is overcrowded;

(b) A description of potential alternatives to incarceration;

(d) A description of the jail population as it presently exists and how it is projected to change in the future;

(e) A description of projected future resource requirements;

(f) A proposed action plan, which shall include recommendations to maximize resources, maximize the use of intermediate sanctions, minimize overcrowding, avoid duplication of services, and effectively manage the jail and the offender population;

(g) A list of proposed advisory jail standards and methods to effect periodic quality assurance inspections of the jail;

(h) A proposed plan to collect, synthesize, and disseminate technical information concerning local criminal justice activities, facilities, and procedures;

(i) A description of existing and potential services for offenders including employment services, substance abuse treatment, mental health services, and housing referral services.

(4) The council may propose other elements of the plan, which shall be subject to review and approval by the county legislative authority, prior to their inclusion into the plan.

(5) The county legislative authority may request technical assistance in developing or implementing the plan from other units or agencies of state or local government, which shall include the department, the office of financial management, and the Washington association of sheriffs and police chiefs.

(6) Upon receiving a request for assistance from a county, the department may provide the requested assistance.

(7) The secretary may adopt rules for the submittal, review, and approval of all requests for assistance made to the department. The secretary may also appoint an advisory committee of local and state government officials to recommend policies and procedures relating to the state and local correctional systems and to assist the department in providing technical assistance to local governments. The committee shall include representatives of the county sheriffs, the police chiefs, the county prosecuting attorneys, the county and city legislative authorities, and the jail administrators. The secretary may contract with other state and local agencies and provide funding in order to provide the assistance requested by counties.

(8) The department shall establish a base level of state correctional services, which shall be determined and distributed in a consistent manner state-wide. The department's contributions to any local government, approved pursuant to this section, shall not operate to reduce this base level of services.

Sec. 9. RCW 9A.16.110 and 1989 c 94 s 1 are each amended to read as follows:

(((1))) No person in the state shall be placed in legal jeopardy of any kind whatsoever for protecting by any reasonable means necessary, himself or herself, his or her family, or his or her real or personal property, or for coming to the aid of another who is in imminent danger of or the victim of assault, robbery, kidnapping, arson, burglary, rape, murder, or any other heinous crime.

(((2) When a substantial question of self defense in such a case shall exist which needs legal investigation or court action for the full determination of the facts, and the defendant's actions are subsequently found justified under the intent of this section, the state of Washington shall indemnify or reimburse such defendant for all loss of time, legal fees, or other expenses involved in his or her defense. This indemnification or reimbursement is an award of reasonable costs which include loss of time, legal fees, or other expenses and is not an independent cause of action. The determination of an award shall be by the judge or jury at the discretion of the judge in the criminal proceeding. To award these reasonable costs the trier of fact must find that the defendant's claim of self-defense was sustained by a preponderance of the evidence: PROVIDED, HOWEVER, That nothing shall preclude the legislature from granting a higher award through the sundry claims process.

(3) Whenever the issue of self defense under this section is decided by a judge or whenever a judge exercises the discretion authorized under subsection (2) of this section in determining an award, the judge shall consider the same questions as must be answered in the special verdict under subsection (4) of this section.

(4) Whenever the issue of self defense under this section has been submitted to a jury, and the jury has found the defendant not guilty, and the judge has submitted an award determination to the jury, the court shall instruct the jury to return a special verdict in substantially the following form:

answer

yes or no

1. Was the finding of not guilty based upon self defense? . . . . .

2. If your answer to question 1 is no, do not answer the remaining question.

3. If your answer to question 1 is yes, was the defendant:

a. Protecting himself or herself? . . . . .

b. Protecting his or her family? . . . . .

c. Protecting his or her property? . . . . .

d. Coming to the aid of another who was in imminent danger of a heinous crime? . . . . .

e. Coming to the aid of another who was the victim of a heinous crime? . . . . .))

NEW SECTION. Sec. 10. The sum of sixty million dollars is appropriated as follows:

(1) The sum of forty-two million eight hundred fifty-seven thousand three hundred forty-eight dollars, or so much thereof as may be necessary, is appropriated from the county criminal justice assistance account in the general fund to the state treasurer for the biennium ending June 30, 1995, for county criminal justice assistance under RCW 82.14.310.

(2) The sum of seventeen million one hundred forty-two thousand six hundred fifty-two dollars, or so much thereof as may be necessary, is appropriated from the municipal criminal justice assistance account in the general fund to the state treasurer for the biennium ending June 30, 1995, for municipal criminal justice assistance under RCW 82.14.320 and 82.14.330.

NEW SECTION. Sec. 11. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993, except for section 4 of this act, which shall take effect immediately, and sections 1 through 3, 5, and 7 of this act, which shall take effect January 1, 1994."

Senator McDonald moved that the following amendment to the amendment be adopted:

On page 8, beginning on line 14, after "chapter" strike all materials through and including "vote" on line 18, and insert ": PROVIDED, That the tax may only be imposed if the proposition authorizing the tax is validly submitted to and is approved by the voters of the county"

Debate ensued.

Senator Nelson demanded a roll call and the demand was sustained.

Further debate ensued.

The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senator McDonald on page 8, beginning on line 14, to the striking amendment to Engrossed Second Substitute Senate Bill No. 5521.

ROLL CALL

The Secretary called the roll and the amendment to the amendment was not adopted by the following vote: Yeas, 15; Nays, 31; Absent, 0; Excused, 3.

Voting yea: Senators Amondson, Anderson, Cantu, Deccio, Erwin, Hochstatter, McDonald, Moyer, Nelson, Oke, Prince, Roach, Sellar, von Reichbauer and West - 15.

Voting nay: Senators Barr, Bauer, Bluechel, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams, Winsley and Wojahn - 31.

Excused: Senators McCaslin, Newhouse and Smith, L. - 3.

MOTION

Senator Roach moved that the following amendment to the striking amendment be adopted:

On page 12, after line 26, strike all of Section 9, through and including "crime? ....))" on page 13, line 36

Debate ensued.

POINT OF ORDER

Senator Nelson: "Based on the arguments that I have heard thus far, I would rise to a point of order. I would like the President to rule on the scope and object of the amendment based on the inclusion of a Section in Statute 9, which deals with the criminal statutes and make a determination whether or not that, in fact, is part of the local criminal justice funding measure that has been the basis for this measure from the very beginning. The original bill did not have this particular language; it had to have been added somewhere along the line and at this point, I don't think the body has been made aware of the consequences of voting for this section."

Debate ensued.

POINT OF ORDER

Senator Roach: "A point of order, Mr. President. Senator Rinehart has already spoken."

REPLY BY THE PRESIDENT

President Pritchard: "No, we are speaking on the point of order and both sides get to comment on the point of order. Continue, Senator Rinehart."

There being no objection, the President declared the Senate to be at ease.

The Senate was called to order by President Pritchard.

RULING BY THE PRESIDENT

President Pritchard: "In ruling upon the point of order raised by Senator Nelson, the President finds that Engrossed Second Substitute Senate Bill No. 5521 contained the language and intent of Section 9.

"The President, therefore, finds that the amendment by Senator Roach on page 12, after line 26, to the striking amendment does not change the scope and object of the bill and the point of order is not well taken."

The amendment by Senator Roach on page 12, after line 26, to the striking amendment to Engrossed Second Substitute Senate Bill No. 5521 was ruled in order.

Debate ensued.

Senator Roach demanded a roll call and the demand was not sustained.

The President declared the question before the Senate to be the adoption of the amendment by Senator Roach on page 12, after line 26, to the striking amendment to Engrossed Second Substitute Senate Bill No. 5521.

The motion by Senator Roach failed and the amendment to the striking amendment was not adopted.

The President declared the question before the Senate to be the adoption of the striking amendment by Senators Loveland, Rinehart, Vognild, Wojahn, Drew, McAuliffe, Franklin, Quigley and Fraser to Engrossed Second Substitute Senate Bill No. 5521.

The striking amendment to Engrossed Second Substitute Senate Bill No. 5521 was adopted by voice vote.

MOTIONS

On motion of Senator Loveland, the following title amendment was adopted:

On page 1, line 1 of the title, after "programs;" strike the remainder of the title and insert "amending RCW 82.14.310, 82.14.320, 82.14.330, 43.101.200, 82.44.110, 72.09.300, and 9A.16.110; reenacting and amending RCW 82.14.340; adding a new section to chapter 82.14 RCW; making an appropriation; providing effective dates; and declaring an emergency."

On motion of Senator Loveland, the rules were suspended, Reengrossed Second Substitute Senate Bill No. 5521, under suspension of the rules, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Reengrossed Second Substitute Senate Bill No. 5521, under suspension of the rules.

ROLL CALL

The Secretary called the roll on the final passage of Reengrossed Second Substitute Senate Bill No. 5521, under suspension of the rules, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 2; Absent, 0; Excused, 3.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams, Winsley and Wojahn - 44.

Voting nay: Senators Cantu and Roach - 2.

Excused: Senators McCaslin, Newhouse and Smith, L. - 3.

REENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5521, under suspension of the rules, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

There being no objection, the President returned the Senate to the sixth order of business.

SECOND READING

ENGROSSED HOUSE BILL NO. 2114, by Representative G. Fisher (by request of Office of Financial Management)

Crediting earnings on balances of certain treasury accounts.

The bill was read the second time.

MOTION

On motion of Senator Rinehart, the rules were suspended, Engrossed House Bill No. 2114 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 2114.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed House Bill No. 2114 and the bill passed the Senate by the following vote: Yeas, 27; Nays, 19; Absent, 0; Excused, 3.

Voting yea: Senators Bauer, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Williams and Wojahn - 27.

Voting nay: Senators Amondson, Anderson, Barr, Bluechel, Cantu, Deccio, Erwin, Hochstatter, McDonald, Moyer, Nelson, Oke, Prince, Roach, Sellar, Vognild, von Reichbauer, West and Winsley - 19.

Excused: Senators McCaslin, Newhouse and Smith, L. - 3.

ENGROSSED HOUSE BILL NO. 2114, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

On motion of Senator Vognild, the Senate returned to the fourth order of business.

MESSAGE FROM THE HOUSE

May 5, 1993

MR. PRESIDENT:

The House has passed REENGROSSED SUBSTITUTE SENATE BILL NO. 5972 with the following amendment(s):

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The transportation budget of the state is hereby adopted and, subject to the provisions hereinafter set forth, the several amounts hereinafter specified, or as much thereof as may be necessary to accomplish the purposes designated, are hereby appropriated from the several accounts and funds hereinafter named to the designated state agencies and offices for salaries, wages, and other expenses, for capital projects, and for other specified purposes, including the payment of any final judgments arising out of such activities, for the period ending June 30, 1995.

Any bill enacted during the 1993 legislative session requiring expenditure from a transportation-related fund or account that was not heard by either of the transportation committees is not funded in this act.

NEW SECTION. Sec. 2. FOR THE TRAFFIC SAFETY COMMISSION

Highway Safety Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 212,000

Highway Safety Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,545,000

Transportation Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 600,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,357,000

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

(1) The appropriation from the public safety and education account shall be used solely to fund community DWI task forces. Funding from the public safety and education account for any community DWI task force may not exceed fifty percent of total expenditures in support of that task force.

(2) It is the intent of the legislature that the Washington traffic safety commission be abolished as of July 1, 1994. The office of the governor shall submit to the legislative transportation committee by December 15, 1993, a plan for transferring the responsibilities of the Washington traffic safety commission to an existing transportation agency. The appropriations from the highway safety fund--state and highway safety fund--federal represent funding necessary to operate the agency for fiscal year 1994 only.

(3) $175,000 of the highway safety fund--federal appropriation may be used only to fund the law and justice program. As of July 1, 1993, the law and justice program shall be transferred from the department of licensing to the Washington traffic safety commission.

NEW SECTION. Sec. 3. FOR THE BOARD OF PILOTAGE COMMISSIONERS

General Fund--Pilotage Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .$ 218,000

NEW SECTION. Sec. 4. FOR THE COUNTY ROAD ADMINISTRATION BOARD

Motor Vehicle Fund--County Arterial Preservation

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,247,000

Motor Vehicle Fund--Rural Arterial Trust

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 61,838,000

Motor Vehicle Fund--Private Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 508,000

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,331,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 87,924,000

NEW SECTION. Sec. 5. FOR THE TRANSPORTATION IMPROVEMENT BOARD

Motor Vehicle Fund--Transportation Improvement

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 184,000,000

Motor Vehicle Fund--Urban Arterial Trust

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,322,000

Motor Vehicle Fund--City Hardship Assistance

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 211,822,000

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

(1) The transportation improvement board shall present to the legislative transportation committee by December 15, 1993, proposed legislation and an action plan to address the recommendations identified in the 1992 evaluation of the transportation improvement board by the subcommittee on transportation boards and commissions of the legislative transportation committee.

(2) The transportation improvement board shall on a quarterly basis present to the legislative transportation committee and the office of financial management an analysis of project cost changes as they apply to overall project costs, for projects funded from the transportation improvement account and the urban arterial trust account. The initial report, due October 31, 1993, shall compare cost estimates at the time of project approval to present estimate or final cost for all urban arterial trust account projects selected from 1989 forward and for all transportation improvement account projects. The board shall provide an update to the report each quarter thereafter citing the amount and reason for additional changes in actual or estimated costs for any project.

(3) $50,000,000 of the transportation improvement account--state appropriation in this section is conditioned on the enactment of Senate Bill No. 5969, authorizing bond sales for projects funded from the transportation improvement account.

NEW SECTION. Sec. 6. FOR THE STATE PATROL--FIELD OPERATIONS BUREAU

Motor Vehicle Fund--State Patrol Highway Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 143,616,000

Motor Vehicle Fund--State Patrol Highway Account--

Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,218,000

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 788,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 147,622,000

The appropriations in this section are subject to the following conditions and limitations: Any user of Washington state patrol aircraft shall reimburse the Washington state patrol for its pro rata share of all operating and maintenance costs including capitalization.

NEW SECTION. Sec. 7. FOR THE STATE PATROL--INVESTIGATIVE SERVICES BUREAU

Transportation Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,371,000

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,444,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,815,000

NEW SECTION. Sec. 8. FOR THE STATE PATROL--SUPPORT SERVICES BUREAU

Motor Vehicle Fund--State Patrol Highway Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 57,474,000

Transportation Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,391,000

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,099,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 61,964,000

NEW SECTION. Sec. 9. FOR THE DEPARTMENT OF LICENSING--MANAGEMENT OPERATIONS

General Fund--Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 46,000

Transportation Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 414,000

Highway Safety Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,523,000

Highway Safety Fund--Motorcycle Safety Education

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 96,000

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,379,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,458,000

NEW SECTION. Sec. 10. FOR THE DEPARTMENT OF LICENSING--INFORMATION SYSTEMS

General Fund--Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 221,000

Transportation Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 247,000

Highway Safety Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,131,000

Highway Safety Fund--Motorcycle Safety Education

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,869,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,518,000

Contained in this appropriation is $10,000,000 for the licensing application migration project (LAMP), of which $6,000,000 is motor vehicle fund--state and $4,000,000 highway safety fund--state. Of the $10,000,000 appropriation $500,000 is provided solely as a contingency amount. The appropriation for LAMP is conditioned upon compliance with section 49 of this act. If section 49 of this act is not enacted during the 1993 legislative session, then the $10,000,000 appropriation for the licensing application migration project (LAMP) shall lapse.

NEW SECTION. Sec. 11. FOR THE DEPARTMENT OF LICENSING--VEHICLE SERVICES

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 49,076,000

General Fund--Marine Fuel Tax Refund Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,000

General Fund--Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 520,000

Department of Licensing Services Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 676,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,298,000

NEW SECTION. Sec. 12. FOR THE DEPARTMENT OF LICENSING--DRIVER SERVICES

Transportation Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,396,000

Highway Safety Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 51,929,000

Highway Safety Fund--Motorcycle Safety Education

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,300,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 57,625,000

$400,000 of the highway safety fund - motorcycle safety education account appropriation in this section is provided solely to enhance the motorcycle testing program. If Senate Bill No. 5101 is not enacted during the 1993 legislative session, the $400,000 appropriation is null and void.

NEW SECTION. Sec. 13. FOR THE LEGISLATIVE TRANSPORTATION COMMITTEE

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,644,000

NEW SECTION. Sec. 14. FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY COMMITTEE

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 410,000

NEW SECTION. Sec. 15. FOR THE MARINE EMPLOYEES COMMISSION

Motor Vehicle Fund--Puget Sound Ferry Operations

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 373,000

NEW SECTION. Sec. 16. FOR THE TRANSPORTATION COMMISSION

Transportation Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,637,000

The Washington state transportation commission shall make recommendations on the facility, operations, and funding components of implementing passenger-only service from Seattle/Vashon/Southworth and Seattle/Kingston. Such recommendations shall be submitted to the governor and the legislative transportation committee on or before September 30, 1993.

NEW SECTION. Sec. 17. FOR THE AIR TRANSPORTATION COMMISSION

Transportation Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 534,000

The appropriation in this section assumes that as of January 1, 1994, commission staff shall be reduced from four full-time equivalent to two full-time equivalent and that the appropriation shall expire on April 1, 1994.

Sec. 18. RCW 47.86.030 and 1992 c 190 s 3 are each amended to read as follows:

The commission shall conduct studies to determine Washington's long-range air transportation policy, including an assessment of intermodal needs, and to assess the impacts of increasing air traffic upon surrounding communities, including an evaluation of noise mitigation and surface transportation impacts at existing facilities, and the potential impact at new or expanded facilities.

The studies shall include, but are not limited to the following:

(1) The feasibility of acquiring the Stampede Pass rail line for use as a utility corridor, intermodal high speed transportation corridor or other transportation uses. The study shall include an examination of the ownership of the Stampede Pass rail line right of way and evaluate the advantages and disadvantages of preserving the Stampede Pass rail line corridor. It shall include interested public and private agencies when conducting the study. The commission shall encourage local communities and the private sector to financially participate in the study. The commission shall make a presentation of the feasibility findings to the legislative transportation committee on or before December 1, 1990.

(2) Recommendations to the legislature on future Washington state air transportation policy, including the expansion of existing and potential air carrier and reliever facilities and the siting of such new facilities, specifically taking into consideration intermodal needs. The commission shall consider the development of wayports in eastern Washington, taking into account similar developments in Japan and Germany, in order to reduce congestion resulting from rapid growth in the Puget Sound region. The commission shall coordinate its study of airport siting policy issues with the efforts of the high-speed ground transportation steering committee.

The commission shall submit findings and recommendations to the legislative transportation committee by December 1, ((1994)) 1993, with completed reports to be presented to the legislative transportation committee on the dates as provided in subsection (3) of this section.

(3) A report on the following work program projects by December 1, 1992:

(a) Evaluation of the importance of air transportation in the economic and social vitality of the state including costs and effects of delay of air capacity expansion;

(b) Air transportation demand, aviation industry trends, and air capacity in Washington through 2020;

(c) A review of the final draft of the Puget Sound air transportation committee's flight plan assessments of air capacity and demand.

(4) A transportation systems planning evaluation of air transportation planning options in Washington by July 1, 1993.

(5) The work program project reports as provided in subsection (3) of this section and the policy recommendations of the commission shall be transmitted to regional transportation planning organizations created pursuant to chapter 47.80 RCW. Each regional transportation planning organization shall consider the commission's project reports and policy recommendations when adopting its regional transportation plan and in its review of local comprehensive plans for consistency with the regional transportation plans.

(6) A review of the environmental, social, and economic costs associated with Washington state's air transportation system. The commission shall review and comment upon the effectiveness and reasonableness of current or planned practices to mitigate the adverse environmental effects of operating, developing, or expanding the state's air transportation system.

NEW SECTION. Sec. 19. Effective April 1, 1994, the following acts or parts of acts are each repealed:

(1) RCW 47.86.010 and 1990 c 298 s 39;

(2) RCW 47.86.020 and 1990 c 298 s 40;

(3) RCW 47.86.030 and 1993 c . . . s 18 (section 18 of this act), 1992 c 190 s 3, 1991 c 231 s 7, & 1990 c 298 s 41;

(4) RCW 47.86.035 and 1992 c 190 s 1;

(5) RCW 47.86.040 and 1990 c 298 s 42;

(6) RCW 47.86.050 and 1990 c 298 s 43;

(7) RCW 47.86.060 and 1990 c 298 s 44;

(8) RCW 47.86.900 and 1990 c 298 s 45; and

(9) RCW 47.86.901 and 1990 c 298 s 47.

NEW SECTION. Sec. 20. FOR THE DEPARTMENT OF AGRICULTURE

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 418,000

The motor vehicle fund--state appropriation is provided solely for the motor fuel quality testing program. Annual reports shall be submitted to the legislative transportation committee on December 15th of each year.

NEW SECTION. Sec. 21. FOR THE DEPARTMENT OF TRANSPORTATION--STATE HIGHWAY RESURFACING, RESTORATION, REHABILITATION, AND SAFETY--PROGRAM A

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 174,337,000

Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 98,040,000

Motor Vehicle Fund--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,460,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 275,837,000

The appropriations in this section are provided for the location, design, right of way, and construction of state highway projects designated as category "A" under RCW 47.05.030. The appropriations in this section are subject to the following conditions and limitations:

(1) Up to $650,000 of the motor vehicle fund--state appropriation is provided solely for an inventory of drainage facilities; analysis of water sources entering the Washington department of transportation facilities; testing for contaminants; analyzing the flow of discharged stormwater; and developing a prioritization system that will enable the department to evaluate proposed construction projects with regard to their effects on sensitive water bodies.

(2) Up to $1,326,000 of the motor vehicle fund--state appropriation is provided for fish passage barrier removal. The department of transportation shall cooperate with the department of fisheries to continue retrofit work now in progress, finalize the inventory, and begin additional projects as funds allow.

(3) Up to $1,200,000 of the motor vehicle fund--state appropriation is provided for the state match for the scenic highways program. In the event the full state match is not required, the remainder shall revert to the motor vehicle fund for future appropriation.

(4) Up to $33,400,000 of the motor vehicle fund--state appropriation is provided for a one-time expenditure for additional category A projects. It is the intent that the appropriations in this section do not commit the governor or the legislature to the transportation commission's proposed category A program update.

NEW SECTION. Sec. 22. FOR THE DEPARTMENT OF TRANSPORTATION--INTERSTATE HIGHWAY CONSTRUCTION--PROGRAM B

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 85,245,000

Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 446,000,000

Motor Vehicle Fund--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,000,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 535,245,000

The appropriations in this section are provided for the location, design, right of way, and construction of state highway projects on the interstate system designated as category "B" under RCW 47.05.030. The appropriations in this section are subject to the following conditions and limitations:

(1) The motor vehicle fund--state appropriation includes a maximum of $50,800,000 in proceeds from the sale of bonds authorized by RCW 47.10.790 and 47.10.801. However, the transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

(2) Should cash flow demands exceed the motor vehicle fund--federal appropriation, the motor vehicle fund--state appropriation is increased proportionally to provide matching state funds from the sale of bonds authorized by RCW 47.10.801 and 47.10.790 not to exceed $10,000,000 and it is understood that the department shall seek authority to expend unanticipated receipts for the federal portion.

(3) It is further recognized that the department may make use of federal cash flow obligations on interstate construction contracts in order to complete the interstate highway system as expeditiously as possible.

