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EIGHTY-NINTH DAY

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MORNING SESSION

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Senate Chamber, Olympia, Friday, April 7, 1995

The Senate was called to order at 9:00 a.m. by President Pritchard. The Secretary called the roll and announced to the President that all Senators were present except Senators Cal Anderson, Cantu, Finkbeiner, Heavey, Johnson, McDonald, Moyer, Pelz, Quigley, Rasmussen, Roach, Strannigan and West. On motion of Senator Loveland, Senators Cal Anderson, Heavey, Pelz, Quigley and Rasmussen were excused. On motion of Senator Ann Anderson, Senators Cantu, Finkbeiner, Johnson, McDonald, Moyer, Roach and West were excused.

The Sergeant at Arms Color Guard, consisting of Pages Pamela Jones and Stephanie Rogers, presented the Colors. Reverend Sandra Lee, pastor of the Olympia Unitarian Universalist Church, offered the prayer.

MOTION

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

MESSAGES FROM THE HOUSE

April 6, 1995

MR. PRESIDENT:

The Speaker has signed:

SUBSTITUTE SENATE BILL NO. 5040,

SENATE BILL NO. 5042,

SENATE BILL NO. 5046,

SENATE BILL NO. 5052,

SUBSTITUTE SENATE BILL NO. 5067,

SENATE BILL NO. 5078,

SENATE BILL NO. 5083,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5093,

SENATE BILL NO. 5098,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5156,

SUBSTITUTE SENATE BILL NO. 5222,

SUBSTITUTE SENATE BILL NO. 5234,

ENGROSSED SENATE BILL NO. 5243,

SENATE BILL NO. 5251,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5253,

SENATE BILL NO. 5266,

SENATE BILL NO. 5274,

SUBSTITUTE SENATE BILL NO. 5278,

SENATE BILL NO. 5294,

SENATE BILL NO. 5330,

SENATE BILL NO. 5332,

SUBSTITUTE SENATE BILL NO. 5334,

SUBSTITUTE SENATE BILL NO. 5335,

SENATE BILL NO. 5351,

SUBSTITUTE SENATE BILL NO. 5367,

SUBSTITUTE SENATE BILL NO. 5370,

SUBSTITUTE SENATE BILL NO. 5400,

SUBSTITUTE SENATE BILL NO. 5419,

SENATE BILL NO. 5432,

SUBSTITUTE SENATE BILL NO. 5463,

SUBSTITUTE SENATE BILL NO. 5479,

SENATE BILL NO. 5520, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 6, 1995

MR. PRESIDENT:

The Speaker has signed:

SENATE BILL NO. 5563,

SENATE BILL NO. 5575,

SENATE BILL NO. 5583,

SENATE BILL NO. 5584,

SUBSTITUTE SENATE BILL NO. 5609,

SENATE BILL NO. 5625,

SENATE BILL NO. 5668,

SUBSTITUTE SENATE BILL NO. 5688,

SENATE BILL NO. 5699,

SUBSTITUTE SENATE BILL NO. 5957,

SUBSTITUTE SENATE BILL NO. 6002,

SENATE JOINT MEMORIAL NO. 8012,

SUBSTITUTE SENATE JOINT MEMORIAL NO. 8015, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 6, 1995

MR. PRESIDENT:

The Speaker has signed:

HOUSE BILL NO. 1086,

HOUSE BILL NO. 1157,

HOUSE BILL NO. 1433,

HOUSE BILL NO. 1624,

HOUSE BILL NO. 1761,

SUBSTITUTE HOUSE BILL NO. 1856, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

SIGNED BY THE PRESIDENT:

The President signed:

HOUSE BILL NO. 1086,

HOUSE BILL NO. 1157,

HOUSE BILL NO. 1433,

HOUSE BILL NO. 1624,

HOUSE BILL NO. 1761,

SUBSTITUTE HOUSE BILL NO. 1856.

SECOND READING

GUBERNATORIAL APPOINTMENTS

MOTION

On motion of Senator Spanel, Gubernatorial Appointment No. 9127, Mike Sells, as a member of the Board of Trustees for Central Washington University, was confirmed.

