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SEVENTY-EIGHTH DAY

__________

AFTERNOON SESSION

__________

House Chamber, Olympia, Monday, March 27, 1995

The House was called to order at 1:30 p.m. by the Speaker. The Clerk called the roll and a quorum was present.

The flag was escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Heidi Wanichek and Kristi Waite. Prayer was offered by Reverend Dan Lofgren, Bonney Lake Baptist Church.

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 third order of business.

MESSAGE FROM THE SENATE

March 27, 1995

Mr. Speaker:

The President has signed:

ENGROSSED SUBSTITUTE SENATE BILL NO. 6029,

and the same is herewith transmitted.

Brad Hendrickson, Deputy Secretary

SIGNED BY THE SPEAKER

The Speaker announced he was signing:

ENGROSSED SUBSTITUTE SENATE BILL NO. 6029,

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

REPORTS OF STANDING COMMITTEES

March 24, 1995

SB 5030 Prime Sponsor, Hargrove: Revising procedures for offenders who violate conditions or requirements of sentences. Reported by Committee on Corrections

MAJORITY recommendation: Do pass. Signed by Representatives Ballasiotes, Chairman; Blanton, Vice Chairman; Sherstad, Vice Chairman; Quall, Ranking Minority Member; Tokuda, Assistant Ranking Minority Member; Cole; Dickerson; Koster; Radcliff; K. Schmidt and Schoesler.

Voting Yea: Representatives Ballasiotes, Blanton, Cole, Dickerson, Koster, Radcliff, K. Schmidt, Sherstad and Schoesler.

Excused: Representatives Quall and Tokuda.

Passed to Committee on Rules for second reading.

March 24, 1995

SB 5052 Prime Sponsor, Winsley: Deleting obsolete provisions relating to the printing and duplicating center. 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; Sommers; 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 24, 1995

SB 5065 Prime Sponsor, Smith: Specifying sentencing conditions for felons who commit additional felonies. Reported by Committee on Corrections

Voting Yea: Representatives Ballasiotes, Blanton, Cole, Dickerson, Koster, Radcliff, K. Schmidt, Sherstad and Schoesler.

Excused: Representatives Quall and Tokuda.

Passed to Committee on Rules for second reading.

March 24, 1995

SSB 5127 Prime Sponsor, Committee on Government Operations: Changing provisions regarding public facilities districts. Reported by Committee on Government Operations

MAJORITY recommendation: Do pass with the following amendment:

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 36.100.010 and 1989 1st ex.s. c 8 s 1 are each amended to read as follows:

(1) A public facilities district may be created in any county ((with three hundred thousand or more population that is located more than one hundred miles from any county in which the state has constructed and owns a convention center. A public facilities district)) and shall be coextensive with the boundaries of the county.

(2) A public facilities district shall be created upon adoption of a resolution providing for the creation of such a district by the county legislative authority in which the proposed district is located ((and the city council of the largest city within such county)).

(3) A public facilities district is a municipal corporation, an independent taxing "authority" within the meaning of Article VII, section 1 of the state Constitution, and a "taxing district" within the meaning of Article VII, section 2 of the state Constitution.

(4) No taxes authorized under this chapter may be assessed or levied unless a majority of the voters of the public facilities district has validated the creation of the public facilities district at a general or special election. A single ballot proposition may both authorize the creation of a public facilities district and the imposition of the sales and use tax under RCW 82.14.048 or both the creation of a public facilities district and the imposition of the excise tax under RCW 36.100.040.

(5) A public facilities district shall constitute a body corporate and shall possess all the usual powers of a corporation for public purposes as well as all other powers that may now or hereafter be specifically conferred by statute, including, but not limited to, the authority to hire employees, staff, and services, to enter into contracts, and to sue and be sued.

Sec. 2. RCW 36.100.020 and 1989 1st ex.s. c 8 s 2 are each amended to read as follows:

A public facilities district shall be governed by a board of directors consisting of five or seven members as provided in this section. If the largest city in the county has a population that is at least forty percent of the total county population, the board of directors of the public facilities district shall consist of five members selected as follows: (1) Two members appointed by the county legislative authority to serve for four-year staggered terms; (2) two members appointed by the city council of the largest city in the county to serve for four-year staggered terms; and (3) one person to serve for a four-year term who is selected by the other directors. If the largest city in the county has a population of less than forty percent of the total county population, the county legislative authority shall establish in the resolution creating the public facilities district whether the board of directors of the public facilities district have either five or seven members, and the county legislative authority shall appoint the members of the board of directors to reflect the interests of cities and towns in the county, as well as the unincorporated area of the county.

At least one member on the board of directors shall be representative of the lodging industry in the public facilities district before the public facilities district imposes the excise tax under RCW 36.100.040.

((One of the initial members appointed by the county legislative authority shall have a term of office of two years and the other initial member appointed by the county legislative authority shall have a term of four years. One of the initial members appointed by the city council shall have a term of two years and the other initial member appointed by the city council shall have a term of four years.)) Members of the board of directors shall serve four-year terms of office, except that two of the initial five board members or three of the initial seven board members shall serve two-year terms of office.

Sec. 3. RCW 36.100.030 and 1989 1st ex.s. c 8 s 3 are each amended to read as follows:

A public facilities district is authorized to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate sports ((and)) facilities, entertainment facilities, or convention facilities, or any combination of such facilities, together with contiguous parking facilities. The taxes that are provided for in this chapter may only be imposed for these purposes.

A public facilities district may enter into agreements under chapter 39.34 RCW for the joint provision and operation of such facilities and may enter into contracts under chapter 39.34 RCW where any party to the contract provides and operates such facilities for the other party or parties to the contract.

A public facilities district may impose charges and fees for the use of its facilities, and may accept and expend or use gifts, grants, and donations. ((The taxes that are provided for in this chapter may only be imposed for such purposes.))

Sec. 4. RCW 36.100.040 and 1989 1st ex.s. c 8 s 4 are each amended to read as follows:

A public facilities district may impose an excise tax on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, or trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, except that no such tax may be levied on any premises having fewer than forty lodging units. However, if a public facilities district has not imposed such an excise tax prior to December 31, 1995, the public facilities district may only impose the excise tax if a ballot proposition authorizing the imposition of the tax has been approved by a simple majority vote of voters of the public facilities district voting on the proposition.

The rate of the tax shall not exceed two percent and the proceeds of the tax shall only be used for the acquisition, design, ((and)) construction, remodeling, maintenance, equipping, reequipping, repairing, and operation of ((sports and entertainment)) its public facilities. This excise tax shall not be imposed until the district has approved the proposal to acquire, design, and construct the public facilities.

A public facilities district may not impose the tax authorized in this section if, after the tax authorized in this section was imposed, the effective combined rate of state and local excise taxes, including sales and use taxes and excise taxes on lodging, imposed on the sale of or charge made for furnishing of lodging in any jurisdiction in the public facilities district exceeds eleven and one-half percent.

Sec. 5. RCW 36.100.060 and 1989 1st ex.s. c 8 s 5 are each amended to read as follows:

(1) To carry out the purpose of this chapter, a public facilities district may issue general obligation bonds, not to exceed an amount, together with any outstanding nonvoter approved general obligation indebtedness, equal to three-eighths of one percent of the value of taxable property within the district, as the term "value of taxable property" is defined in RCW 39.36.015. A facilities district additionally may issue general obligation bonds for capital purposes only, together with any outstanding general obligation indebtedness, not to exceed an amount equal to one and one-fourth percent of the value of the taxable property within the district, as the term "value of taxable property" is defined in RCW 39.36.015, when authorized by the voters of the public facilities district pursuant to Article VIII, section 6 of the state Constitution, and to provide for the retirement thereof by excess property tax levies as provided in this chapter.