(4) Up to $7,185,000 of the appropriation in this section is provided for construction of demonstration projects specified in the federal intermodal surface transportation efficiency act (P.L. 101-240; 105 Stat. 1914). State funds needed for the federal match requirements shall be from the bonds sales proceeds not to exceed $1,437,000 as authorized by Senate Bill No. 5371. However, the transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

(5) Up to $30,000,000 of the motor vehicle fund--state appropriation in this section is provided to expedite high occupancy vehicle lane construction on the interstate system.

(6) Pending the receipt of federal funds appropriated in this section, up to $120,000,000 of bonds authorized by chapter 6, Laws of 1993, may be sold to fund interstate construction project expenditures in advance of the receipt of federal funds. However, the transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds.

NEW SECTION. Sec. 23. FOR THE DEPARTMENT OF TRANSPORTATION--MAJOR NONINTERSTATE HIGHWAY CONSTRUCTION--PROGRAM C

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 77,540,000

Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 66,948,000

Motor Vehicle Fund--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,000,000

Transportation Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 64,724,000

Special Category C--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 166,833,000

Puyallup Tribal Settlement Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 44,024,000

Puyallup Tribal Settlement Account--

Private Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 6,000,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 431,069,000

The appropriations in this section are provided for the location, design, right of way acquisition, and construction of state highway projects designated as category "C" under RCW 47.05.030. The appropriations in this section are subject to the following conditions and limitations:

(1) The motor vehicle fund--state appropriation includes $32,800,000 in proceeds from the sale of bonds authorized by RCW 47.10.790 and 47.10.801. However, the transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

(2) Up to $44,000,000 of the motor vehicle fund--federal appropriation in this section is provided for construction of demonstration projects specified in the federal intermodal surface transportation efficiency act (P.L. 101-240; 105 Stat. 1914). The motor vehicle fund--state appropriation includes $11,000,000 for the federal match requirements, which shall be from the bond sales proceeds as authorized by Senate Bill No. 5371. However, the transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation. No bond proceeds shall be used to pay for a federal demonstration study project.

(3) The special category C fund--state appropriation of $166,833,000 includes $108,000,000 in proceeds from the sale of bonds authorized by Senate Bill No. 5343 for the 1st Avenue South Bridge in Seattle, North-South Corridor/Division Street improvements in Spokane, and selected sections of State Route 18. However, the transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

(4) Up to $45,760,000 of the motor vehicle fund--state appropriation, $64,724,000 of the transportation fund--state appropriation, and $14,948,000 of the motor vehicle fund--federal appropriation provided for in this section are for regular category C projects. Of the appropriations specified in this subsection, up to ten percent may be expended for preliminary engineering and right of way. The remainder shall be expended for construction contracts, including $10,295,000 for HOV lane projects on noninterstate state highways. Quarterly, beginning July 1, 1993, the department shall provide to the legislative transportation committee a list of the construction contracts awarded under this subsection and the amount of each contract award.

(5) $21,000,000 of the motor vehicle fund--state appropriation is provided solely for additional HOV lane projects on noninterstate state highways. Quarterly, beginning July 1, 1993, the department shall provide to the legislative transportation committee a list of the construction contracts awarded under this subsection and the amount of each contract award.

(6) Up to $2,000,000 of the motor vehicle fund--state appropriation and $1,000,000 of the motor vehicle fund--local appropriation contained in this section is provided solely for the construction of rest areas provided local and/or private contributions of at least forty percent of total project costs are made. Local and/or private contributions may be in the form of in-kind contributions including but not limited to donations of property and services.

NEW SECTION. Sec. 24. If Substitute Senate Bill No. 5963 becomes law, the department of transportation, in consultation with the legislative transportation committee, shall develop a plan to implement the requirements of such legislation that includes program performance and monitoring procedures. The implementation plan shall be submitted to the house and senate transportation committees on or before January 1, 1994.

NEW SECTION. Sec. 25. FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MANAGEMENT AND FACILITIES--PROGRAM D

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 31,028,000

Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 400,000

Motor Vehicle Fund--Transportation Capital Facilities

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,480,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 71,908,000

(1) Up to $750,000 of the motor vehicle fund--transportation capital facilities account--state appropriation is provided to implement the Americans with Disabilities Act (P.L. 101-336 42 U.S.C. Sec. 12101 et seq.).

(2) The transportation commission shall evaluate the current organizational structure of the department of transportation with regard to: (a) The number and allocation of full-time employees required to support the department's environmental efforts; (b) the qualifications of such full-time employees; (c) the amount of authority each environmental position carries; (d) the chain of command governing such environmental positions; (e) the effectiveness of the organization with regard to proactively negotiating environmental policies with state, federal, and local units of government; (f) the ability of the department to assimilate, incorporate, and disseminate environmental information between and among the department's various divisions, branches, sections, and districts; and (g) the ability of the department to plan, budget, and account for such environmental costs. The transportation commission shall develop a plan to maximize the effectiveness of the environmental activities within the department and shall provide specific recommendations regarding any organizational changes that may be warranted.

The plan shall be submitted to the legislative transportation committee no later than December 15, 1993. The department shall not proceed with implementation prior to receiving legislative transportation committee approval.

NEW SECTION. Sec. 26. FOR THE DEPARTMENT OF TRANSPORTATION--AERONAUTICS--PROGRAM F

General Fund--Aeronautics Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .$ 3,106,000

General Fund--Aeronautics Account--Federal

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .$ 652,000

General Fund--Search and Rescue Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .$ 130,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,888,000

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

(1) The aeronautics account appropriations in this section are provided for management and support of the aeronautics division, state fund grants to local airports, development and maintenance of a state-wide airport system plan, maintenance of state-owned emergency airports, and federal inspections.

(2) The search and rescue account--state appropriation in this section is provided for directing and conducting searches for missing, downed, overdue, or presumed downed general aviation aircraft; for safety and education activities necessary to insure safety of persons operating or using aircraft; and for the Washington wing civil air patrol in accordance with RCW 47.68.370.

NEW SECTION. Sec. 27. FOR THE DEPARTMENT OF TRANSPORTATION--COMMUNITY ECONOMIC REVITALIZATION--PROGRAM G

Motor Vehicle Fund--Economic Development Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,020,000

The appropriation in this section is funded with the proceeds from the sale of bonds authorized by RCW 47.10.801 and is provided for improvements to the state highway system necessitated by planned economic development.

NEW SECTION. Sec. 28. FOR THE DEPARTMENT OF TRANSPORTATION--NONINTERSTATE BRIDGES--PROGRAM H

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45,027,000

Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 71,000,000

Motor Vehicle Fund--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,000,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 117,027,000

(1) The appropriations in this section are provided to preserve the structural and operating integrity of existing bridges. It is the intent that this appropriation does not commit the governor nor the legislature to the transportation commission's proposed twenty-year bridge program.

(2) Up to $5,000,000 of the motor vehicle fund--state appropriation is provided solely for rehabilitation of state-owned moveable bridges.

NEW SECTION. Sec. 29. FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MAINTENANCE AND OPERATIONS--PROGRAM M

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 238,692,000

Motor Vehicle Fund--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,690,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 243,382,000

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

(1) Up to $300,000 of the motor vehicle fund--state appropriation is provided to develop and implement a roadside vegetation management plan to comply with the Puget Sound water quality authority management plan. Emphasis shall be placed on nonchemical vegetation control.

(2) Up to $910,000 of the motor vehicle fund--state appropriation is provided for additional maintenance to prevent mechanical and electrical problems on floating bridges, maintenance on the Lacey V. Murrow floating bridge, and compliance with department of labor and industries maintenance regulations.

(3) Up to $600,000 of the motor vehicle fund--state appropriation is provided for testing and disposal of hazardous materials and for interjurisdictional and/or interagency development of eight treatment facilities.

(4) Up to $2,411,000 of the motor vehicle fund--state appropriation is provided to expedite and enhance traffic signal improvements.

(5) It is the intent of the legislature that the legislative transportation committee study the impact upon the department of transportation of the utilities accommodation policy, requiring the removal of power poles, guy lines, and junction boxes adjacent to state highways. The committee shall report its findings to the legislature no later than November 15, 1995. No additional moneys are appropriated in this section for the purpose of doing additional utility clear zone work.

NEW SECTION. Sec. 30. FOR THE DEPARTMENT OF TRANSPORTATION--SALES AND SERVICES TO OTHERS--PROGRAM R

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,894,000

Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 33,400,000

Motor Vehicle Fund--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 28,892,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 65,186,000

NEW SECTION. Sec. 31. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION MANAGEMENT AND SUPPORT--PROGRAM S

Motor Vehicle Fund--Puget Sound Capital Construction

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,109,000

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 51,475,000

Motor Vehicle Fund--Puget Sound Ferry Operations

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,105,000

Transportation Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 897,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 54,586,000

Up to $526,000 of the transportation fund--state appropriation is provided for the implementation of Substitute House Bill No. 1006.

NEW SECTION. Sec. 32. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSIT RESEARCH AND INTERMODAL PLANNING--PROGRAM T

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,376,000

Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,314,000

High Capacity Transportation Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17,500,000

Transportation Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 44,088,000

Transportation Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,852,000

Transportation Fund--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 100,000

Central Puget Sound Public Transportation Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,100,000

Public Transportation Systems Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .$ 5,500,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 126,830,000

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

(1) Up to $31,000,000 of the transportation fund--state appropriation is provided for administrative costs, operating subsidies for contracted AMTRAK 403(b) service, and for capital projects to improve train speeds and service.

(2) Up to $9,200,000 of the transportation fund--state appropriation is provided for state participation in the planning and construction of passenger rail depots and other passenger intermodal facilities.

(3) The central Puget Sound public transportation account--state appropriation and the public transportation systems account--state appropriation shall be distributed to local transit agencies based on the allocation process defined in Substitute House Bill No. 2036. These appropriations are null and void if Substitute House Bill No. 2036 is not enacted by the legislature.

(4) Of the $3,400,000 motor vehicle fund--state appropriation provided for regional transportation planning organizations, funds not allocated to such organizations may be used for a discretionary grant program for special regional planning projects, to be administered by the department of transportation.

(5) Up to $250,000 of the motor vehicle fund--state appropriation contained in this section is provided solely for the Puget Sound transportation investment program. The program shall pay special attention to the Edmonds/Kingston run and development of an intermodal terminal at Point Edwards. Work on the program shall be completed and reported to the legislative transportation committee no later than December 15, 1993.

(6) Up to $1,500,000 of the transportation fund--state appropriation contained in this section is provided solely for the rural mobility program.

NEW SECTION. Sec. 33. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSIT RESEARCH AND INTERMODAL PLANNING--PROGRAM T--CAPITAL

Essential Rail Assistance Account--State

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

Essential Rail Banking Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .$ 1,100,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,100,000

The appropriations in this section are provided for the purposes authorized in chapter 47.76 RCW.

NEW SECTION. Sec. 34. FOR THE DEPARTMENT OF TRANSPORTATION--CHARGES FROM OTHER AGENCIES--PROGRAM U

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30,124,000

Motor Vehicle Fund--Puget Sound Ferry Operations

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32,124,000

The appropriations in this section are to provide for costs billed to the department for the services or other state agencies as follows:

(1) Archives and records management, $258,000 motor vehicle fund--state appropriation;

(2) Attorney general tort claims support, $4,692,000 motor vehicle fund--state appropriation;

(3) Office of the state auditor, $793,000 motor vehicle fund--state appropriation;

(4) Department of general administration facility and services, $3,406,000 motor vehicle fund--state appropriation;

(5) Department of personnel, $3,088,000 motor vehicle fund--state appropriation;

(6) Self-insurance liability premiums and administration, $15,824,000 motor vehicle fund--state appropriation;

(7) Department of general administration for capital projects on the transportation Olympia headquarters building and for maintenance work on the department of transportation/plaza parking garage, $1,704,000 motor vehicle fund--state appropriation;

(8) Office of minority and women's business enterprises, $359,000 motor vehicle fund--state appropriation;

(9) Marine division self-insurance liability premiums and administration $2,000,000 motor vehicle fund--Puget Sound ferry operations account--state appropriation.

NEW SECTION. Sec. 35. FOR THE DEPARTMENT OF TRANSPORTATION--MARINE CONSTRUCTION--PROGRAM W

Motor Vehicle Fund--Puget Sound Capital Construction

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 235,746,000

Motor Vehicle Fund--Puget Sound Capital Construction

Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32,237,000

Motor Vehicle Fund--Puget Sound Capital Construction

Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 900,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 268,883,000

The appropriations in this section are provided for improving the Washington state ferry system, including, but not limited to, vessel acquisition, vessel construction, major and minor vessel improvements, and terminal construction and improvements. The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriations in this section are provided to carry out only the projects presented to the legislature (version 4) for the 1993-95 budget. The department shall reconcile the 1991-93 capital expenditures within ninety days of the end of the biennium and submit a final report to the legislative transportation committee and office of financial management.

(2) The Puget Sound capital construction account--state appropriation includes $15,000,000 in proceeds from the sale of bonds authorized by RCW 47.60.560 and $116,126,000 in proceeds from the sale of bonds authorized by RCW 47.60.800. However, the department of transportation may use current revenues available to the Puget Sound capital construction account in lieu of bond proceeds for any part of the state appropriation.

(3) The appropriation in this section provides for the construction, in the state of Washington, of new jumbo ferry vessels in accordance with the requirements of Substitute House Bill No. 1635. The transportation commission shall provide progress reports to the legislative transportation committee and the governor regarding the implementation of Substitute House Bill No. 1635.

(4) The department of transportation shall provide to the legislative transportation committee and office of financial management a quarterly financial report concerning the status of the capital program authorized in this section.

NEW SECTION. Sec. 36. FOR THE DEPARTMENT OF TRANSPORTATION--MARINE--PROGRAM X

Marine Operating Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 237,559,000

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

(1) The appropriation is based on the budgeted expenditure of $27,123,000 for vessel operating fuel in the 1993-95 biennium. If the actual cost of fuel is less than this budgeted amount, the excess amount may not be expended. If the actual cost exceeds this amount, the department shall request a supplemental appropriation.

(2) The appropriation contained in this section provides for the compensation of ferry employees. The expenditures for compensation paid to ferry employees during the 1993-95 biennium may not exceed $159,183,000 plus a dollar amount, as prescribed by the office of financial management, that is equal to any insurance benefit increase granted general government employees in excess of $324.20 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for the respective fiscal year, and a dollar amount as prescribed by the office of financial management for costs associated with pension amortization charges. For the purposes of this section, the expenditures for compensation paid to ferry employees shall be limited to salaries and wages and employee benefits as defined in the office of financial management's policies, regulations, and procedures named under objects of expenditure "A" and "B" (7.2.6.2).

The prescribed insurance benefit increase dollar amount that shall be allocated from the governor's compensation insurance benefits appropriation is in addition to the appropriation contained in this section and may be used to increase compensation costs, effective July 1, 1993, and July 1, 1994.

(3) The appropriation in this section includes $500,000 to (a) ensure the marine division of the department of transportation's compliance with RCW 88.46.060 through a contractual agreement between Washington state ferries and the Washington state maritime commission and (b) assist Washington state ferries in oil spill prevention, planning, and education in accordance with chapter 43.21I RCW.

(4) The appropriation in this section includes $154,000 for support of Clinton terminal agent expenses, but shall be expended only upon the construction of a new Clinton terminal.

(5) The appropriation in this section includes $359,000 to provide, during the summer, eight hours of Issaquah vessel class service on the Edmonds/Kingston route. This amount shall be expended only if the super class vessel refurbishment program impacts super class vessel service on this route.

(6) The appropriation in this section includes $185,000 to assess the ability of enhancing vessel maintenance for those routes that require extensive service schedules throughout the year by placing additional oiler staff hours on two routes during the 1993-94 fiscal year. The results of this maintenance approach shall be reported to the legislative transportation committee and the office of financial management by December 1, 1993.

(7) The department of transportation shall provide to the legislative transportation committee and office of financial management a quarterly financial report concerning the status of the operating program authorized in this section.

NEW SECTION. Sec. 37. FOR THE DEPARTMENT OF TRANSPORTATION--LOCAL PROGRAMS--PROGRAM Z

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,594,000

Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 161,033,000

Motor Vehicle Fund--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,086,000

Transfer Relief Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,920,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 177,633,000

The appropriations in this section are subject to the following conditions and limitations: Up to $6,774,000 of the motor vehicle fund--federal appropriation in this section is provided for construction of demonstration projects specified in the federal intermodal surface transportation efficiency act (P.L. 101-240; 105 Stat. 1914). The motor vehicle fund--state appropriation includes $570,000 for the federal match requirements, which shall be from the bond sales proceeds as authorized by Senate Bill No. 5371. However, the transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

NEW SECTION. Sec. 38. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSFER

Motor Vehicle Fund--RV Account--State Appropriation

For transfer to the Motor Vehicle Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 427,000

The appropriation transfer in this section is provided for the construction and maintenance of recreation vehicle sanitary disposal systems at rest areas on the state highway system.

NEW SECTION. Sec. 39. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSFER

Motor Vehicle Fund--State Appropriation

For transfer to the Transportation Capital Facilities

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,480,000

NEW SECTION. Sec. 40. FOR THE DEPARTMENT OF TRANSPORTATION EMERGENCY PROJECTS--PROGRAM A

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000,000

The appropriation in this section shall be funded from the sale of bonds authorized in Senate Bill No. 5370.

NEW SECTION. Sec. 41. FOR THE DEPARTMENT OF TRANSPORTATION FEDERAL MATCH PROJECTS--PROGRAM Z

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000,000

The appropriation in this section shall be funded from the sale of bonds authorized in Senate Bill No. 5371. The state finance committee shall administer the repayment of loans authorized in Senate Bill No. 5371.

NEW SECTION. Sec. 42. The department of transportation is authorized to transfer any balances available in the highway construction stabilization account to the motor vehicle fund to fund the appropriations contained in this act.

NEW SECTION. Sec. 43. The motor vehicle fund revenues are received at a relatively even flow throughout the year. Expenditures exceed the revenue during the accelerated summer and fall highway construction season, creating a negative cash balance during the heavy construction season. Negative cash balances also may result from the use of state funds to finance federal advance construction projects prior to conversion to federal funding. The governor and the legislature recognize that the department of transportation may require interfund loans or other short-term financing to meet temporary seasonal cash requirements and additional cash requirements to fund federal advance construction projects.

NEW SECTION. Sec. 44. In addition to such other appropriations as are made by this act, there is appropriated to the department of transportation from legally available bond proceeds in the respective construction or building accounts such amounts as are necessary to pay the expenses incurred by the state finance committee in the issuance and sale of the subject bonds.

NEW SECTION. Sec. 45. The department of transportation is authorized to undertake federal advance construction projects under the provisions of 23 U.S.C. Sec. 115 in order to maintain progress in meeting approved highway construction and preservation objectives. The legislature recognizes that the use of state funds may be required to temporarily fund expenditures of the federal appropriations for the highway construction and preservation programs for federal advance construction projects prior to conversion to federal funding.

NEW SECTION. Sec. 46. A new section is added to chapter 46.01 RCW to read as follows:

The state patrol and the department of licensing shall coordinate their activities when siting facilities. This coordination shall result in the collocation of driver and vehicle licensing and vehicle inspection service facilities whenever possible.

The department and state patrol shall explore alternative state services, such as vehicle emission testing, that would be feasible to collocate in these joint facilities. The department and state patrol shall reach agreement with the department of transportation for the purposes of offering department of transportation permits at these one-stop transportation centers. All services provided at these transportation service facilities shall be provided at cost to the participating agencies.

In those instances where the community need or the agencies' needs do not warrant collocation this section shall not apply.

NEW SECTION. Sec. 47. FOR THE WASHINGTON STATE PATROL--CAPITAL

Motor Vehicle Fund--State Patrol Highway

Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,485,000

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 765,000

Highway Safety Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 765,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,015,000

The appropriations in this section are provided for the following projects:

WSP/DOL Dist Office--Tacoma

Everett Dist Hdqtrs Building

Minor Works Preservation

Shelton Trng Acad Restroom Repair

Replace Underground Storage Tanks

Replace Rattlesnake Ridge Communication Site

Shelton Academy Property Acquisition

Vancouver Cve Inspection Station

Mt. Vernon Comm Site Construction

Spokane Cve Inspection Station

Replace Scale Mechanism SeaTac South

Yakima District Hdqtrs Predesign

I-90 Port of Entry Weigh Station

Smokey Point Weigh Station Design

Morton Detachment Property Acquisition

Longview Vin Lane Construction Property Acquisition

NEW SECTION. Sec. 48. FOR THE DEPARTMENT OF LICENSING--CAPITAL

Highway Safety Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 61,000

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 81,000

The appropriations in this section are provided for the following projects:

Longview Customer Service Center

North Spokane Customer Service Center

Vancouver Customer Service Center

NEW SECTION. Sec. 49. In addition to compliance with the requirements of RCW 43.105.190, titled "Major information technology projects standards and policies," agencies shall comply with the following requirements: For projects funded through the transportation budget, the agency and the department of information services shall provide the office of financial management, the legislative transportation committee, and the information services board with a written bi-monthly project oversight and risk assessment report for designated projects. The report shall include, but not be limited to, the following: Project name, agency undertaking the project, a description of the project, key project activities or accomplishments during the next sixty to ninety days, baseline cost data, costs to date, baseline schedule, schedule to date, risk assessments, risk management, any deviations from the project feasibility study, and recommendations.

NEW SECTION. Sec. 50. The legislature supports the proposed reduction by the governor of state agency, middle management level employees and recognizes that such reduction is essential to achieve more efficient and effective delivery of state services. Further, the legislature finds that employee reductions in agencies providing state transportation programs and services are necessary to the extent such reductions do not jeopardize transportation program and service delivery.

NEW SECTION. Sec. 51. To maximize the use of transportation revenues, it is the intent of the legislature to encourage sharing of technology, information, and systems where appropriate between transportation agencies.

To facilitate this exchange, the Washington state department of transportation assistant secretary for finance and budget management; Washington state department of transportation chief for management information systems; the Washington state patrol deputy chief, chief of staff; Washington state patrol manager of the computer services division; the department of licensing deputy director and department of licensing assistant director for information systems will meet quarterly to share plans, discuss progress of key projects, and to coordinate activities for the common good. Minutes of these meetings will be distributed to the respective agency heads and the legislative transportation committee. Washington state department of transportation will provide staff support and meeting coordination.

NEW SECTION. Sec. 52. The appropriations of moneys and the designation of funds and accounts by this and other acts of the 1993 legislature shall be construed in a manner consistent with legislation enacted by the 1985, 1987, 1989, and 1991 legislatures to conform state funds and accounts with generally accepted accounting principles. 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. 53. The commission for efficiency and accountability in Washington state government shall conduct a study, in conjunction with the department of transportation, the department of licensing, and the Washington state patrol, of the methods used by the revolving fund agencies to determine the cost allocation for actual services provided to the transportation agencies. The study shall determine whether or not allocation methodologies used to assign these costs to transportation agencies are consistent with accepted accounting principles and represent a pro rata share in relation to all other agencies.

NEW SECTION. Sec. 54. Beginning July 1, 1993, and until June 30, 1995, no state agency may provide the following to employees whose monthly salary on or after July 1, 1993, exceeds $3,750:

(1) Scheduled increment increases to any employee classified under chapter 41.06 RCW;

(2) Salary increases to any employee who is exempt from chapter 41.06 RCW, except exempt employees whose salaries are determined by an elected state official or the judicial branch;

(3) Salary increases to the agency officials listed in RCW 43.03.028 and 47.01.041.