APPOINTMENT OF MIKE SELLS

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 36; Nays, 0; Absent, 1; Excused, 12.

Voting yea: Senators Anderson, A., Bauer, Deccio, Drew, Fairley, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Owen, Palmer, Prentice, Prince, Rinehart, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Sutherland, Swecker, Winsley, Wojahn and Wood - 36.

Absent: Senator Strannigan - 1.

Excused: Senators Anderson, C., Cantu, Finkbeiner, Heavey, Johnson, McDonald, Moyer, Pelz, Quigley, Rasmussen, Roach and West - 12.

MOTION

On motion of Senator Owen, Gubernatorial Appointment No. 9073, Richard Thompson, as a member of the Transportation Commission, was confirmed.

APPOINTMENT OF RICHARD THOMPSON

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 40; Nays, 0; Absent, 0; Excused, 9.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley, Wojahn and Wood - 40.

Excused: Senators Anderson, C., Finkbeiner, Heavey, Johnson, McDonald, Moyer, Quigley, Rasmussen and West - 9.

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

There being no objection, the Senate resumed consideration of House Bill No. 1249, deferred on third reading, April 5, 1995.

MOTION

On motion of Senator McAuliffe, the rules were suspended, House Bill No. 1249 was returned to second reading and read the second time.

MOTIONS

On motion of Senator McAuliffe, the following amendments by Senators McAuliffe and Johnson were considered simultaneously and were adopted:

On page 5, line 1, strike "December 1, ((1998)) 1999" and insert "((December 1, 1998)) June 30, 1999"

On page 6, line 12, strike "September 1, ((1998)) 1999" and insert "((September 1, 1998)) June 30, 1999"

On page 6, beginning on line 13, strike "expire September 1, 1999, and insert "expire June 30, 1999"

On motion of Senator McAuliffe, the rules were suspended, House Bill No. 1249, as amended by the Senate under suspension of the rules, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1249, as amended by the Senate under suspension of the rules.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1249, as amended by the Senate under suspension of the rules, and the bill passed the Senate by the following vote: Yeas, 41; Nays, 0; Absent, 0; Excused, 8.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley, Wojahn and Wood - 41.

Excused: Senators Anderson, C., Finkbeiner, Heavey, Johnson, McDonald, Moyer, Quigley and West - 8.

HOUSE BILL NO. 1249, as amended by the Senate under suspension of the rules, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

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

President Pro Tempore Wojahn assumed the Chair.

SECOND READING

HOUSE BILL NO. 1534, by Representatives Cairnes, Romero, Lisk and Cody

Changing the registration requirements relating to professional land surveyors and engineers.

The bill was read the second time.

MOTIONS

Senator Roach moved that the following amendment by Senators Roach, McDonald, Cantu and Johnson be adopted:

On page 7, after line 33, insert the following:

"NEW SECTION. Sec. 5. A new section is added to chapter 18.43 RCW to read as follows:

The board may adopt rules under this section authorizing a retired status certificate. An individual certificated under this chapter who has reached the age of sixty-five years and has retired from the active practice of engineering and land surveying may, upon application and at the discretion of the board, be exempted from payment of annual renewal fees thereafter."

Renumber remaining sections consecutively and correct any internal references accordingly.

Debate ensued.

The President Pro Tempore declared the question before the Senate to be the adoption of the amendment by Senators Roach, McDonald, Cantu and Johnson on page 7, after line 33, to House Bill No. 1534.

The motion by Senator Roach carried and the amendment was adopted.

MOTION

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

On page 1, line 2 of the title, after "18.43.070;" insert "adding a new section to chapter 18.43 RCW;"

MOTION

On motion of Senator Spanel, further consideration of House Bill No. 1534 was deferred.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1437, by House Committee on Natural Resources (originally sponsored by Representatives Foreman, Chandler, Mastin and B. Thomas)

Revising lease rates for amateur radio electronic repeater sites.

The bill was read the second time.

MOTION

On motion of Senator Sellar, the rules were suspended, Substitute House Bill No. 1437 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1437.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1437 and the bill passed the Senate by the following vote: Yeas, 41; Nays, 0; Absent, 0; Excused, 8.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley, Wojahn and Wood - 41.