(2) General obligation bonds may be issued with a maturity of up to thirty years, and shall be issued and sold in accordance with the provisions of chapter 39.46 RCW.

(3) The general obligation bonds may be payable from the operating revenues of the public facilities district in addition to the tax receipts of the district.

(4) The excise tax imposed pursuant to RCW 36.100.040 shall terminate upon final payment of all bonded indebtedness for ((the sports and entertainment facility)) its public facilities.

Sec. 6. RCW 82.14.048 and 1991 c 207 s 1 are each amended to read as follows:

The governing board of a public facilities district under chapter 36.100 RCW may submit an authorizing proposition to the voters of the district, and if the proposition is approved by a majority of persons voting, fix and impose a sales and use tax in accordance with the terms of this chapter.

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 under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the public facilities district. 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.

Moneys received from any tax imposed under this section shall be used for the purpose of providing funds for the costs associated with the financing, design, acquisition, construction, equipping, operating, maintaining, remodeling, repairing, and reequipping of ((sports or entertainment)) its public facilities ((and contiguous parking)).

NEW SECTION. Sec. 7. The treasurer of the county in which a public facilities district is located shall be the ex officio treasurer of the district.

NEW SECTION. Sec. 8. The board of directors of the public facilities district shall adopt a resolution that may be amended from time to time that shall establish the basic requirements governing methods and amounts of reimbursement payable to such district officials and employees for travel and other business expenses incurred on behalf of the district. The resolution shall, among other things, establish procedures for approving such expenses; the form of the travel and expense voucher; and requirements governing the use of credit cards issued in the name of the district. The resolution may also establish procedures for payment of per diem to board members. The state auditor shall, as provided by general law, cooperate with the public facilities district in establishing adequate procedures for regulating and auditing the reimbursement of all such expenses.

NEW SECTION. Sec. 9. The board of directors of the public facilities district may authorize payment of actual and necessary expenses of officers and employees for lodging, meals, and travel-related costs incurred in attending meetings or conferences on behalf of the public facilities district and strictly in the public interest and for public purposes. Officers and employees may be advanced sufficient sums to cover their anticipated expenses in accordance with rules adopted by the state auditor, which shall substantially conform to the procedures provided in RCW 43.03.150 through 43.03.210.

NEW SECTION. Sec. 10. Each member of the board of directors of the public facilities district may receive compensation of fifty dollars per day for attending meetings or conferences on behalf of the district, not to exceed three thousand dollars per year. A director may waive all or a portion of his or her compensation under this section as to a month or months during his or her term of office, by a written waiver filed with the public facilities district. The compensation provided in this section is in addition to reimbursement for expenses paid to the directors by the public facilities district.

NEW SECTION. Sec. 11. The board of directors of the public facilities district may purchase liability insurance with such limits as the directors may deem reasonable for the purpose of protecting and holding personally harmless district officers and employees against liability for personal or bodily injuries and property damage arising from their acts or omissions while performing or in good faith purporting to perform their official duties.

NEW SECTION. Sec. 12. Whenever an action, claim, or proceeding is instituted against a person who is or was an officer or employee of the public facilities district arising out of the performance of duties for or employment with the district, the public facilities district may grant a request by the person that the attorney of the district's choosing be authorized to defend the claim, suit, or proceeding, and the costs of defense, attorneys' fees, and obligation for payments arising from the action may be paid from the district's funds. Costs of defense or judgment or settlement against the person shall not be paid in a case where the court has found that the person was not acting in good faith or within the scope of employment with or duties for the public facilities district.

NEW SECTION. Sec. 13. The board of directors of the public facilities district shall have authority to authorize the expenditure of funds for the public purposes of preparing and distributing information to the general public and promoting, advertising, improving, developing, operating, and maintaining facilities of the district. Nothing contained in this section may be construed to authorize preparation and distribution of information to the general public for the purpose of influencing the outcome of a district election.

NEW SECTION. Sec. 14. The public facilities district shall have authority to create and fill positions, fix wages, salaries, and bonds therefor, pay costs involved in securing or arranging to secure employees, and establish benefits for employees, including holiday pay, vacations or vacation pay, retirement benefits, medical, life, accident, or health disability insurance, as approved by the board. Public facilities district board members, at their own expense, shall be entitled to medical, life, accident, or health disability insurance. Insurance for employees and board members shall not be considered compensation. District coverage for the board is not to exceed that provided public facilities district employees.

NEW SECTION. Sec. 15. The public facilities district may secure services by means of an agreement with a service provider. The public facilities district shall publish notice, establish criteria, receive and evaluate proposals, and negotiate with respondents under requirements set forth by district resolution.

NEW SECTION. Sec. 16. In addition to provisions contained in chapter 39.04 RCW, the public facilities district is authorized to follow procedures contained in RCW 43.19.1906 and 43.19.1911 for all purchases, contracts for purchase, and sales.

NEW SECTION. Sec. 17. (1) A public facilities district may issue revenue bonds to fund revenue generating facilities, or portions of facilities, which it is authorized to provide or operate. Whenever revenue bonds are to be issued, the board of directors of the district shall create or have created a special fund or funds from which, along with any reserves created pursuant to RCW 39.44.140, the principal and interest on such revenue bonds shall exclusively be payable. The board may obligate the district to set aside and pay into the special fund or funds a fixed proportion or a fixed amount of the revenues from the public improvements, projects, or facilities, and all related additions, that are funded by the revenue bonds. This amount or proportion shall be a lien and charge against these revenues, subject only to operating and maintenance expenses. The board shall have due regard for the cost of operation and maintenance of the public improvements, projects, or facilities, or additions, that are funded by the revenue bonds, and shall not set aside into the special fund or funds a greater amount or proportion of the revenues that in its judgment will be available over and above the cost of maintenance and operation and the amount or proportion, if any, of the revenue so previously pledged. The board may also provide that revenue bonds payable out of the same source or sources of revenue may later be issued on a parity with any revenue bonds being issued and sold.

(2) Revenue bonds issued pursuant to this section shall not be an indebtedness of the district issuing the bonds, and the interest and principal on the bonds shall only be payable from the revenues lawfully pledged to meet the principal and interest requirements and any reserves created pursuant to RCW 39.44.140. The owner or bearer of a revenue bond or any interest coupon issued pursuant to this section shall not have any claim against the district arising from the bond or coupon except for payment from the revenues lawfully pledged to meet the principal and interest requirements and any reserves created pursuant to RCW 39.44.140. The substance of the limitations included in this subsection shall be plainly printed, written, or engraved on each bond issued pursuant to this section.

(3) Revenue bonds with a maturity in excess of thirty years shall not be issued. The board of directors of the district shall by resolution determine for each revenue bond issue the amount, date, form, terms, conditions, denominations, maximum fixed or variable interest rate or rates, maturity or maturities, redemption rights, registration privileges, manner of execution, manner of sale, callable provisions, if any, and covenants including the refunding of existing revenue bonds. Facsimile signatures may be used on the bonds and any coupons. Refunding revenue bonds may be issued in the same manner as revenue bonds are issued.

NEW SECTION. Sec. 18. Sections 7 through 17 of this act are each added to chapter 36.100 RCW.

NEW SECTION. Sec. 19. 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."

