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SEVENTY-FOURTH DAY

__________

MORNING SESSION

__________

House Chamber, Olympia, Thursday, March 23, 1995

The House was called to order at 9:55 a.m. by the Speaker (Representative Horn presiding).

Reading of the Journal of the previous day was dispensed with and it was ordered to stand approved.

There being no objection, the House advanced to the fourth order of business.

INTRODUCTIONS AND FIRST READING

HB 2088 by Representatives Carrell, Benton, Cairnes, Campbell, Chappell, Goldsmith, Smith, Fuhrman, Thompson, Boldt, Koster, Clements and Pelesky

AN ACT Relating to joint residential placement; amending RCW 26.09.004, 26.09.187, and 26.09.260; and adding new sections to chapter 26.09 RCW.

Referred to Committee on Law & Justice.

There being no objection, the bill listed on today's introduction sheet under the fourth order of business was referred to the committee so designated.

There being no objection, the House advanced to the fifth order of business.

REPORTS OF STANDING COMMITTEES

March 22, 1995

ESB 5019 Prime Sponsor, Snyder: Relating to industrial developments. Reported by Committee on Government Operations

MAJORITY recommendation: Do pass with the following amendment:

On page 2, line 4, beginning with "and" strike all the matter through "82.02.060" on line 5, and insert "and/or applicable impact fees are paid"

Signed by Representatives Reams, Chairman; Goldsmith, Vice Chairman; L. Thomas, Vice Chairman; Rust, Ranking Minority Member; Scott, Assistant Ranking Minority Member; R. Fisher; Hargrove; Honeyford; Hymes; Mulliken; D. Schmidt; Sommers; Van Luven and Wolfe.

Voting Yea: Representatives R. Fisher, Goldsmith, Hargrove, Honeyford, Hymes, Mulliken, Reams, Rust, D. Schmidt, Scott, L. Thomas, Van Luven and Wolfe.

Excused: Representatives Chopp and Sommers.

Passed to Committee on Rules for second reading.

March 22, 1995

SSB 5022 Prime Sponsor, Committee on Labor, Commerce & Trade: Allowing United States military dependents' identification as identification cards for liquor purchases. Reported by Committee on Commerce & Labor

MAJORITY recommendation: Do pass. Signed by Representatives Lisk, Chairman; Hargrove, Vice Chairman; Thompson, Vice Chairman; Romero, Ranking Minority Member; Conway, Assistant Ranking Minority Member; Cairnes; Cody; Cole; Fuhrman; Goldsmith and Horn.

Voting Yea: Representatives Cairnes, Cody, Cole, Conway, Fuhrman, Hargrove, Horn, Lisk, Romero and Thompson.

Excused: Representative Goldsmith.

Passed to Committee on Rules for second reading.

March 21, 1995

SB 5042 Prime Sponsor, Winsley: Directing cities and towns to deliver copies of new ordinances to the municipal research council. Reported by Committee on Government Operations

MAJORITY recommendation: Do pass. Signed by Representatives Reams, Chairman; Goldsmith, Vice Chairman; L. Thomas, Vice Chairman; Rust, Ranking Minority Member; Scott, Assistant Ranking Minority Member; Chopp; R. Fisher; Hargrove; Honeyford; Hymes; Mulliken; D. Schmidt; Van Luven and Wolfe.

Voting Yea: Representatives Chopp, R. Fisher, Goldsmith, Hargrove, Honeyford, Hymes, Mulliken, Reams, Rust, D. Schmidt, Scott, L. Thomas, Van Luven and Wolfe.

Excused: Representative Sommers.

Passed to Committee on Rules for second reading.

March 22, 1995

SSB 5053 Prime Sponsor, Committee on Government Operations: Modifying real estate disclosure provisions. Reported by Committee on Trade & Economic Development

MAJORITY recommendation: Do pass with the following amendment:

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 64.06.010 and 1994 c 200 s 2 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section, this chapter does not apply to the following transfers of residential real property:

(((1))) (a) A foreclosure, deed-in-lieu of foreclosure, real estate contract forfeiture, or a sale by a lienholder who acquired the residential real property through foreclosure ((or)), deed-in-lieu of foreclosure, or real estate contract forfeiture;

(((2))) (b) A gift or other transfer to a parent, spouse, or child of a transferor or child of any parent or spouse of a transferor;

(((3))) (c) A transfer between spouses in connection with a marital dissolution;

(((4))) (d) A transfer where a buyer had an ownership interest in the property within two years of the date of the transfer including, but not limited to, an ownership interest as a partner in a partnership, a limited partner in a limited partnership, a shareholder in a corporation, a leasehold interest, or transfers to and from a facilitator pursuant to a tax deferred exchange;

(((5))) (e) A transfer of an interest that is less than fee simple, except that the transfer of a vendee's interest under a real estate contract is subject to the requirements of this chapter; ((and

(6))) (f) A transfer made by the personal representative of the estate of the decedent or by a trustee in bankruptcy; and

(g) A transfer of new residential construction, if the seller is registered under chapter 18.27 RCW, and if the buyer is the first purchaser and occupant.

(2) This chapter shall apply to transfers of residential real property exempt under this section, if the seller provides to the buyer a completed real property transfer disclosure statement in the form described in RCW 64.06.020(1).

Sec. 2. RCW 64.06.020 and 1994 c 200 s 3 are each amended to read as follows:

(1) In a transaction for the sale of residential real property, the seller shall, unless the buyer has expressly waived the right to receive the disclosure statement, or unless the transfer is exempt under RCW 64.06.010, deliver to the buyer a completed real property transfer disclosure statement in the following ((form)) format and that contains, at a minimum, the following information:

INSTRUCTIONS TO THE SELLER

Please complete the following form. Do not leave any spaces blank. If the question clearly does not apply to the property write "NA". If the answer is "yes" to any * items, please explain on attached sheets. Please refer to the line number(s) of the question(s) when you provide your explanation(s). For your protection you must date and sign each page of this disclosure statement and each attachment. Delivery of the disclosure statement must occur not later than ((. . .)) five business days (((or five days if not filled in) of)), unless otherwise agreed, after mutual acceptance of a written contract to purchase between a buyer and a seller.

NOTICE TO THE BUYER

THE FOLLOWING DISCLOSURES ARE MADE BY THE SELLER(S), CONCERNING THE CONDITION OF THE PROPERTY LOCATED AT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

("THE PROPERTY"), OR AS LEGALLY DESCRIBED ON ATTACHED EXHIBIT A.

DISCLOSURES CONTAINED IN THIS FORM ARE PROVIDED BY THE SELLER ON THE BASIS OF SELLER'S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME THIS DISCLOSURE FORM IS COMPLETED BY THE SELLER. YOU HAVE ((. . .)) THREE BUSINESS DAYS, ((OR THREE BUSINESS DAYS IF NOT FILLED IN)) UNLESS OTHERWISE AGREED, FROM THE SELLER'S DELIVERY OF THIS SELLER'S DISCLOSURE STATEMENT TO ((REVOKE YOUR OFFER)) RESCIND YOUR AGREEMENT BY DELIVERING YOUR SEPARATE SIGNED WRITTEN STATEMENT OF ((REVOCATION)) RESCISSION TO THE SELLER, UNLESS YOU WAIVE THIS RIGHT AT OR PRIOR TO ENTERING INTO A SALE AGREEMENT. THE FOLLOWING ARE DISCLOSURES MADE BY THE SELLER AND ARE NOT THE REPRESENTATIONS OF ANY REAL ESTATE LICENSEE OR OTHER PARTY. THIS INFORMATION IS FOR DISCLOSURE ONLY AND IS NOT INTENDED TO BE A PART OF ANY WRITTEN AGREEMENT BETWEEN THE BUYER AND THE SELLER.

FOR A MORE COMPREHENSIVE EXAMINATION OF THE SPECIFIC CONDITION OF THIS PROPERTY YOU ARE ADVISED TO OBTAIN AND PAY FOR THE SERVICES OF A QUALIFIED SPECIALIST TO INSPECT THE PROPERTY ON YOUR BEHALF, FOR EXAMPLE, ARCHITECTS, ENGINEERS, LAND SURVEYORS, PLUMBERS, ELECTRICIANS, ROOFERS, BUILDING INSPECTORS, OR PEST AND DRY ROT INSPECTORS. THE PROSPECTIVE BUYER AND THE OWNER MAY WISH TO OBTAIN PROFESSIONAL ADVICE OR INSPECTIONS OF THE PROPERTY AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN THEM WITH RESPECT TO ANY ADVICE, INSPECTION, DEFECTS OR WARRANTIES.

Seller . . . . is/ . . . . is not occupying the property.

I. SELLER'S DISCLOSURES:

*If "Yes" attach a copy or explain. If necessary use an attached sheet.