Excused: Senators Anderson, C., Finkbeiner, Heavey, Johnson, McDonald, Moyer, Quigley and West - 8.

SUBSTITUTE HOUSE BILL NO. 1437, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

HOUSE BILL NO. 1059, by Representatives Lisk and Sheldon (by request of Liquor Control Board)

Improving the enforcement provisions of the Washington state liquor act.

The bill was read the second time.

MOTION

On motion of Senator Pelz, the rules were suspended, House Bill No. 1059 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of House Bill No. 1059.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1059 and the bill passed the Senate by the following vote: Yeas, 41; Nays, 0; Absent, 0; Excused, 8.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley, Wojahn and Wood - 41.

Excused: Senators Anderson, C., Finkbeiner, Heavey, Johnson, McDonald, Moyer, Quigley and West - 8.

HOUSE BILL NO. 1059, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1270, by House Committee on Transportation (originally sponsored by Representatives Morris, Benton, Sheldon, Pennington, Basich, Chappell, Kessler, Schoesler, Boldt, Hatfield, Stevens and Johnson)

Excusing small tree harvesters from the commercial driver's license requirements.

The bill was read the second time.

MOTIONS

On motion of Senator Owen, the following Committee on Transportation amendment was adopted:

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 46.25.050 and 1990 c 56 s 1 are each amended to read as follows:

(1) Drivers of commercial motor vehicles shall obtain a commercial driver's license as required under this chapter by April 1, 1992. The director shall establish a program to convert all qualified commercial motor vehicle drivers by that date. After April 1, 1992, except when driving under a commercial driver's instruction permit and a valid automobile or classified license and accompanied by the holder of a commercial driver's license valid for the vehicle being driven, no person may drive a commercial motor vehicle unless the person holds and is in immediate possession of a commercial driver's license and applicable endorsements valid for the vehicle they are driving. However, this requirement does not apply to any person:

(a) Who is the operator of a farm vehicle, and the vehicle is:

(i) Controlled and operated by a farmer;

(ii) Used to transport either agricultural products, which in this section include Christmas trees and wood products harvested from private tree farms and transported by vehicles weighing no more than forty thousand pounds licensed gross vehicle weight, farm machinery, farm supplies, or any combination of those materials to or from a farm;

(iii) Not used in the operations of a common or contract motor carrier; and

(iv) Used within one hundred fifty miles of the person's farm; or

(b) Who is a fire fighter or law enforcement officer operating emergency equipment, and:

(i) The fire fighter or law enforcement officer has successfully completed a driver training course approved by the director; and

(ii) The fire fighter or law enforcement officer carries a certificate attesting to the successful completion of the approved training course; or

(c) Who is operating a recreational vehicle for noncommercial purposes. As used in this section, "recreational vehicle" includes a vehicle towing a horse trailer for a noncommercial purpose.

(2) No person may drive a commercial motor vehicle while his or her driving privilege is suspended, revoked, or canceled, while subject to disqualification, or in violation of an out-of-service order. Violations of this subsection shall be punished in the same way as violations of RCW 46.20.342(1)."

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

On line 2 of the title, after "requirements;" strike the remainder of the title and insert "and amending RCW 46.25.050."

MOTION

On motion of Senator Owen, the rules were suspended, Substitute House Bill No. 1270, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1270, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1270, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 41; Nays, 0; Absent, 0; Excused, 8.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley, Wojahn and Wood - 41.

Excused: Senators Anderson, C., Finkbeiner, Heavey, Johnson, McDonald, Moyer, Quigley and West - 8.

SUBSTITUTE HOUSE BILL NO. 1270, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1452, by House Committee on Government Operations (originally sponsored by Representatives Mitchell, Regala, Reams, R. Fisher, Hickel, Ebersole, Carrell, Brumsickle, Huff and Conway)

Allowing voters to protect a portion of metropolitan park district property taxes from prorationing.

The bill was read the second time.

MOTION

On motion of Senator Haugen, the rules were suspended, Engrossed Substitute House Bill No. 1452 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1452.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1452 and the bill passed the Senate by the following vote: Yeas, 41; Nays, 0; Absent, 0; Excused, 8.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley, Wojahn and Wood - 41.