Signed by Representatives Reams, Chair; 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 24, 1995

SSB 5182 Prime Sponsor, Committee on Government Operations: Allowing county fiscal biennium budgets. Reported by Committee on Government Operations

MAJORITY recommendation: Do pass with the following amendment:

On page 1, after the enacting clause, strike the remainder of the bill and insert:

"NEW SECTION. Sec. 1. A new section is added to chapter 36.32 RCW to read as follows:

In lieu of adopting an annual budget, the county legislative authority of any county may adopt an ordinance providing for biennial budgets with a mid-biennium review and modification for the second year of the biennium. The county legislative authority may repeal such an ordinance and revert to adopting annual budgets for a period commencing after the end of a biennial budget cycle. The county legislative authority of a county with a biennial budget cycle may adopt supplemental and emergency budgets in the same manner and subject to the same conditions as the county legislative authority in a county with an annual budget cycle.

The procedure and steps for adopting a biennial budget shall conform with the procedure and steps for adopting an annual budget and with requirements established by the state auditor. The state auditor shall establish requirements for preparing and adopting the mid-biennium review and modification for the second year of the biennium.

Expenditures included in the biennial budget, mid-term modification budget, supplemental budget, or emergency budget shall constitute the appropriations for the county during the applicable period of the budget and every county official shall be limited in making expenditures or incurring liabilities to the amount of the detailed appropriation item or classes in the budget.

The county legislative authority shall hold a public hearing on the proposed county property taxes and proposed road district property taxes prior to imposing the property tax levies."

Correct the title.

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; Sommers; 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 24, 1995

SB 5239 Prime Sponsor, Oke: Requiring any person convicted of communication with a minor to register as a sex offender. Reported by Committee on Corrections

MAJORITY recommendation: Do pass with the following amendment:

On page 4, after line 11, insert the following:

"Sec. 2. RCW 9A.44.140 and 1991 c 274 s 3 are each amended to read as follows:

(1) The duty to register under RCW 9A.44.130 shall end:

(a) For a person convicted of a class A felony: Such person may only be relieved of the duty to register under subsection (2) or (3) of this section.

(b) For a person convicted of a class B felony: Fifteen years after the last date of release from confinement, if any, (including full-time residential treatment) pursuant to the conviction, or entry of the judgment and sentence, if the person has spent fifteen consecutive years in the community without being convicted of any new offenses.

(c) For a person convicted of a class C felony or any violation of RCW 9.68A.090: Ten years after the last date of release from confinement, if any, (including full-time residential treatment) pursuant to the conviction, or entry of the judgment and sentence, if the person has spent ten consecutive years in the community without being convicted of any new offenses.

(2) Any person having a duty to register under RCW 9A.44.130 may petition the superior court to be relieved of that duty. The petition shall be made to the court in which the petitioner was convicted of the offense that subjects him or her to the duty to register, or, in the case of convictions in other states, to the court in Thurston county. The prosecuting attorney of the county shall be named and served as the respondent in any such petition. The court shall consider the nature of the registrable offense committed, and the criminal and relevant noncriminal behavior of the petitioner both before and after conviction, and may consider other factors. Except as provided in subsection (3) of this section, the court may relieve the petitioner of the duty to register only if the petitioner shows, with clear and convincing evidence, that future registration of the petitioner will not serve the purposes of RCW 9A.44.130, 10.01.200, 43.43.540, 46.20.187, 70.48.470, and 72.09.330.

(3) An offender having a duty to register under RCW 9A.44.130 for a sex offense committed when the offender was a juvenile may petition the superior court to be relieved of that duty. The court shall consider the nature of the registrable offense committed, and the criminal and relevant noncriminal behavior of the petitioner both before and after adjudication, and may consider other factors. The court may relieve the petitioner of the duty to register for a sex offense that was committed while the petitioner was fifteen years of age or older only if the petitioner shows, with clear and convincing evidence, that future registration of the petitioner will not serve the purposes of RCW 9A.44.130, 10.01.200, 43.43.540, 46.20.187, 70.48.470, and 72.09.330. The court may relieve the petitioner of the duty to register for a sex offense that was committed while the petitioner was under the age of fifteen if the petitioner (a) has not been adjudicated of any additional sex offenses during the twenty-four months following the adjudication for the sex offense giving rise to the duty to register, and (b) the petitioner proves by a preponderance of the evidence that future registration of the petitioner will not serve the purposes of RCW 9A.44.130, 10.01.200, 43.43.540, 46.20.187, 70.48.470, and 72.09.330.

(4) Unless relieved of the duty to register pursuant to this section, a violation of RCW 9A.44.130 is an ongoing offense for purposes of the statute of limitations under RCW 9A.04.080.

(5) Nothing in RCW 9.94A.220 relating to discharge of an offender shall be construed as operating to relieve the offender of his or her duty to register pursuant to RCW 9A.44.130."

Correct the title accordingly.

Signed by Representatives Ballasiotes, Chairman; Blanton, Vice Chairman; Sherstad, Vice Chairman; Quall, Ranking Minority Member; Tokuda, Assistant Ranking Minority Member; Cole; Dickerson; Koster; Radcliff; K. Schmidt and Schoesler.

Voting Yea: Representatives Ballasiotes, Blanton, Cole, Dickerson, Koster, Radcliff, K. Schmidt, Sherstad and Schoesler.

Excused: Representatives Quall and Tokuda.

Passed to Committee on Rules for second reading.

March 24, 1995

SB 5274 Prime Sponsor, Haugen: Clarifying the funding formula for the municipal research council. 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 23, 1995

SB 5332 Prime Sponsor, Prentice: Regulating securities. 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; Costa; Dyer; Huff; Kessler; Mielke; Ogden and Pelesky.

Voting Yea: Representatives Beeksma, Benton, Campbell, Costa, Dyer, Grant, Huff, Kessler, Mielke, Ogden, Pelesky, Smith, L. Thomas and Wolfe.

Excused: Representative Dellwo.

Passed to Committee on Rules for second reading.

March 24, 1995

SSB 5370 Prime Sponsor, Committee on Government Operations: Authorizing use of credit cards by local governments. 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 24, 1995

SSB 5400 Prime Sponsor, Committee on Law & Justice: Providing for reimbursements to the department of labor and industries related to crime victim compensation. 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 and Veloria.

Excused: Representative Thibaudeau.

Passed to Committee on Rules for second reading.

March 23, 1995

SB 5433 Prime Sponsor, Prentice: Regulating investments by insurers. Reported by Committee on Financial Institutions & Insurance

Voting Yea: Representatives Beeksma, Benton, Campbell, Costa, Dyer, Grant, Huff, Kessler, Ogden, Mielke, Pelesky, Smith, L. Thomas and Wolfe.

Excused: Representative Dellwo.

Passed to Committee on Rules for second reading.

March 23, 1995

SB 5434 Prime Sponsor, Prentice: Amending licensing requirements of general agents. Reported by Committee on Financial Institutions & Insurance

Voting Yea: Representatives Beeksma, Benton, Campbell, Costa, Dyer, Grant, Huff, Kessler, Ogden, Mielke, Pelesky, Smith, L. Thomas and Wolfe.

Excused: Representative Dellwo.

Passed to Committee on Rules for second reading.

March 23, 1995

ESB 5437 Prime Sponsor, Prentice: Disclosing material transactions. Reported by Committee on Financial Institutions & Insurance

Voting Yea: Representatives Beeksma, Benton, Campbell, Costa, Dyer, Grant, Huff, Kessler, Ogden, Mielke, Pelesky, Smith, L. Thomas and Wolfe.

Excused: Representative Dellwo.