1. TITLE

[ ]Yes [ ]No [ ]Don't know A. Do you have legal authority to sell the property?

[ ]Yes [ ]No [ ]Don't know *B. Is title to the property subject to any of the following?

(1) First right of refusal

(2) Option

(3) Lease or rental agreement

(4) Life estate?

[ ]Yes [ ]No [ ]Don't know *C. Are there any encroachments, boundary agreements, or boundary disputes?

[ ]Yes [ ]No [ ]Don't know *D. Are there any rights of way, easements, or access limitations that may affect the owner's use of the property?

[ ]Yes [ ]No [ ]Don't know *E. Are there any written agreements for joint maintenance of an easement or right of way?

[ ]Yes [ ]No [ ]Don't know *F. Is there any study, survey project, or notice that would adversely affect the property?

[ ]Yes [ ]No [ ]Don't know *G. Are there any pending or existing assessments against the property?

[ ]Yes [ ]No [ ]Don't know *H. Are there any zoning violations, nonconforming uses, or any unusual restrictions on the subject property that would affect future construction or remodeling?

[ ]Yes [ ]No [ ]Don't know *I. Is there a boundary survey for the property?

[ ]Yes [ ]No [ ]Don't know *J. Are there any covenants, conditions, or restrictions which affect the property?

2. WATER

A. Household Water

(1) The source of the water is [ ]Public [ ]Community [ ]Private [ ]Shared

(2) Water source information:

[ ]Yes [ ]No [ ]Don't know *a. Are there any written agreements for shared water source?

[ ]Yes [ ]No [ ]Don't know *b. Is there an easement (recorded or unrecorded) for access to and/or maintenance of the water source?

[ ]Yes [ ]No [ ]Don't know *c. Are any known problems or repairs needed?

[ ]Yes [ ]No [ ]Don't know *d. Does the source provide an adequate year round supply of potable water?

[ ]Yes [ ]No [ ]Don't know *(3) Are there any water treatment systems for the property? [ ]Leased [ ]Owned

B. Irrigation

[ ]Yes [ ]No [ ]Don't know (1) Are there any water rights for the property?

[ ]Yes [ ]No [ ]Don't know *(2) If they exist, to your knowledge, have the water rights been used during the last five-year period?

[ ]Yes [ ]No [ ]Don't know *(3) If so, is the certificate available?

C. Outdoor Sprinkler System

[ ]Yes [ ]No [ ]Don't know (1) Is there an outdoor sprinkler system for the property?

[ ]Yes [ ]No [ ]Don't know *(2) Are there any defects in the outdoor sprinkler system?

3. SEWER/SEPTIC SYSTEM

A. The property is served by: [ ]Public sewer main, [ ]Septic tank system [ ]Other disposal system (describe)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[ ]Yes [ ]No [ ]Don't know B. If the property is served by a public or community sewer main, is the house connected to the main?

C. Is the property currently subject to a sewer capacity charge?

D. If the property is connected to a septic system:

[ ]Yes [ ]No [ ]Don't know (1) Was a permit issued for its construction, and was it approved by the city or county following its construction?

(2) When was it last pumped:

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , 19. . .

[ ]Yes [ ]No [ ]Don't know *(3) Are there any defects in the operation of the septic system?

[ ]Don't know (4) When was it last inspected?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , 19. . .

By Whom: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[ ]Don't know (5) How many bedrooms was the system approved for?

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . bedrooms

[ ]Yes [ ]No [ ]Don't know *((D)) E. Do all plumbing fixtures, including laundry drain, go to the septic/sewer system? If no, explain: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[ ]Yes [ ]No [ ]Don't know *((E)) F. Are you aware of any changes or repairs to the septic system?

[ ]Yes [ ]No [ ]Don't know ((F)) G. Is the septic tank system, including the drainfield, located entirely within the boundaries of the property?

4. STRUCTURAL

[ ]Yes [ ]No [ ]Don't know *A. Has the roof leaked?

[ ]Yes [ ]No [ ]Don't know If yes, has it been repaired?

[ ]Yes [ ]No [ ]Don't know *B. Have there been any conversions, additions, or remodeling?

[ ]Yes [ ]No [ ]Don't know *1. If yes, were all building permits obtained?

[ ]Yes [ ]No [ ]Don't know *2. If yes, were all final inspections obtained?

[ ]Yes [ ]No [ ]Don't know C. Do you know the age of the house? If yes, year of original construction:

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[ ]Yes [ ]No [ ]Don't know *D. Do you know of any settling, slippage, or sliding of the house or other improvements? If yes, explain:

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[ ]Yes [ ]No [ ]Don't know *E. Do you know of any defects with the following: (Please check applicable items)

□ Foundations □ Decks □ Exterior Walls

□ Chimneys □ Interior Walls □ Fire Alarm

□ Doors □ Windows □ Patio

□ Ceilings □ Slab Floors □ Driveways

□ Pools □ Hot Tub □ Sauna

□ Sidewalks □ Outbuildings □ Fireplaces

□ Garage Floors □ Walkways

□ Other □ Wood Stoves

[ ]Yes [ ]No [ ]Don't know *F. Was a pest or dry rot, structural or "whole house" inspection done? When and by whom was the inspection completed?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[ ]Yes [ ]No [ ]Don't know *G. Since assuming ownership, has your property had a problem with wood destroying organisms and/or have there been any problems with pest control, infestations, or vermin?

5. SYSTEMS AND FIXTURES

If the following systems or fixtures are included with the transfer, do they have any existing defects:

[ ]Yes [ ]No [ ]Don't know *A. Electrical system, including wiring, switches, outlets, and service

[ ]Yes [ ]No [ ]Don't know *B. Plumbing system, including pipes, faucets, fixtures, and toilets

[ ]Yes [ ]No [ ]Don't know *C. Hot water tank

[ ]Yes [ ]No [ ]Don't know *D. Garbage disposal

[ ]Yes [ ]No [ ]Don't know *E. Appliances

[ ]Yes [ ]No [ ]Don't know *F. Sump pump

[ ]Yes [ ]No [ ]Don't know *G. Heating and cooling systems

[ ]Yes [ ]No [ ]Don't know *H. Security system [ ] Owned [ ] Leased

*I. Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. COMMON INTEREST

[ ]Yes [ ]No [ ]Don't know A. Is there a Home Owners' Association? Name of Association . . . . . . . . . . . . . .

[ ]Yes [ ]No [ ]Don't know B. Are there regular periodic assessments:

$. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . per [ ] Month [ ] Year

[ ] Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[ ]Yes [ ]No [ ]Don't know *C. Are there any pending special assessments?

[ ]Yes [ ]No [ ]Don't know *D. Are there any shared "common areas" or any joint maintenance agreements (facilities such as walls, fences, landscaping, pools, tennis courts, walkways, or other areas co-owned in undivided interest with others)?

7. GENERAL

[ ]Yes [ ]No [ ]Don't know *A. Is there any settling, soil, standing water, or drainage problems on the property?

[ ]Yes [ ]No [ ]Don't know *B. Does the property contain fill material?

[ ]Yes [ ]No [ ]Don't know *C. Is there any material damage to the property or any of the structure from fire, wind, floods, beach movements, earthquake, expansive soils, or landslides?

[ ]Yes [ ]No [ ]Don't know D. Is the property in a designated flood plain?

(([ ]Yes [ ]No [ ]Don't know E. Is the property in a designated flood hazard zone?))

[ ]Yes [ ]No [ ]Don't know ((*F.)) *E. Are there any substances, materials, or products that may be an environmental hazard such as, but not limited to, asbestos, formaldehyde, radon gas, lead-based paint, fuel or chemical storage tanks, and contaminated soil or water on the subject property?

[ ]Yes [ ]No [ ]Don't know ((*G.)) *F. Are there any tanks or underground storage tanks (e.g., chemical, fuel, etc.) on the property?

[ ]Yes [ ]No [ ]Don't know ((*H.)) *G. Has the property ever been used as an illegal drug manufacturing site?

8. FULL DISCLOSURE BY SELLERS

A. Other conditions or defects:

[ ]Yes [ ]No [ ]Don't know *Are there any other material defects affecting this property or its value that a prospective buyer should know about?

B. Verification:

The foregoing answers and attached explanations (if any) are complete and correct to the best of my/our knowledge and I/we have received a copy hereof. I/we authorize all of my/our real estate licensees, if any, to deliver a copy of this disclosure statement to other real estate licensees and all prospective buyers of the property.

DATE . . . . . . . SELLER . . . . . . . . . SELLER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

II. BUYER'S ACKNOWLEDGMENT

A. As buyer(s), I/we acknowledge the duty to pay diligent attention to any material defects which are known to me/us or can be known to me/us by utilizing diligent attention and observation.