The office of financial management shall reduce allotments to all transportation agencies to reflect the elimination of these salary increases.

NEW SECTION. Sec. 55. The department of licensing shall review the pricing of fees related to the licensing and operation of motor vehicles to determine whether any such fees should be eliminated to reduce costs, whether the pricing of any fees should be adjusted to cover costs of administration or to be more equitable, and whether any other related modifications may be justified, and make recommendations to the governor and the legislative transportation committee by October 15, 1993, as to any price-setting policies or guidelines, pricing changes, or other statutory modifications pertaining to such fees.

Sec. 56. 1991 sp.s. c 15 s 4 (uncodified) is amended to read as follows:

FOR THE BOARD OF PILOTAGE COMMISSIONERS

General Fund--Pilotage Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .$ ((185,000))

202,000

((No more than $80,000 may be expended for attorney general fees.))

Sec. 57. 1992 c 166 s 8 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--VEHICLE SERVICES

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((45,695,000))

46,089,500

General Fund--Marine Fuel Tax Refund Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000

General Fund--Wildlife Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .$ 504,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((46,224,000))

46,618,500

Sec. 58. 1992 c 166 s 9 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING--DRIVER SERVICES

General Fund--Public Safety and Education Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,394,000

Highway Safety Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((48,256,000))

48,405,078

Highway Safety Fund--Motorcycle Safety Education Account--

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 884,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((53,534,000))

53,683,078

Sec. 59. 1992 c 166 s 20 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MAINTENANCE AND OPERATIONS--PROGRAM M

Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((217,750,000))

221,550,000

Motor Vehicle Fund--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 750,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((218,500,000))

222,300,000

The department may, as part of its regular maintenance program, begin correcting existing fish passage barriers.

Up to $742,000 is provided for the incident response program. This program may not be used to compete with private industry in removing or relocating vehicles, but shall be for the purpose of assisting in coordinating the response of both public and private efforts to clear obstructions in an efficient manner.

Sec. 60. RCW 46.16.070 and 1993 c ... (Substitute Senate Bill No. 5535) s 5 and 1993 c ... (Senate Bill No. 5426) s 1 are each reenacted and amended to read as follows:

(1) In lieu of all other vehicle licensing fees, unless specifically exempt, and in addition to the excise tax prescribed in chapter 82.44 RCW and the mileage fees prescribed for buses and stages in RCW 46.16.125, there shall be paid and collected annually for each motor truck, truck tractor, road tractor, tractor, bus, auto stage, or for hire vehicle with seating capacity of more than six, based upon the declared combined gross weight or declared gross weight thereof pursuant to the provisions of chapter 46.44 RCW, the following licensing fees by such gross weight:

4,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 37.00

6,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 44.00

8,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 55.00

10,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 62.00

12,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 72.00

14,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 82.00

16,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 92.00

18,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 137.00

20,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 152.00

22,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 164.00

24,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 177.00

26,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 187.00

28,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 220.00

30,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 253.00

32,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 304.00

34,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 323.00

36,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 350.00

38,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 384.00

40,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 439.00

42,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 546.00

44,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 556.00

46,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 591.00

48,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 612.00

50,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 656.00

52,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 685.00

54,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 732.00

56,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 767.00

58,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 794.00

60,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 840.00

62,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 894.00

64,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 912.00

66,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,005.00

68,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,044.00

70,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,117.00

72,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,188.00

74,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,283.00

76,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,379.00

78,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,497.00

80,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,608.00

82,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((1,623.00)) 1,713.00

84,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((1,728.00)) 1,818.00

86,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((1,833.00)) 1,923.00

88,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((1,938.00)) 2,028.00

90,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((2,043.00)) 2,133.00

92,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((2,148.00)) 2,238.00

94,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((2,253.00)) 2,343.00

96,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((2,358.00)) 2,448.00

98,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((2,463.00)) 2,553.00

100,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((2,568.00)) 2,658.00

102,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((2,673.00)) 2,763.00

104,000 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((2,778.00)) 2,868.00

105,500 lbs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((2,883.00)) 2,973.00

Every motor truck, truck tractor, and tractor exceeding 6,000 pounds empty scale weight registered under chapter 46.16, 46.87, or 46.88 RCW shall be licensed for not less than one hundred fifty percent of its empty weight unless the amount would be in excess of the legal limits prescribed for such a vehicle in RCW 46.44.041 or 46.44.042, in which event the vehicle shall be licensed for the maximum weight authorized for such a vehicle.

The following provisions apply when increasing gross or combined gross weight for a vehicle licensed under this section:

(a) The new license fee will be one-twelfth of the fee listed above for the new gross weight, multiplied by the number of months remaining in the period for which licensing fees have been paid, including the month in which the new gross weight is effective.

(b) Upon surrender of the current certificate of registration or cab card, the new licensing fees due shall be reduced by the amount of the licensing fees previously paid for the same period for which new fees are being charged.

(2) The proceeds from the fees collected under subsection (1) of this section shall be distributed in accordance with RCW 46.68.035.

Sec. 61. RCW 82.44.020 and 1993 c ... (Substitute Senate Bill No. 5535) s 2 are each amended to read as follows:

(1) An excise tax is imposed for the privilege of using in the state any motor vehicle, except those operated under reciprocal agreements, the provisions of RCW 46.16.160 as now or hereafter amended, or dealer's licenses. The annual amount of such excise tax shall be two percent of the value of such vehicle.

(2) An additional excise tax is imposed, in addition to any other tax imposed by this section, for the privilege of using in the state any such motor vehicle, and the annual amount of such additional excise shall be two-tenths of one percent of the value of such vehicle.

(3) Effective with October 1992 motor vehicle registration expirations, a clean air excise tax is imposed in addition to any other tax imposed by this section for the privilege of using in the state any motor vehicle as defined in RCW 82.44.010, except that farm vehicles as defined in RCW 46.04.181 shall not be subject to the tax imposed by this subsection. The annual amount of the additional excise tax shall be two dollars and twenty-five cents. Effective with July 1994 motor vehicle registration expirations, the annual amount of additional excise tax shall be two dollars.

(4) An additional excise tax is imposed on truck-type power units that are used in combination with a trailer to transport loads in excess of forty thousand pounds combined gross weight. The ((rate)) annual amount of such additional excise tax shall be fifty-eight one-hundredths of one percent of the value of the vehicle.

The department shall distribute the additional tax collected under this subsection as follows:

(a) For each trailing unit subject to subsection (5) of this section, an amount equal to the clean air excise tax prescribed in subsection (3) of this section shall be distributed in the manner prescribed in RCW 82.44.110(3);

(b) Of the remainder of the additional excise tax collected under this subsection, ten percent ((of the additional tax collected under this subsection)) shall be distributed in the manner prescribed in RCW 82.44.110(2)((. The remainder of the excise tax collected under this subsection)) and ninety percent shall be distributed in the manner prescribed in RCW 82.44.110(1). This tax shall not apply to power units used exclusively for hauling logs.

(5) The excise taxes imposed by subsections (1) through (3) of this section shall not apply to trailing units which are used in combination with a power unit subject to the additional excise tax imposed by subsection (4) of this section. This subsection shall not apply to trailing units used for hauling logs. ((The department of licensing is authorized to adopt rules to implement subsection (4) of this section and this subsection to assure that total motor vehicle excise tax revenue is not affected.))

(6) In no case shall the total tax be less than two dollars except for proportionally registered vehicles.

(7) Washington residents, as defined in RCW 46.16.028, who license motor vehicles in another state or foreign country and avoid Washington motor vehicle excise taxes are liable for such unpaid excise taxes. The department of revenue may assess and collect the unpaid excise taxes under chapter 82.32 RCW, including the penalties and interest provided therein.

Sec. 62. RCW 81.112.030 and 1992 c 101 s 3 are each amended to read as follows:

Two or more contiguous counties each having a population of four hundred thousand persons or more may establish a regional transit authority to develop and operate a high capacity transportation system as defined in chapter 81.104 RCW.

The authority shall be formed in the following manner:

(1) The joint regional policy committee created pursuant to RCW 81.104.040 shall adopt a system and financing plan, including the definition of the service area. This action shall be completed by September 1, 1992, contingent upon satisfactory completion of the planning process defined in RCW 81.104.100. The final system plan shall be adopted no later than June 30, 1993. In addition to the requirements of RCW 81.104.100, the plan for the proposed system shall provide explicitly for a minimum portion of new tax revenues to be allocated to local transit agencies for interim express services. Upon adoption the joint regional policy committee shall immediately transmit the plan to the county legislative authorities within the adopted service area.

(2) The legislative authorities of the counties within the service area shall decide by resolution whether to participate in the authority. This action shall be completed within forty-five days following receipt of the adopted plan or by August 13, 1993, whichever comes first.

(3) ((If any of the counties does not opt to participate in the authority, the joint regional policy committee shall, within forty-five days, redefine the system and financing plan and resubmit the adopted redefined plan to the remaining county legislative authorities for their decision as to whether to participate. This action shall be completed within forty-five days following receipt of the redefined plan.

(4))) Each county that chooses to participate in the authority shall appoint its board members as set forth in RCW 81.112.040 and shall submit its list of members to the secretary of the Washington state department of transportation. These actions must be completed within thirty days following each county's decision to participate in the authority.

(((5))) (4) The secretary shall call the first meeting of the authority, to be held within thirty days following receipt of the appointments. At its first meeting, the authority shall elect officers and provide for the adoption of rules and other operating procedures.

(((6))) (5) The authority is formally constituted at its first meeting and the board shall begin taking steps toward implementation of the system and financing plan adopted by the joint regional policy committee. If the joint regional policy committee fails to adopt a plan by June 30, 1993, the authority shall proceed to do so based on the work completed by that date by the joint regional policy committee. Upon formation of the authority, the joint regional policy committee shall cease to exist. The authority may make minor modifications to the plan as deemed necessary and shall at a minimum review local transit agencies' plans to ensure feeder service/high capacity transit service integration, ensure fare integration, and ensure avoidance of parallel competitive services. The authority shall also conduct a minimum thirty-day public comment period.

(((7))) (6) If the authority determines that major modifications to the plan are necessary before being submitted to the voters, the authority may make those modifications with a favorable vote of two-thirds of the entire membership. Any such modification shall be subject to the review process set forth in RCW 81.104.110. The modified plan shall be transmitted to the legislative authorities of the participating counties. The legislative authorities shall have forty-five days following receipt to confirm or rescind their continued participation in the authority.

(7) If any county opts to not participate in the authority, but two or more contiguous counties do choose to continue to participate, the authority's board shall be revised accordingly. The authority shall, within forty-five days, redefine the system and financing plan to reflect elimination of one or more counties, and submit the redefined plan to the legislative authorities of the remaining counties for their decision as to whether to continue to participate. This action shall be completed within forty-five days following receipt of the redefined plan.

(8) The authority shall place on the ballot within two years of the authority's formation, a single ballot proposition to ((ratify formation of the authority,)) approve the system and finance plan((,)) and authorize the imposition of the taxes to support the plan within its service area. In addition to the system plan requirements contained in RCW 81.104.100(2)(d), the system plan submitted to voters shall contain an equity element which:

(a) Identifies revenues anticipated to be generated by corridor and by county within the authority's boundaries;

(b) Identifies the phasing of construction and operation of high capacity system facilities, services, and benefits in each corridor. Phasing decisions should give priority to jurisdictions which have adopted transit-supportive land use plans; and

(c) Identifies the degree to which revenues generated within each county will benefit the residents of that county, and identifies when such benefits will accrue.

A simple majority of those voting within the boundaries of the authority is required for approval. If the vote is affirmative, the authority shall begin implementation of the plan. However, the authority may not submit any authorizing proposition for voter-approved taxes prior to July 1, 1993; nor may the authority issue bonds or form any local improvement district prior to July 1, 1993.

(((8))) (9) If the vote fails, the board may redefine the system and financing plan, make changes to the authority boundaries, and make corresponding changes to the composition of the board. If the composition of the board is changed, the participating counties shall revise the membership of the board accordingly. The board may then submit the revised plan to voters. No single system and financing plan may be submitted to the voters more than twice.

If the authority is unable to achieve a positive vote within two years from the date of the first election on a system plan, the board may, by resolution, reconstitute the authority as a single-county body. With a two-thirds vote of the entire membership of the voting members, the board may also dissolve the authority.

Sec. 63. RCW 43.89.010 and 1965 ex.s. c 60 s 2 are each amended to read as follows:

The chief of the Washington state patrol is hereby authorized to establish a teletypewriter communications network which will inter-connect the law enforcement agencies of the state and its political subdivisions into a unified written communications system. The chief of the Washington state patrol is authorized to lease or purchase such facilities and equipment as may be necessary to establish and maintain such teletypewriter communications network.

(1) The communications network shall be used exclusively for the official business of the state, and the official business of any city, county, city and county, or other public agency.

(2) This section does not prohibit the occasional use of the state's communications network by any other state or public agency thereof when the messages transmitted relate to the enforcement of the criminal laws of the state.

(3) The chief of the Washington state patrol shall fix the monthly operational charge to be paid by any department or agency of state government, or any city, county, city and county, or other public agency participating in the communications network: PROVIDED, That in computing charges to be made against a city, county, or city and county the state shall bear at least fifty percent of the costs of such service as its share in providing a modern unified communications network to the law enforcement agencies of the state. Of the fees collected pursuant to this section, one-half shall be deposited in the motor vehicle fund and one-half shall be deposited in the transportation fund.

(4) The chief of the Washington state patrol is authorized to arrange for the connection of the communications network with the law enforcement communications system of any adjacent state, or the Province of British Columbia, Canada.

Sec. 64. RCW 82.44.180 and 1991 c 199 s 224 are each amended to read as follows:

(1) The transportation fund is created in the state treasury. Revenues under RCW 82.44.020 (1) and (2), 82.44.110, 82.44.150, and the surcharge under RCW 82.50.510 shall be deposited into the fund as provided in those sections.

Moneys in the fund may be spent only after appropriation. Expenditures from the fund may be used only for transportation purposes and activities and operations of the Washington state patrol not directly related to the policing of public highways and that are not authorized under Article II, section 40 of the state Constitution.

(2) There is hereby created the central Puget Sound public transportation account within the transportation fund. Moneys deposited into the account under RCW 82.44.150(2)(b) shall be expended within the three county region from which the funds are derived, solely for:

(a) Development of high capacity transportation systems as defined in RCW ((81.104.010)) 81.104.015;

(b) Development of high occupancy vehicle lanes and related facilities as defined in RCW 81.100.020; and

(c) Public transportation system contributions required to fund projects approved by the transportation improvement board.

(3) There is hereby created the public transportation systems account within the transportation fund. Moneys deposited into the account under RCW 82.44.150(2)(c) shall be available to the public transportation system from which the funds are derived, solely for:

(a) Development of high capacity transportation systems as defined in RCW ((81.104.010)) 81.104.015;

(b) Development of high occupancy vehicle lanes and related facilities as defined in RCW 81.100.020;

(d) Public transportation system contributions required to fund projects approved by the transportation improvement board.

NEW SECTION. Sec. 65. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately except for sections 60 and 61, which shall take effect January 1, 1994.

NEW SECTION. Sec. 66. Chapter 102, Laws of 1993 and chapter 123, Laws of 1993 each take effect January 1, 1994.", and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk

MOTION

On motion of Senator Vognild, the Senate concurred in the House amendment to Reengrossed Substitute Senate Bill No. 5972.

The President declared the question before the Senate to be the roll call on the final passage of Reengrossed Substitute Senate Bill No. 5972, as amended by the House.

Debate ensued.

ROLL CALL

The Secretary called the roll on the final passage of Reengrossed Substitute Senate Bill No. 5972, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 28; Nays, 18; Absent, 0; Excused, 3.

Voting nay: Senators Amondson, Anderson, Barr, Bluechel, Cantu, Deccio, Erwin, Hochstatter, McDonald, Moyer, Nelson, Oke, Prince, Roach, Sellar, von Reichbauer, West and Winsley - 18.

Excused: Senators McCaslin, Newhouse and Smith, L. - 3.

REENGROSSED SUBSTITUTE SENATE BILL NO. 5972, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

On motion of Senator Vognild, the Senate advanced to the sixth order of business.

SECOND READING

SENATE BILL NO. 5370, by Senators Vognild, Nelson, Skratek and Talmadge

Authorizing state highway bonds.

The bill was read the second time.

MOTION

On motion of Senator Vognild, the rules were suspended, Senate Bill No. 5370 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5370.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5370 and the bill passed the Senate by the following vote: Yeas, 43; Nays, 3; Absent, 0; Excused, 3.

Voting yea: Senators Amondson, Anderson, Barr, Bauer, Bluechel, Cantu, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Niemi, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sellar, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, Williams, Winsley and Wojahn - 43.

Voting nay: Senators Deccio, Oke and West - 3.

Excused: Senators McCaslin, Newhouse and Smith, L. - 3.

SENATE BILL NO. 5370, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

At 5:06 p.m., on motion of Senator Jesernig, the Senate recessed until 5:30 p.m.

The Senate was called to order at 6:10 p.m. by President Pritchard.

MOTION

On motion of Senator Jesernig, the Senate advanced to the ninth order of business.

On motion of Senator Jesernig, the Committee on Rules was relieved of further consideration of Senate Concurrent Resolution No. 8409 and Senate Concurrent Resolution No. 8409 was placed on the third reading calendar.

MOTION

On motion of Senator Jesernig, the Senate returned to the seventh order of business.

THIRD READING

SENATE CONCURRENT RESOLUTION NO. 8409, by Senators Owen, Erwin, Franklin and Pelz

Concerning open pit metallic ore mining.

The concurrent resolution was read the third time.

Debate ensued.

The President declared the question before the Senate to be the adoption of Senate Concurrent Resolution No. 8409.

Senate Concurrent Resolution No. 8409 was adopted by voice vote.

MOTION

On motion of Senator Jesernig, the Senate returned to the sixth order of business.

MOTION

On motion of Senator Spanel, Senator Skratek was excused.

SECOND READING

SENATE BILL NO. 5980, by Senators Owen, Spanel and Rinehart (by request of Office of Financial Management)

Revising provisions relating to fishing licenses.

MOTIONS

On motion of Senator Owen, Substitute Senate Bill No. 5980 was substituted for Senate Bill No. 5980 and the substitute bill was placed on second reading and read the second time.

Senator Owen moved that the following amendment be adopted:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that additional cost savings can be realized by simplifying the department of fisheries recreational licensing system. The legislature finds that significant benefits will accrue to recreational fishers from streamlining the department of fisheries recreational licensing system. The legislature finds recreational license fees and commercial landing taxes have not been increased in recent years. The legislature finds that reduction in important department of fisheries programs can be avoided by increasing license fees and commercial landing taxes. The legislature finds that it is in the best interest of the state to avoid significant reductions in current department of fisheries activities.

NEW SECTION. Sec. 2. A new section is added to chapter 75.25 RCW to read as follows:

(1) A personal use food fish license is required for all persons other than residents under fifteen years of age or residents seventy years of age or older to fish for, take, or possess food fish for personal use from state waters or offshore waters. A personal use food fish license is not required under this section to fish for, take, or possess carp, smelt, or albacore.

(2) The fees for personal use food fish licenses are:

(a) For a resident fifteen years of age or older and under seventy years of age, seven dollars; and

(b) For a nonresident, nineteen dollars.

(3) The fee for a two-consecutive-day personal use food fish license is four dollars.

NEW SECTION. Sec. 3. A new section is added to chapter 75.25 RCW to read as follows:

(1) A personal use shellfish license is required for all persons other than residents under fifteen years of age to fish for, take, dig for, or possess shellfish for personal use from state waters or offshore waters including national park beaches.

(2) The fees for personal use shellfish licenses are:

(a) For a resident fifteen years of age or older and under seventy years of age, five dollars;

(b) For a resident seventy years of age or older, three dollars; and

(3) The fee for a two-consecutive-day personal use shellfish license is five dollars.

Sec. 4. RCW 75.25.005 and 1989 c 305 s 1 are each amended to read as follows:

The following recreational fishing licenses are administered and issued by the department of fisheries under authority of the director of fisheries:

(1) ((Hood Canal shrimp license)) Personal use food fish license; and

(2) ((Razor clam license;

(3) Personal use fishing license;

(4) Salmon license; and

(5) Sturgeon license)) Personal use shellfish license.

Sec. 5. RCW 75.25.080 and 1989 c 305 s 4 are each amended to read as follows:

(1) It is lawful to ((dig)) fish for, take, or possess the personal-use daily bag limit of ((razor clams)) shellfish or food fish for ((another)) a disabled person if ((that person has)) the harvester is licensed and if the disabled person is licensed and present on site and in possession of a physical disability permit issued by the director.

(2) An application for a physical disability permit must be submitted on a department of fisheries official form and must be accompanied by a licensed medical doctor's certification of disability.

(3) A person with a physical disability permit is not required to be present at the location where another person is digging razor clams for the disabled person. The physical disability permittee is required to be in the direct line of sight of the person digging razor clams for him or her, unless it is not possible to be in a direct line of sight because of a physical obstruction or other barrier. If such a barrier or obstruction exists, the physical disability permittee is required to be within one-quarter mile of the person who is digging razor clams for him or her.

Sec. 6. RCW 75.25.110 and 1989 c 305 s 8 are each amended to read as follows:

(1) Any of the recreational fishing licenses required by this chapter shall, upon request, be issued without charge to the following individuals upon request:

(a) Residents under fifteen years of age ((and residents seventy years of age or older));

(b) Residents who submit applications attesting that they are a person sixty-five years of age or older who is an honorably discharged veteran of the United States armed forces with a service-connected disability and who has been a resident of this state for the preceding ninety days;

(d) A person with a developmental disability as defined in RCW 71A.10.020 with documentation of the disability from the department of social and health services; and

(e) A person who is physically handicapped and confined to a wheelchair.

(2) ((Personal use licenses, salmon licenses, and sturgeon licenses shall, upon request, be issued to nonresidents under fifteen years of age.

(3))) A blind person or a physically handicapped person confined to a wheelchair who has been issued a card for a permanent disability under RCW 46.16.381 may use that card in place of a fishing license ((unless a punchcard is required by the director)).

Sec. 7. RCW 75.25.120 and 1989 c 305 s 9 are each amended to read as follows:

In concurrent waters of the Columbia river and in Washington coastal territorial waters from the Oregon-Washington boundary to a point five nautical miles north, an Oregon angling license comparable to the Washington personal use food fish license((,)) or two-consecutive-day personal use food fish license((, salmon license, or sturgeon license)) is valid if Oregon recognizes as valid the Washington personal use food fish license((,)) or two-consecutive-day personal use food fish license((, salmon license, or sturgeon license)) in comparable Oregon waters.

If Oregon recognizes as valid the Washington personal use food fish license((,)) or two-consecutive-day personal use food fish license((, salmon license, or sturgeon license)) southward to Cape Falcon in the coastal territorial waters from the Washington-Oregon boundary and in concurrent waters of the Columbia river then Washington shall recognize a valid Oregon license comparable to the Washington personal use food fish license((,)) or two-consecutive-day personal use food fish license((, salmon license, or sturgeon license)) northward to Leadbetter Point.