Excused: Senators Anderson, C., Finkbeiner, Heavey, Johnson, McDonald, Moyer, Quigley and West - 8.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1452, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1507, by House Committee on Capital Budget (originally sponsored by Representatives Ogden, Radcliff, Jacobsen, Brumsickle, Chopp and Dickerson) (by request of Washington State Historical Society)

Requiring a process to solicit proposals for and prioritize heritage capital projects.

The bill was read the second time.

MOTION

On motion of Senator Haugen, the rules were suspended, Substitute House Bill No. 1507 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1507.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1507 and the bill passed the Senate by the following vote: Yeas, 41; Nays, 0; Absent, 0; Excused, 8.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley, Wojahn and Wood - 41.

Excused: Senators Anderson, C., Finkbeiner, Heavey, Johnson, McDonald, Moyer, Quigley and West - 8.

SUBSTITUTE HOUSE BILL NO. 1507, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1671, by House Committee on Agriculture and Ecology (originally sponsored by Representatives Clements, Chandler, Grant and Mastin)

Revising commodity commission assessment authority.

The bill was read the second time.

MOTION

On motion of Senator Rasmussen, the rules were suspended, Substitute House Bill No. 1671 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1671.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1671 and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley, Wojahn and Wood - 42.

Excused: Senators Anderson, C., Finkbeiner, Heavey, Johnson, McDonald, Moyer and West - 7.

SUBSTITUTE HOUSE BILL NO. 1671, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1611, by House Committee on Finance (originally sponsored by Representatives Costa, Radcliff, Scott, Kessler, Blanton, Koster, D. Schmidt, Beeksma, Romero, Thompson, Regala and Kremen)

Providing a tax exemption for new construction of alternative housing for youth in need.

The bill was read the second time.

MOTIONS

Senator Hargrove moved that the following Committee on Ways and Means amendment be adopted:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 82.08 RCW to read as follows:

The tax levied by RCW 82.08.020 shall not apply to sales to health or social welfare organizations, as defined in RCW 82.04.431, of items necessary for new construction of alternative housing for youth in crisis. This section shall expire July 1, 1997.

NEW SECTION. Sec. 2. A new section is added to chapter 82.12 RCW to read as follows:

The provisions of this chapter shall not apply in respect to the use of any item acquired by a health or social welfare organization, as defined in RCW 82.04.431, of items necessary for new construction of alternative housing for youth in crisis. This section shall expire July 1, 1997.

NEW SECTION. Sec. 3. For the purposes of sections 1 and 2 of this act, "youth in crisis" means any youth under eighteen years of age who is either: Homeless; a runaway from the home of a parent, guardian, or legal custodian; abused; neglected; abandoned by a parent, guardian, or legal custodian; or suffering from a substance abuse or mental disorder.

NEW SECTION. Sec. 4. 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."

On motion of Senator Hargrove, the following amendments by Senators Hargrove and Rinehart to the Committee on Ways and Means striking amendment were considered simultaneously and were adopted:

On page 1, line 12, after "crisis" insert ", so long as the facility will be a licensed agency under chapter 74.15 RCW, upon completion"

On page 1, line 18, after "crisis" insert ", so long as the facility will be a licensed agency under chapter 74.15 RCW, upon completion"

The President Pro Tempore declared the question before the Senate to be the adoption of the Committee on Ways and Means striking

amendment, as amended, to Engrossed Substitute House Bill No. 1611.

The striking committee amendment, as amended, was adopted.

MOTIONS

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

On page 1, line 2 of the title, after "crisis;" strike the remainder of the title and insert "adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; creating a new section; and declaring an emergency."

On motion of Senator Hargrove, the rules were suspended, Engrossed Substitute House Bill No. 1611, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1611, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1611, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 41; Nays, 1; Absent, 0; Excused, 7.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley, Wojahn and Wood - 41.

Voting nay: Senator Fairley - 1.

Excused: Senators Anderson, C., Finkbeiner, Heavey, Johnson, McDonald, Moyer and West - 7.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1611, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

President Pritchard assumed the Chair.