B. Each buyer acknowledges and understands that the disclosures set forth in this statement and in any amendments to this statement are made only by the seller.

C. Buyer (which term includes all persons signing the "buyer's acceptance" portion of this disclosure statement below) hereby acknowledges receipt of a copy of this disclosure statement (including attachments, if any) bearing seller's signature.

DISCLOSURES CONTAINED IN THIS FORM ARE PROVIDED BY THE SELLER ON THE BASIS OF SELLER'S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME OF DISCLOSURE. YOU, THE BUYER, HAVE ((. . .)) THREE BUSINESS DAYS (((OR THREE BUSINESS DAYS IF NOT FILLED IN))), UNLESS OTHERWISE AGREED, FROM THE SELLER'S DELIVERY OF THIS SELLER'S DISCLOSURE STATEMENT TO ((REVOKE YOUR OFFER)) RESCIND YOUR AGREEMENT BY DELIVERING YOUR SEPARATE SIGNED WRITTEN STATEMENT OF ((REVOCATION)) RESCISSION TO THE SELLER UNLESS YOU WAIVE THIS RIGHT OF ((REVOCATION)) RESCISSION.

BUYER HEREBY ACKNOWLEDGES RECEIPT OF A COPY OF THIS REAL PROPERTY TRANSFER DISCLOSURE STATEMENT AND ACKNOWLEDGES THAT THE DISCLOSURES MADE HEREIN ARE THOSE OF THE SELLER ONLY, AND NOT OF ANY REAL ESTATE LICENSEE OR OTHER PARTY.

DATE . . . . . . . BUYER . . . . . . . . . BUYER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The real property transfer disclosure statement shall be for disclosure only, and shall not be considered part of any written agreement between the buyer and seller of residential real property. The real property transfer disclosure statement shall be only a disclosure made by the seller, and not any real estate licensee involved in the transaction, and shall not be construed as a warranty of any kind by the seller or any real estate licensee involved in the transaction.

Sec. 3. RCW 64.06.030 and 1994 c 200 s 4 are each amended to read as follows:

Unless the buyer has expressly waived the right to receive the disclosure statement, ((within)) not later than five business days or as otherwise agreed to, ((of)) after mutual acceptance of a written agreement between a buyer and a seller for the purchase and sale of residential real property, the seller shall deliver to the buyer a completed, signed, and dated real property transfer disclosure statement. Within three business days, or as otherwise agreed to, of receipt of the real property transfer disclosure statement, the buyer shall have the right to exercise one of the following two options: (1) Approving and accepting the real property transfer disclosure statement; or (2) rescinding the agreement for the purchase and sale of the property, which decision may be made by the buyer in the buyer's sole discretion. If the buyer elects to rescind the agreement, the buyer must deliver written notice of rescission to the seller within the three-business-day period, or as otherwise agreed to, and upon delivery of the written rescission notice the buyer shall be entitled to immediate return of all deposits and other considerations less any agreed disbursements paid to the seller, or to the seller's agent or an escrow agent for the seller's account, and the agreement for purchase and sale shall be void. If the buyer does not deliver a written recision notice to [the] seller within the three-business-day period, or as otherwise agreed to, the real property transfer disclosure statement will be deemed approved and accepted by the buyer.

Sec. 4. RCW 64.06.040 and 1994 c 200 s 5 are each amended to read as follows:

(1) If, after the date that a seller of residential real property completes a real property transfer disclosure statement, the seller becomes aware of additional information, or an adverse change occurs which makes any of the disclosures made inaccurate, the seller shall amend the real property transfer disclosure statement, and deliver the amendment to the buyer. No amendment shall be required, however, if the seller takes whatever corrective action is necessary so that the accuracy of the disclosure is restored, or the adverse change is corrected, at least three business days prior to the closing date. Unless the ((adverse change is corrected or repaired)) corrective action is completed by the seller prior to the closing date, the buyer shall have the right to exercise one of the following two options: (a) Approving and accepting the amendment, or (b) rescinding the agreement of purchase and sale of the property within three business days after receiving the amended real property transfer disclosure statement. Acceptance or recision shall be subject to the same procedures described in RCW 64.06.030. If the closing date provided in the purchase and sale agreement is scheduled to occur within the three-business-day rescission period provided for in this section, the closing date shall be extended until the expiration of the three-business-day rescission period. The buyer shall have no right of rescission if the seller takes whatever action is necessary so that the accuracy of the disclosure is restored at least three business days prior to the closing date.

(2) In the event any act, occurrence, or agreement arising or becoming known after the closing of a residential real property transfer causes a real property transfer disclosure statement to be inaccurate in any way, the seller of such property shall have no obligation to amend the disclosure statement, and the buyer shall not have the right to rescind the transaction under this chapter.

(3) If the seller in a residential real property transfer fails or refuses to provide to the prospective buyer a real property transfer disclosure statement as required under this chapter, the prospective buyer's right of rescission under this section shall apply until the earlier of three business days after receipt of the real property transfer disclosure statement or the date the transfer has closed, unless the buyer has otherwise waived the right of rescission in writing. Closing is deemed to occur when the buyer has paid the purchase price, or down payment, and the conveyance document, including a deed or real estate contract, from the seller has been delivered and recorded. After closing, the seller's obligation to deliver the real property transfer disclosure statement and the buyer's rights and remedies under this chapter shall terminate.

Sec. 5. RCW 64.06.050 and 1994 c 200 s 6 are each amended to read as follows:

(1) The seller of residential real property shall not be liable for any error, inaccuracy, or omission in the real property transfer disclosure statement if the seller had no ((personal)) actual knowledge of the error, inaccuracy, or omission. Unless the seller of residential real property has actual knowledge of an error, inaccuracy, or omission in a real property transfer disclosure statement, the seller shall not be liable for such error, inaccuracy, or omission if the disclosure was based on information provided by public agencies, or by other persons providing information within the scope of their professional license or expertise, including, but not limited to, a report or opinion delivered by a land surveyor, title company, title insurance company, structural inspector, pest inspector, licensed engineer, or contractor.

(2) Any licensed real estate salesperson or broker involved in a residential real property transaction is not liable for any error, inaccuracy, or omission in the real property transfer disclosure statement if the licensee had no ((personal)) actual knowledge of the error, inaccuracy, or omission. Unless the salesperson or broker has actual knowledge of an error, inaccuracy, or omission in a real property transfer disclosure statement, the salesperson or broker shall not be liable for such error, inaccuracy, or omission if the disclosure was based on information provided by public agencies, or by other persons providing information within the scope of their professional license or expertise, including, but not limited to, a report or opinion delivered by a land surveyor, title company, title insurance company, structural inspector, pest inspector, licensed engineer, or contractor.

Sec. 6. RCW 64.06.070 and 1994 c 200 s 8 are each amended to read as follows:

Except as provided in RCW 64.06.050, nothing in this chapter shall extinguish or impair any rights or remedies of a buyer of real estate against the seller or against any agent acting for the seller otherwise existing pursuant to common law, statute, or contract; nor shall anything in this chapter create any new right or remedy for a buyer of residential real property other than the right of recision exercised on the basis and within the time limits provided in this chapter.

NEW SECTION. Sec. 7. Section 2 of this act shall take effect January 1, 1996."

On page 1, line 1 of he title, after "disclosure;" strike the remainder of the title and insert "amending RCW 64.06.010, 64.06.020, 64.06.030, 64.06.040, 64.06.050, and 64.06.070; and providing an effective date."

Signed by Representatives Van Luven, Chairman; Radcliff, Vice Chairman; D. Schmidt, Vice Chairman; Veloria, Assistant Ranking Minority Member; Backlund; Hatfield; Hickel; Mason; Sherstad; Skinner and Valle.

Voting Yea: Representatives Backlund, Ballasiotes, Hatfield, Hickel, Mason, Radcliff, D. Schmidt, Sherstad, Skinner, Valle, Van Luven and Veloria.

Excused: Representatives Ballasiotes and Sheldon.

Passed to Committee on Rules for second reading.

March 22, 1995

SB 5078 Prime Sponsor, Fraser: Concerning premium finance agreements. Reported by Committee on Financial Institutions & Insurance

MAJORITY recommendation: Do pass. Signed by Representatives L. Thomas, Chairman; Beeksma, Vice Chairman; Smith, Vice Chairman; Wolfe, Ranking Minority Member; Grant, Assistant Ranking Minority Member; Benton; Campbell; Dellwo; Dyer; Huff; Kessler; Ogden and Pelesky.

MINORITY recommendation: Do not pass. Signed by Representative Costa.