Passed to Committee on Rules for second reading.

March 24, 1995

ESSB 5466 Prime Sponsor, Committee on Law & Justice: Protecting children from sexually explicit films, publications, and devices. Reported by Committee on Law & Justice

MAJORITY recommendation: Do pass with the following amendment:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. As used in sections 1 through 5 of this act, the following terms have the meanings indicated unless the context clearly requires otherwise.

(1) "Minor" means any person under the age of eighteen years.

(2) "Harmful to minors" means any matter or live performance:

(a) That the average adult person, applying contemporary community standards, would find, when considered as a whole, appeals to the prurient interest of minors; and

(b) That explicitly depicts or describes, by prevailing standards in the adult community with respect to what is suitable for minors, patently offensive representations or descriptions of:

(i) Ultimate sexual acts, normal or perverted, actual or simulated; or

(ii) Masturbation, fellatio, cunnilingus, bestiality, excretory functions, lewd exhibition of the genitals or genital area, sexually explicit conduct, sexual excitement, or sexually explicit nudity; or

(iii) Sexual acts that are violent or destructive, including but not limited to human or animal mutilation, dismemberment, rape, or torture; and

(c) That, when considered as a whole, and in the context in which it is used, lacks serious literary, artistic, political, or scientific value for minors.

(3) "Sexually explicit conduct" means physical contact with a person's clothed or unclothed genitals, pubic area, buttocks, perineum, or, if such person be a female, breast.

(4) "Sexual excitement" means the condition of human male or female genitals when in a state of sexual stimulation or arousal; or the depiction of covered male genitals in a discernibly turgid state.

(5) "Sexually explicit nudity" means the showing of the human male or female genitals, pubic area, buttocks, or perineum with less than a full opaque covering; or the showing of the female breast with less than a full opaque covering of any portion thereof below the top of the nipple.

(6) "Matter" means a motion picture film, a publication, a sexual device, or any combination thereof.

(7) "Motion picture film" means any:

(a) Film or plate negative;

(b) Film or plate positive;

(d) Film, glass slides, or transparencies, either in negative or positive form, designed for exhibition by projection on a screen;

(e) Video tape; or

(f) Any other medium used to electronically transmit or reproduce images on a screen.

(8) "Publication" means any book, magazine, article, pamphlet, writing, printing illustration, picture, sound recording, telephonic communication, or coin-operated machine.

(9) "Sexual device" means any artificial device primarily designed, promoted, or marketed to physically stimulate or manipulate the human genitals.

(10) "Live performance" means any play, show, skit, dance, or other exhibition performed or presented to or before an audience of one or more, in person or by electronic transmission, or by telephonic communication, with or without consideration.

(11) "Person" means any individual, partnership, firm, association, corporation, or other legal entity.

(12) "Knowledge of its character" means that the person has knowledge that the matter or performance contains, depicts, or describes activity or conduct that may be found to be patently offensive under subsection (2)(b) of this section. Such knowledge may be proved by direct or circumstantial evidence, or both.

(13) "Knowledge" means knowledge as defined in RCW 9A.08.010(1)(b).

NEW SECTION. Sec. 2. No person shall with knowledge of its character:

(1) Display matter that is harmful to minors, as defined in section 1(2) of this act, in such a way that minors, as part of the invited general public, will be exposed to view such matter; however, a person shall be deemed not to have displayed matter harmful to minors if the matter is kept behind devices commonly known as blinder racks so that the lower two-thirds of the matter is not exposed to view. In the case of on-line accessibility to information stored in an electronic form, a person shall be deemed not to have displayed matter harmful to minors if:

(a) The matter is stored in a restricted area where access is allowed only to persons who are reasonably believed to be eighteen years of age or older based on information supplied as provided for in section 3(3) of this act and who have obtained a password or other authorization necessary for access to the matter; or

(b) Where it is not reasonably possible to restrict access in the manner described in (a) of this subsection, the matter is stored in an area labelled "adults only";

(2) Sell, furnish, present, distribute, allow to view or hear, or otherwise disseminate to a minor, with or without consideration, any matter that is harmful to minors as defined in section 1(2) of this act; or

(3) Present to a minor or participate in presenting to a minor, with or without consideration, any live performance that is harmful to minors as defined in section 1(2) of this act.

NEW SECTION. Sec. 3. In any prosecution for violation of section 2 of this act, it shall be an affirmative defense that:

(1) The matter or performance involved was displayed or otherwise disseminated to a minor by the minor's parent or legal guardian, for bona fide purposes;

(2) The matter or performance involved was displayed or otherwise disseminated to a minor with the written permission of the minor's parent or legal guardian, for bona fide purposes; or

(3) The person made a reasonable bona fide attempt to ascertain the true age of the minor by requiring production of a driver's license, marriage license, birth certificate, or other governmental or educational identification card or paper, or copy thereof if supplied by mail or electronic facsimile when in-person production thereof is impractical, and not relying solely on the oral allegations or apparent age of the minor.

NEW SECTION. Sec. 4. Any person who is convicted of violating any provision of section 2 of this act is guilty of a gross misdemeanor. Each day that any violation of section 2 of this act occurs or continues shall constitute a separate offense and shall be punishable as a separate violation. Every act, thing, or transaction prohibited by section 2 of this act shall constitute a separate offense as to each item, issue, or title involved and shall be punishable as such. For the purpose of this section, multiple copies of the same identical title, monthly issue, volume, and number issue, or other such identical material shall constitute a single offense.

NEW SECTION. Sec. 5. The state of Washington hereby fully occupies and preempts within the boundaries of the state the entire field of regulation and sanctions for displaying, selling, furnishing, presenting, or otherwise distributing matter or performances that are harmful to minors. Counties, cities, towns, or other municipalities may enact only those laws and ordinances relating to matter and performances harmful to minors that are consistent with this chapter. Local laws and ordinances that are inconsistent with, more restrictive than, or exceed the requirements of this chapter shall not be enacted and are preempted and repealed, regardless of the nature of the code, charter, or home rule status of such county, city, town, or municipality.

NEW SECTION. Sec. 6. The following acts or parts of acts are each repealed:

(1) RCW 9.68.015 and 1959 c 260 s 2;

(2) RCW 9.68.050 and 1992 c 5 s 1 & 1969 ex.s. c 256 s 13;

(3) RCW 9.68.060 and 1992 c 5 s 2 & 1969 ex.s. c 256 s 14;

(4) RCW 9.68.070 and 1992 c 5 s 4 & 1969 ex.s. c 256 s 15;

(5) RCW 9.68.080 and 1969 ex.s. c 256 s 16;

(6) RCW 9.68.090 and 1992 c 5 s 3 & 1969 ex.s. c 256 s 17;

(7) RCW 9.68.100 and 1969 ex.s. c 256 s 18;

(8) RCW 9.68.110 and 1969 ex.s. c 256 s 19;

(9) RCW 9.68.120 and 1969 ex.s. c 256 s 20;

(10) RCW 9.68.130 and 1975 1st ex.s. c 156 s 1;

(11) RCW 9.68A.140 and 1987 c 396 s 1;

(12) RCW 9.68A.150 and 1987 c 396 s 2; and

(13) RCW 9.68A.160 and 1987 c 396 s 3.

NEW SECTION. Sec. 7. Sections 1 through 5 of this act are each added to chapter 9.68 RCW.

NEW SECTION. Sec. 8. 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. 9. 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.

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

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

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

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

Passed to Committee on Rules for second reading.