SECOND READING

ENGROSSED HOUSE BILL NO. 2005, by Representatives Dyer and Dellwo

Modifying certified health plan provision of vision benefits.

The bill was read the second time.

MOTIONS

On motion of Senator Quigley, the following Committee on Health and Long-Term Care amendment was adopted:

On page 1, line 10, strike "currently" and insert "obtains or"

On motion of Senator Quigley, the rules were suspended, Engrossed House Bill No. 2005, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 2005, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed House Bill No. 2005, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 40; Nays, 1; Absent, 1; Excused, 7.

Voting yea: Senators Anderson, A., Bauer, Cantu, Drew, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley, Wojahn and Wood - 40.

Voting nay: Senator Fairley - 1.

Absent: Senator Deccio - 1.

Excused: Senators Anderson, C., Finkbeiner, Heavey, Johnson, McDonald, Moyer and West - 7.

ENGROSSED HOUSE BILL NO. 2005, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

ENGROSSED HOUSE BILL NO. 1876, by Representatives Dyer and Dellwo

Modifying provision of dental services by certified health plans.

The bill was read the second time.

MOTION

On motion of Senator Quigley, the rules were suspended, Engrossed House Bill No. 1876 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 1876.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed House Bill No. 1876 and the bill passed the Senate by the following vote: Yeas, 41; Nays, 0; Absent, 1; Excused, 7.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Spanel, Strannigan, Sutherland, Swecker, Winsley, Wojahn and Wood - 41.

Absent: Senator Snyder - 1.

Excused: Senators Anderson, C., Finkbeiner, Heavey, Johnson, McDonald, Moyer and West - 7.

ENGROSSED HOUSE BILL NO. 1876, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1434, by House Committee on Government Operations (originally sponsored by Representatives Hankins, Casada, Mastin, Honeyford, Radcliff, Dyer, Grant, Blanton, Brumsickle, Delvin, L. Thomas and Chandler)

Increasing the limit for public utility districts to use alternative bid procedures.

The bill was read the second time.

MOTION

Senator Ann Anderson moved that the following amendment by Senator Finkbeiner be adopted:

On page 1, after line 15, insert the following:

"Sec. 2. RCW 54.16.100 and 1990 c 16 s 1 are each amended to read as follows:

The commission, by resolution introduced at a regular meeting and adopted at a subsequent regular meeting, shall appoint and may remove at will a district manager, and shall, by resolution, fix his or her compensation. The resolution must contain a full description of the compensation package provided, including information on the initial and ongoing costs and the cash value of the compensation provided.

The manager shall be the chief administrative officer of the district, in control of all administrative functions and shall be responsible to the commission for the efficient administration of the affairs of the district placed in his or her charge. The manager shall be an experienced executive with administrative ability. In the absence or temporary disability of the manager, the manager shall, with the approval of the president of the commission, designate some competent person as acting manager.

The manager may attend all meetings of the commission and its committees, and take part in the discussion of any matters pertaining to the duties of his or her department, but shall have no vote.

The manager shall carry out the orders of the commission, and see that the laws pertaining to matters within the functions of his or her department are enforced; keep the commission fully advised as to the financial condition and needs of the districts; prepare an annual estimate for the ensuing fiscal year of the probable expenses of the department, and recommend to the commission what development work should be undertaken, and what extensions and additions, if any, should be made during the ensuing fiscal year, with an estimate of the costs of the development work, extensions, and additions; certify to the commission all bills, allowances, and payrolls, including claims due contractors of public works; recommend to the commission compensation of the employees of his or her office, and a scale of compensation to be paid for the different classes of service required by the district; hire and discharge employees under his or her direction; and perform such other duties as may be imposed upon the manager by resolution of the commission. It is unlawful for the manager to make any contribution of money in aid of or in opposition to the election of any candidate for public utility commissioner or to advocate or oppose any such election."'