Voting Yea: Representatives Beeksma, Campbell, Dellwo, Grant, Huff, Kessler, Ogden, Pelesky, Smith, L. Thomas and Wolfe.

Excused: Representatives Benton, Costa, Dyer and Mielke.

Passed to Committee on Rules for second reading.

March 21, 1995

SSB 5097 Prime Sponsor, Committee on Government Operations: Preserving port district debt limits. Reported by Committee on Government Operations

MINORITY recommendation: Do not pass. Signed by Representatives Hargrove; Hymes; Mulliken and Van Luven.

Voting Yea: Representatives Chopp, R. Fisher, Goldsmith, Honeyford, Reams, Rust, D. Schmidt, Scott, L. Thomas and Wolfe.

Voting Nay: Representatives Hargrove, Hymes, Mulliken and Van Luven.

Excused: Representatives Sommers.

Passed to Committee on Rules for second reading.

March 22, 1995

SB 5098 Prime Sponsor, Loveland: Reenacting sections about county financial functions. Reported by Committee on Government Operations

MAJORITY recommendation: Do pass. Signed by Representatives Reams, Chairman; Goldsmith, Vice Chairman; L. Thomas, Vice Chairman; Rust, Ranking Minority Member; Scott, Assistant Ranking Minority Member; R. Fisher; Honeyford; Hymes; Sommers; Van Luven and Wolfe.

MINORITY recommendation: Without recommendation. Signed by Representatives Hargrove and Mulliken.

Voting Yea: Representatives Chopp, R. Fisher, Goldsmith, Honeyford, Hymes, Reams, Rust, D. Schmidt, Scott, Sommers, L. Thomas, Van Luven and Wolfe.

Voting Nay: Representatives Hargrove and Mulliken.

Passed to Committee on Rules for second reading.

March 22, 1995

SB 5142 Prime Sponsor, Quigley: Extending authority to enter into payment agreements. Reported by Committee on Financial Institutions & Insurance

MAJORITY recommendation: Do pass with the following amendment:

On page 1, line 19, after "((two))" strike "five" and insert "seven"

Signed by Representatives L. Thomas, Chairman; Beeksma, Vice Chairman; Smith, Vice Chairman; Wolfe, Ranking Minority Member; Grant, Assistant Ranking Minority Member; Benton; Campbell; Costa; Dellwo; Dyer; Huff; Kessler; Ogden and Pelesky.

Voting Yea: Representatives Beeksma, Campbell, Dellwo, Grant, Huff, Kessler, Ogden, Pelesky, Smith, L. Thomas and Wolfe.

Excused: Representatives Benton, Costa, Dyer and Mielke.

Passed to Committee on Rules for second reading.

March 21, 1995

SSB 5183 Prime Sponsor, Committee on Government Operations: Regarding county auditors. Reported by Committee on Government Operations

MAJORITY recommendation: Do pass. Signed by Representatives Reams, Chairman; Goldsmith, Vice Chairman; L. Thomas, Vice Chairman; Rust, Ranking Minority Member; Scott, Assistant Ranking Minority Member; Chopp; R. Fisher; Honeyford; Mulliken; D. Schmidt; Van Luven and Wolfe.

MINORITY recommendation: Without recommendation. Signed by Representatives Hargrove and Hymes.

Voting Yea: Representatives Chopp, R. Fisher, Goldsmith, Honeyford, Hymes, Mulliken, Reams, Rust, D. Schmidt, Scott, L. Thomas, Van Luven and Wolfe.

Voting Nay: Representative Hargrove.

Excused: Representative Sommers.

Passed to Committee on Rules for second reading.

March 22, 1995

ESSB 5190 Prime Sponsor, Committee on Law & Justice: Making it a crime to tattoo a person under age eighteen without parental consent. Reported by Committee on Law & Justice

MAJORITY recommendation: Do pass with the following amendment:

On page 1, at the beginning of line 7, strike "sixteen" and insert "eighteen"

On page 1, line 7, after "misdemeanor." insert "It is not a defense to a violation of this section that the person applying the tattoo did not know the minor's age unless the person applying the tattoo establishes by a preponderance of the evidence that he or she made a reasonable, bona fide attempt to ascertain the true age of the minor by requiring production of a driver's license or other picture identification card or paper and did not rely solely on the oral allegations or apparent age of the minor."

Signed by Representatives Padden, Chairman; Delvin, Vice Chairman; Hickel, Vice Chairman; Campbell; Carrell; Chappell; Lambert; McMahan; Morris; Robertson; Sheahan and Smith.

MINORITY recommendation: Do not pass. Signed by Representatives Appelwick, Ranking Minority Member; Costa, Assistant Ranking Minority Member; Cody; Thibaudeau and Veloria.

Voting Yea: Representatives Campbell, Carrell, Chappell, Delvin, Hickel, Lambert, McMahan, Morris, Padden, Robertson, Sheahan and Smith.

Voting Nay: Representatives Appelwick, Cody, Costa, Thibaudeau and Veloria.

Passed to Committee on Rules for second reading.

March 22, 1995

SB 5202 Prime Sponsor, Prentice: Lowering the number of items provided by banks for customers' examination of negotiable instruments. Reported by Committee on Financial Institutions & Insurance

MINORITY recommendation: Do not pass. Signed by Representative Costa.

Voting Yea: Representatives Beeksma, Campbell, Dellwo, Grant, Huff, Kessler, Ogden, Pelesky, Smith, L. Thomas and Wolfe.

Excused: Representatives Benton, Costa, Dyer and Mielke.

Passed to Committee on Rules for second reading.

March 22, 1995

SB 5266 Prime Sponsor, Pelz: Revising provisions regulating court reporting. Reported by Committee on Commerce & Labor

Voting Yea: Representatives Cairnes, Cody, Cole, Conway, Goldsmith, Hargrove, Horn, Lisk, Romero and Thompson.

Excused: Representative Fuhrman.

Passed to Committee on Rules for second reading.

March 21, 1995

SB 5294 Prime Sponsor, Sheldon: Paying for fire fighters' retirement provisions. Reported by Committee on Government Operations

Voting Yea: Representatives Chopp, R. Fisher, Goldsmith, Hargrove, Honeyford, Hymes, Mulliken, Reams, Rust, D. Schmidt, Scott, L. Thomas, Van Luven and Wolfe.

Excused: Representative Sommers.

Passed to Committee on Rules for second reading.

March 22, 1995

SB 5330 Prime Sponsor, Smith: Regulating background checks. Reported by Committee on Law & Justice

MAJORITY recommendation: Do pass. Signed by Representatives Padden, Chairman; Delvin, Vice Chairman; Hickel, Vice Chairman; Appelwick, Ranking Minority Member; Costa, Assistant Ranking Minority Member; Campbell; Carrell; Chappell; Cody; Lambert; McMahan; Morris; Robertson; Sheahan; Smith; Thibaudeau and Veloria.

Voting Yea: Representatives Appelwick, Campbell, Carrell, Chappell, Cody, Costa, Delvin, Hickel, Lambert, McMahan, Morris, Padden, Robertson, Sheahan, Smith, Thibaudeau and Veloria.

Passed to Committee on Rules for second reading.

March 22, 1995

E2SSB 5342 Prime Sponsor, Committee on Ways & Means: Redefining the program to aid rural natural resources impact areas. Reported by Committee on Trade & Economic Development

MAJORITY recommendation: Do pass. Signed by Representatives Van Luven, Chairman; Radcliff, Vice Chairman; D. Schmidt, Vice Chairman; Sheldon, Ranking Minority Member; Veloria, Assistant Ranking Minority Member; Backlund; Hatfield; Hickel; Mason; Sherstad; Skinner and Valle.

Voting Yea: Representatives Backlund, Hatfield, Hickel, Mason, Radcliff, D. Schmidt, Sheldon, Sherstad, Skinner, Valle, Van Luven and Veloria.

Excused: Representative Ballasiotes.

Referred to Committee on Appropriations.