March 24, 1995

SB 5523 Prime Sponsor, Smith: Regulating payment of criminal defendants' costs. Reported by Committee on Corrections

MAJORITY recommendation: Do pass with the following amendment:

On page 2, line 10, after "remitted" strike "to the county or city for criminal justice purposes" and insert "for criminal justice purposes to the county or city that is responsible for the defendant's jail costs"

Voting Yea: Representatives Ballasiotes, Blanton, Cole, Dickerson, Koster, Radcliff, K. Schmidt, Sherstad, Schoesler and Tokuda.

Excused: Representative Quall.

Passed to Committee on Rules for second reading.

March 24, 1995

SSB 5537 Prime Sponsor, Committee on Education: Changing teacher preparation provisions. Reported by Committee on Education

MAJORITY recommendation: Do pass with the following amendment:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 28A.410 RCW to read as follows:

Not later than January 1, 1997, the state board of education shall study, report, and make recommendations to the legislature on the following issues regarding teacher assessment for initial or residency certification:

(1) How an individual assessment would be linked to state board-adopted, performance-based program approval standards;

(2) How an individual assessment would be linked to the performance-based public education system under RCW 28A.630.885; and

(3) Whether, in lieu of requiring the assessment for initial or residency certification, the assessment should be required as a diagnostic tool and the results used for professional growth purposes while the teacher holds the residency certificate.

In conducting this study, the state board shall take into consideration any recommendations from the board's professional education advisory committee and the Washington advisory council for professional teaching standards.

Any recommendation to implement a teacher assessment system, including funding support, must be approved by the legislature before such implementation occurs.

Sec. 2. RCW 28A.305.130 and 1991 c 116 s 11 are each amended to read as follows:

In addition to any other powers and duties as provided by law, the state board of education shall:

(1) Require that no person may be admitted to a professional teacher preparation program within Washington state without first demonstrating that he or she is competent in the basic skills required for oral and written communication and computation. The board shall adopt rules to implement this requirement, including criteria for providing waivers as necessary.

(2) Approve or disapprove the program of courses leading to teacher, school administrator, and school specialized personnel certification offered by all institutions of higher education within the state which may be accredited and whose graduates may become entitled to receive such certification.

(((2))) (3) Conduct every five years a review of the program approval standards, including the minimum standards for teachers, administrators, and educational staff associates, to reflect research findings and assure continued improvement of preparation programs for teachers, administrators, and educational staff associates.

(((3))) (4) Investigate the character of the work required to be performed as a condition of entrance to and graduation from any institution of higher education in this state relative to such certification as provided for in subsection (((1) above)) (2) of this section, and prepare a list of accredited institutions of higher education of this and other states whose graduates may be awarded such certificates.

(((4))) (5)(a) The state board of education shall adopt rules to allow a teacher certification candidate to fulfill, in part, teacher preparation program requirements through work experience as a noncertificated teacher's aide in a public school or private school meeting the requirements of RCW 28A.195.010. The rules shall include, but are not limited to, limitations based upon the recency of the teacher preparation candidate's teacher aide work experience, and limitations based on the amount of work experience that may apply toward teacher preparation program requirements under this chapter.

(b) The state board of education shall require that at the time of the individual's enrollment in a teacher preparation program, the supervising teacher and the building principal shall jointly provide to the teacher preparation program of the higher education institution at which the teacher candidate is enrolled, a written assessment of the performance of the teacher candidate. The assessment shall contain such information as determined by the state board of education and shall include: Evidence that at least fifty percent of the candidate's work as a noncertificated teacher's aide was involved in instructional activities with children under the supervision of a certificated teacher and that the candidate worked a minimum of six hundred thirty hours for one school year; the type of work performed by the candidate; and a recommendation of whether the candidate's work experience as a noncertificated teacher's aide should be substituted for teacher preparation program requirements. In compliance with such rules as may be established by the state board of education under this section, the teacher preparation programs of the higher education institution where the candidate is enrolled shall make the final determination as to what teacher preparation program requirements may be fulfilled by teacher aide work experience.

(((5))) (6) Supervise the issuance of such certificates as provided for in subsection (((1) above)) (2) of this section and specify the types and kinds of certificates necessary for the several departments of the common schools by rule or regulation in accordance with RCW 28A.410.010.

(((6))) (7) Accredit, subject to such accreditation standards and procedures as may be established by the state board of education, all schools that apply for accreditation, and approve, subject to the provisions of RCW 28A.195.010, private schools carrying out a program for any or all of the grades one through twelve: PROVIDED, That no public or private schools shall be placed upon the list of accredited schools so long as secret societies are knowingly allowed to exist among its students by school officials: PROVIDED FURTHER, That the state board may elect to require all or certain classifications of the public schools to conduct and participate in such pre-accreditation examination and evaluation processes as may now or hereafter be established by the board.

(((7))) (8) Make rules ((and regulations)) governing the establishment in any existing nonhigh school district of any secondary program or any new grades in grades nine through twelve. Before any such program or any new grades are established the district must obtain prior approval of the state board.

(((8))) (9) Prepare such outline of study for the common schools as the board shall deem necessary, and prescribe such rules for the general government of the common schools, as shall seek to secure regularity of attendance, prevent truancy, secure efficiency, and promote the true interest of the common schools.

(((9))) (10) Continuously reevaluate courses and adopt and enforce regulations within the common schools so as to meet the educational needs of students and articulate with the institutions of higher education and unify the work of the public school system.

(((10))) (11) Carry out board powers and duties relating to the organization and reorganization of school districts under RCW 28A.315.010 through 28A.315.680 and 28A.315.900.

(((11))) (12) By rule ((or regulation promulgated)) adopted upon the advice of the director of community, trade, and economic development, through the director of fire protection, provide for instruction of pupils in the public and private schools carrying out a K through 12 program, or any part thereof, so that in case of sudden emergency they shall be able to leave their particular school building in the shortest possible time or take such other steps as the particular emergency demands, and without confusion or panic; such rules ((and regulations)) shall be published and distributed to certificated personnel throughout the state whose duties shall include a familiarization therewith as well as the means of implementation thereof at their particular school.

(((12))) (13) Hear and decide appeals as otherwise provided by law.

The state board of education is given the authority to promulgate information and rules dealing with the prevention of child abuse for purposes of curriculum use in the common schools.

NEW SECTION. Sec. 3. The following acts or parts of acts are each repealed:

(1) RCW 28A.305.230 and 1985 c 419 s 1;

(2) RCW 28A.305.240 and 1990 c 33 s 268 & 1987 c 525 s 217;

(3) RCW 28A.305.245 and 1991 c 259 s 3;

(4) RCW 28A.305.250 and 1990 c 33 s 269, 1989 c 11 s 4, & 1987 c 525 s 226;

(5) RCW 28A.410.020 and 1991 c 116 s 20, 1988 c 251 s 4, & 1987 c 525 s 202;

(6) RCW 28A.410.030 and 1993 c 336 s 801, 1991 c 116 s 21, & 1987 c 525 s 203;

(7) RCW 28A.415.290 and 1993 c 336 s 406;

(8) RCW 28B.35.380 and 1977 ex.s. c 169 s 60; and

(9) RCW 28B.40.380 and 1977 ex.s. c 169 s 80, 1975 1st ex.s. c 275 s 147, 1969 ex.s. c 176 s 155, & 1969 ex.s. c 223 s 28B.40.380."

On page 1, line 1 of the title, after "preparation;" strike the remainder of the title and insert "amending RCW 28A.305.130; adding a new section to chapter 28A.410 RCW; and repealing RCW 28A.305.230, 28A.305.240, 28A.305.245, 28A.305.250, 28A.410.020, 28A.410.030, 28A.415.290, 28B.35.380, and 28B.40.380."