Oregon licenses are not valid for the taking of food fish when angling in concurrent waters of the Columbia river from the Washington shore.

Sec. 8. RCW 75.25.140 and 1989 c 305 s 12 are each amended to read as follows:

(1) Recreational licenses are not transferable. Upon request of a fisheries patrol officer, ex officio fisheries patrol officer, or authorized fisheries employee, a person digging for, fishing for, or possessing ((razor clams)) shellfish or fishing for or possessing ((Hood Canal shrimp or)) food fish for personal use shall exhibit the required recreational license and write his or her signature for comparison with the signature on the license. Failure to comply with the request is prima facie evidence that the person does not have a license or is not the person named on the license.

(2) The ((razor clam)) personal use shellfish license shall be visible on the licensee while ((digging for razor clams)) harvesting shellfish.

Sec. 9. RCW 75.25.150 and 1989 c 305 s 13 are each amended to read as follows:

It is unlawful to dig for, fish for, or possess ((razor clams, fish for)) shellfish or ((possess)) food fish((, or take or possess Hood Canal shrimp)) without the licenses required by this chapter.

Sec. 10. RCW 75.25.180 and 1989 c 305 s 14 are each amended to read as follows:

Recreational licenses issued by the department of fisheries under this chapter are valid for the following periods:

(1) Recreational licenses issued without charge to persons designated by this chapter are valid for a period of five years:

(a) For ((life for)) blind persons;

(b) For the period of continued state residency for qualified disabled veterans;

(d))) For ((the period of the disability for)) persons with a developmental disability; and

(((e))) (d) For ((life for)) handicapped persons confined to a wheelchair who have been issued a permanent disability card((; and

(f) Until a child reaches fifteen years of age)).

(2) Two-consecutive-day personal use food fish and shellfish licenses expire at midnight on the day following the validation date written on the license by the license dealer, except two-consecutive-day personal use food fish and shellfish licenses validated for December 31 expire at midnight on that date.

(3) ((An annual salmon)) A personal use food fish license is valid for a maximum catch of fifteen salmon, after which another ((salmon)) personal use food fish license may be purchased. A ((salmon)) personal use food fish license is valid only for the calendar year for which it is issued.

(4) ((An annual sturgeon)) A personal use food fish license is valid for ((a)) an annual maximum catch of fifteen sturgeon. ((A sturgeon license is valid only for the calendar year for which it is issued.))

(5) ((All other recreational)) Personal use shellfish licenses are valid for the calendar year for which they are issued.

Sec. 11. RCW 75.50.100 and 1990 c 58 s 3 are each amended to read as follows:

The dedicated regional fisheries enhancement group account is created in the custody of the state treasurer. Only the director or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures.

A surcharge of one dollar shall be collected on each recreational ((salmon)) personal use food fish license sold in the state. A surcharge of one hundred dollars shall be collected on each commercial salmon fishing license and each charter boat "salmon and other food fish" license sold in the state. The department shall study methods for collecting and making available, an annual list, including names and addresses, of all persons who obtain recreational and commercial salmon fishing licenses. This list may be used to assist formation of the regional fisheries enhancement groups and allow the broadest participation of license holders in enhancement efforts. The results of the study shall be reported to the house of representatives fisheries and wildlife committee and the senate environment and natural resources committee by October 1, 1990. All receipts shall be placed in the regional fisheries enhancement group account and shall be used exclusively for regional fisheries enhancement group projects for the purposes of RCW 75.50.110. Funds from the regional fisheries enhancement group account shall not serve as replacement funding for department operated salmon projects that exist on January 1, 1991.

All revenue from the department's sale of salmon carcasses and eggs that return to group facilities shall be deposited in the regional fisheries enhancement group account for use by the regional fisheries enhancement group that produced the surplus. The department shall adopt rules to implement this section pursuant to chapter 34.05 RCW.

Sec. 12. RCW 82.27.020 and 1985 c 413 s 2 are each amended to read as follows:

(1) In addition to all other taxes, licenses, or fees provided by law there is established an excise tax on the commercial possession of enhanced food fish as provided in this chapter. The tax is levied upon and shall be collected from the owner of the enhanced food fish whose possession constitutes the taxable event. The taxable event is the first possession in Washington by an owner. Processing and handling of enhanced food fish by a person who is not the owner is not a taxable event to the processor or handler.

(2) A person in possession of enhanced food fish and liable to this tax may deduct from the price paid to the person from which the enhanced food fish (except oysters) are purchased an amount equal to a tax at one-half the rate levied in this section upon these products.

(3) The measure of the tax is the value of the enhanced food fish at the point of landing.

(4) The tax shall be equal to the measure of the tax multiplied by the rates for enhanced food fish as follows:

(a) Chinook, coho, and chum salmon and anadromous game fish: Five and twenty-five one-hundredths percent.

(b) Pink and sockeye salmon: Three and fifteen one-hundredths percent.

(d) Oysters: ((Seven)) Eight one-hundredths of one percent.

(5) An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the tax payable under subsection (4) of this section.

Sec. 13. RCW 75.28.035 and 1989 c 316 s 1 are each amended to read as follows:

An application for issuance or renewal of a commercial fishing license shall contain the name and address of the vessel owner, the name and address of the vessel operator, the name and number of the vessel, a description of the vessel and fishing gear to be carried on the vessel, and other information required by the department.

At the time of issuance of a commercial fishing license the director shall furnish the licensee with a vessel registration and two license decals.

Vessel registrations and license decals issued by the director shall be displayed as provided by rule of the director.

A commercial fishing license is not valid if the vessel is operated by a person other than the operator listed on the license. The director may authorize additional operators for the license. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The fee for an additional operator is ((twenty)) thirty-five dollars.

The vessel owner shall notify the director on forms provided by the department of changes of ownership or ((operator)) vessel and a new license shall be issued upon payment of a fee ((of twenty dollars)):

(1) For a change in vessel with no change in ownership, the fee shall be thirty-five dollars;

(2) For a change in ownership:

(a) The fee shall be equal to three and one-half times the annual renewal fee for the particular license if the license is limited under chapter 75.30 RCW; and

(b) The fee shall be equal to the annual renewal fee for the particular license if the license is not limited under chapter 75.30 RCW.

A defaced, mutilated, or lost license or license decal shall be replaced immediately. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The replacement fee is ((ten)) twenty dollars.

As used in this section, "change in ownership" has its ordinary meaning and includes transfers to corporations, partnerships, or other entities, and transfers by the current owner to the current owner and others jointly in joint tenancy, as tenants in common, or otherwise.

Sec. 14. RCW 75.28.095 and 1989 c 316 s 2, 1989 c 147 s 1, and 1989 c 47 s 2 are each reenacted and amended to read as follows:

(1) A charter boat license is required for a vessel to be operated as a charter boat from which food fish are taken for personal use. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The annual license fees are:

Species Resident Nonresident

Fee Fee

(a) Food fish other

than salmon$((135)) 225$((270)) 375

(b) Salmon and

other food fish$((275)) 480$((550)) 785

The license fees in this subsection include the regional enhancement fee required for salmon licenses under RCW 75.50.100.

(2) "Charter boat" means a vessel from which persons may, for a fee, fish for food fish, and which delivers food fish into state ports or delivers food fish taken from state waters into United States ports. "Charter boat" does not mean:

(a) Vessels not generally engaged in charter boat fishing which are under private lease or charter and operated by the lessee for the lessee's personal recreational enjoyment; or

(b) Vessels used by guides for clients fishing for food fish for personal use in freshwater rivers, streams, and lakes, other than Lake Washington or that part of the Columbia River below the bridge at Longview.

(3) A charter boat licensed in Oregon shall be permitted to fish without a charter boat license in ocean waters within the jurisdiction of Washington state from the southern border of the state of Washington to Leadbetter Point under the same regulations as Washington charter boat operators, as long as the Oregon vessel does not land at any Washington port with the purpose of taking on or discharging passengers. The provisions of this subsection shall be in effect as long as the state of Oregon has reciprocal laws and regulations.

(4) A vessel shall not engage in both charter or sports fishing and commercial fishing on the same day.

Sec. 15. RCW 75.28.110 and 1989 c 316 s 3 are each amended to read as follows:

(1) The following commercial salmon fishing licenses are required for the licensee to use the specified gear to fish for salmon and other food fish in state waters. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The annual license fees are:

Gear Resident Nonresident

Fee Fee

(a) Purse seine $((410)) 630 $((820)) 1085

(b) Gill net $((275)) 480 $((550)) 785

(d) Reef net $((275)) 480 $((550)) 785

The license fees in this subsection include the regional enhancement fee required for salmon licenses under RCW 75.50.100.

(2) Holders of commercial salmon fishing licenses may retain incidentally caught food fish other than salmon, subject to rules of the director.

(3) A salmon troll license allows fishing in all licensing districts and includes a salmon delivery license.

(4) A separate gill net license is required to fish for salmon in each of the licensing districts established in RCW 75.28.012.

Sec. 16. RCW 75.28.113 and 1989 c 316 s 4 are each amended to read as follows:

(1) A person operating a commercial fishing vessel used in taking salmon in offshore waters and delivering the salmon to a place or port in the state shall obtain a salmon delivery license from the director. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The annual fee for a salmon delivery license is ((two hundred seventy-five)) four hundred eighty dollars for residents and ((five hundred fifty)) seven hundred eighty-five dollars for nonresidents. The license fees in this subsection include the regional enhancement fee required for salmon licenses under RCW 75.50.100. Persons operating fishing vessels licensed under RCW 75.28.125 may apply the delivery license fee ((of fifty dollars)) against the salmon delivery license fee.

(2) If the director determines that the operation of a vessel under a salmon delivery license results in the depletion or destruction of the state's salmon resource or the delivery into this state of salmon products prohibited by law, the director may revoke the license.

Sec. 17. RCW 75.28.116 and 1989 c 316 s 5 are each amended to read as follows:

The owner of a commercial salmon fishing vessel which is not qualified for a license under RCW 75.30.120 is required to obtain a salmon single delivery license in order to make one landing of salmon taken in offshore waters. The director shall not issue a salmon single delivery license unless, as determined by the director, a bona fide emergency exists. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The license fee is ((one hundred thirty-five)) three hundred twenty-five dollars for residents and ((two hundred seventy)) four hundred seventy-five dollars for nonresidents. The license fees in this section include the regional enhancement fee required for salmon licenses under RCW 75.50.100.

Sec. 18. RCW 75.28.120 and 1989 c 316 s 6 are each amended to read as follows:

The following commercial fishing licenses are required for the licensee to use the specified gear to fish for food fish other than salmon in state waters. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The annual license fees are:

Gear Resident Nonresident

Fee Fee

(1) Jig $((50)) 130 $((100)) 185

(2) Set line $((50)) 130 $((100)) 185

(3) Set net $((50)) 130 $((100)) 185

(4) Drag seine $((50)) 130 $((100)) 185

(5) Gill net $((275)) 380 $((550)) 685

(6) Purse seine $((410)) 530 $((820)) 985

(7) Troll $((50)) 130 $((100)) 185

(8) Bottom fish pots $((50)) 130 $((100)) 185

(9) Lampara $((100)) 185 $((200)) 295

(10) Dip bag net $((50)) 130 $((100)) 185

(11) Brush weir $((100)) 185 $((200)) 295

(12) Other gear $((100)) 185 $((200)) 295

Sec. 19. RCW 75.28.125 and 1989 c 316 s 7 are each amended to read as follows:

A delivery license is required to deliver shellfish or food fish other than salmon taken in offshore waters to a port in the state. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The annual license fee is ((fifty)) one hundred fifteen dollars for residents and ((one hundred)) two hundred twenty-five dollars for nonresidents. Licenses issued under RCW 75.28.113 (salmon delivery license), RCW 75.28.130(4) (crab pot, other than Puget Sound), or RCW 75.28.140(2) (trawl, other than Puget Sound) shall include a delivery license.

Sec. 20. RCW 75.28.130 and 1989 c 316 s 8 are each amended to read as follows:

The following commercial fishing licenses are required for the licensee to use the specified gear to fish for shellfish in state waters. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The annual license fees are:

Gear Resident Nonresident

Fee Fee

(1) Ring net $((50)) 130 $((100)) 185

(2) Shellfish pots

(excluding crab)$((50)) 130$((100)) 185

(3) Crab pots

(Puget Sound)$((50)) 130$((100)) 185

(4) Crab pots

(((other than

Puget Sound))) $((200)) 295 $((400)) 520

(5) Shellfish diver

(excluding clams)$((50)) 525$((100)) 1045

(6) Squid gear, all types $((100)) 185 $((200)) 295

(7) Ghost shrimp gear $((100)) 185 $((200)) 295

(8) Commercial razor

clam license$((50)) 130$((100)) 185

(9) Geoduck diver license $((100)) 185 $((200)) 295

(10) Other shellfish gear $((100)) 185 $((200)) 295

Sec. 21. RCW 75.28.134 and 1989 c 316 s 9 are each amended to read as follows:

(1) In addition to a shellfish pot license, a Hood Canal shrimp endorsement is required to take shrimp commercially in that portion of Hood Canal lying south of the Hood Canal floating bridge. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The annual endorsement fee is ((two hundred twenty-five)) three hundred twenty-five dollars for a resident and ((four hundred fifty)) five hundred seventy-five dollars for a nonresident.

(2) Not more than fifty shrimp pots may be used while commercially fishing for shrimp in that portion of Hood Canal lying south of the Hood Canal floating bridge.

Sec. 22. RCW 75.28.140 and 1989 c 316 s 10 are each amended to read as follows:

The following commercial fishing licenses are required for the licensee to use the specified gear to fish for shellfish and food fish other than salmon in state waters. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The annual license fees are:

Gear Resident Nonresident

Fee Fee

(1) Trawl (Puget Sound) $((100)) 185 $((200)) 295

(2) Trawl (other than

Puget Sound) $((150)) 240 $((300)) 405

Sec. 23. RCW 75.28.255 and 1989 c 316 s 11 are each amended to read as follows:

The following commercial fishing licenses are required for the licensee to fish for the specified species in state waters with gear authorized by rule of the director. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The annual license fees are:

Species Resident Nonresident

Fee Fee

(1) Columbia river smelt $((275)) 380 $((550)) 685

(2) Carp $((50)) 130 $((100)) 185

Sec. 24. RCW 75.28.280 and 1989 c 316 s 12 are each amended to read as follows:

A mechanical harvester license is required to operate a mechanical or hydraulic device for commercially harvesting clams, other than geoduck clams, on a clam farm unless the requirements of RCW 75.20.100 are fulfilled for the proposed activity. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The annual license fee is ((four hundred ten)) five hundred thirty dollars for residents and ((eight hundred twenty)) nine hundred eighty-five dollars for nonresidents.

Sec. 25. RCW 75.28.290 and 1989 c 316 s 14 are each amended to read as follows:

An oyster reserve license is required for the commercial taking of shellfish from state oyster reserves. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The annual license fee is ((fifty)) one hundred thirty dollars for residents and one hundred eighty-five dollars for nonresidents.

Sec. 26. RCW 75.28.300 and 1989 c 316 s 16 are each amended to read as follows:

A wholesale fish dealer's license is required for:

(1) A business in the state to engage in the commercial processing of food fish or shellfish, including custom canning or processing of personal use food fish or shellfish.

(2) A business in the state to engage in the wholesale selling, buying, or brokering of food fish or shellfish. A wholesale fish dealer's license is not required of those businesses which buy exclusively from Washington licensed wholesale dealers and sell solely at retail.

(3) Fishermen who land and sell their catch or harvest in the state to anyone other than a licensed wholesale dealer within or outside the state.

(4) A business to engage in the commercial manufacture or preparation of fertilizer, oil, meal, caviar, fish bait, or other byproducts from food fish or shellfish.

(5) A business employing a fish buyer as defined under RCW 75.28.340.

((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065, the annual license fee is one hundred dollars.)) The annual license fee is two hundred fifty dollars. A wholesale fish dealer's license is not required for persons engaged in the processing, wholesale selling, buying, or brokering of private sector cultured aquatic products as defined in RCW 15.85.020. However, if a means of identifying such products is required by rules adopted under RCW 15.85.060, the exemption from licensing requirements established by this subsection applies only if the aquatic products are identified in conformance with those rules.

Sec. 27. RCW 75.28.340 and 1989 c 316 s 17 are each amended to read as follows:

(1) A fish buyer's license is required of and shall be carried by each individual engaged by a wholesale fish dealer to purchase food fish or shellfish from a licensed commercial fisherman. A fish buyer may represent only one wholesale fish dealer.

(2) ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The annual fee for a fish buyer's license is ((twenty)) ninety-five dollars.

Sec. 28. RCW 75.28.690 and 1989 c 316 s 18 are each amended to read as follows:

(1) A deckhand license is required for a crew member on a licensed salmon charter boat to sell salmon roe as provided in subsection (2) of this section. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The annual license fee is ((twenty)) ninety-five dollars.

(2) A deckhand on a licensed salmon charter boat may sell salmon roe taken from fish caught for personal use, subject to rules of the director and the following conditions:

(a) The salmon is taken while fishing on the charter boat;

(b) The roe is the property of the angler until the roe is given to the deckhand. The charter boat's passengers are notified of this fact by the deckhand;

(d) The deckhand is licensed as provided in subsection (1) of this section and has the license in possession whenever salmon roe is sold.

Sec. 29. RCW 75.28.710 and 1991 c 362 s 2 are each amended to read as follows:

A professional salmon guide license is required for the holder to offer or perform the services of a professional salmon guide in the taking of salmon for personal use in freshwater rivers and streams, other than in that part of the Columbia river below the bridge at Longview. The annual license fees are ((fifty)) one hundred fifty dollars for residents and ((five hundred)) seven hundred thirty dollars for nonresidents. The license fees include a surcharge of twenty dollars ((shall be)) assessed on each resident guide license and a surcharge of one hundred dollars ((shall be)) assessed on each nonresident guide license for the purposes of RCW 75.50.100.

Sec. 30. RCW 75.30.160 and 1986 c 198 s 6 are each amended to read as follows:

In addition to any other license, a Puget Sound commercial whiting endorsement is required to take whiting in the waters of marine fish-shell fish management and catch reporting areas 24B, Port Susan; 24C, Saratoga Passage; 26A, Possession Sound; or any other area designated by the department. An annual endorsement fee is two hundred ninety-five dollars for residents and ((four)) five hundred twenty dollars for nonresidents. The license shall be affixed to the licensed vessel.

NEW SECTION. Sec. 31. The following acts or parts of acts are each repealed:

(1) RCW 75.25.015 and 1989 c 305 s 2, 1984 c 80 s 6, & 1983 1st ex.s. c 31 s 1;

(2) RCW 75.25.040 and 1989 c 305 s 3, 1983 1st ex.s. c 46 s 91, 1980 c 81 s 1, & 1979 ex.s. c 243 s 4;

(3) RCW 75.25.090 and 1989 c 305 s 5 & 1987 c 87 s 1;

(4) RCW 75.25.100 and 1989 c 305 s 6, 1987 c 87 s 2, 1983 1st ex.s. c 46 s 94, & 1977 ex.s. c 327 s 11;

(5) RCW 75.25.126 and 1989 c 305 s 7; and

(6) RCW 75.28.065 and 1989 c 316 s 19.

NEW SECTION. Sec. 32. This act shall take effect January 1, 1994, except that sections 13 through 30 of this act shall take effect only if Senate Bill No. 5124 does not become law by August 1, 1993.

NEW SECTION. Sec. 33. This act shall expire January 1, 1998.

NEW SECTION. Sec. 34. A new section is added to chapter 75.28 RCW to read as follows:

(1) Unless otherwise provided in this title, a license issued under this chapter is not transferable from the license holder to any other person.

(2) The following restrictions apply to transfers of commercial fishery licenses, salmon delivery licenses, and salmon charter licenses that are transferable between license holders:

(a) The license holder shall surrender the previously issued license to the department.

(b) The department shall complete no more than one transfer of the license in any seven-day period.

(c) The fee to transfer a license from one license holder to another is: (i) The same as the resident license renewal fee if the license is not limited under chapter 75.30 RCW; or (ii) three and one-half times the resident renewal fee if the license is limited under chapter 75.30 RCW.

(d) If a license is transferred from a resident to a nonresident, the transferee shall pay the difference between the resident and nonresident license fees at the time of transfer.

(3) A commercial license that is transferable under this title survives the death of the holder. Though such licenses are not personal property, they shall be treated as analogous to personal property for purposes of inheritance and intestacy. Such licenses are subject to state laws governing wills, trusts, estates, intestate succession, and community property, except that such licenses are exempt from claims of creditors of the estate and tax liens. The surviving spouse, estate, or beneficiary of the estate may apply for a renewal of the license. There is no fee for transfer of a license from a license holder to the license holder's surviving spouse or estate, or to a beneficiary of the estate.

Sec. 35. RCW 75.28.110 and 1989 c 316 s 3 are each amended to read as follows:

(1) The following commercial salmon ((fishing)) fishery licenses are required for the ((licensee)) license holder to use the specified gear to fish for salmon ((and other food fish)) in state waters. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) Only a person who meets the qualifications of RCW 75.30.120 may hold a license listed in this subsection. The licenses and their annual ((license)) fees and surcharges under RCW 75.50.100 are:

((Gear)) Fishery Resident Nonresident Surcharge

License Fee Fee

(a) Salmon Gill Net--Grays $380 $685 plus $100

Harbor-Columbia river

(b) Salmon Gill Net--Puget $380 $685 plus $100

Sound

Bay-Columbia river

(d) Salmon purse seine (($410)) $530 (($820))$985 plus $100

(((b) Gill net $275 $550

(d))) (e) Salmon reef net (($275)) $380 (($550)) $685 plus $100

(f) Salmon troll $380 $685 plus $100

(2) A license issued under this section authorizes no taking or delivery of salmon or other food fish unless a vessel is designated under RCW 75.28.--- (section 7 of Senate Bill No. 5124).

(3) Holders of commercial salmon ((fishing)) fishery licenses may retain incidentally caught food fish other than salmon, subject to rules of the director.

(((3))) (4) A salmon troll license ((allows fishing in all licensing districts and)) includes a salmon delivery license.

(((4))) (5) A ((separate)) salmon gill net license ((is required to fish for salmon in each of the licensing districts established in RCW 75.28.012)) authorizes the taking of salmon only in the geographical area for which the license is issued. The geographical designations in subsection (1) of this section have the following meanings:

(a) "Puget Sound" includes waters of the Strait of Juan de Fuca, Georgia Strait, Puget Sound and all bays, inlets, canals, coves, sounds, and estuaries lying easterly and southerly of the international boundary line and a line at the entrance to the Strait of Juan de Fuca projected northerly from Cape Flattery to the lighthouse on Tatoosh Island and then to Bonilla Point on Vancouver Island.

(b) "Grays Harbor-Columbia river" includes waters of Grays Harbor and tributary estuaries lying easterly of a line projected northerly from Point Chehalis Light to Point Brown and those waters of the Columbia river and tributary sloughs and estuaries easterly of a line at the entrance to the Columbia river projected southerly from the most westerly point of the North jetty to the most westerly point of the South jetty.

(c) "Willapa Bay-Columbia river" includes waters of Willapa Bay and tributary estuaries and easterly of a line projected northerly from Leadbetter Point to the Cape Shoalwater tower and those waters of the Columbia river and tributary sloughs described in (b) of this subsection.