March 22, 1995

2SSB 5387 Prime Sponsor, Committee on Ways & Means: Providing tax incentives for multiple-unit housing in urban centers. Reported by Committee on Trade & Economic Development

MAJORITY recommendation: Do pass with the following amendment:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds:

(1) That in many of Washington's urban centers there is insufficient availability of desirable and convenient residential units to meet the needs of a growing number of the public who would live in these urban centers if these desirable, convenient, attractive, and livable places to live were available;

(2) That the lack of these sufficient residential opportunities has resulted in an underutilization of these areas as a place to live by permanent residents and such absence of permanent residents has contributed to the existence of vandalism, juvenile delinquency, the proclivity by some to commit crimes, unreported crimes, and a perception by a large segment of the public that some urban centers are unsafe or undesirable areas to visit or to inhabit after normal working hours;

(3) That the development of additional and desirable residential units in these urban centers that will attract and maintain a significant increase in the number of permanent residents in these areas will help to alleviate the detrimental conditions and social liability that tend to exist in the absence of a viable residential population and will help to achieve the planning goals mandated by the growth management act under RCW 36.70A.020, including, but not limited to, the encouragement of development in urban areas where adequate public facilities and services exist or can be provided in an efficient manner, the reduction of sprawl, the efficient utilization of multimode transportation systems, and the increased availability of housing to all economic segments of the population of this state;

(4) That planning solutions to solve the problems of urban sprawl often lack incentive and implementation techniques needed to encourage residential redevelopment in those urban centers lacking sufficient residential opportunities, and it is in the public interest and will benefit, provide, and promote the public health, safety, and welfare to stimulate new or enhanced residential opportunities within urban centers through a tax incentive as provided by this chapter; and

(5) That in order to maximize the purpose of this chapter to provide needed livable and attractive places to live in urban centers and to achieve the objectives of the growth management act, it is necessary to allow for the maximum participation by cities in determining where the greatest need for increased residential opportunity exists within urban centers and the location, configuration, and amenities of such residential redevelopment which will best meet the objectives of this chapter and the growth management plan of a city adopted in conformance with the growth management act.

NEW SECTION. Sec. 2. It is the purpose of this chapter to encourage increased residential opportunities for individuals of all income levels in cities with a population of at least one hundred fifty thousand that are required to plan or choose to plan under the growth management act within urban centers where the legislative body of the affected city has found there is insufficient housing opportunities, and that a particular residential development or redevelopment is needed to properly advance the intent and purposes of this chapter. It is further the purpose of this chapter to stimulate the construction of new multifamily housing and the rehabilitation of existing vacant and underutilized buildings for multifamily housing in urban centers having insufficient housing opportunities that will increase and improve residential opportunities within these urban centers and that will assist in reducing urban sprawl, locating housing close to work locations, promoting land use patterns that support and encourage the use of public transit or other alternatives to automobile use and in making these urban centers a place where more people can, and will, live. To achieve these purposes, this chapter provides for special valuations for eligible improvements associated with multiunit housing in residentially deficient urban centers.

NEW SECTION. Sec. 3. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "City" means a city with a population of at least one hundred fifty thousand located in a county planning under the growth management act.

(2) "Governing authority" means the local legislative authority of a city having jurisdiction over the property for which an exemption may be applied for under this chapter.

(3) "Growth management act" means chapter 36.70A RCW.

(4) "Multiple-unit housing" or "multifamily housing" means a building having four or more dwelling units not designed or used as transient accommodations and not including hotels and motels. Multifamily units may result from new construction or rehabilitated or conversion of vacant, underutilized, or substandard buildings to multifamily housing. At least twenty percent of the units may be set aside for households that earn no more than fifty percent of the median income or forty percent of the units may be set aside for households who earn no more than sixty percent of the median income, adjusted for household size.

(5) "Owner" means the property owner of record.

(6) "Permanent residential occupancy" means multiunit housing that provides either rental or owner occupancy on a nontransient basis. This includes owner-occupied or rental accommodation that is leased for a period of at least one month. This excludes hotels and motels that predominately offer rental accommodation on a daily or weekly basis.

(7) "Public benefit features" means amenities, uses, and other features of benefit to the public as may be locally designated. Examples include, but are not limited to, plazas, public open spaces, sidewalk surfacing, midblock connections, light standards, street level awnings, canopies or other weather protection features, street level retail uses, street furniture, pedestrian amenities, miniparks, tot lots, daycare centers, common meeting rooms, and other public amenities.

(8) "Rehabilitation improvements" means modifications made to existing structures that have been vacant for at least twelve months and failed to comply with one or more standards of the applicable state or local building or housing codes on or after the effective date of this section.

(9) "Residential targeted area" means an area within an urban center that has been designated by the governing authority as a residential targeted area in accordance with this chapter.

(10) "Substantial compliance" means compliance with local building or housing code requirements that are typically required for rehabilitation as opposed to new construction.

(11) "Urban center" means a compact identifiable district where urban residents may obtain a variety of products and services. An urban center must contain:

(a) Several existing or previous, or both, business establishments that may include but are not limited to shops, offices, banks, restaurants, governmental agencies;

(b) Adequate public facilities including streets, sidewalks, lighting, transit, domestic water, and sanitary sewer systems; and

(c) A mixture of uses and activities that may include housing, recreation, and cultural activities in association with either commercial or office, or both, use.

NEW SECTION. Sec. 4. The provisions of this chapter relating to special valuation apply only to locally designated residential targeted areas of those cities planning under the growth management act.

NEW SECTION. Sec. 5. (1) The appraised value of new housing construction, conversion, rehabilitation improvements, and public benefit features qualifying under this chapter is exempt from ad valorem property taxation, for ten successive years beginning January 1 of the year immediately following the calendar year after issuance of the certificate of tax exemption eligibility. However, the exemption does not include the value of land or nonhousing-related improvements not qualifying under this chapter.

(2) In the case of rehabilitation of existing buildings, the exemption does not include the value of improvements constructed prior to the submission of the application required under this chapter. The incentive provided by this chapter is in addition to any other incentives, tax credits, grants, or other incentives provided by law.

(3) This chapter does not apply to increases in assessed valuation made by the assessor on nonqualifying portions of building and value of land nor to increases made by lawful order of a county board of equalization, the department of revenue, or a county, to a class of property throughout the county or specific area of the county to achieve the uniformity of assessment or appraisal required by law.

NEW SECTION. Sec. 6. An owner of property making application under this chapter must meet the following requirements:

(1) The new or rehabilitated multiple-unit housing must be located in a residential targeted area as designated by the city;

(2) The multiple-unit housing must meet the guidelines as adopted by the governing authority that may include height, density, public benefit features, number and size of proposed development, parking, design, and other adopted requirements indicated necessary by the city. The required amenities should be relative to the size of the project and tax benefit to be obtained. The governing authority may determine design and other criteria necessary for the new or rehabilitated multihousing unit to attract and keep permanent residents and to properly enhance the appearance and livability of the residential targeted area in which it is to be located;

(3) The new, converted, or rehabilitated multiple-unit housing must provide for a minimum of fifty percent of the space for permanent residential occupancy. At least twenty percent of the units may be set aside for households that earn no more than fifty percent of the median income or forty percent of the units may be set aside for households who earn no more than sixty percent of the median income, adjusted for household size;

(4) New construction of multifamily housing and rehabilitation improvements must be completed within three years from the date of approval of the application;

(5) Property proposed to be rehabilitated must be vacant at least twelve months before submitting an application and fail to comply with one or more standards of the applicable state or local building or housing codes on or after the effective date of this section;

(6) The applicant must enter into a contract with the city approved by the governing body under which the applicant has agreed to the implementation of the development on terms and conditions satisfactory to the governing authority; and

(7) The applicant must not have received an exemption under this chapter for this multiunit housing project.

NEW SECTION. Sec. 7. (1) The following criteria must be met before an area may be designated as a residential targeted area:

(a) The area must be within an urban center, as determined by the governing authority;

(b) The area must lack, as determined by the governing authority, sufficient available, desirable, and convenient residential housing for persons of all incomes to meet the needs of the public who would be likely to live in the urban center, if the desirable, attractive, and livable places to live were available; and

(c) The providing of additional housing opportunity in the area, as determined by the governing authority, will assist in achieving one or more of the stated purposes of this chapter.

(2) For the purpose of designating a residential targeted area or areas, the governing authority may adopt a resolution of intention to so designate an area as generally described in the resolution. The resolution must state the time and place of a hearing to be held by the governing authority to consider the designation of the area and may include such other information pertaining to the designation of the area as the governing authority determines to be appropriate to apprise the public of the action intended.

(3) The governing authority shall give notice of a hearing held under this chapter by publication of the notice once each week for two consecutive weeks, not less than seven days, nor more than thirty days before the date of the hearing in a paper having a general circulation in the city where the proposed residential targeted area is located. The notice must state the time, date, place, and purpose of the hearing and generally identify the area proposed to be designated as a residential targeted area.

(4) Following the hearing, or a continuance of the hearing, the governing authority may designate by resolution, all or a portion of the area described in the resolution of intent as a residential targeted area if it finds, in its sole discretion, that the criteria in subsections (1) through (3) of this section have been met.