Signed by Representatives Brumsickle, Chairman; Elliot, Vice Chairman; Johnson, Vice Chairman; Cole, Ranking Minority Member; Poulsen, Assistant Ranking Minority Member; Clements; G. Fisher; Hatfield; McMahan; Pelesky; Quall; Radcliff; Smith; Talcott; B. Thomas; Thompson and Veloria.

Voting Yea: Representatives Brumsickle, Cole, Clements, Elliot, G. Fisher, Hatfield, Johnson, McMahan, Pelesky, Poulsen, Quall, Radcliff, Smith, Talcott, B. Thomas, Thompson and Veloria.

Excused: Representatives Dickerson and Fuhrman.

Passed to Committee on Rules for second reading.

March 24, 1995

SB 5538 Prime Sponsor, McAuliffe: Changing state board of education staff provisions. Reported by Committee on Education

MAJORITY recommendation: Do pass. Signed by Representatives Brumsickle, Chairman; Elliot, Vice Chairman; Johnson, Vice Chairman; Cole, Ranking Minority Member; Poulsen, Assistant Ranking Minority Member; Clements; G. Fisher; Hatfield; McMahan; Pelesky; Quall; Radcliff; Smith; Talcott; B. Thomas; Thompson and Veloria.

Voting Yea: Representatives Brumsickle, Cole, Clements, Elliot, G. Fisher, Hatfield, Johnson, McMahan, Pelesky, Poulsen, Radcliff, Smith, Talcott, B. Thomas, Thompson and Veloria.

Excused: Representatives Dickerson, Fuhrman and Quall.

Passed to Committee on Rules for second reading.

March 23, 1995

SB 5581 Prime Sponsor, Fraser: Extending the expiration date for the pollution liability insurance program. Reported by Committee on Financial Institutions & Insurance

Voting Yea: Representatives Beeksma, Benton, Campbell, Costa, Dyer, Grant, Huff, Kessler, Ogden, Mielke, Pelesky, Smith, L. Thomas and Wolfe.

Excused: Representative Dellwo.

Passed to Committee on Rules for second reading.

March 23, 1995

SSB 5660 Prime Sponsor, Committee on Financial Institutions & Housing: Providing for heating oil liability protection. Reported by Committee on Financial Institutions & Insurance

Voting Yea: Representatives Beeksma, Benton, Campbell, Costa, Dyer, Grant, Huff, Kessler, Ogden, Mielke, Pelesky, Smith, L. Thomas and Wolfe.

Excused: Representative Dellwo.

Passed to Committee on Rules for second reading.

March 24, 1995

SSB 5764 Prime Sponsor, Committee on Government Operations: Adjusting the procedures of the redistricting commission. 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 24, 1995

SB 5848 Prime Sponsor, Smith: Providing for retrocession of criminal jurisdiction by the Tulalip Tribe. Reported by Committee on Law & Justice

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 23, 1995

SB 5931 Prime Sponsor, Prentice: Providing parity among financial institutions. Reported by Committee on Financial Institutions & Insurance

MAJORITY recommendation: Do pass with the following amendment:

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 30.04.111 and 1994 c 92 s 12 are each amended to read as follows:

The total loans and extensions of credit by a bank or trust company to a person outstanding at any one time shall not exceed twenty percent of the capital and surplus of such bank or trust company. The following loans and extensions of credit shall not be subject to this limitation:

(1) Loans or extensions of credit arising from the discount of commercial or business paper evidencing an obligation to the person negotiating it with recourse;

(2) Loans or extensions of credit secured by bonds, notes, certificates of indebtedness, or treasury bills of the United States or by other such obligations wholly guaranteed as to principal and interest by the United States;

(3) Loans or extensions of credit to or secured by unconditional takeout commitments or guarantees of any department, agency, bureau, board, commission, or establishment of the United States or any corporation wholly owned directly or indirectly by the United States;

(4) Loans or extensions of credit fully secured by a segregated deposit account or accounts in the lending bank;

(5) Loans or extensions of credit secured by collateral having a readily ascertained market value of at least one hundred fifteen percent of the outstanding amount of the loan or extension of credit;

(6) Loans or extensions of credit secured by bills of lading, warehouse receipts, or similar documents transferring or securing title to readily marketable staples shall be subject to a limitation of thirty-five percent of capital and surplus in addition to the general limitations, if the market value of the staples securing each additional loan or extension of credit at all times equals or exceeds one hundred fifteen percent of the outstanding amount of the loan or extension of credit. The staples shall be fully covered by insurance whenever it is customary to insure the staples;

(7) The purchase of bankers' acceptances of the kind described in section 13 of the federal reserve act and issued by other banks shall not be subject to any limitation based on capital and surplus;

(8) The unpaid purchase price of a sale of bank property, if secured by such property.

For the purposes of this section "capital" shall include the amount of common stock outstanding and unimpaired, the amount of preferred stock outstanding and unimpaired, and capital notes or debentures issued pursuant to chapter 30.36 RCW.

For the purposes of this section "surplus" shall include capital surplus, reflecting the amounts paid in excess of the par or stated value of capital stock, or amounts contributed to the bank other than for capital stock, and ((amounts transferred to surplus from)) undivided profits ((pursuant to resolution of the board of directors)).

The term "person" shall include an individual, sole proprietor, partnership, joint venture, association, trust, estate, business trust, corporation, sovereign government or agency, instrumentality, or political subdivision thereof, or any similar entity or organization.

The director may prescribe rules to administer and carry out the purposes of this section, including without limitation rules to define or further define terms used in this section and to establish limits or requirements other than those specified in this section for particular classes or categories of loans or extensions of credit, and to determine when a loan putatively made to a person shall, for purposes of this section, be attributed to another person. In adopting the rules, the director shall be guided by rulings of the comptroller of the currency that govern lending limits applicable to national commercial banks.

Sec. 2. RCW 30.04.215 and 1994 c 256 s 37 and 1994 c 92 s 20 are each reenacted to read as follows:

(1) Notwithstanding any other provisions of law, in addition to all powers enumerated by this title, and those necessarily implied therefrom, a bank may engage in other business activities that have been determined by the board of governors of the federal reserve system or by the United States Congress to be closely related to the business of banking, as of December 31, 1993.

(2) A bank that desires to perform an activity that is not expressly authorized by subsection (1) of this section shall first apply to the director for authorization to conduct such activity. Within thirty days of the receipt of this application, the director shall determine whether the activity is closely related to the business of banking, whether the public convenience and advantage will be promoted, whether the activity is apt to create an unsafe or unsound practice by the bank and whether the applicant is capable of performing such an activity. If the director finds the activity to be closely related to the business of banking and the bank is otherwise qualified, he or she shall forthwith inform the applicant that the activity is authorized. If the director determines that such activity is not closely related to the business of banking or the bank is not otherwise qualified, he or she shall forthwith inform the applicant in writing. The applicant shall have the right to appeal from an unfavorable determination in accordance with the procedures of the Administrative Procedure Act, chapter 34.05 RCW. In determining whether a particular activity is closely related to the business of banking, the director shall be guided by the rulings of the board of governors of the federal reserve system and the comptroller of the currency in making determinations in connection with the powers exercisable by bank holding companies, and the activities performed by other commercial banks or their holding companies.