Sec. 36. RCW 75.28.113 and 1989 c 316 s 4 are each amended to read as follows:

(1) ((A person operating a commercial fishing vessel used in taking)) It is unlawful to deliver salmon taken in offshore waters ((and delivering the salmon)) to a place or port in the state ((shall obtain)) without a salmon delivery license from the director. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The annual fee for a salmon delivery license is ((two hundred seventy-five)) three hundred eighty dollars for residents and ((five hundred fifty)) six hundred eighty-five dollars for nonresidents. ((Persons operating fishing vessels licensed)) The annual surcharge under RCW 75.50.100 is one hundred dollars for each license. Holders of nonsalmon delivery licenses issued under RCW 75.28.125 may apply the nonsalmon delivery license fee ((of fifty dollars)) against the salmon delivery license fee.

(2) Only a person who meets the qualifications established in RCW 75.30.120 may hold a salmon delivery license issued under this section.

(3) A salmon delivery license authorizes no taking of salmon or other food fish or shellfish from the waters of the state.

(4) If the director determines that the operation of a vessel under a salmon delivery license results in the depletion or destruction of the state's salmon resource or the delivery into this state of salmon products prohibited by law, the director may revoke the license under the procedures of chapter 34.05 RCW.

Sec. 37. RCW 75.28.116 and 1989 c 316 s 5 are each amended to read as follows:

((The owner of a commercial salmon fishing vessel which is)) A person who does not ((qualified)) qualify for a license under RCW 75.30.120 ((is required to)) shall obtain a nontransferable emergency salmon ((single)) delivery license ((in order)) to make one ((landing)) delivery of salmon taken in offshore waters. The director shall not issue ((a)) an emergency salmon ((single)) delivery license unless, as determined by the director, a bona fide emergency exists. ((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The license fee is ((one hundred thirty-five)) two hundred twenty-five dollars for residents and ((two hundred seventy)) four hundred seventy-five dollars for nonresidents. An applicant for an emergency salmon delivery license shall designate no more than one vessel that will be used with the license. Alternate operator licenses are not required of persons delivering salmon under an emergency salmon delivery license. Emergency salmon delivery licenses are not renewable.

Sec. 38. RCW 75.28.120 and 1989 c 316 s 6 are each amended to read as follows:

((The following commercial fishing licenses are required for the licensee to use the specified gear to fish for food fish other than salmon in state waters. Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065, the annual license fees are:

Gear Resident Nonresident

Fee Fee

(1) Jig $50 $100

(2) Set line $50 $100

(3) Set net $50 $100

(4) Drag seine $50 $100

(5) Gill net $275 $550

(6) Purse seine $410 $820

(7) Troll $50 $100

(8) Bottom fish pots $50 $100

(9) Lampara $100 $200

(10) Dip bag net $50 $100

(11) Brush weir $100 $200

(12) Other gear $100 $200))

(1) This section establishes commercial fishery licenses required for food fish fisheries and the annual fees for those licenses. As used in this section, "food fish" does not include salmon. The director may issue a limited-entry commercial fishery license only to a person who meets the qualifications established in applicable governing sections of this title.

Fishery Annual Fee Vessel Limited

(Governing section(s)) Resident Nonresident Required? Entry?

(a) Baitfish Lampara $185 $295 Yes No

(b) Baitfish purse seine $530 $985 Yes No

(d) Bottom fish pot $130 $185 Yes No

(e) Bottom fish troll $130 $185 Yes No

(f) Carp $130 $185 No No

(g) Columbia river smelt $380 $685 No No

(h) Dog fish set net $130 $185 Yes No

(i) Emerging commercial $185 $295 Determined Determined

fishery (RCW 75.30.220 by rule by rule

and 75.28.--- (section

18 of Senate Bill No.

5124))

(j) Food fish drag seine $130 $185 Yes No

(k) Food fish set line $130 $185 Yes No

(l) Food fish trawl-- $240 $405 Yes No

Non-Puget Sound

(m) Food fish trawl-- $185 $295 Yes No

Puget Sound

(n) Herring dip bag net $175 $275 Yes Yes

(RCW 75.30.140)

(o) Herring drag seine $175 $275 Yes Yes

(RCW 75.30.140)

(p) Herring gill net $175 $275 Yes Yes

(RCW 75.30.140)

(q) Herring Lampara $175 $275 Yes Yes

(RCW 75.30.140)

(r) Herring purse seine $175 $275 Yes Yes

(RCW 75.30.140)

(s) Herring spawn-on-kelp N/A N/A Yes Yes

(RCW 75.28.245 as

recodified by section

54, chapter ...

(Senate Bill No. 5124),

Laws of 1993)

(t) Smelt dip bag net $130 $185 No No

(u) Smelt gill net $380 $685 Yes No

(v) Whiting--Puget Sound $295 $520 Yes Yes

(RCW 75.30.170)

(2) The director may by rule determine the species of food fish that may be taken with the commercial fishery licenses established in this section, the gear that may be used with the licenses, and the areas or waters in which the licenses may be used. Where a fishery license has been established for a particular species, gear, geographical area, or combination thereof, a more general fishery license may not be used to take food fish in that fishery.

Sec. 39. RCW 75.28.125 and 1989 c 316 s 7 are each amended1 to read as follows:

((A delivery license is required to deliver shellfish or food fish other than salmon taken in offshore waters to a port in the state. Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) (1) Except as provided in subsection (2) of this section, it is unlawful to deliver with a commercial fishing vessel food fish or shellfish taken in offshore waters to a port in the state without a nonsalmon delivery license. As used in this section, "food fish" does not include salmon. The annual license fee for a nonsalmon delivery license is ((fifty)) one hundred ten dollars for residents and ((one)) two hundred dollars for nonresidents. ((Licenses issued under RCW 75.28.113 (salmon delivery license), RCW 75.28.130(4) (crab pot, other than Puget Sound), or RCW 75.28.140(2) (trawl, other than Puget Sound) shall include a delivery license.))

(2) Holders of salmon troll fishery licenses issued under RCW 75.28.110, salmon delivery licenses issued under RCW 75.28.113, crab pot fishery licenses issued under RCW 75.28.130, food fish trawl--Non-Puget Sound fishery licenses issued under RCW 75.28.120, and shrimp trawl--Non-Puget Sound fishery licenses issued under RCW 75.28.130 may deliver food fish or shellfish taken in offshore waters without a nonsalmon delivery license.

(3) A nonsalmon delivery license authorizes no taking of food fish or shellfish from state waters.

Sec. 40. RCW 75.28.130 and 1989 c 316 s 8 are each amended to read as follows:

((The following commercial fishing licenses are required for the licensee to use the specified gear to fish for shellfish in state waters. Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065, the annual license fees are:

Gear Resident Nonresident

Fee Fee

(1) Ring net $50 $100

(2) Shellfish pots

(excluding crab)$50$100

(3) Crab pots

(Puget Sound) $50$100

(4) Crab pots

(other than Puget Sound)$200$400

(5) Shellfish diver

(excluding clams)$50$100

(6) Squid gear, all types $100 $200

(7) Ghost shrimp gear $100 $200

(8) Commercial razor

clam license$50$100

(9) Geoduck diver license $100 $200

(10) Other shellfish gear $100 $200))

(1) This section establishes commercial fishery licenses required for shellfish fisheries and the annual fees for those licenses. The director may issue a limited-entry commercial fishery license only to a person who meets the qualifications established in applicable governing sections of this title.

Fishery Annual Fee Vessel Limited

(Governing section(s)) Resident Nonresident Required? Entry?

(a) Burrowing shrimp $185 $295 Yes No

(b) Crab pot $295 $520 Yes No

Puget Sound(d) Crab

ring net 2$130 $185 Yes No

Non-Puget Sound

(e) Crab ring net-- $130 $185 Yes No

Puget Sound

(f) Dungeness crab-- $130 $185 Yes Yes

Puget Sound

(RCW 75.30.130)

(g) Emerging commercial $185 $295 Determined Determined

fishery (RCW 75.30.220 by rule by rule

and 75.28.--- (section

18 of Senate Bill No.

5124))

(h) Geoduck (RCW 75.30.--- $ 0 $ 0 Yes Yes

(section 46 of Senate

Bill No. 5124))

(i) Hardshell clam $530 $985 Yes No

mechanical harvester

(RCW 75.28.280)

(j) Oyster reserve $130 $185 No No

(RCW 75.28.290)

(k) Razor clam $130 $185 No No

(l) Sea cucumber dive $130 $185 Yes Yes

(RCW 75.30.250)

(m) Sea urchin dive $130 $185 Yes Yes

(RCW 75.30.210)

(n) Shellfish dive $525 $1045 Yes No

(o) Shellfish pot $130 $185 Yes No

(p) Shrimp pot-- $325 $575 Yes No

Hood Canal

(q) Shrimp trawl-- $240 $405 Yes No

Non-Puget Sound

(r) Shrimp trawl-- $185 $295 Yes No

Puget Sound

(s) Squid $185 $295 Yes No

(2) The director may by rule determine the species of shellfish that may be taken with the commercial fishery licenses established in this section, the gear that may be used with the licenses, and the areas or waters in which the licenses may be used. Where a fishery license has been established for a particular species, gear, geographical area, or combination thereof, a more general fishery license may not be used to take shellfish in that fishery.

Sec. 41. RCW 75.28.095 and 1989 c 316 s 2, 1989 c 147 s 1, and 1989 c 47 s 2 are each reenacted and amended to read as follows:

(1) ((A charter boat license is required for a vessel to be operated as a charter boat from which food fish are taken for personal use. Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065,)) The director shall issue the charter licenses and angler permits listed in this section according to the requirements of this title. The licenses and permits and their annual ((license)) fees and surcharges are:

((Species)) ((Resident)) Annual ((Nonresident

License or Permit Fee Fee))

(RCW 75.50.100 Surcharge) Governing

Resident Nonresident Section

(a) ((Food fish other

than salmon))

Nonsalmon charter (($135)) $225 (($270)) $375

(b) Salmon ((and

other food fish))

charter (($275)) $380 (($550)) $685 RCW

(plus $100) (plus $100) 75.30.065

75.30.070

(d) Salmon roe $ 95 $ 95 RCW

75.28.690

(2) Except as provided in subsection (5) of this section, it is unlawful to operate a vessel as a charter boat from which salmon or salmon and other food fish are taken without a salmon charter license designating the vessel. The director may issue a salmon charter license only to a person who meets the qualifications of RCW 75.30.065.

(3) Except as provided in subsections (2) and (5) of this section, it is unlawful to operate a vessel as a charter boat from which food fish or shellfish are taken without a nonsalmon charter license. As used in this subsection, "food fish" does not include salmon.

(4) "Charter boat" means a vessel from which persons may, for a fee, fish for food fish or shellfish for personal use, and ((which delivers)) that brings food fish or shellfish into state ports or ((delivers)) brings food fish or shellfish taken from state waters into United States ports. The director may specify by rule when a vessel is a "charter boat" within this definition. "Charter boat" does not mean((:

(a) Vessels not generally engaged in charter boat fishing which are under private lease or charter and operated by the lessee for the lessee's personal recreational enjoyment; or

(b) Vessels)) a vessel used by ((guides)) a guide for clients fishing for food fish for personal use in freshwater rivers, streams, and lakes, other than Lake Washington or that part of the Columbia River below the bridge at Longview.

(((3))) (5) A charter boat licensed in Oregon ((shall be permitted to)) may fish without a Washington charter ((boat)) license under the same rules as Washington charter boat operators in ocean waters within the jurisdiction of Washington state from the southern border of the state of Washington to Leadbetter Point ((under the same regulations as Washington charter boat operators)), as long as the Oregon vessel does not land at any Washington port with the purpose of taking on or discharging passengers. The provisions of this subsection shall be in effect as long as the state of Oregon has reciprocal laws and regulations.

(((4) A vessel shall not engage in both charter or sports fishing and commercial fishing on the same day.))

NEW SECTION. Sec. 42. A new section is added to chapter 75.28 RCW to read as follows:

The director shall issue the personal licenses listed in this section according to the requirements of this title. The licenses and their annual fees are:

Personal License Annual Fee Governing

(RCW 75.50.100 Surcharge) Section

Resident Nonresident RCW 75.28.---

(section 25 of

Senate Bill No.

5124)

(1) Alternate Operator $ 35 $ 35

(2) Geoduck Diver $185 $295 RCW 75.28.287

(as recodified

by section 54,

chapter ...

(Senate Bill No.

5124), Laws of

1993)

(3) Salmon Guide $130 $630 RCW 75.28.710

(plus $20) (plus $100)

Sec. 43. RCW 75.28.300 and 1989 c 316 s 16 are each amended to read as follows:

A wholesale fish dealer's license is required for:

(1) A business in the state to engage in the commercial processing of food fish or shellfish, including custom canning or processing of personal use food fish or shellfish.

(3) Fishermen who land and sell their catch or harvest in the state to anyone other than a licensed wholesale dealer within or outside the state.

(4) A business to engage in the commercial manufacture or preparation of fertilizer, oil, meal, caviar, fish bait, or other byproducts from food fish or shellfish.

(5) A business employing a fish buyer as defined under RCW 75.28.340.

((Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065, the annual license fee is one hundred dollars.)) The annual license fee for a wholesale dealer is two hundred fifty dollars. A wholesale fish dealer's license is not required for persons engaged in the processing, wholesale selling, buying, or brokering of private sector cultured aquatic products as defined in RCW 15.85.020. However, if a means of identifying such products is required by rules adopted under RCW 15.85.060, the exemption from licensing requirements established by this subsection applies only if the aquatic products are identified in conformance with those rules.

Sec. 44. RCW 75.28.030 and 1983 1st ex.s. c 46 s 105 are each amended to read as follows:

(1) Except as otherwise provided in this title, the director shall issue commercial licenses and permits to a qualified person((,)) upon ((the receipt of an)) receiving a completed application accompanied by the required fee. ((Applications shall be submitted on forms provided by the department. Applicants for commercial licenses and permits shall indicate at the time of application the species of food fish or shellfish they intend to take and the type of gear they intend to use.))

(2) An application submitted to the department under this chapter shall contain the name and address of the applicant and any other information required by the department or this title. An applicant for a commercial fishery license, delivery license, or charter license may designate a vessel to be used with the license and up to two alternate operators.

(3) An application submitted to the department under this chapter shall contain the applicant's declaration under penalty of perjury that the information on the application is true and correct.

(4) Upon issuing a commercial license under this chapter, the director shall assign the license a unique number that the license shall retain upon renewal. The department shall use the number to record any commercial catch under the license. This does not preclude the department from using other, additional, catch record methods.

(5) The fee to replace a license that has been lost or destroyed is twenty dollars.

NEW SECTION. Sec. 45. A new section is added to chapter 75.28 RCW to read as follows:

This section applies to all commercial fishery licenses, delivery licenses, and charter licenses, except for emergency salmon delivery licenses.

(1) The holder of a license subject to this section may substitute the vessel designated on the license or designate a vessel if none has previously been designated if the license holder:

(a) Surrenders the previously issued license to the department;

(b) Submits to the department an application that identifies the currently designated vessel, the vessel proposed to be designated, and any other information required by the department; and

(2) Unless the license holder owns all vessels identified on the application described in subsection (1)(b) of this section, the following restrictions apply to changes in vessel designation:

(a) The department shall change the vessel designation on the license no more than four times per calendar year.

(b) The department shall change the vessel designation on the license no more than once in any seven-day period.

Sec. 46. RCW 75.28.340 and 1989 c 316 s 17 are each amended to read as follows:

(2) Unless adjusted by the director pursuant to the director's authority granted in RCW 75.28.065, the annual fee for a fish buyer's license is ((twenty)) ninety-five dollars.

NEW SECTION. Sec. 47. The following acts or parts of acts are each repealed:

(1) 1993 c --- s 5 (section 5 of Senate Bill No. 5124);

(2) 1993 c --- s 8 (section 8 of Senate Bill No. 5124);

(3) 1993 c --- s 11 (section 11 of Senate Bill No. 5124);

(4) 1993 c --- s 12 (section 12 of Senate Bill No. 5124);

(5) 1993 c --- s 13 (section 13 of Senate Bill No. 5124);

(6) 1993 c --- s 14 (section 14 of Senate Bill No. 5124);

(7) 1993 c --- s 15 (section 15 of Senate Bill No. 5124);

(8) 1993 c --- s 16 (section 16 of Senate Bill No. 5124);

(9) 1993 c --- s 17 (section 17 of Senate Bill No. 5124);

(10) 1993 c --- s 21 (section 21 of Senate Bill No. 5124); and

(11) 1993 c --- s 23 (section 23 of Senate Bill No. 5124).

NEW SECTION. Sec. 48. Sections 34 through 47 of this act shall take effect only if Senate Bill No. 5124 becomes law by August 1, 1993.

NEW SECTION. Sec. 49. 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."

MOTION

Senator Roach moved that the following amendment by Senators Roach, Amondson, Erwin, McDonald, Moyer, Nelson and Hochstatter to the striking amendment be adopted:

On page 2, line 8, after "(b)" strike all materials through and including "(c)" on line 10

Debate ensued.

Senator von Reichbauer demanded a roll call and the demand was sustained.

The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senators Roach, Amondson, Erwin, McDonald, Moyer, Nelson and Hochstatter on page 2, line 8, to the striking amendment to Substitute Senate Bill No. 5980.

ROLL CALL

The Secretary called the roll and the amendment to the striking amendment was not adopted by the following vote: Yeas, 14; Nays, 31; Absent, 0; Excused, 4.

Voting yea: Senators Amondson, Anderson, Cantu, Deccio, Erwin, Hochstatter, McDonald, Moyer, Nelson, Prince, Roach, von Reichbauer, West and Winsley - 14.

Voting nay: Senators Barr, Bauer, Bluechel, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Oke, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sellar, Sheldon, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams and Wojahn - 31.

Excused: Senators McCaslin, Newhouse, Skratek and Smith, L. - 4.

MOTION

Senator Roach moved that the following amendment by Senators Roach, Amondson, Erwin, McDonald, Moyer, Nelson and Hochstatter to the striking amendment be adopted:

On page 3, line 12, after "age" strike "((and residents seventy years of age or older))" and insert "and residents seventy years of age or older"

Debate ensued.

The President declared the question before the Senate to be the adoption of the amendment by Senators Roach, Amondson, Erwin, McDonald, Moyer, Nelson and Hochstatter on page 3, line 12, to the striking amendment to Substitute Senate Bill No. 5980.

The motion by Senator Roach carried and the amendment to the striking amendment was adopted.

MOTION

Senator Haugen moved that the following amendments to the striking amendment be considered simultaneously and be adopted:

On page 2, line 23, after "shellfish" add "and seaweed"

On page 4, line 23, after "shellfish" add ", seaweed"

On page 4, line 29, after "shellfish" add "and seaweed"

On page 4, line 31, after "shellfish" add "or seaweed"

Debate ensued.

The President declared the question before the Senate to be the adoption of the amendments by Senator Haugen on page 2, line 23, and page 4, lines 23, 29, and 31, to the striking amendment to Substitute Senate Bill No. 5980.

The motion by Senator Haugen carried and the amendments to the striking amendment were adopted.

MOTION

Senator Spanel moved that the following amendment by Senators Spanel and Hargrove to the striking amendment be adopted:

On page 6, beginning on line 26, strike all of section 12 and insert the following:

"Sec. 12. RCW 82.27.020 and 1985 c 413 § 2 are each amended to read as follows:

(3) The measure of the tax is the value of the enhanced food fish at the point of landing.

(4) The tax shall be equal to the measure of the tax multiplied by the rates for enhanced food fish as follows:

(a) Chinook, coho, and chum salmon and anadromous game fish, except chinook, coho, and anadromous game fish raised in saltwater net pens: Five and twenty-five one-hundredths percent.

(b) Pink and sockeye salmon: Three and fifteen one-hundredths percent.

(c) Other food fish and shellfish, except oysters and except atlantic salmon raised in saltwater net pens: Two and one-tenth percent.

(d) Oysters: ((Seven)) Eight one-hundredths of one percent.

(e) Chinook, coho, atlantic salmon, and anadromous game fish raised in saltwater net pens: Eight one-hundredths of one percent.

(5) An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the tax payable under subsection (4) of this section.

Sec. 13. RCW 82.27.030 and 1985 c 413 s 3 are each amended to read as follows:

The tax imposed by RCW 82.27.020 shall not apply to: (1) Enhanced food fish originating outside the state which enters the state as (a) frozen enhanced food fish or (b) enhanced food fish packaged for retail sales; (2) the growing, processing, or dealing with food fish which are raised from eggs or fry and which are under the physical control of the grower at all times until being sold or harvested, except fish raised in saltwater net pens; and (3) food fish, shellfish, anadromous game fish, and byproducts or parts of food fish shipped from outside the state which enter the state, except as provided in RCW 82.27.010, provided the taxpayer must have documentation showing shipping origination of fish exempt under this subsection to qualify for exemption. Such documentation includes, but is not limited to fish tickets, bills of lading, invoices, or other documentation required to be kept by governmental agencies."

Debate ensued.

The President declared the question before the Senate to be the adoption of the amendment by Senators Spanel and Hargrove on page 6, beginning on line 26, to the striking amendment to Substitute Senate Bill No. 5980.

The motion by Senator Spanel failed and the amendment to the amendment was not adopted on a rising vote.

MOTION

Senator Owen moved that the following amendment by Senators Owen and Barr to the striking amendment be adopted:

On page 29, after line 24 of the amendment, insert the following:

"NEW SECTION. Sec. 49. The sum of eighty-five thousand dollars of the revenues derived from increases in personal use and commercial license fees pursuant to sections 2, 34, 42, and 45 of this act and RCW 75.28.030, 75.28.035, 75.28.095, 75.28.110, 75.28.113, 75.28.116, 75.28.120, 75.28.125, 75.28.130, 75.28.134, 75.28.140, 75.28.255, 75.28.280, 75.28.290, 75.28.300, 75.28.340, 75.28.690, 75.28.710, and 75.30.160, is appropriated for the biennium ending June 30, 1995, from the general fund to Washington State University for the purposes of implementation of the provision of chapter ... (House Bill No. 1309), Laws of 1993."

Renumber remaining sections consecutively and correct internal references accordingly.

POINT OF ORDER

Senator Spanel: "Mr. President, I would rise to a point of order on scope and object. This expands the original bill. The bill relates to fishing licenses and collecting different fees and this expands it to make an appropriation to some place else."

Debate ensued.

MOTION

At 6:25 p.m., on motion of Senator Jesernig, the Senate was declared to be at ease.

The Senate was called to order at 6:53 p.m. by President Pritchard.

There being no objection, the Senate resumed consideration of Substitute Senate Bill No. 5980 and the pending amendment by Senators Owen and Barr on page 29, after line 24, to the striking amendment, under consideration before going at ease.

RULING BY THE PRESIDENT

President Pritchard: "In ruling upon the point of order raised by Senator Spanel, the President finds that Substitute Senate Bill No. 5980 is a measure which, among other things, changes various fees related to fishing.

"The amendment by Senators Owen and Barr to the striking amendment would appropriate a portion of the revenues derived from the fee changes for specified purposes related to fisheries.