POINT OF ORDER

Senator Haugen: "Mr. President, I would ask that you rule on the scope of this amendment. This bill truly deals with a very narrow issue relating to public utility bid procedures. What this amendment does is that it says that they must--it deals with the compensation for the district manager and must have a full description of the compensation package. I would say to the maker of this amendment, I am not unsympathetic with this issue. In fact, we had a bill that would have done this, but it certainly doesn't fit under this title of this bill and we would urge your consideration of that, Mr. President."

Further debate ensued.

There being no objection, the President deferred further consideration of Substitute House Bill No. 1434.

MOTION

At 10:16 a.m., on motion of Senator Spanel, the Senate was declared to be at ease.

The Senate was called to order at 1:07 p.m. by President Pritchard.

There being no objection, the President reverted the Senate to the second order of business.

REPORT OF SELECT COMMITTEE

STATE OF WASHINGTON

LEGISLATIVE ETHICS BOARD

OPINION OF THE LEGISLATIVE ETHICS BOARD

COMPLAINT 1995 NO. 1

April 6, 1995

On February 27, 1995, the Board received Complaint 1995 No. 1 from Ken Eikenberry, Chairman of the Republican Party, alleging violations RCW 42.52 and the Code of Legislative Ethics by Senator Kevin Quigley.

On April 6, 1995, Senator Quigley appeared before the Board in connection with a related advisory opinion requested by him (Advisory Opinion 1995 - No. 7). At that time, Senator Quigley admitted distributing a memorandum to his law firm and acknowledged that he had erred in doing so. The content of the memorandum violated the ethics laws, as described by the board in its advisory opinion regarding substantially similar facts.

The board, therefore, finds that Senator Kevin Quigley has engaged in unethical conduct and reprimands him for that violation. Since this conduct allegedly occurred in December, 1994, the board is transmitting this finding to the Secretary of the Senate with the recommendation that it be placed in the records of the Senate and that no further disciplinary action be taken.

The Report of the Select Committee is on file in the Office of the Secretary of the Senate.

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

MESSAGES FROM THE HOUSE

April 6, 1995

MR. PRESIDENT:

The House has passed:

SENATE BILL NO. 5401,

SUBSTITUTE SENATE BILL NO. 5764,

SENATE BILL NO. 5767,

SUBSTITUTE SENATE BILL NO. 5804,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5820,

SUBSTITUTE SENATE BILL NO. 5835,

SENATE BILL NO. 5857,

SENATE BILL NO. 5871,

SUBSTITUTE SENATE BILL NO. 5918,

SUBSTITUTE SENATE BILL NO. 6026,

SENATE JOINT MEMORIAL NO. 8010, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 6, 1995

MR. PRESIDENT:

The House has passed:

SUBSTITUTE SENATE BILL NO. 5410,

SENATE BILL NO. 5430,

SENATE BILL NO. 5433,

SUBSTITUTE SENATE BILL NO. 5435,

ENGROSSED SENATE BILL NO. 5437, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 6, 1995

MR. PRESIDENT:

The House has passed:

SENATE BILL NO. 5043,

SUBSTITUTE SENATE BILL NO. 5164,

SENATE BILL NO. 5165,

SUBSTITUTE SENATE BILL NO. 5166,

SUBSTITUTE SENATE BILL NO. 5214,

ENGROSSED SENATE BILL NO. 5276,

SENATE BILL NO. 5355,

SENATE BILL NO. 5369,

SENATE BILL NO. 5398,

SUBSTITUTE SENATE BILL NO. 5440,

SUBSTITUTE SENATE BILL NO. 5769, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

SIGNED BY THE PRESIDENT

The President signed:

SUBSTITUTE SENATE BILL NO. 5410,

SENATE BILL NO. 5430,

SENATE BILL NO. 5433,

SUBSTITUTE SENATE BILL NO. 5435,

ENGROSSED SENATE BILL NO. 5437.

SIGNED BY THE PRESIDENT

The President signed:

SENATE BILL NO. 5401,

SUBSTITUTE SENATE BILL NO. 5764,

SENATE BILL NO. 5767,

SUBSTITUTE SENATE BILL NO. 5804,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5820,

SUBSTITUTE SENATE BILL NO. 5835,

SENATE BILL NO. 5857,

SENATE BILL NO. 5871,

SUBSTITUTE SENATE BILL NO. 5918,

SUBSTITUTE SENATE BILL NO. 6026,

SENATE JOINT MEMORIAL NO. 8010.