(5) After designation of a residential targeted area, the governing authority shall adopt standards and guidelines to be utilized in considering applications and making the determinations required under section 9 of this act. The standards and guidelines must establish basic requirements for both new construction and rehabilitation including application process and procedures. These guidelines may include the following:

(a) Requirements that address demolition of existing structures and site utilization;

(b) Building design requirements that may include elements addressing aesthetics, parking, height, density, environmental impact, public benefit features, and compatibility with the existing surrounding property and such other amenities as will attract and keep permanent residents and that will properly enhance the appearance and livability of the residential targeted area in which they are to be located; and

NEW SECTION. Sec. 8. An owner of property seeking tax incentives under this chapter must complete the following procedures:

(1) In the case of rehabilitation or where demolition or new construction is required, the owner shall secure from the governing authority or duly authorized agent, before commencement of rehabilitation improvements or new construction, verification of property noncompliance with applicable building and housing codes;

(2) In the case of new and rehabilitated multifamily housing, the owner shall apply to the city on forms adopted by the governing authority. The application must contain the following:

(a) Information setting forth the grounds supporting the requested exemption including information indicated on the application form or in the guidelines;

(b) A description of the project and site plan, including location of public facilities, floor plan of units, and other information requested;

(c) A statement that the applicant is aware of the potential tax liability involved when the property ceases to be eligible for the incentive provided under this chapter;

(3) The applicant must verify the application by oath or affirmation; and

(4) The application must be made on or before April 1 and must be accompanied by the application fee, if any, required under section 10 of this act. The governing authority may permit the applicant to revise an application before final action by the governing authority.

NEW SECTION. Sec. 9. The duly authorized administrative official or committee of the city may approve the application if it finds that:

(1) The owner has agreed to include in the new construction or rehabilitation of housing one or more public benefit features;

(2) A minimum of four units are being constructed or rehabilitated;

(3) The proposed project is or will be, at the time of completion, in conformance with all local plans and regulations that apply at the time the application is approved;

(4) The owner has complied with all standards and guidelines adopted by the city under this chapter; and

(5) The site is located in a residential targeted area of an urban center that has been designated by the governing authority in accordance with procedures and guidelines indicated in section 7 of this act.

NEW SECTION. Sec. 10. (1) The governing authority or an administrative official or commission authorized by the governing authority shall approve or deny an application filed under this chapter within ninety days after receipt of the application.

(2) If the application is approved, the city shall issue the owner of the property a conditional certificate of acceptance of tax exemption. The certificate must contain a statement by a duly authorized administrative official of the governing authority that the property has complied with the required findings indicated in section 8 of this act.

(3) If the application is denied by the authorized administrative official or commission authorized by the governing authority, the deciding administrative official or commission shall state in writing the reasons for denial and send the notice to the applicant at the applicant's last known address within ten days of the denial.

(4) Upon denial by a duly authorized administrative official or commission, an applicant may appeal the denial to the governing authority within thirty days after receipt of the denial. The appeal before the governing authority will be based upon the record made before the administrative official with the burden of proof on the applicant to show that there was no substantial evidence to support the administrative official's decision. The decision of the governing body in denying or approving the application is final.

NEW SECTION. Sec. 11. The governing authority may establish an application fee. This fee may not exceed an amount determined to be required to cover the cost to be incurred by the governing authority and the assessor in administering this chapter. The application fee must be paid at the time the application for limited exemption is filed. If the application is approved, the governing authority shall pay the application fee to the county assessor for deposit in the county current expense fund, after first deducting that portion of the fee attributable to its own administrative costs in processing the application. If the application is denied, the governing authority shall retain that portion of the application fee attributable to its own administrative costs and refund the balance to the applicant.

NEW SECTION. Sec. 12. (1) Upon completion of rehabilitation or new construction for which an application for limited exemption under this chapter has been approved and after issuance of the certificate of occupancy, the owner shall file with the city the following:

(a) A statement of the amount of rehabilitation or construction expenditures made with respect to each housing unit and the composite expenditures made in the rehabilitation or construction of the entire property;

(b) A description of the work that has been completed and a statement that the rehabilitation improvements or new construction on the owner's property qualify the property for limited exemption under this chapter; and

(c) A statement that the work has been completed within three years of the issuance of the conditional certificate of tax exemption.

(2) Within thirty days after receipt of the statements required under subsection (1) of this section, the authorized representative of the city shall determine whether the work completed is consistent with the application and the contract approved by the governing authority and is qualified for limited exemption under this chapter. The city shall also determine which specific improvements completed meet the requirements and required findings.

(3) If the rehabilitation, conversion, or construction is completed within three years of the date the application for limited exemption is filed under this chapter, or within an authorized extension of this time limit, and the authorized representative of the city determines that improvements were constructed consistent with the application and other applicable requirements and the owner's property is qualified for limited exemption under this chapter, the city shall file the certificate of tax exemption with the county assessor within ten days of the expiration of the thirty-day period provided under subsection (2) of this section. The county assessor shall determine the appraised value of the improvements eligible for the tax exemption under this chapter.

(4) The authorized representative of the city shall notify the applicant that a certificate of tax exemption is not going to be filed if the representative determines that:

(a) The rehabilitation or new construction was not completed within three years of the application date, or within any authorized extension of the time limit;

(b) The improvements were not constructed consistent with the application or other applicable requirements; or

(5) If the authorized representative of the city finds that construction or rehabilitation of multiple-unit housing was not completed within the required time period due to circumstances beyond the control of the owner and that the owner has been acting and could reasonably be expected to act in good faith and with due diligence, the governing authority or the city official authorized by the governing authority may extend the deadline for completion of construction or rehabilitation for a period not to exceed twenty-four consecutive months.

(6) The governing authority may provide by ordinance for an appeal of a decision by the deciding officer or authority that an owner is not entitled to a certificate of tax exemption to the governing authority, a hearing examiner, or other city officer authorized by the governing authority to hear the appeal in accordance with such reasonable procedures and time periods as provided by ordinance of the governing authority. The owner may appeal a decision by the deciding officer or authority that is not subject to local appeal or a decision by the local appeal authority that the owner is not entitled to a certificate of tax exemption in superior court under RCW 34.05.510 through 34.05.598, if the appeal is filed within thirty days of notification by the city to the owner of the decision being challenged.

NEW SECTION. Sec. 13. (1) Within thirty days of the anniversary of the date of the certificate of tax exemption and each year for a period of ten years, the owner of the rehabilitated or newly constructed property shall file with a designated agent of the city an annual report indicating the following:

(a) A statement of occupancy and vacancy of the rehabilitated or newly constructed property during the previous twelve months ending with the anniversary date;

(b) A certification by the owner that the property has not changed use since the date of the certificate approved by the city;

(d) A description of changes or improvements constructed after issuance of the certificate of tax exemption; and

(e) For applicable projects, a certification of income eligibility for low-income tenants inhabiting the rehabilitated or newly constructed housing units during the previous twelve months.

(2) The designated agent of the city shall forward a copy of the annual report to the county assessor.

NEW SECTION. Sec. 14. (1) If improvements have been exempted under this chapter, the improvements continue to be exempted and not be converted to another use for at least ten years from date of issuance of the certificate of tax exemption. If the owner intends to convert the multifamily development to another use, the owner shall notify the assessor within sixty days of the change in use. If, after a certificate of tax exemption has been filed with the county assessor the city or assessor or agent discovers that a portion of the property is changed or will be changed to a use that is other than residential or that housing or amenities no longer meet the requirements as previously approved or agreed upon by contract between the governing authority and the owner and that the multifamily housing, or a portion of the housing, no longer qualifies for the exemption, the tax exemption must be canceled and the following must occur:

(a) Additional real property tax must be imposed upon the value of the nonqualifying improvements in the amount that would normally be imposed, plus a penalty amounting to twenty percent. The tax shall be imposed on the value of the improvement at the time the tax exemption certificate was issued. This additional tax is calculated based upon the difference between the property tax paid and the property tax that would have been paid if it had included the value of the nonqualifying improvements dated back to the date that the improvements were converted to a nonmultifamily use;

(b) The tax must include interest upon the amounts of the additional tax at the same statutory rate charged on delinquent property taxes from the dates on which the additional tax could have been paid without penalty if the improvements had been assessed at a value without regard to this chapter; and

(c) The additional tax owed together with interest and penalty must become a lien on the land and attach at the time the property or portion of the property is removed from multifamily use or the amenities no longer meet applicable requirements, and has priority to and must be fully paid and satisfied before a recognizance, mortgage, judgment, debt, obligation, or responsibility to or with which the land may become charged or liable. The lien may be foreclosed upon expiration of the same period after delinquency and in the same manner provided by law for foreclosure of liens for delinquent real property taxes. An additional tax unpaid on its due date is delinquent. From the date of delinquency until paid, interest must be charged at the same rate applied by law to delinquent ad valorem property taxes.