"The President, therefore, finds that the proposed amendment to the striking amendment does not change the scope and object of the bill and the point of order is not well taken."

The amendment by Senators Owen and Barr on page 29, after line 24, to the striking amendment was ruled in order.

Debate ensued.

POINT OF INQUIRY

Senator Hargrove: "Senator Owen, I am looking at the budget for Washington State University and there is language under Sub 6 that says, 'Eighty-five thousand dollars of the general fund appropriation is provided solely for the implementation of Section 7 of Second Engrossed Substitute House Bill No. 1309.' It appears to me that that budget already provided eighty-five thousand dollars to do the work required by this bill. Does this amendment add another eighty-five thousand dollars, because the project is going to cost more or is it intended to replace the eighty-five thousand that is in the budget here?"

Senator Owen: "The budget, as it is, requires Washington State University to take the eighty-five thousand out of their budget and put it into this program. It is not an increased appropriation. To answer your question, this would not double the appropriation. This would take the place of that appropriation. It is intended to take the place of that appropriation."

Further debate ensued.

The President declared the question before the Senate to be the adoption of the amendment by Senators Owen and Barr on page 29, after line 24, to the striking amendment to Substitute Senate Bill No. 5980.

The motion by Senator Owen carried and the amendment to the striking amendment was adopted on a rising vote.

The President declared the question before the Senate to be the adoption of the striking amendment, as amended, by Senator Owen to Substitute Senate Bill No. 5980.

Debate ensued.

The motion by Senator Owen carried and the striking amendment, as amended, was adopted.

MOTIONS

On motion of Senator Owen, the following title amendments were considered simultaneously and were adopted:

On page 1, line 1 of the title, after "licenses;" strike the remainder of the title and insert "amending RCW 75.25.005, 75.25.080, 75.25.110, 75.25.120, 75.25.140, 75.25.150, 75.25.180, 75.50.100, 82.27.020, 75.28.035, 75.28.110, 75.28.113, 75.28.116, 75.28.120, 75.28.125, 75.28.130, 75.28.134, 75.28.140, 75.28.255, 75.28.280, 75.28.290, 75.28.300, 75.28.340, 75.28.690, 75.28.710, 75.30.160, 75.28.110, 75.28.113, 75.28.116, 75.28.120, 75.28.125, 75.28.130, 75.28.300, 75.28.030, and 75.28.340; reenacting and amending RCW 75.28.095 and 75.28.095; adding new sections to chapter 75.25 RCW; adding new sections to chapter 75.28 RCW; creating a new section; repealing RCW 75.25.015, 75.25.040, 75.25.090, 75.25.100, 75.25.126, and 75.28.065; providing a contingent effective date; providing an effective date; and providing an expiration date."

On page 30, line 9 of the title amendment, after "75.28.065;" insert "making an appropriation"

On motion of Senator Owen, the rules were suspended, Engrossed Substitute Senate Bill No. 5980 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5980.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5980 and the bill passed the Senate by the following vote: Yeas, 27; Nays, 18; Absent, 1; Excused, 3.

Voting yea: Senators Bauer, Drew, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Oke, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Smith, A., Snyder, Spanel, Sutherland, Talmadge, Vognild, Williams and Winsley - 27.

Voting nay: Senators Amondson, Anderson, Barr, Bluechel, Cantu, Deccio, Erwin, Hochstatter, McDonald, Moyer, Nelson, Prince, Roach, Sellar, Smith, L., von Reichbauer, West and Wojahn - 18.

Absent: Senator Niemi - 1.

Excused: Senators McCaslin, Newhouse and Skratek - 3.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5980, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION TO LIMIT DEBATE

Senator Jesernig: "Mr. President, I move that the members of the Senate be allowed to speak only once and be limited to three minutes on each motion or amendment, except that the mover of the motion shall be allowed to open and close debate, and also that members be prohibited from yielding their time. This motion shall be in effect through Sine Die of the First Special Session."

The President declared the question before the Senate to be the motion by Senator Jesernig to limit debate.

The motion by Senator Jesernig carried and debate was limited to three minutes through Sine Die of the First Special Session.

MOTION

At 7:12 p.m., on motion of Senator Jesernig, the Senate recessed until 8:00 p.m.

The Senate was called to order at 10:00 p.m. by President Pritchard.

There being no objection, the President returned the Senate to the fourth order of business.

MESSAGES FROM THE HOUSE

May 5, 1993

MR. PRESIDENT:

The House has passed SENATE BILL NO. 5370, and the same is herewith transmitted.

ALAN THOMPSON, Chief Clerk

May 5, 1993

MR. PRESIDENT:

The House has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1458, and the same is herewith transmitted.

ALAN THOMPSON, Chief Clerk

May 5, 1993

MR. PRESIDENT:

The House has passed REENGROSSED SUBSTITUTE HOUSE BILL NO. 1524, and the same is herewith transmitted.

ALAN THOMPSON, Chief Clerk

May 5, 1993

MR. PRESIDENT:

The House has passed:

SUBSTITUTE SENATE BILL NO. 5753,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5781,

REENGROSSED SENATE BILL NO. 5983, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk

May 5, 1993

MR. PRESIDENT:

The House has passed:

ENGROSSED SUBSTITUTE SENATE BILL NO. 5966,

REENGROSSED SUBSTITUTE SENATE BILL NO. 5982, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk

May 5, 1993

MR. PRESIDENT:

The Speaker has signed:

REENGROSSED SUBSTITUTE HOUSE BILL NO. 1309,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2055,

ENGROSSED SENATE BILL NO. 5925,

ENGROSSED SENATE BILL NO. 5989, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk

May 5, 1993

MR. PRESIDENT:

The House concurred in the Senate amendment(s) to ENGROSSED HOUSE BILL NO. 2123 and passed the bill as amended by the Senate.

ALAN THOMPSON, Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

REENGROSSED SUBSTITUTE HOUSE BILL NO. 1309,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2055.

SIGNED BY THE PRESIDENT

The President signed:

SENATE BILL NO. 5370,

SUBSTITUTE SENATE BILL NO. 5753,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5781,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5966,

REENGROSSED SUBSTITUTE SENATE BILL NO. 5982,

REENGROSSED SENATE BILL NO. 5983.

SIGNED BY THE PRESIDENT

The President signed:

REENGROSSED SUBSTITUTE SENATE BILL NO. 5972.

There being no objection, the President advanced the Senate to the fifth order of business.

INTRODUCTION AND FIRST READING

SB 5991 by Senators Bauer and Snyder

AN ACT Relating to an optional gross income tax; amending RCW 82.03.130, 82.03.140, 2.10.180, 2.12.090, 6.13.030, 41.44.240, and 43.43.310; reenacting and amending RCW 41.24.240, 41.26.180, 41.32.052, and 41.40.052; adding a new title to the Revised Code of Washington to be codified as Title 82A RCW; creating new sections; prescribing penalties; and providing an effective date.

Referred to Committee on Ways and Means.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

ESHB 1458 by House Committee on Financial Institutions and Insurance (originally sponsored by Representatives Zellinsky, Mielke, Dorn, R. Johnson and Fuhrman)

Regulating retail charge agreements.

HOLD.

RESHB 1524 by House Committee on Appropriations (originally sponsored by Representatives Locke, Silver and Valle) (by request of Office of Financial Management)

Making supplemental appropriations.

HOLD.

MOTION

On motion of Senator Jesernig, the rules were suspended and Engrossed Substitute House Bill No. 1458 and Reengrossed Substitute House Bill No. 1524 were advanced to second reading and placed on the second reading calendar.

MOTION

On motion of Senator Jesernig, the Senate advanced to the sixth order of business.

SECOND READING

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1458, by House Committee on Financial Institutions and Insurance (originally sponsored by Representatives Zellinsky, Mielke, Dorn, R. Johnson and Fuhrman)

Regulating retail charge agreements.

The bill was read the second time.

MOTION

On motion of Senator Jesernig, the rules were suspended, Engrossed Substitute House Bill No. 1458 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

POINT OF INQUIRY

Senator Sutherland: "Senator Moore, your statement just begs the question. If we vote in favor of this, are we going to be hung out to dry later on?"

Senator Moore: "In responding to that serious question, I have to say that I think in the Columbia River Gorge, there will be no problem being dried."

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1458.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1458 and the bill passed the Senate by the following vote: Yeas, 41; Nays, 4; Absent, 2; Excused, 2.

Voting yea: Senators Barr, Bauer, Bluechel, Deccio, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Roach, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, West, Williams and Winsley - 41.

Voting nay: Senators Anderson, Cantu, Hochstatter and Sellar - 4.

Absent: Senators Amondson and Wojahn - 2.

Excused: Senators McCaslin and Newhouse - 2.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1458, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

On motion of Senator Oke, Senator Amondson was excused.

SECOND READING

REENGROSSED SUBSTITUTE HOUSE BILL NO. 1524, by House Committee on Appropriations (originally sponsored by Representatives Locke, Silver and Valle) (by request of Office of Financial Management)

Making supplemental appropriations.

The bill was read the second time.

MOTION

On motion of Senator Jesernig, the rules were suspended, Reengrossed Substitute House Bill No. 1524 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Reengrossed Substitute House Bill No. 1524.

ROLL CALL

The Secretary called the roll on the final passage of Reengrossed Substitute House Bill No. 1524 and the bill passed the Senate by the following vote: Yeas, 29; Nays, 17; Absent, 0; Excused, 3.

Voting nay: Senators Anderson, Barr, Bluechel, Cantu, Deccio, Erwin, Hochstatter, McDonald, Moyer, Nelson, Oke, Prince, Roach, Sellar, Smith, L., von Reichbauer and West - 17.

Excused: Senators Amondson, McCaslin and Newhouse - 3.

REENGROSSED SUBSTITUTE HOUSE BILL NO. 1524, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

SENATE BILL NO. 5724, by Senator Rinehart (by request of Department of Social and Health Services)

Changing nursing home auditing and cost reimbursement provisions.

MOTIONS

On motion of Senator Rinehart, Substitute Senate Bill No. 5724 was substituted for Senate Bill No. 5724 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Rinehart, the following amendment was adopted:

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 74.46.020 and 1991 sp.s. c 8 s 11 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Accrual method of accounting" means a method of accounting in which revenues are reported in the period when they are earned, regardless of when they are collected, and expenses are reported in the period in which they are incurred, regardless of when they are paid.

(2) "Ancillary care" means those services required by the individual, comprehensive plan of care provided by qualified therapists.

(3) "Appraisal" means the process of estimating the fair market value or reconstructing the historical cost of an asset acquired in a past period as performed by a professionally designated real estate appraiser with no pecuniary interest in the property to be appraised. It includes a systematic, analytic determination and the recording and analyzing of property facts, rights, investments, and values based on a personal inspection and inventory of the property.

(4) "Arm's-length transaction" means a transaction resulting from good-faith bargaining between a buyer and seller who are not related organizations and have adverse positions in the market place. Sales or exchanges of nursing home facilities among two or more parties in which all parties subsequently continue to own one or more of the facilities involved in the transactions shall not be considered as arm's-length transactions for purposes of this chapter. Sale of a nursing home facility which is subsequently leased back to the seller within five years of the date of sale shall not be considered as an arm's-length transaction for purposes of this chapter.

(5) "Assets" means economic resources of the contractor, recognized and measured in conformity with generally accepted accounting principles.

(6) "Bad debts" means amounts considered to be uncollectable from accounts and notes receivable.

(7) "Beds" means the number of set-up beds in the facility, not to exceed the number of licensed beds.

(8) "Beneficial owner" means:

(a) Any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares:

(i) Voting power which includes the power to vote, or to direct the voting of such ownership interest; and/or

(ii) Investment power which includes the power to dispose, or to direct the disposition of such ownership interest;

(b) Any person who, directly or indirectly, creates or uses a trust, proxy, power of attorney, pooling arrangement, or any other contract, arrangement, or device with the purpose or effect of divesting himself of beneficial ownership of an ownership interest or preventing the vesting of such beneficial ownership as part of a plan or scheme to evade the reporting requirements of this chapter;

(c) Any person who, subject to subparagraph (b) of this subsection, has the right to acquire beneficial ownership of such ownership interest within sixty days, including but not limited to any right to acquire:

(i) Through the exercise of any option, warrant, or right;

(ii) Through the conversion of an ownership interest;

(iii) Pursuant to the power to revoke a trust, discretionary account, or similar arrangement; or

(iv) Pursuant to the automatic termination of a trust, discretionary account, or similar arrangement;

except that, any person who acquires an ownership interest or power specified in subparagraphs (i), (ii), or (iii) of this subparagraph (c) with the purpose or effect of changing or influencing the control of the contractor, or in connection with or as a participant in any transaction having such purpose or effect, immediately upon such acquisition shall be deemed to be the beneficial owner of the ownership interest which may be acquired through the exercise or conversion of such ownership interest or power;

(d) Any person who in the ordinary course of business is a pledgee of ownership interest under a written pledge agreement shall not be deemed to be the beneficial owner of such pledged ownership interest until the pledgee has taken all formal steps necessary which are required to declare a default and determines that the power to vote or to direct the vote or to dispose or to direct the disposition of such pledged ownership interest will be exercised; except that:

(i) The pledgee agreement is bona fide and was not entered into with the purpose nor with the effect of changing or influencing the control of the contractor, nor in connection with any transaction having such purpose or effect, including persons meeting the conditions set forth in subparagraph (b) of this subsection; and

(ii) The pledgee agreement, prior to default, does not grant to the pledgee:

(A) The power to vote or to direct the vote of the pledged ownership interest; or

(B) The power to dispose or direct the disposition of the pledged ownership interest, other than the grant of such power(s) pursuant to a pledge agreement under which credit is extended and in which the pledgee is a broker or dealer.

(9) "Capitalization" means the recording of an expenditure as an asset.

(10) "Contractor" means an entity which contracts with the department to provide services to medical care recipients in a facility and which entity is responsible for operational decisions.

(11) "Department" means the department of social and health services (DSHS) and its employees.

(12) "Depreciation" means the systematic distribution of the cost or other basis of tangible assets, less salvage, over the estimated useful life of the assets.

(13) "Direct care supplies" means medical, pharmaceutical, and other supplies required for the direct nursing and ancillary care of medical care recipients.

(14) "Entity" means an individual, partnership, corporation, or any other association of individuals capable of entering enforceable contracts.

(15) "Equity" means the net book value of all tangible and intangible assets less the recorded value of all liabilities, as recognized and measured in conformity with generally accepted accounting principles.

(16) "Facility" means a nursing home licensed in accordance with chapter 18.51 RCW, excepting nursing homes certified as institutions for mental diseases, or that portion of a hospital licensed in accordance with chapter 70.41 RCW which operates as a nursing home.

(17) "Fair market value" means the replacement cost of an asset less observed physical depreciation on the date for which the market value is being determined.

(18) "Financial statements" means statements prepared and presented in conformity with generally accepted accounting principles including, but not limited to, balance sheet, statement of operations, statement of changes in financial position, and related notes.

(19) (("Gain on sale" means the difference between the total net book value of nursing home assets, including but not limited to land, building and equipment, and the total sales price of all such assets.

(20))) "Generally accepted accounting principles" means accounting principles approved by the financial accounting standards board (FASB).

(((21))) (20) "Generally accepted auditing standards" means auditing standards approved by the American institute of certified public accountants (AICPA).

(((22))) (21) "Goodwill" means the excess of the price paid for a business over the fair market value of all other identifiable, tangible, and intangible assets acquired.

(((23))) (22) "Historical cost" means the actual cost incurred in acquiring and preparing an asset for use, including feasibility studies, architect's fees, and engineering studies.

(((24))) (23) "Imprest fund" means a fund which is regularly replenished in exactly the amount expended from it.

(((25))) (24) "Joint facility costs" means any costs which represent resources which benefit more than one facility, or one facility and any other entity.

(((26))) (25) "Lease agreement" means a contract between two parties for the possession and use of real or personal property or assets for a specified period of time in exchange for specified periodic payments. Elimination (due to any cause other than death or divorce) or addition of any party to the contract, expiration, or modification of any lease term in effect on January 1, 1980, or termination of the lease by either party by any means shall constitute a termination of the lease agreement. An extension or renewal of a lease agreement, whether or not pursuant to a renewal provision in the lease agreement, shall be considered a new lease agreement. A strictly formal change in the lease agreement which modifies the method, frequency, or manner in which the lease payments are made, but does not increase the total lease payment obligation of the lessee, shall not be considered modification of a lease term.

(((27))) (26) "Medical care program" means medical assistance provided under RCW 74.09.500 or authorized state medical care services.

(((28))) (27) "Medical care recipient" or "recipient" means an individual determined eligible by the department for the services provided in chapter 74.09 RCW.

(((29))) (28) "Net book value" means the historical cost of an asset less accumulated depreciation.

(((30))) (29) "Net invested funds" means the net book value of tangible fixed assets employed by a contractor to provide services under the medical care program, including land, buildings, and equipment as recognized and measured in conformity with generally accepted accounting principles, plus an allowance for working capital which shall be five percent of the ((allowable costs)) product of the per patient day rate multiplied by the prior calendar year reported total patient days of each contractor ((for the previous calendar year)).

(((31))) (30) "Operating lease" means a lease under which rental or lease expenses are included in current expenses in accordance with generally accepted accounting principles.

(((32))) (31) "Owner" means a sole proprietor, general or limited partners, and beneficial interest holders of five percent or more of a corporation's outstanding stock.

(((33))) (32) "Ownership interest" means all interests beneficially owned by a person, calculated in the aggregate, regardless of the form which such beneficial ownership takes.

(((34))) (33) "Patient day" or "client day" means a calendar day of care which will include the day of admission and exclude the day of discharge; except that, when admission and discharge occur on the same day, one day of care shall be deemed to exist.

(((35))) (34) "Professionally designated real estate appraiser" means an individual who is regularly engaged in the business of providing real estate valuation services for a fee, and who is deemed qualified by a nationally recognized real estate appraisal educational organization on the basis of extensive practical appraisal experience, including the writing of real estate valuation reports as well as the passing of written examinations on valuation practice and theory, and who by virtue of membership in such organization is required to subscribe and adhere to certain standards of professional practice as such organization prescribes.

(((36))) (35) "Qualified therapist" means:

(a) An activities specialist who has specialized education, training, or experience as specified by the department;

(b) An audiologist who is eligible for a certificate of clinical competence in audiology or who has the equivalent education and clinical experience;

(d) A mental retardation professional who is either a qualified therapist or a therapist approved by the department who has had specialized training or one year's experience in treating or working with the mentally retarded or developmentally disabled;

(e) A social worker who is a graduate of a school of social work;

(f) A speech pathologist who is eligible for a certificate of clinical competence in speech pathology or who has the equivalent education and clinical experience;

(g) A physical therapist as defined by chapter 18.74 RCW; ((and))

(h) An occupational therapist who is a graduate of a program in occupational therapy, or who has the equivalent of such education or training; and

(i) A respiratory care practitioner certified under chapter 18.89 RCW.

(((37))) (36) "Questioned costs" means those costs which have been determined in accordance with generally accepted accounting principles but which may constitute disallowed costs or departures from the provisions of this chapter or rules and regulations adopted by the department.

(((38))) (37) "Records" means those data supporting all financial statements and cost reports including, but not limited to, all general and subsidiary ledgers, books of original entry, and transaction documentation, however such data are maintained.

(((39))) (38) "Related organization" means an entity which is under common ownership and/or control with, or has control of, or is controlled by, the contractor.

(a) "Common ownership" exists when an entity is the beneficial owner of five percent or more ownership interest in the contractor and any other entity.

(b) "Control" exists where an entity has the power, directly or indirectly, significantly to influence or direct the actions or policies of an organization or institution, whether or not it is legally enforceable and however it is exercisable or exercised.

(((40))) (39) "Restricted fund" means those funds the principal and/or income of which is limited by agreement with or direction of the donor to a specific purpose.

(((41))) (40) "Secretary" means the secretary of the department of social and health services.

(((42))) (41) "Title XIX" or "Medicaid" means the 1965 amendments to the social security act, P.L. 89-07, as amended.

(((43))) (42) "Physical plant capital improvement" means a capitalized improvement that is limited to an improvement to the building or the related physical plant.

Sec. 2. RCW 74.46.180 and 1987 c 476 s 1 and 1987 c 283 s 9 are each reenacted and amended to read as follows:

(1) The state shall make payment of any underpayments within thirty days after the date the preliminary or final settlement report is submitted to the contractor.

(2) A contractor found to have received either overpayments or erroneous payments under a preliminary or final settlement shall refund such payments to the state within thirty days after the date the preliminary or final settlement report is submitted to the contractor, subject to the provisions of subsections (3), (4), and (7) of this section.

(3) Within the cost centers of nursing services and food, all savings resulting from the respective allowable costs being lower than the respective reimbursement rate paid to the contractor during the report period shall be refunded to the department. However, in computing a preliminary or final settlement, savings in a cost center may be shifted to cover a deficit in another cost center up to the amount of any savings((: PROVIDED, That)). Not more than twenty percent of the rate in a cost center may be shifted into that cost center and no shifting may be made into the property cost center((: PROVIDED FURTHER, That)). There shall be no shifting out of nursing services, and savings in food shall be shifted only to cover deficits in the nursing services cost center. There shall be no shifting from the operational to the administrative cost center.

(4) Within the administrative and property cost centers ((of administration and operations and property)), the contractor shall retain at least fifty percent, but not more than seventy-five percent, of any savings resulting from the respective audited allowable costs being lower than the respective reimbursement rates paid to the contractor during the report period multiplied by the number of authorized medical care client days in which said rates were in effect, except that no savings may be retained if reported costs in the administrative and property cost centers ((and the administration and operations cost center)) exceed audited allowable costs in these cost areas by a total of ten cents or more per patient day. The secretary, by rule ((and regulation)), shall establish the basis for the specific percentages of savings to the contractors. Such rules ((and regulations)) may provide for differences in the percentages allowed for each cost center to individual facilities based on performance measures related to administrative efficiency.

(5) All ((allowances)) return on investment rate payments provided by RCW 74.46.530 shall be retained by the contractor to the extent net invested funds are substantiated by department field audit. Any industrial insurance dividend or premium discount under RCW 51.16.035 shall be retained by the contractor to the extent that such dividend or premium discount is attributable to the contractor's private patients.

(6) In the event the contractor fails to make repayment in the time provided in subsection (2) of this section, the department shall either:

(a) Deduct the amount of refund due, plus any interest accrued under RCW 43.20B.695, from payment amounts due the contractor; or

(b) In the instance the contract has been terminated, (i) deduct the amount of refund due, plus interest assessed at the rate and in the manner provided in RCW 43.20B.695, from any payments due; or (ii) recover the amount due, plus any interest assessed under RCW 43.20B.695, from security posted with the department or by any other lawful means.

(7) Where the facility is pursuing timely-filed judicial or administrative remedies in good faith regarding settlement issues, the contractor need not refund nor shall the department withhold from the facility current payment amounts the department claims to be due from the facility but which are specifically disputed by the contractor. If the judicial or administrative remedy sought by the facility is not granted after all appeals are exhausted or mutually terminated, the facility shall make payment of such amounts due plus interest accrued from the date of filing of the appeal, as payable on judgments, within sixty days of the date such decision is made.