(3) ((In addition to all powers enumerated by this title, and those necessarily implied therefrom, a bank may engage in other business activities that are determined by the director, by rule adopted pursuant to chapter 34.05 RCW, to be closely related to the business of banking, or necessary or convenient thereto, and the exercise thereof will promote the public convenience and advantage. Provided, however, that such other business activities shall also have been determined by the board of governors of the federal reserve system or by the United States congress to be closely related to the business of banking.)) Notwithstanding any restrictions, limitations, and requirements of law, in addition to all powers, express or implied, that a bank has under the laws of this state, a bank shall have the powers and authorities conferred as of August 31, 1994, upon federally chartered bank doing business in this state. A bank may exercise the powers and authorities conferred on a federally chartered bank after this date, only if the director finds that the exercise of such powers and authorities:

(a) Serves the convenience and advantage of depositors, borrowers, or the general public; and

(b) Maintains the fairness of competition and parity between state-chartered banks and federally chartered banks.

As used in this section, "powers and authorities" include without limitation powers and authorities in corporate governance and operational matters.

The restrictions, limitations, and requirements applicable to specific powers or authorities of federally chartered banks shall apply to banks exercising those powers or authorities permitted under this subsection but only insofar as the restrictions, limitations, and requirements relate to exercising the powers or authorities granted banks solely under this subsection.

(4) Any activity which may be performed by a bank, except the taking of deposits, may be performed by (a) a corporation or (b) another entity approved by the director, which in either case is owned in whole or in part by the bank.

Sec. 3. RCW 30.08.180 and 1994 c 92 s 60 are each amended to read as follows:

Every bank and trust company shall make at least three regular reports each year to the director, as of the dates which he or she shall designate, according to form prescribed by him or her, verified by the president, manager or cashier and attested by at least two directors, which shall exhibit under appropriate heads the resources and liabilities of such corporation. The dates designated by the director shall be the dates designated by the comptroller of the currency of the United States for reports of national banking associations. ((Each such report in condensed form, to be prescribed by the director, shall be published once in a newspaper of general circulation, published in a place where the corporation is located, or if there be no newspaper published in such place, then in some newspaper published in the same county.))

Every such corporation shall also make such special reports as the director shall call for.

Sec. 4. RCW 30.08.190 and 1994 c 256 s 51 and 1994 c 92 s 61 are each reenacted and amended to read as follows:

(1) Every regular report shall be filed with the director within thirty days from the date of issuance of the notice. Every special report shall be filed with the director within such time as shall be specified by him or her in the notice therefor.

(2) The director shall provide a copy of any regular report free of charge to any person that submits a written request for the report.

(3) Every bank and trust company which fails to file any report, required to be filed under subsection (1) of this section and within the time specified, shall be subject to a penalty of fifty dollars per day for each day's delay. A civil action for the recovery of any such penalty may be brought by the attorney general in the name of the state."

On page 1, line 2 of the title, after "institutions;" strike the remainder of the title and insert "amending RCW 30.04.111 and 30.08.180; and reenacting and amending RCW 30.04.215 and 30.08.190."

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

Voting Yea: Representatives Beeksma, Benton, Campbell, Costa, Dyer, Grant, Huff, Kessler, Ogden, Mielke, Pelesky, Smith, L. Thomas and Wolfe.

Excused: Representative Dellwo.

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 eighth order of business.

HOUSE RESOLUTION NO. 95-4641, by Representatives Schoesler, Hatfield, Robertson and Conway

WHEREAS, It is the policy of the Washington State Legislature to recognize excellence in all fields of endeavor; and

WHEREAS, The Washington State University Cougar football team has exhibited the highest level of excellence in winning the 1994 Builders Square Alamo Bowl in San Antonio, Texas; and

WHEREAS, The Cougars' 10-3 victory over the Baylor University Bears enabled them to complete the season ranked nineteenth in the nation; and

WHEREAS, Their incredible abilities were demonstrated by this third bowl appearance, and the third bowl win for the Cougars, in the past six years; and

WHEREAS, Head Coach Mike Price and all the Washington State University football assistant coaches and staff and all the players share in the Cougars' success by combining exceptional coaching and exceptional playing; and

WHEREAS, The Cougars' triumphant season included a crushing defeat of the University of Washington Huskies by a 23-6 decision in the 1994 Apple Cup in Pullman; and

WHEREAS, Chad Davis earned the Most Valuable Offensive Player performance award at the Alamo Bowl by completing 27 of 35 passes for 286 yards and no interceptions; and

WHEREAS, Cougar linebacker Mark Fields was named Defensive Player of the Year in the Pacific-10 Conference; and

WHEREAS, WSU defensive tackle Chad Eaton received the Morris Trophy as Defensive Lineman of the Year in the Pacific-10 Conference, as voted by the league's offensive lineman who felt the fury of his ferocious line play; and

WHEREAS, Washington State's defense was the best in the nation after all postseason bowl games were played, finishing first in total defense, allowing 222.5 yards per game, first in scoring defense while giving up just 11.3 points per game, third in rushing defense at 73.8 yards per game, and third in pass efficiency at 90.08; and

WHEREAS, The Cougars' smashing defensive performances earned the team a spot in the WSU record book; the defense ranked first in rushing touchdowns allowed with four, first in rushing yards allowed per game at 73.8, and first in rushing average per play at 2.0; and

WHEREAS, These outstanding achievements could only have been attained with the support of the many students, alumni, family, community members, and friends who gave their enthusiastic support, making them accomplishments for everyone to share and enjoy; and

WHEREAS, The Washington State University Cougar football team is a source of great pride to all citizens of the state of Washington;

NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives of the State of Washington honor the 1994 Washington State University Cougar football team and Head Coach Mike Price; and

BE IT FURTHER RESOLVED, That copies of this Resolution be immediately transmitted by the Chief Clerk of the House of Representatives to Head Coach Mike Price and his coaching staff as well as to the entire 1994 Cougar football team, and to Washington State University President Samuel H. Smith.

Representative Schoesler moved adoption of the resolution.

Representatives Schoesler and Patterson spoke in favor of adoption of the resolution.

House Resolution No. 4641 was adopted.

HOUSE RESOLUTION NO. 95-4626, by Representatives Mason, Carlson, Valle, Dickerson, Conway, Elliot, Jacobsen, Hatfield, Ebersole, Dyer, Ogden, Cody, D. Schmidt, Veloria, Poulsen, Smith, Chopp and Costa

WHEREAS, The House of Representatives traditionally recognizes February as the celebration of the many contributions to America by African-Americans; and

WHEREAS, The American slave trade began on the Continent of Africa approximately 1490, and during the next 373 years more than 100 million Africans were objects of commerce and the foundation of America's present economic standing in the world; and

WHEREAS, During the period of the American slave trade, 15 million slaves died and remain buried in the middle passage between the shores of Africa and America; and

WHEREAS, More than 300,000 black men, women, and children fought, nursed, and assisted both the Union and Confederate armies during the Civil War; and the Emancipation Proclamation was signed by President Abraham Lincoln declaring January 1, 1863, as the date ending human bondage and the practice of labor without compensation in America; and

WHEREAS, Secular and religious education was of paramount importance to freed black Americans, and the first school for African-Americans was established in Hampton, Virginia in 1865. Today, 104 traditionally black colleges and universities that were established in the years following slavery still exist; and

WHEREAS, During Reconstruction, many African-Americans became prominent elected officials. Hiram Revels, a Republican from Mississippi, was the first black person to serve in the United States Senate in 1870; and South Carolina sent an all black delegation to Congress; and