(2) Upon a determination that a tax exemption is to be canceled for a reason stated in this section, the governing authority shall notify the record owner of the property as shown by the tax rolls by mail, return receipt requested, of the determination to cancel the exemption. The owner may appeal the determination to the governing authority within thirty days by filing a notice of appeal with the clerk of the governing authority, which notice must specify the factual and legal basis on which the determination of cancellation is alleged to be erroneous. The governing authority or a hearing examiner or other official authorized by the governing authority may hear the appeal. At the hearing, all interested parties may be heard and all competent evidence received. After the hearing, the deciding body or officer shall either affirm, modify, or repeal the decision of cancellation of exemption based on the evidence received. An aggrieved party may appeal the decision of the deciding body or officer to the superior court under RCW 34.05.510 through 34.05.598.

(3) Upon determination by the governing authority or authorized representative to terminate an exemption, the county officials having possession of the assessment and tax rolls shall correct the rolls in the manner provided for omitted property under RCW 84.40.080. The county assessor shall make such a valuation of the property and improvements as is necessary to permit the correction of the rolls. The owner may appeal the valuation to the county board of equalization under chapter 84.48 RCW. If there has been a failure to comply with this chapter, the property must be listed as an omitted assessment for assessment years beginning January 1 of the calendar year in which the noncompliance first occurred, but the listing as an omitted assessment may not be for a period more than three calendar years preceding the year in which the failure to comply was discovered.

NEW SECTION. Sec. 15. 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. 16. Sections 1 through 15 of this act shall constitute a new chapter in Title 84 RCW."

On page 1, line 2 of the title, after "centers;" strike the remainder of the title and insert "and adding a new chapter to Title 84 RCW."

Signed by Representatives Van Luven, Chairman; Radcliff, Vice Chairman; D. Schmidt, Vice Chairman; Sheldon, Ranking Minority Member; Backlund; Hickel; Sherstad; Skinner and Valle.

MINORITY recommendation: Do not pass. Signed by Representatives Hatfield and Mason.

Voting Yea: Representatives Backlund, Ballasiotes, Hickel, Radcliff, D. Schmidt, Sheldon, Sherstad, Skinner, Valle and Van Luven.

Voting Nay: Representatives Hatfield, Mason an Veloria.

Excused: Representative Ballasiotes.

Referred to Committee on Finance.

March 22, 1995

SSB 5406 Prime Sponsor, Committee on Financial Institutions & Housing: Continuing market interest rates for consumer credit transactions. Reported by Committee on Financial Institutions & Insurance

MAJORITY recommendation: Do pass with the following amendment:

On page 1, after line 17, insert the following:

"NEW SECTION. Sec. 4. A new section is added to chapter 63.14 RCW to read as follows:

(1) With respect to a retail installment transaction, as defined in RCW 63.14.010(8), if the court as a matter of law finds the agreement or contract, or any clause in the agreement or contract, to have been unconscionable at the time it was made, the court may refuse to enforce the agreement or contract, may enforce the remainder of the agreement or contract, or may limit the application of any unconscionable clause to avoid an unconscionable result.

(2) If it is claimed or it appears to the court that the agreement or contract, or any clause in the agreement or contract, may be unconscionable, the parties shall be given a reasonable opportunity to present evidence as to its setting, purpose, and effect to assist the court in making a determination regarding unconscionability.

(3) For the purpose of this section, a charge or practice expressly permitted by this chapter is not in itself unconscionable."

Voting Yea: Representatives Beeksma, Campbell, Dellwo, Grant, Huff, Kessler, Ogden, Pelesky, Smith, L. Thomas and Wolfe.

Excused: Representatives Benton, Costa, Dyer and Mielke.

Passed to Committee on Rules for second reading.

March 22, 1995

SB 5430 Prime Sponsor, Prentice: Regulating the capital and surplus requirements of insurance companies. Reported by Committee on Financial Institutions & Insurance

Voting Yea: Representatives Beeksma, Campbell, Dellwo, Grant, Huff, Kessler, Ogden, Pelesky, Smith, L. Thomas and Wolfe.

Excused: Representatives Benton, Costa, Dyer and Mielke.

Passed to Committee on Rules for second reading.

March 22, 1995

SB 5432 Prime Sponsor, Prentice: Regulating unearned premium, loss, and loss expense reserves. Reported by Committee on Financial Institutions & Insurance

Voting Yea: Representatives Beeksma, Campbell, Dellwo, Grant, Huff, Kessler, Ogden, Pelesky, Smith, L. Thomas and Wolfe.

Excused: Representatives Benton, Costa, Dyer and Mielke.

Passed to Committee on Rules for second reading.

March 22, 1995

SSB 5545 Prime Sponsor, Committee on Labor, Commerce & Trade: Allowing businesses in this state to participate in the small business innovation research program. Reported by Committee on Trade & Economic Development

MAJORITY recommendation: Do pass. Signed by Representatives Van Luven, Chairman; Radcliff, Vice Chairman; D. Schmidt, Vice Chairman; Veloria, Assistant Ranking Minority Member; Backlund; Hatfield; Hickel; Mason; Sherstad; Skinner and Valle.

Voting Yea: Representatives Hatfield, Radcliff, D. Schmidt, Sherstad, Skinner, Valle, Van Luven and Veloria.

Excused: Representatives Backlund, Ballasiotes, Hickel, Mason and Sheldon.

Referred to Committee on Appropriations.

March 22, 1995

SB 5563 Prime Sponsor, West: Relating to class H liquor licenses issued to hotels operating conference or convention centers or having banquet facilities on property owned or through leasehold interest by the licensed hotel. Reported by Committee on Commerce & Labor

Voting Yea: Representatives Cairnes, Cody, Cole, Conway, Goldsmith, Hargrove, Horn, Lisk, Romero and Thompson.

Excused: Representative Fuhrman.

Passed to Committee on Rules for second reading.

March 22, 1995

SB 5630 Prime Sponsor, Cantu: Limiting nonconsensual common law liens. Reported by Committee on Law & Justice

MAJORITY recommendation: Do pass. Signed by Representatives Padden, Chairman; Delvin, Vice Chairman; Hickel, Vice Chairman; Appelwick, Ranking Minority Member; Costa, Assistant Ranking Minority Member; Campbell; Carrell; Cody; Lambert; McMahan; Morris; Robertson; Sheahan; Smith; Thibaudeau and Veloria.

MINORITY recommendation: Without recommendation. Signed by Representative Chappell.

Voting Yea: Representatives Appelwick, Campbell, Carrell, Cody, Costa, Delvin, Hickel, Lambert, McMahan, Morris, Padden, Robertson, Sheahan, Smith, Thibaudeau and Veloria.

Excused: Representative Chappell.

Passed to Committee on Rules for second reading.

March 22, 1995

ESSB 5662 Prime Sponsor, Committee on Natural Resources: Clarifying the existing authority of the department of ecology and the department of natural resources to require performance security for metals mining and milling operations. Reported by Committee on Natural Resources

MAJORITY recommendation: Do pass with the following amendment:

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 78.56.110 and 1994 c 232 s 11 are each amended to read as follows:

(1) The department of ecology ((and the department of natural resources)) shall not issue necessary permits to an applicant for a metals mining and milling operation until the applicant has deposited with the department of ecology a performance security which is acceptable to ((both agencies)) the department of ecology based on the requirements of subsection (2) of this section. This performance

security may be:

(a) Bank letters of credit ((acceptable to both agencies));

(b) A cash deposit;

(d) An assignment of a savings account;

(e) A savings certificate in a Washington bank; or

(f) A corporate surety bond executed in favor of the department of ecology by a corporation authorized to do business in the state of Washington under Title 48 RCW ((and acceptable to both agencies)).

The ((agencies)) department of ecology may, for any reason, refuse any performance security not deemed adequate.

(2) The performance security shall be conditioned on the faithful performance of the applicant or operator in meeting the following obligations:

(a) Compliance with the environmental protection laws of the state of Washington administered by the department of ecology, or permit conditions administered by the department of ecology, associated with the construction, operation, and closure pertaining to metals mining and milling operations, and with the related ((rules)) environmental protection ordinances and permit conditions established by ((state and)) local government ((with respect to those operations as defined in RCW 78.44.031(17) and the construction, operation, reclamation, and closure of a metals mining and milling operation)) when requested by local government;

(b) Reclamation of metals mining and milling operations that do not meet the threshold of surface mining as defined by RCW 78.44.031(17);

(c) Postclosure environmental monitoring as determined by the department of ecology ((and the department of natural resources)); and

(((c))) (d) Provision of sufficient funding as determined by the department of ecology for cleanup of potential problems revealed during or after closure.

(3) The department of ecology ((and the department of natural resources shall jointly)) may, if it deems appropriate, adopt rules for determining the amount of the performance security, requirements for the performance security, requirements for the issuer of the performance security, and any other requirements necessary for the implementation of this section.