Sec. 3. RCW 74.46.230 and 1980 c 177 s 23 are each amended to read as follows:

(1) The necessary and ordinary one-time expenses directly incident to the preparation of a newly constructed or purchased building by a contractor for operation as a licensed facility shall be allowable costs. These expenses shall be limited to start-up and organizational costs incurred prior to the admission of the first patient.

(2) Start-up costs shall include, but not be limited to, administrative and nursing salaries, utility costs, taxes, insurance, repairs and maintenance, and training; except, that they shall exclude expenditures for capital assets. These costs will be allowable in the ((administration and operations)) administrative cost center if they are amortized over a period of not less than sixty months beginning with the month in which the first patient is admitted for care.

(3) Organizational costs are those necessary, ordinary, and directly incident to the creation of a corporation or other form of business of the contractor including, but not limited to, legal fees incurred in establishing the corporation or other organization and fees paid to states for incorporation; except, that they do not include costs relating to the issuance and sale of shares of capital stock or other securities. Such organizational costs will be allowable in the ((administration and operations)) administrative cost center if they are amortized over a period of not less than sixty months beginning with the month in which the first patient is admitted for care.

Sec. 4. RCW 74.46.280 and 1980 c 177 s 28 are each amended to read as follows:

(1) Management fees will be allowed only if:

(a) A written management agreement both creates a principal/agent relationship between the contractor and the manager, and sets forth the items, services, and activities to be provided by the manager; and

(b) Documentation demonstrates that the services contracted for were actually delivered.

(2) To be allowable, fees must be for necessary, nonduplicative services. ((Allowable fees for general management services, including the portion of a management fee which is not allocated to specific services such as accounting, are limited to

(a) the maximum allowable compensation under RCW 74.46.260 of the licensed administrator and, if the facility has at least eighty beds, of an assistant administrator, less

(b) actual compensation received by the licensed administrator and by the assistant administrator and administrator-in-training, if any.

In computing maximum allowable compensation under RCW 74.46.260 for a facility with at least eighty beds, include the maximum compensation of an assistant administrator even if an assistant administrator is not employed.))

(3) A management fee paid to or for the benefit of a related organization will be allowable to the extent it does not exceed the lower of((:

(a) The limits set out in subsection (2) of this section; or

(b) The lower of)) the actual cost to the related organization of providing necessary services related to patient care under the agreement((,)) or the cost of comparable services purchased elsewhere. Where costs to the related organization represent joint facility costs, the measurement of such costs shall comply with RCW 74.46.270.

(4) A copy of the agreement must be received by the department at least sixty days before it is to become effective. A copy of any amendment to a management agreement must also be received by the department at least thirty days in advance of the date it is to become effective.

(((5) Central office costs for general management services, including the portion of a management expense which is not allocated to specific services, such as accounting, shall be subject to the management fee limits determined in subsections (2) and (3) of this section.))

Sec. 5. RCW 74.46.380 and 1991 sp.s. c 8 s 12 are each amended to read as follows:

(1) Where depreciable assets are disposed of through sale, trade-in, scrapping, exchange, theft, wrecking, or fire or other casualty, depreciation shall no longer be taken on the assets. No further depreciation shall be taken on permanently abandoned assets.

(2) Where an asset has been retired from active use but is being held for stand-by or emergency service, and the department has determined that it is needed and can be effectively used in the future, depreciation may be taken.

(((3) If there is a sale of a nursing facility on or after July 1, 1991, that results in a gain on sale, the actual reimbursement for depreciation paid to the selling contractor through the medicaid reimbursement program shall be recovered by the department to the extent of any gain on sale. The purchaser is obligated to reimburse the department, whether or not the purchaser is a medicaid contractor. If the department is unable to collect from the purchaser, then the seller is responsible for reimbursing the department. The department may establish an appropriate repayment schedule to recover depreciation. If the purchaser is a medicaid contractor and the contractor does not comply with the repayment schedule established by the department, the department may deduct the recovery from the contractor's monthly medicaid payments. The department may adopt rules, as appropriate, to insure that the principles of this section are implemented with respect to leased assets, or with respect to sales of intangibles or specific assets only.))

Sec. 6. RCW 74.46.410 and 1991 sp.s. c 8 s 15 are each amended to read as follows:

(1) Costs will be unallowable if they are not documented, necessary, ordinary, and related to the provision of care services to authorized patients.

(2) Unallowable costs include, but are not limited to, the following:

(a) Costs of items or services not covered by the medical care program. Costs of such items or services will be unallowable even if they are indirectly reimbursed by the department as the result of an authorized reduction in patient contribution;

(b) Costs of services and items provided to recipients which are covered by the department's medical care program but not included in care services established by the department under this chapter;

(c) Costs associated with a capital expenditure subject to section 1122 approval (part 100, Title 42 C.F.R.) if the department found it was not consistent with applicable standards, criteria, or plans. If the department was not given timely notice of a proposed capital expenditure, all associated costs will be unallowable up to the date they are determined to be reimbursable under applicable federal regulations;

(d) Costs associated with a construction or acquisition project requiring certificate of need approval pursuant to chapter 70.38 RCW if such approval was not obtained;

(e) Interest costs other than those provided by RCW 74.46.290 on and after the effective date of RCW 74.46.530;

(f) Salaries or other compensation of owners, officers, directors, stockholders, and others associated with the contractor or home office, except compensation paid for service related to patient care;

(g) Costs in excess of limits or in violation of principles set forth in this chapter;

(h) Costs resulting from transactions or the application of accounting methods which circumvent the principles of the cost-related reimbursement system set forth in this chapter;

(i) Costs applicable to services, facilities, and supplies furnished by a related organization in excess of the lower of the cost to the related organization or the price of comparable services, facilities, or supplies purchased elsewhere;

(j) Bad debts of non-Title XIX recipients. Bad debts of Title XIX recipients are allowable if the debt is related to covered services, it arises from the recipient's required contribution toward the cost of care, the provider can establish that reasonable collection efforts were made, the debt was actually uncollectible when claimed as worthless, and sound business judgment established that there was no likelihood of recovery at any time in the future;

(k) Charity and courtesy allowances;

(l) Cash, assessments, or other contributions, excluding dues, to charitable organizations, professional organizations, trade associations, or political parties, and costs incurred to improve community or public relations;

(m) Vending machine expenses;

(n) Expenses for barber or beautician services not included in routine care;

(o) Funeral and burial expenses;

(p) Costs of gift shop operations and inventory;

(q) Personal items such as cosmetics, smoking materials, newspapers and magazines, and clothing, except those used in patient activity programs;

(r) Fund-raising expenses, except those directly related to the patient activity program;

(s) Penalties and fines;

(t) Expenses related to telephones, televisions, radios, and similar appliances in patients' private accommodations;

(u) Federal, state, and other income taxes;

(v) Costs of special care services except where authorized by the department;

(w) Expenses of key-man insurance and other insurance or retirement plans not made available to all employees;

(x) Expenses of profit-sharing plans;

(y) Expenses related to the purchase and/or use of private or commercial airplanes which are in excess of what a prudent contractor would expend for the ordinary and economic provision of such a transportation need related to patient care;

(z) Personal expenses and allowances of owners or relatives;

(aa) All expenses of maintaining professional licenses or membership in professional organizations;

(bb) Costs related to agreements not to compete;

(cc) Amortization of goodwill;

(dd) Expenses related to vehicles which are in excess of what a prudent contractor would expend for the ordinary and economic provision of transportation needs related to patient care;

(ee) Legal and consultant fees in connection with a fair hearing against the department where a decision is rendered in favor of the department or where otherwise the determination of the department stands;

(ff) Legal and consultant fees of a contractor or contractors in connection with a lawsuit against the department;

(gg) Lease acquisition costs and other intangibles not related to patient care;

(hh) All rental or lease costs other than those provided in RCW 74.46.300 on and after the effective date of RCW 74.46.510 and 74.46.530;

(ii) Postsurvey charges incurred by the facility as a result of subsequent inspections under RCW 18.51.050 which occur beyond the first postsurvey visit during the certification survey calendar year;

(jj) ((Costs and fees otherwise allowable for legal services, whether purchased, allocated by a home office, regional office or management company, or performed by the contractor or employees of the contractor, in excess of the eighty-fifth percentile of such costs reported by all contractors for the most recent cost report period: PROVIDED, That this limit shall not apply if a contractor has not exceeded this percentile in any of the preceding three annual cost report periods;

(kk) Costs and fees otherwise allowable for accounting and bookkeeping services, whether purchased, allocated by a home office, regional office or management company, or performed by the contractor or employees of the contractor, in excess of the eighty-fifth percentile of such costs reported by all contractors for the most recent cost report period: PROVIDED, That this limit shall not apply if a contractor has not exceeded this percentile in any of the preceding three annual cost report periods;

(ll))) Compensation paid for any purchased nursing care services, including registered nurse, licensed practical nurse, and nurse assistant services, obtained through service contract arrangement in excess of the amount of compensation paid for such hours of nursing care service had they been paid at the average hourly wage, including related taxes and benefits, for in-house nursing care staff of like classification at the same nursing facility, as reported in the most recent cost report period;

(((mm))) (kk) For all partial or whole rate periods after July 17, 1984, costs of land and depreciable assets that cannot be reimbursed under the Deficit Reduction Act of 1984 and implementing state statutory and regulatory provisions.

Sec. 7. RCW 74.46.420 and 1985 c 361 s 18 are each amended to read as follows:

The following principles are inherent in RCW 74.46.430 through 74.46.590:

(1) Reimbursement rates will be set prospectively on a per patient day basis on a two-year cycle corresponding to each state biennium; and

(2) The rates ((so established will)), in the nursing services, food, administrative, and operational cost centers, shall be adjusted downward or upward when set effective July 1 of the first fiscal year of the two-year rate-setting cycle and adjusted again downward or upward effective July 1 of the second fiscal year of the rate-setting cycle for economic ((conditions and)) trends ((in accordance with appropriations made by the legislature as consistent with federal requirements for the period to be covered by such rates)) and conditions.

(3) The July 1 rates for the first year of each biennium shall be adjusted by the change in the implicit price deflator for personal consumption expenditures index published by the bureau of labor statistics of the United States department of labor. The period used to measure the increase or decrease to be applied to these first year biennial rates shall be the calendar year preceding the July 1 commencement of the state biennium.

(4) The July 1 rates for the second year of each biennium shall be adjusted by the change in the nursing home input price index without capital costs published by the health care financing administration of the department of health and human services, HCFA index, however, any increase shall be multiplied by one and one-half. The period used to measure the HCFA index increase to be multiplied by one and one-half and applied or decrease to be applied to these second-year biennial rates shall also be the calendar year preceding the July 1 commencement of the state biennium: PROVIDED, However, That in the event the change in the HCFA index measured over the following calendar year, the one terminating six months after the start of the state biennium, is twenty-five percent greater or less than the change in the HCFA index measured over the calendar year preceding commencement of the state biennium, the department shall use the HCFA index increase multiplied by one and one-half or decrease in such following calendar year to inflate or decrease nursing facilities' nursing services, food, administrative, and operational rates for July 1 of the second biennial year.

(5) If either the implicit price deflator index or the health care financing administration index ceases to be published in the future, the department shall select by rule and use in their place one or more measures of change from an alternate source or sources for the same or comparable time periods.

Sec. 8. RCW 74.46.430 and 1987 2nd ex.s. c 1 s 2 are each amended to read as follows:

(1) The department, as provided by this chapter, will determine prospective cost-related reimbursement rates for services provided to medical care recipients. Each rate so determined shall represent the contractor's maximum compensation within each cost center for each patient day for such medical care recipient.

(2) As required, the department may modify such maximum per patient day rates pursuant to the administrative review provisions of RCW 74.46.780.

(3) ((Until the effective date of RCW 74.46.510 and 74.46.530, the maximum prospective reimbursement rates for the administration and operations and the property cost centers shall be established based upon a minimum facility occupancy level of eighty-five percent.

(4) On and after the effective date of RCW 74.46.510 and 74.46.530,)) The maximum prospective reimbursement rates for the ((administration and operations)) administrative, operational, and ((the)) property cost centers, and the return on investment ((allowance)) rate shall be established based upon a minimum facility occupancy level of eighty-five percent.

(((5))) (4) All contractors shall be required to adjust and maintain wages for all employees to a minimum hourly wage ((established by the legislature in the biennial appropriations act, if the legislature appropriates moneys to fund prospectively the portion of the minimum wage attributable to services to medicaid patients. Prospective rate revisions to fund any minimum wage increases shall be made only on the dates authorized in the appropriation act. The department shall by regulation limit reimbursement to the amount appropriated for legislatively authorized enhancement for nonadministrative wages and benefits above the moneys necessary to fund minimum wages specified in this section. The department in considering reimbursement for legislatively authorized wage enhancements will take into consideration facility wage history over the past three cost report periods)) of four dollars and seventy-six cents per hour beginning January 1, 1988, and five dollars and fifteen cents per hour beginning January 1, 1989.

Sec. 9. RCW 74.46.450 and 1983 1st ex.s. c 67 s 20 are each amended to read as follows:

(1) Prospective reimbursement rates for a new contractor will be established within sixty days following receipt by the department of the properly completed projected budget required by RCW 74.46.670. Such reimbursement rates will become effective as of the effective date of the contract and shall remain in effect until ((rates can be established under RCW 74.46.460 based on a contractor's cost report including at least six months of cost data)) adjusted or reset as provided in this chapter.

(2) Such reimbursement rates will be based on the contractor's projected cost of operations and on costs and payment rates of the prior contractor, if any, or of other contractors in comparable circumstances.

(3) If a properly completed budget is not received at least sixty days prior to the effective date of the contract, the department will establish preliminary rates based on the other factors specified in subsection (2) of this section. These preliminary rates will remain in effect until ((a determination is made pursuant to RCW 74.46.460)) adjusted or reset as provided in this chapter.

(4) The department is authorized to develop policies and procedures in rule to address the computation of rates for the first and second fiscal years of each biennium, including steps necessary to prorate rate adjustments for economic trends and conditions as authorized in RCW 74.46.420, for contractors having less than twelve months of cost report data for the prior calendar year.

Sec. 10. RCW 74.46.460 and 1987 c 476 s 3 are each amended to read as follows:

(1) Each contractor's reimbursement rates will be determined or adjusted prospectively at least once each calendar year, as provided in this chapter, to be effective July 1st. Provided, that a contractor's rate for the first fiscal year of each biennium must be established upon its own prior calendar period report of at least six months of cost data.

(2) Rates may be adjusted as determined by the department to take into account variations in the distribution of patient classifications or changes in patient characteristics from the prior reporting year, program changes required by the department, or changes in staffing levels at a facility required by the department. ((Rates shall be adjusted by the amount of legislatively authorized enhancements in accordance with RCW 74.46.430(5) and 74.46.470(2).)) Rates may also be adjusted to cover costs associated with placing a nursing home in receivership which costs are not covered by the rate of the former contractor, including: Compensation of the receiver, reasonable expenses of receivership and transition of control, and costs incurred by the receiver in carrying out court instructions or rectifying deficiencies found. Rates shall be adjusted for any capitalized additions or replacements made as a condition for licensure or certification. Rates shall be adjusted for capitalized improvements done under RCW 74.46.465.

(((3) Where the contractor participated in the provisions of prospective cost-related reimbursement in effect prior to July 1, 1983, such contractor's prospective rate effective July 1, 1983, will be determined utilizing the contractor's desk-reviewed allowable costs for calendar year 1982.

(4) All prospective reimbursement rates for 1984 and thereafter shall be determined utilizing the prior year's desk-reviewed cost reports.))

Sec. 11. RCW 74.46.470 and 1987 c 476 s 4 are each amended to read as follows:

(1) A contractor's reimbursement rates for medical care recipients will be determined utilizing net invested funds and desk-reviewed cost report data within the following cost centers:

(a) Nursing services;

(b) Food;

(d) Operational; and

(e) Property.

(2) There shall be for the time period January 1988 through June 1990 only an enhancement cost center established to reimburse contractors for specific legislatively authorized enhancements for nonadministrative wages and benefits to ensure that such enhancements are used exclusively for the legislatively authorized purposes. For purposes of settlement, funds appropriated to this cost center shall only be used for expenditures for which the legislative authorization is granted. Such funds may be used only in the following circumstances:

(a) The contractor has increased expenditures for which legislative authorization is granted to at least the highest level paid in any of the last three cost years, plus, beginning July 1, 1987, any percentage inflation adjustment as was granted each year under RCW 74.46.495; and

(b) All funds shifted from the enhancement cost center are shown to have been expended for legislatively authorized enhancements.

(3) If the contractor does not spend the amount appropriated to this cost center in the legislatively authorized manner, then the amounts not appropriately spent shall be recouped at preliminary or final settlement pursuant to RCW 74.46.160.

(4) For purposes of this section, "nonadministrative wages and benefits" means wages and payroll taxes paid with respect to, and the employer share of the cost of benefits provided to, employees in job classes specified in an appropriation, which may not include administrators, assistant administrators, or administrators in training.

(5) Amounts expended in the enhancement cost center in excess of the minimum wage established under RCW 74.46.430 are subject to all provisions contained in this chapter.

Sec. 12. RCW 74.46.481 and 1991 sp.s. c 8 s 16 are each amended to read as follows:

(1) The nursing services cost center shall include for reporting and audit purposes all costs related to the direct provision of nursing and related care, including fringe benefits and payroll taxes for the nursing and related care personnel, and the cost of nursing supplies. ((For rates effective for state fiscal year 1984,)) The department shall adopt by administrative rule a definition of "related care" ((which shall incorporate, but not exceed services reimbursable as of June 30, 1983. For rates effective for state fiscal year 1985, the definition of related care shall include ancillary care)). For rates effective after June 30, 1991, nursing services costs, as reimbursed within this chapter ((and as tested for reasonableness within this section)), shall not include costs of any purchased nursing care services, including registered nurse, licensed practical nurse, and nurse assistant services, obtained through service contract arrangement in excess of the amount of compensation paid for such hours of nursing care service had they been paid at the average hourly wage, including related taxes and benefits, for in-house nursing care staff of like classification at the same nursing facility, as reported in the most recent cost report period.

(2) The department shall adopt ((by)) through administrative rules a method for establishing a nursing services cost center rate consistent with the principles stated in this section.

(3) Utilizing regression or other statistical technique, the department shall determine a reasonable limit on facility nursing staff taking into account facility patient characteristics. For purposes of this section, facility nursing staff refers to registered nurses, licensed practical nurses and nursing assistants employed by the facility or obtained through temporary labor contract arrangements. Effective January 1, 1988, the hours associated with the training of nursing assistants and the supervision of that training for nursing assistants shall not be included in the calculation of facility nursing staff. In selecting a measure of patient characteristics, the department shall take into account:

(a) The correlation between alternative measures and facility nursing staff; and

(b) The cost of collecting information for and computation of a measure.

If regression is used, the limit shall be set at predicted nursing staff plus 1.75 regression standard errors. If another statistical method is utilized, the limit shall be set at a level corresponding to 1.75 standard errors above predicted staffing computed according to a regression procedure. A regression calculated shall be effective for the entire biennium.

(4) No facility shall receive reimbursement for nursing staff levels in excess of the limit((, except that, if a facility was reimbursed for a nursing staff level in excess of the limit as of June 30, 1983, the facility may chose [choose] to continue to receive its June, 1983 nursing services rate plus any adjustments in rates, such as adjustments for economic trends, made available to all facilities)). However, nursing staff levels established under subsection (3) of this section shall not apply to the nursing services cost center reimbursement rate only for the pilot facility especially designed to meet the needs of persons living with AIDS as defined by RCW 70.24.017 and specifically authorized for this purpose under the 1989 amendment to the Washington state health plan. ((The reasonableness limit established pursuant to this subsection shall remain in effect for the period July 1, 1983 through June 30, 1985. At that time the department may revise the measure of patient characteristics or method used to establish the limit.))

(5) ((The department shall select an index of cost increase relevant to the nursing and related services cost area. In the absence of a more representative index, the department shall use the medical care component index as maintained by the United States bureau of labor statistics.)) Every two years when rates are set at the beginning of each new biennium, the department shall divide into two peer groups nursing facilities located in the state of Washington providing services to medicaid residents: (a) Those facilities located within a metropolitan statistical area as defined and determined by the United States office of management and budget or other applicable federal office and (b) those not located in such an area. The facilities in each peer group shall then be arrayed from lowest to highest by magnitude of per patient day adjusted nursing services cost from the prior report year, regardless of whether any such adjustments are contested by the nursing facility, and the median or fiftieth percentile cost for each peer group shall be determined. Nursing services rates for facilities within each peer group for the first year of the biennium shall be set at the lower of the facility's adjusted per patient day nursing services cost from the prior report period or the median cost for the facility's peer group plus twenty-five percent. This rate shall be reduced or inflated as authorized by RCW 74.46.420. However, the per patient day peer group median cost plus twenty-five percent limit shall not apply to the nursing services cost center reimbursement rate only for the pilot facility especially designed to meet the needs of persons living with AIDS as defined by RCW 70.24.017 and specifically authorized for this purpose under the 1989 amendment to the Washington state health plan.

(6) ((If a facility's nursing staff level is below the limit specified in subsection (3) of this section, the department shall determine the percentage increase for all items included in the nursing services cost center between the facility's most recent cost reporting period and the next prior cost reporting period.

(a) If the percentage cost increase for a facility is below the increase in the selected index for the same time period, the facility's reimbursement rate in the nursing services cost center shall equal the facility's cost from the most recent cost reporting period plus any allowance for inflation provided by legislative appropriation.

(7) If the facility's nursing staff level exceeds the reasonableness limit established in subsection (3) of this section, the department shall determine the increase for all items included in the nursing services cost center between the facility's most recent cost reporting period and the next prior cost reporting period.

(a) If the percentage cost increase for a facility is below the increase in the index selected pursuant to subsection (5) of this section, the facility's reimbursement rate in the nursing cost center shall equal the facility's cost from the most recent cost reporting period adjusted downward to reflect the limit on nursing staff, plus any allowance for inflation provided by legislative appropriation subject to the provisions of subsection (4) of this section.

(b) If the percentage cost increase for a facility exceeds the increase in the selected index, the department shall limit the cost used for setting the facility's rate in the nursing services cost center to a level reflecting the nursing staff limit and the cost increase limit, subject to the provisions of subsection (4) of this section, plus any allowance for inflation provided by legislative appropriation.

(8) Prospective rates for the nursing services cost center, for state fiscal year 1992 only, shall not be subject to the cost growth index lid in subsections (5), (6), and (7) of this section. The lid shall apply for state fiscal year 1991 rate setting and all state fiscal years subsequent to fiscal year 1992.

(9))) If a nursing facility is impacted by the limit authorized in subsection (5) of this section, it shall not receive a prospective rate in nursing services for July 1, 1993, less than the same facility's prospective rate in nursing services as of June 30, 1993, adjusted by any increase in the implicit price deflator for personal consumption expenditures, IPD index, as measured over the period authorized by RCW 74.46.420(3).

(7) A nursing facility's rate in nursing services for the second year of each biennium shall be that facility's rate as of July 1 of the first year of that biennium reduced or inflated as authorized by RCW 74.46.420. The alternating procedures prescribed in this section for a facility's two July 1 nursing services rates occurring within each biennium shall be followed in the same order for each succeeding biennium.