WHEREAS, George Washington Bush was the first black to serve in the Washington Territorial Legislature, and Representatives Charles Stokes and Marjorie Pitter King were the first black man and woman to serve in the legislature following the proclamation of Washington statehood; and Charles Z. Smith was the first black, and only person of color, to serve on the Washington State Supreme Court; and

WHEREAS, In the 40 years following slavery, southern states eliminated black competition at the ballot box by instituting grandfather clauses permitting citizens to vote only if their grandfather had exercised that right; and

WHEREAS, Booker T. Washington, founder of Tuskegee College, was the first African-American to connect academic education with industrial training. He left a legacy of a changed educational policy for all Americans; and

WHEREAS, The desire to succeed and contribute to America caused African-Americans to defy racial hostility, lynching, Jim Crow laws, and economic injustices; and

WHEREAS, This willingness to succeed and the love for their country has left a positive impact on American culture and society in areas of education, medicine, industry, the military, religion, social science, philosophy, agriculture, engineering, and the arts; and

WHEREAS, Just a few of the major contributions made by African-American scientists include: Dr. Charles Drew developed the first blood bank; Dr. Elmer Imes, a physicist, expanded the quantum theory to include the rotation status of the molecule; Dr. Percy Julian was the first to find uses for the soybean and applications for cortisone; and Archie Alexander engineered and built the bridge spanning the Potomac River; and

WHEREAS, The civil rights movement grew from the Montgomery, Alabama bus boycott, inspired by Rosa Parks, and led by the Reverend Dr. Martin Luther King, Jr. The 1963 March on Washington brought together participants from all walks of American life to share in the spirit of equality; and

WHEREAS, There have been major contributions made to Washington State history by African-American citizens, including: Edwin T. Pratt, civil rights leader; Mona Lake Jones, poet; Sam Smith, political strategist; Jacob Lawrence and James Washington, artists; Esther Mumford, historian; and Quincy Jones, Ernestine Anderson, and Jimi Hendrix, musicians;

NOW, THEREFORE BE IT RESOLVED, That the House of Representatives of the state of Washington recognize the importance of the contributions made by African-Americans, and acknowledge that February is African-American History Month; and

BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to the Chair of the Washington State Commission on African-American Affairs, to Judge Charles Stokes, the first African-American member of the Washington State House of Representatives, and to Justice Charles Z. Smith of the Washington State Supreme Court.

Representative Ogden moved adoption of the resolution.

Representatives Ogden and Carlson spoke in favor of adoption of the resolution.

House Resolution No. 4626 was adopted.

There being no objection the House re-referred Engrossed Senate Bill No. 5684 from the Committee on Government Operations to the Rules Committee.

MOTION

Representative Appelwick moved that Senate Bill No. 5322 be moved from the Rules Committee to the floor.

The Speaker stated the motion of order.

HOUSE RESOLUTION NO. 95-4643, by Representatives K. Schmidt, Robertson, Lambert, Dyer, Chandler, Cooke, Thompson, Campbell and Smith

WHEREAS, It is the policy of the Washington State Legislature to recognize excellence in all fields of endeavor; and

WHEREAS, Mike Padden began his illustrious and distinguished legislative career with the Washington State House of Representatives, as 4th District Representative, and as one of nineteen Republican freshmen in the class of 1980 at which time he enjoyed the luxury of being part of the Bill Polks majority; and

WHEREAS, State Representative Mike Padden was tempered by twelve years in the minority serving under three Speakers, representing the loyal opposition both on the floor and as the ranking member on the Judiciary Committee; and

WHEREAS, In 1994, the voters returned Mike Padden to Olympia to once again return to the majority and to serve as the Chair of the Law and Justice Committee and as majority Floor Leader; and

WHEREAS, Mike Padden became a leader not only in the legislature but state-wide as well, helping to craft and implement outstanding and enduring public policy in a variety of areas, working for the public good, responding to constituents, fostering trust and integrity in government, and faithfully steadfast to conscience; and

WHEREAS, Mike Padden has tendered his resignation as State Representative in order to accept a judicial appointment as District Court Judge for the County of Spokane, State of Washington; and

WHEREAS, Mike Padden is one of the last Troglodytes in the legislature, so named by Governor John Spellman, because he signed a letter asking the Speaker of the House of Representatives to look for cuts in the budget before any tax increases; and

WHEREAS, Although inuring a great benefit to the citizens of Spokane County and the Judiciary, it is with deep and sincere regret that the House of Representatives has learned of Representative Padden's resignation and without equivocation the House of Representatives will experience an inestimable and irreplaceable loss from these hallowed chambers; and

WHEREAS, The respect and admiration for Representative Padden will continue to radiate with time and will not diminish upon his absence and his work and accomplishments will be an abiding standard of ideal and attainment for legislative challenges to come;

NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives of the state of Washington honor the excellence in service and untold legislative and personal accomplishments and contributions by State Representative Mike Padden to his office, his constituents and colleagues, and especially to the citizens of this great state of Washington; and

BE IT FURTHER RESOLVED, That the House of Representatives of the state of Washington extend the very best wishes to Mike Padden, his wife Laura, and their five sons, Justin, Shaun, Andy, Timothy, and Brendan; and

BE IT FURTHER RESOLVED, That copies of this Resolution be immediately transmitted by the Chief Clerk of the House of Representatives to Mike Padden.

Representative K. Schmidt moved adoption of the resolution.

Representatives K. Schmidt, Dellwo, Ebersole, Stevens, R. Fisher, Brown, Schoesler, Appelwick, Hankins, Kremen, Casada and Beeksma spoke in favor of adoption of the resolution.

POINT OF PERSONAL PRIVILEGE

Representative Padden: Thank you Mr. Speaker and Ladies and Gentlemen of the House. I remember when I was first running for election, actually after I'd been elected but before I'd been here, I ran into the Gentleman, then of the 13th district, Stewart Bledsoe and he said, "Get ready for the roller coaster ride of your life! Hold on!" And certainly the fourteen plus years that I've been here have been that. There's certainly been the ups and downs. But it has been an experience that I shall always cherish and remember. And of course, so important are the friendships and relationships that you make with the other legislators that are here, the staff, the individuals from the third house, and everybody that we come in contact with is something that you're always going to remember.

I suppose in some respects, part of the most exciting thing was being sworn in that very first time. I know a lot of you shared that this time. And you win other elections, but there's nothing like the very first time because you worked so hard for that goal of getting elected and for the ideas that you believe in and you can see that you finally have accomplished part of that.

So, I guess I would encourage everybody to remember the vision that got them here. And try to stay true to that vision and to try to see that vision is implemented. And obviously to do that you've got to temper it sometimes with the proclivities of 98 members with different views. But it doesn't mean that you forget the vision. You've just got to work at it in the best way that you can.

And the other thing of course, that we've always had to remember is that you represent real people. And I owe a tremendous debt of gratitude to the citizens of the 4th legislative district in Spokane Valley that returned me eight times. And sometimes I marvel at that myself. But it is a real honor that they did that.

And so, it is with some sadness that I say good-bye to all here, but I remember of course, we all know from the Book of Ecclesiastes that, "there is a time for everything under the sun". And this time, it's time for me to go. So thank you very much.

House Resolution No. 4643 was adopted.

The Speaker announced that Representative Sheahan would become the Chair of the Law & Justice committee.

MOTION

On motion of Representative Padden, the House advanced to the eleventh order of business.

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

MOTION

On motion of Representative Padden, the House adjourned until 9:55 a.m. Tuesday, March 28, 1995.

CLYDE BALLARD, Speaker

TIMOTHY A. MARTIN, Chief Clerk