(4) The department of ecology ((and the department of natural resources, acting jointly,)) may increase or decrease the amount of the performance security at any time to compensate for any alteration in the operation that affects meeting the obligations in subsection (2) of this section. At a minimum, the ((agencies)) department shall ((jointly)) review the adequacy of the performance security every two years.

(5) Liability under the performance security shall be maintained until the obligations in subsection (2) of this section are met to the satisfaction of the department of ecology ((and the department of natural resources)). Liability under the performance security may be released only upon written notification by the department of ecology((, with the concurrence of the department of natural resources)).

(6) Any interest or appreciation on the performance security shall be held by the department of ecology until the obligations in subsection (2) of this section have been met to the satisfaction of the department of ecology ((and the department of natural resources)). At such time, the interest shall be remitted to the applicant or operator. However, if the applicant or operator fails to comply with the obligations of subsection (2) of this section, the interest or appreciation may be used by ((either agency)) the department of ecology to comply with the obligations.

(7) Only one agency may require a performance security to satisfy the deposit requirements of RCW 78.44.087, and only one agency may require a performance security to satisfy the deposit requirements of this section. However, a single performance security, when acceptable to both the department of ecology and the department of natural resources, may be utilized by both agencies to satisfy the requirements of this section and RCW 78.44.087.

Sec. 2. RCW 78.56.120 and 1994 c 232 s 12 are each amended to read as follows:

The department of ecology may, with staff, equipment, and material under its control, or by contract with others, remediate or mitigate any impact of a metals mining and milling operation when it finds that the operator or permit holder has failed to comply with relevant statutes, rules, or permits, and the operator or permit holder has failed to take adequate or timely action to rectify these impacts.

If the department intends to remediate or mitigate such impacts, the department shall issue an order to submit performance security requiring the permit holder or surety to submit to the department the amount of moneys posted pursuant to ((chapter 232, Laws of 1994)) RCW 78.56.110. If the amount specified in the order to submit performance security is not paid within twenty days after issuance of the notice, the attorney general upon request of the department shall bring an action on behalf of the state in a superior court to recover the amount specified and associated legal fees.

The department may proceed at any time after issuing the order to submit performance security to remediate or mitigate adverse impacts.

The department shall keep a record of all expenses incurred in carrying out any remediation or mitigation activities authorized under this section, including:

(1) Remediation or mitigation;

(2) A reasonable charge for the services performed by the state's personnel and the state's equipment and materials utilized; and

(3) Administrative and legal expenses related to remediation or mitigation.

The department shall refund to the surety or permit holder all amounts received in excess of the amount of expenses incurred. If the amount received is less than the expenses incurred, the attorney general, upon request of the department of ecology, may bring an action against the permit holder on behalf of the state in the superior court to recover the remaining costs listed in this section.

((If the department of natural resources finds that reclamation has not occurred according to the standards required under chapter 78.44 RCW in a metals mining and milling operation, then the department of natural resources may cause reclamation to occur pursuant to RCW 78.44.240. Upon approval of the department of ecology, the department of natural resources may reclaim part or all of the metals mining and milling operation using that portion of the surety posted pursuant to chapter 232, Laws of 1994 that has been identified for reclamation.))

Sec. 3. RCW 78.44.087 and 1994 c 232 s 23 are each amended to read as follows:

(1) The department shall not issue a reclamation permit until the applicant has deposited with the department an acceptable performance security on forms prescribed and furnished by the department. A public or governmental agency shall not be required to post performance security nor shall a permit holder be required to post surface mining performance security with more than one state or local agency.

(2) This performance security may be:

(((1))) (a) Bank letters of credit acceptable to the department;

(((2))) (b) A cash deposit;

(((3))) (c) Negotiable securities acceptable to the department;

(((4))) (d) An assignment of a savings account;

(((5))) (e) A savings certificate in a Washington bank on an assignment form prescribed by the department;

(((6))) (f) Assignments of interests in real property within the state of Washington; or

(((7))) (g) A corporate surety bond executed in favor of the department by a corporation authorized to do business in the state of Washington under Title 48 RCW and authorized by the department.

(3) The performance security shall be conditioned upon the faithful performance of the requirements set forth in this chapter and of the rules adopted under it.

(4) The department shall have the authority to determine the amount of the performance security using a standardized performance security formula developed by the department. The amount of the security shall be determined by the department and based on the estimated costs of completing reclamation according to the approved reclamation plan or minimum standards and related administrative overhead for the area to be surface mined during (a) the next twelve-month period, (b) the following twenty-four months, and (c) any previously disturbed areas on which the reclamation has not been satisfactorily completed and approved.

(5) The department may increase or decrease the amount of the performance security at any time to compensate for a change in the disturbed area, the depth of excavation, a modification of the reclamation plan, or any other alteration in the conditions of the mine that affects the cost of reclamation. The department may, for any reason, refuse any performance security not deemed adequate.

(6) Liability under the performance security shall be maintained until reclamation is completed according to the approved reclamation plan to the satisfaction of the department unless released as hereinafter provided. Liability under the performance security may be released only upon written notification by the department. Notification shall be given upon completion of compliance or acceptance by the department of a substitute performance security. The liability of the surety shall not exceed the amount of security required by this section and the department's reasonable legal fees to recover the security.

(7) Any interest or appreciation on the performance security shall be held by the department until reclamation is completed to its satisfaction. At such time, the interest shall be remitted to the permit holder; except that such interest or appreciation may be used by the department to effect reclamation in the event that the permit holder fails to comply with the provisions of this chapter and the costs of reclamation exceed the face value of the performance security.

(8) Except as provided in this section, no other state agency or local government shall require performance security for the purposes of surface mine reclamation and only one agency of government shall require and hold the performance security. The department may enter into written agreements with federal agencies in order to avoid redundant bonding of surface mines straddling boundaries between federally controlled and other lands within Washington state.

((The department and the department of ecology shall jointly require performance security for metals mining and milling operations regulated under chapter 232, Laws of 1994.))"

On page 1, line 3 of the title, after "operations;" strike the remainder of the title and insert "and amending RCW 78.56.110, 78.56.120, and 78.44.087."

Signed by Representatives Fuhrman, Chairman; Buck, Vice Chairman; Pennington, Vice Chairman; Basich, Ranking Minority Member; Regala, Assistant Ranking Minority Member; Beeksma; Cairnes; Elliot; G. Fisher; Jacobsen; Romero; Sheldon; Stevens; B. Thomas and Thompson.

Voting Yea: Representatives Basich, Beeksma, Cairnes, Elliot, G. Fisher, Fuhrman, Jacobsen, Pennington, Regala, Romero, Sheldon, Stevens, B. Thomas and Thompson.

Excused: Representative Buck.

Passed to Committee on Rules for second reading.

March 22, 1995

SB 5895 Prime Sponsor, Snyder: Permitting the exchange of state park lands within the Seashore Conservation Area. Reported by Committee on Natural Resources

MAJORITY recommendation: Do pass. Signed by Representatives Fuhrman, Chairman; Buck, Vice Chairman; Pennington, Vice Chairman; Basich, Ranking Minority Member; Regala, Assistant Ranking Minority Member; Beeksma; Cairnes; Elliot; G. Fisher; Jacobsen; Romero; Sheldon; Stevens; B. Thomas and Thompson.

Voting Yea: Representatives Basich, Cairnes, Elliot, Fuhrman, Jacobsen, Pennington, Regala, Romero, Sheldon, Stevens, B. Thomas and Thompson.

Excused: Representatives Beeksma, Buck and G. Fisher.

Passed to Committee on Rules for second reading.

March 22, 1995

SSB 5957 Prime Sponsor, Committee on Government Operations: Amending plats. Reported by Committee on Government Operations

MAJORITY recommendation: Do pass. Signed by Representatives Reams, Chairman; Goldsmith, Vice Chairman; L. Thomas, Vice Chairman; Rust, Ranking Minority Member; Scott, Assistant Ranking Minority Member; R. Fisher; Hargrove; Honeyford; Hymes; Mulliken; D. Schmidt; Sommers; Van Luven and Wolfe.

Voting Yea: Representatives R. Fisher, Goldsmith, Hargrove, Honeyford, Hymes, Mulliken, Reams, Rust, D. Schmidt, Scott, L. Thomas, Van Luven and Wolfe.

Excused: Representatives Chopp and Sommers.

Passed to Committee on Rules for second reading.

There being no objection, the bills listed on today's committee reports under the fifth order of business were referred to the committees so designated.

There being no objection, the House advanced to the eleventh order of business.

MOTION

There being no objection, the House adjourned until 1:30 p.m., Friday, March 24, 1995.

CLYDE BALLARD, Speaker

TIMOTHY A. MARTIN, Chief Clerk