(8) Median costs for peer groups shall be calculated initially as provided in this chapter on the basis of the most recent adjusted cost information available to the department prior to the calculation of the new rate for July 1 of the first fiscal year of each biennium, regardless of whether the adjustments are contested or subject to pending administrative or judicial review. Median costs for peer groups shall be recalculated as provided in this chapter on the basis of the most recent adjusted cost information available to the department on October 31 of the first fiscal year of each biennium, and shall apply retroactively to the prior July 1 rate, regardless of whether the adjustments are contested or subject to pending administrative or judicial review. Median costs shall not be adjusted to reflect subsequent administrative or judicial rulings, whether final or not.

(9) The department is authorized to determine on a systematic basis facilities with unmet patient care service needs. The department may increase the nursing services cost center prospective rate for a facility beyond the level determined in accordance with subsection (6) of this section if the facility's actual and reported nursing staffing is one standard error or more below predicted staffing as determined according to the method selected pursuant to subsection (3) of this section and the facility has unmet patient care service needs: PROVIDED, That prospective rate increases authorized by this subsection shall be funded only from legislative appropriations made for this purpose during the periods authorized by such appropriations or other laws and the increases shall be conditioned on specified improvements in patient care at such facilities.

(10) The department shall establish a method for identifying patients with exceptional care requirements and a method for establishing or negotiating on a consistent basis rates for such patients.

(11) The department, in consultation with interested parties, shall adopt rules to establish the criteria the department will use in reviewing any requests by a contractor for a prospective rate adjustment to be used to increase the number of nursing staff. These rules shall also specify the time period for submission and review of staffing requests: PROVIDED, That a decision on a staffing request shall not take longer than sixty days from the date the department receives such a complete request. In establishing the criteria, the department may consider, but is not limited to, the following:

(a) Increases in ((acuity)) debility levels of contractors' residents determined in accordance with the department's assessment and reporting procedures and requirements utilizing the minimum data set;

(b) Staffing patterns for similar facilities in the same peer group;

(d) Survey, inspection of care, and department consultation results.

Sec. 13. RCW 74.46.490 and 1983 1st ex.s. c 67 s 25 are each amended to read as follows:

(1) The food cost center shall include for reporting purposes all costs for bulk and raw food and beverages purchased for the dietary needs of medical care recipients.

(2) ((Reimbursement for the food cost center shall be at the January 1, 1983, reimbursement rate, adjusted annually for inflation.)) Every two years when rates are set at the beginning of each new biennium, the department shall divide into two peer groups nursing facilities located in the state of Washington providing services to medicaid residents: (a) Those facilities located within a metropolitan statistical area as defined and determined by the United States office of management and budget or other applicable federal office and (b) those not located in such an area. The facilities in each peer group shall then be arrayed from lowest to highest by magnitude of per patient day adjusted food cost from the prior report year, regardless of whether any such adjustments are contested by the nursing facility, and the median or fiftieth percentile cost for each peer group shall be determined. Food rates for facilities within each peer group for the first year of the biennium shall be set at the lower of the facility's adjusted per patient day food cost from the prior report period or the median cost for the facility's peer group plus twenty-five percent. This rate shall be reduced or inflated as authorized by RCW 74.46.420.

(3) A nursing facility's food rate for the second year of each biennium shall be that facility's rate as of July 1 of the first year of that biennium reduced or inflated as authorized by RCW 74.46.420. The alternating procedures prescribed in this section for a facility's two July 1 food rates occurring within each biennium shall be followed in the same order for each succeeding biennium.

(4) Median costs for peer groups shall be calculated initially as provided in this chapter on the basis of the most recent adjusted cost information available to the department prior to the calculation of the new rate for July 1 of the first fiscal year of each biennium, regardless of whether the adjustments are contested or subject to pending administrative or judicial review. Median costs for peer groups shall be recalculated as provided in this chapter on the basis of the most recent adjusted cost information available to the department on October 31 of the first fiscal year of each biennium, and shall apply retroactively to the prior July 1 rate, regardless of whether the adjustments are contested or subject to pending administrative or judicial review. Median costs shall not be adjusted to reflect subsequent administrative or judicial rulings, whether final or not.

Sec. 14. RCW 74.46.500 and 1992 c 182 s 1 are each amended to read as follows:

(1) The ((administration and operations)) administrative cost center shall include ((all items not included in the cost centers of nursing services, food, and property.

(2) Subject to subsection (4) of this section, the administration and operations cost center reimbursement rate for each facility shall be based on the computation in this subsection and shall not exceed the eighty-fifth percentile of (a) the rates of all reporting facilities derived from the computation below, or (b) reporting facilities grouped in accordance with subsection (3) of this section:

AR = TAC/TPD, where

AR = the administration and operations cost center reimbursement rate for a facility;

TAC = the total costs of the administration and operations cost center plus the retained savings from such cost center as provided in RCW 74.46.180 of a facility; and

TPD = the total patient days for a facility for the prior year.

(3) The secretary may group facilities based on factors which could reasonably influence cost requirements of this cost center, other than ownership or legal organization characteristics.

(4) In applying the eighty-fifth percentile reimbursement limit authorized by subsection (2) of this section to the pilot facility specially designed to meet the needs of persons living with AIDS as defined by RCW 70.24.017, and specifically authorized for this purpose under the 1989 amendment to the Washington state health plan, the department shall exempt the cost of nursing supplies reported by the pilot facility in excess of the average of nursing supplies cost for medicaid nursing facilities state-wide)) for cost reporting purposes all administrative, oversight, and management costs whether facility on-site or allocated in accordance with a department-approved joint-cost allocation methodology. Such costs shall be identical to the cost report line item costs categorized under "general and administrative" in the "administration and operations" combined cost center existing prior to January 1, 1993, except for nursing supplies and purchased medical records.

(2) Every two years when rates are set at the beginning of each new biennium, the department shall divide into two peer groups nursing facilities located in the state of Washington providing services to medicaid residents: (a) Those facilities located within a metropolitan statistical area as defined and determined by the United States office of management and budget or other applicable federal office and (b) those not located in such an area. The facilities in each peer group shall then be arrayed from lowest to highest by magnitude of per patient day adjusted administrative cost from the prior report year, regardless of whether any such adjustments are contested by the nursing facility, and the median or fiftieth percentile cost for each peer group shall be determined. Administrative rates for facilities within each peer group for the first year of the biennium shall be set at the lower of the facility's adjusted per patient day administrative cost from the prior report period or the median cost for the facility's peer group plus ten percent. This rate shall be reduced or inflated as authorized by RCW 74.46.420.

(3) A nursing facility's administrative rate for the second year of each biennium shall be that facility's rate as of July 1 of the first year of that biennium reduced or inflated as authorized by RCW 74.46.420. The alternating procedures prescribed in this section for a facility's two July 1 administrative rates occurring within each biennium shall be followed in the same order for each succeeding biennium.

NEW SECTION. Sec. 15. A new section is added to chapter 74.46 RCW to read as follows:

(1) The operational cost center shall include for cost reporting purposes all allowable costs of the daily operation of the facility not included in nursing services and related care, food, administrative, or property costs, whether such costs are facility on-site or allocated in accordance with a department-approved joint-cost allocation methodology.

(2) Every two years when rates are set at the beginning of each new biennium, the department shall divide into two peer groups nursing facilities located in the state of Washington providing services to medicaid residents: (a) Those facilities located within a metropolitan statistical area as defined and determined by the United States office of management and budget or other applicable federal office and (b) those not located in such an area. The facilities in each peer group shall then be arrayed from lowest to highest by magnitude of per patient day adjusted operational cost from the prior report year, regardless of whether any such adjustments are contested by the nursing facility, and the median or fiftieth percentile cost for each peer group shall be determined. Operational rates for facilities within each peer group for the first year of the biennium shall be set at the lower of the facility's adjusted per patient day operational cost from the prior report period or the median cost for the facility's peer group plus twenty-five percent. This rate shall be reduced or inflated as authorized by RCW 74.46.420.

(3) A nursing facility's operational rate for the second year of each biennium shall be that facility's rate as of July 1 of the first year of that biennium reduced or inflated as authorized by RCW 74.46.420. The alternating procedures prescribed in this section for a facility's two July 1 operational rates occurring within each biennium shall be followed in the same order for each succeeding biennium.

Sec. 16. RCW 74.46.510 and 1980 c 177 s 51 are each amended to read as follows:

(1) The property cost center rate for each facility shall be determined by dividing the sum of the reported allowable prior period actual depreciation ((costs)), subject to RCW 74.46.310 through 74.46.380, adjusted for any capitalized additions or replacements approved by the department, and the retained savings from such cost center, as provided in RCW 74.46.180, by the total patient days for the facility in the prior period. If a capitalized addition or retirement of an asset will result in a different licensed bed capacity during the ensuing period, the prior period total patient days used in computing the property cost center rate shall be adjusted to anticipated patient day level.

(2) A nursing facility's property rate shall be rebased annually, effective July 1, in accordance with this section regardless of whether the rate is for the first or second year of the biennium.

(3) When a certificate of need for a new facility is requested, the department, in reaching its decision, shall take into consideration per-bed land and building construction costs for the facility which shall not exceed a maximum to be established by the secretary.

Sec. 17. RCW 74.46.530 and 1991 sp.s. c 8 s 17 are each amended to read as follows:

(1) The department shall establish for ((individual facilities)) each medicaid nursing facility a return on investment ((allowances)) rate composed of two parts: A financing allowance and a variable return allowance. A facility's return on investment rate shall be rebased annually, effective July 1, in accordance with this section, regardless of whether the rate is for the first or second year of the biennium.

(a) The financing allowance shall be determined by multiplying the net invested funds of each facility by .10, and dividing by the contractor's total patient days from the most recent cost report period. If a capitalized addition or retirement of an asset will result in a different licensed bed capacity during the ensuing period, the prior period total patient days used in computing the financing and variable return allowances shall be adjusted to the anticipated patient day level.

(b) In computing the portion of net invested funds representing the net book value of tangible fixed assets, the same assets, depreciation bases, lives, and methods referred to in RCW 74.46.330, 74.46.350, 74.46.360, 74.46.370, and 74.46.380, including owned and leased assets, shall be utilized, except that the capitalized cost of land upon which the facility is located and such other contiguous land which is reasonable and necessary for use in the regular course of providing patient care shall also be included. Subject to provisions and limitations contained in this chapter, for land purchased by owners or lessors before July 18, 1984, capitalized cost of land shall be the buyer's capitalized cost. For all partial or whole rate periods after July 17, 1984, if the land is purchased after July 17, 1984, capitalized cost shall be that of the owner of record on July 17, 1984, or buyer's capitalized cost, whichever is lower. In the case of leased facilities where the net invested funds are unknown or the contractor is unable to provide necessary information to determine net invested funds, the secretary shall have the authority to determine an amount for net invested funds based on an appraisal conducted according to RCW 74.46.360(1).

(i) Every two years at the start of each new biennium, the department, without utilizing peer groups, will first rank all facilities in numerical order from highest to lowest according to their ((average per diem)) per patient day adjusted allowable costs for ((the sum of the administration and operations and property cost centers)) nursing services, food, administrative, and operational costs combined for the previous cost report period.

(ii) The department shall then compute the variable return allowance by multiplying the appropriate percentage amounts, which shall not be less than one percent and not greater than four percent, by the ((total prospective rate for each facility, as determined in RCW 74.46.450 through 74.46.510)) sum of the facility's nursing services, food, administrative, and operational rate components. The percentage amounts will be based on groupings of facilities according to the rankings ((as established)) prescribed in (i) of this subsection (1)(c). The percentages calculated and assigned will remain the same for the next variable return allowance paid in the second year of the biennium. Those groups of facilities with lower per diem costs shall receive higher percentage amounts than those with higher per diem costs.

(d) The sum of the financing allowance and the variable return allowance shall be the return on investment rate for each facility, and shall be added to the prospective rates of each contractor as determined in RCW 74.46.450 through 74.46.510.

(e) In the case of a facility which was leased by the contractor as of January 1, 1980, in an arm's-length agreement, which continues to be leased under the same lease agreement, and for which the annualized lease payment, plus any interest and depreciation expenses associated with contractor-owned assets, for the period covered by the prospective rates, divided by the contractor's total patient days, minus the property cost center determined according to RCW 74.46.510, is more than the return on investment ((allowance)) rate determined according to subsection (1)(d) of this section, the following shall apply:

(i) The financing allowance shall be recomputed substituting the fair market value of the assets as of January 1, 1982, as determined by the department of general administration through an appraisal procedure, less accumulated depreciation on the lessor's assets since January 1, 1982, for the net book value of the assets in determining net invested funds for the facility. A determination by the department of general administration of fair market value shall be final unless the procedure used to make such determination is shown to be arbitrary and capricious.

(ii) The sum of the financing allowance computed under subsection (1)(e)(i) of this section and the variable allowance shall be compared to the annualized lease payment, plus any interest and depreciation ((expenses)) associated with contractor-owned assets, for the period covered by the prospective rates, divided by the contractor's total patient days, minus the property cost center rate determined according to RCW 74.46.510. The lesser of the two amounts shall be called the alternate return on investment ((allowance)) rate.

(iii) The return on investment ((allowance)) rate determined according to subsection (1)(d) of this section or the alternate return on investment ((allowance)) rate, whichever is greater, shall be the return on investment ((allowance)) rate for the facility and shall be added to the prospective rates of the contractor as determined in RCW 74.46.450 through 74.46.510.

(f) In the case of a facility which was leased by the contractor as of January 1, 1980, in an arm's-length agreement, if the lease is renewed or extended pursuant to a provision of the lease, the treatment provided in subsection (1)(e) of this section shall be applied except that in the case of renewals or extensions made subsequent to April 1, 1985, reimbursement for the annualized lease payment shall be no greater than the reimbursement for the annualized lease payment for the last year prior to the renewal or extension of the lease.

(2) ((In the event that the department of health and human services disallows the application of the return on investment allowances to nonprofit facilities, the department shall modify the measurements of net invested funds used for computing individual facility return on investment allowances as follows: Net invested funds for each nonprofit facility shall be multiplied by one minus the ratio of equity funds to the net invested funds of all nonprofit facilities.

(3))) Each biennium, beginning in 1985, the secretary shall review the adequacy of return on investment ((allowances)) rates in relation to anticipated requirements for maintaining, reducing, or expanding nursing care capacity. The secretary shall report the results of such review to the legislature and make recommendations for adjustments in the return on investment rates utilized in this section, if appropriate.

NEW SECTION. Sec. 18. By November 15, 1994, the legislative budget committee shall complete a study of the nursing home reimbursement system. The study shall include an assessment of the financial stability of the nursing home industry, to the extent sufficient information is available from the industry and other sources to make such an assessment; an evaluation of the adequacy of the nursing home reimbursement system for promoting cost-effective, quality care; and, if appropriate, recommendations for improving the reimbursement

system's capacity to promote sufficient availability of efficient and quality care. In conducting the study, the legislative budget committee shall consult with the nursing home industry, consumer groups, health care professionals, and the department of social and health services.

NEW SECTION. Sec. 19. The following acts or parts of acts are each repealed:

(1) RCW 74.46.260 and 1980 c 177 s 26; and

(2) RCW 74.46.495 and 1983 1st ex.s. c 67 s 26.

NEW SECTION. Sec. 20. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993."

MOTIONS

On motion of Senator Rinehart, the following title amendment was adopted:

On page 1, line 1 of the title, after "reimbursement;" strike the remainder of the title and insert "amending RCW 74.46.020, 74.46.230, 74.46.280, 74.46.380, 74.46.410, 74.46.420, 74.46.430, 74.46.450, 74.46.460, 74.46.470, 74.46.481, 74.46.490, 74.46.500, 74.46.510, and 74.46.530; reenacting and amending RCW 74.46.180; adding a new section to chapter 74.46 RCW; creating a new section; repealing RCW 74.46.260 and 74.46.495; providing an effective date; and declaring an emergency."

On motion of Senator Rinehart, the rules were suspended, Engrossed Substitute Senate Bill No. 5724 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5724.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5724 and the bill passed the Senate by the following vote: Yeas, 26; Nays, 20; Absent, 0; Excused, 3.

Voting yea: Senators Bauer, Drew, Fraser, Gaspard, Hargrove, Haugen, Jesernig, Loveland, McAuliffe, Moore, Niemi, Owen, Pelz, Prentice, Quigley, Rasmussen, M., Rinehart, Sheldon, Skratek, Smith, A., Snyder, Spanel, Sutherland, Vognild, Williams and Wojahn - 26.

Voting nay: Senators Anderson, Barr, Bluechel, Cantu, Deccio, Erwin, Franklin, Hochstatter, McDonald, Moyer, Nelson, Oke, Prince, Roach, Sellar, Smith, L., Talmadge, von Reichbauer, West and Winsley - 20.

Excused: Senators Amondson, McCaslin and Newhouse - 3.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5724, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

At 10:22 p.m., on motion of Senator Jesernig, the Senate was declared to be at ease.

The Senate was called to order at 11:34 p.m. by President Pritchard.

There being no objection, the President returned the Senate to the fourth order of business.

MESSAGES FROM THE HOUSE

May 5, 1993

MR. PRESIDENT:

The Speaker has signed:

SUBSTITUTE HOUSE BILL NO. 1969,

ENGROSSED HOUSE BILL NO. 2114,

HOUSE BILL NO. 2129, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk

May 5, 1993

MR. PRESIDENT:

The House has adopted SENATE CONCURRENT RESOLUTION NO. 8409, and the same is herewith transmitted.

ALAN THOMPSON, Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

SUBSTITUTE HOUSE BILL NO. 1969,

ENGROSSED HOUSE BILL NO. 2114,

HOUSE BILL NO. 2129,

SIGNED BY THE PRESIDENT

The President signed:

SENATE CONCURRENT RESOLUTION NO. 8409.

MOTION

On motion of Senator Jesernig, the Senate advanced to the eighth order of business.

MOTION

On motion of Senator Anderson, the following resolution was adopted:

SENATE RESOLUTION 1993-8654

By Senator Anderson

WHEREAS, Leo D. Groves has served with distinction for twenty years as Superintendent of the Nooksack Valley School District, a rural district of 1,500 students along the Canadian border in Whatcom County; and

WHEREAS, In a district with no major industry and business tax base, Superintendent Groves strived always to keep limited resources targeted on the teaching of students; and

WHEREAS, As such, for years Superintendent Groves and one secretary functioned as the district's fiscal officer managing all budgets, funds, revenues, expenditures, and investments; and

WHEREAS, Superintendent Groves kept administrative costs to a bare minimum by bearing the bulk of supervision of all the district's departments, including its fiscal, transportation, facility maintenance and operation, purchasing and personnel departments, by himself; and

WHEREAS, During his tenure, Superintendent Groves also oversaw the completion of several important building projects, including a new primary school in the community of Sumas, a new primary building in the community of Everson, major additions to the primaries at Sumas and the elementary in Everson, a new district junior high school, and major additions and remodeling to the district's junior and senior high schools;

WHEREAS, Leo D. Groves, thirty-seven years an educator who always placed his students first, will retire at the end of this school year;

NOW, THEREFORE, BE IT RESOLVED, That the Senate of the state of Washington recognize and honor Superintendent Groves for his years of exemplary dedication to the children, families, and communities of the Nooksack Valley School District; and

BE IT FURTHER RESOLVED, that the Senate offers its hope that Superintendent Groves will enjoy a well-earned retirement and the opportunity to spend more time with his four children and five grandchildren, who all also live in Whatcom County; and

BE IT FURTHER RESOLVED, That copies of this resolution be transmitted by the Secretary of the Senate to Leo D. Groves.

MOTION

On motion of Senator Jesernig, the Senate returned to the fourth order of business.

MESSAGE FROM THE HOUSE

May 5, 1993

MR. PRESIDENT:

The House has passed REENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5521 with the following amendment(s):

On page 13, beginning on line 3, strike all of section 9, and the same are herewith transmitted.

ALAN THOMPSON, Chief Clerk

MOTION

On motion of Senator Jesernig, the Senate concurred in the House amendment to Reengrossed Second Substitute Senate Bill No. 5521.

The President declared the question before the Senate to be the roll call on the final passage of Reengrossed Second Substitute Senate Bill No. 5521, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Reengrossed Second Substitute Senate Bill No. 5521, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 42; Nays, 1; Absent, 3; Excused, 3.

Voting yea: Senators Anderson, Barr, Bauer, Bluechel, Cantu, Drew, Erwin, Franklin, Fraser, Gaspard, Hargrove, Haugen, Hochstatter, Jesernig, Loveland, McAuliffe, McDonald, Moore, Moyer, Nelson, Niemi, Oke, Owen, Pelz, Prentice, Prince, Quigley, Rasmussen, M., Rinehart, Sellar, Sheldon, Skratek, Smith, A., Smith, L., Snyder, Spanel, Sutherland, Talmadge, Vognild, von Reichbauer, Williams and Wojahn - 42.

Voting nay: Senator Roach - 1.

Absent: Senators Deccio, West and Winsley - 3.

Excused: Senators Amondson, McCaslin and Newhouse - 3.

REENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5521, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

NOTICE OF INTENT TO AMEND JOINT RULE 26

Senator Jesernig: "Mr. President, pursuant to Joint Rule 36, I give one day's notice of intent to amend Joint Rule 26 on the next legislative day. The amendment will permit suspension of the 24-hour rule for Conference Committee Reports by a majority vote on May 6, 1993."

POINT OF INQUIRY

Senator Nelson: "Senator Jesernig, do you have a copy of the proposed rule change that can be placed at the bar of the Senate for scrutiny by all the members in conformance with the twenty-four hour rule?"

Senator Jesernig: "Yes."

Senator Nelson: "Could we have the proposed rule change distributed to the members of the Senate, so that they can peruse the change for the purposes of considering possible amendments to the rule change?"

Senator Jesernig: "Sure, we'll do it."

President Pritchard announced that the intent to amend Joint Rule No. 26 had been received.

EDITOR'S NOTE: Joint Rule 36 reads, 'These joint rules may be amended by concurrent resolution agreed to by a majority of the members of each house, provided one day's notice be given of the motion thereof.'

Joint Rule 26 reads, 'No floor vote may be taken on any conference committee report without a distribution to all members of a summary of additions, changes, and deletions made by the conference committee with a reference in each instance to the page and line number or numbers in the report containing said additions, changes, or deletions. The clerk and the secretary shall place the reports on the desks of the members as soon as possible.

'Each house shall have twenty-four hours from the time of proper receipt, by the chief clerk of the house and the secretary of the senate, and by distribution to the desks of the members before considering reports from a conference committee which has proposed new items within the scope and object of the bill in conference. The report shall be read in full.

'The foregoing provisions relating to twenty-four hour intervals and reading of the report in full may be suspended by the senate or the house of representative by two-thirds vote of the members present, and such suspension shall apply only to the house voting to suspend these provisions.

'The report must be voted upon in its entirety and cannot be amended. The report of a conference committee may be adopted by acclamation.

'Passage of a bill as amended by conference report shall be by roll call and ayes and nays shall be entered on the journals of the respective house. Passage requires a constitutional majority in both houses, except in the case of constitutional amendments, which require a two-thirds vote.'

MOTION

At 11:51 p.m., on motion of Senator Jesernig, the Senate adjourned until 12:05 a.m., Thursday, May 6, 1993.

JOEL PRITCHARD, President of the Senate

MARTY BROWN, Secretary of the Senate