SIGNED BY THE PRESIDENT

The President signed:

SENATE BILL NO. 5043,

SUBSTITUTE SENATE BILL NO. 5164,

SENATE BILL NO. 5165,

SUBSTITUTE SENATE BILL NO. 5166,

SUBSTITUTE SENATE BILL NO. 5214,

ENGROSSED SENATE BILL NO. 5276,

SENATE BILL NO. 5355,

SENATE BILL NO. 5369,

SENATE BILL NO. 5398,

SUBSTITUTE SENATE BILL NO. 5440,

SUBSTITUTE SENATE BILL NO. 5769.

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

SECOND READING

GUBERNATORIAL APPOINTMENT

MOTION

On motion of Senator Owen, Gubernatorial Appointment No. 9037, Tom Leschine, as a member of the Board of Pilotage Commissioners, was confirmed.

MOTIONS

On motion of Senator Ann Anderson, Senators Long, McCaslin, and Strannigan were excused.

On motion of Senator Spanel, Senator Quigley was excused.

On motion of Senator Kohl, Senators McAuliffe and Rinehart were excused.

APPOINTMENT OF TOM LESCHINE

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 35; Nays, 0; Absent, 5; Excused, 9.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Hochstatter, Johnson, Kohl, Loveland, McDonald, Morton, Newhouse, Oke, Owen, Prentice, Prince, Rasmussen, Roach, Schow, Sellar, Sheldon, Snyder, Spanel, Sutherland, Swecker, West, Winsley and Wojahn - 35.

Absent: Senators Hargrove, Palmer, Pelz, Smith and Wood - 5.

Excused: Senators Anderson, C., Heavey, Long, McAuliffe, McCaslin, Moyer, Quigley, Rinehart and Strannigan - 9.

MOTION

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

MESSAGE FROM THE HOUSE

April 7, 1995

MR. PRESIDENT:

The House does not concur in the Senate amendment(s) to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1410 and asks the Senate for a conference thereon. The Speaker has appointed the following members as conferees: Representatives Silver, Foreman and Sommers.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

On motion of Senator Gaspard, the Senate grants the request of the House for a conference on Engrossed Substitute House Bill No. 1410 and the Senate amendment(s) thereto.

APPOINTMENT OF CONFERENCE COMMITTEE

The President appointed as member of the Conference Committee on Engrossed Substitute House Bill No. 1410 and the Senate amendment(s) thereto: Senators Rinehart, West and Loveland.

MOTION

On motion of Senator Gaspard, the Conference Committee appointments were confirmed.

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

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1067, by House Committee on Finance (originally sponsored by Representatives Schoesler, Grant, Hankins, Delvin, Mastin and Sheldon)

Reforming the property taxation of short-rotation hardwoods.

The bill was read the second time.

MOTION

On motion of Senator Rinehart, the rules were suspended, Substitute House Bill No. 1067 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTION

On motion of Senator Ann Anderson, Senator Wood was excused.

The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1067.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1067 and the bill passed the Senate by the following vote: Yeas, 40; Nays, 0; Absent, 2; Excused, 7.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Hochstatter, Johnson, Kohl, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wojahn - 40.

Absent: Senators Hargrove and Smith - 2.

Excused: Senators Anderson, C., Heavey, Long, McCaslin, Moyer, Quigley and Wood - 7.

SUBSTITUTE HOUSE BILL NO. 1067, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1287, by House Committee on Agriculture and Ecology (originally sponsored by Representatives McMorris, Horn, Chandler, Regala, Mastin, Clements, Koster, Robertson, Johnson, Boldt, Chappell, Schoesler and Rust)

Authorizing silvicultural burning to correct a forest health problem under certain circumstances.

The bill was read the second time.

MOTION

On motion of Senator Fraser, the rules were suspended, Substitute House Bill No. 1287 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1287.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1287 and the bill passed the Senate by the following vote: Yeas, 41; Nays, 0; Absent, 1; Excused, 7.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Hochstatter, Johnson, Kohl, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wojahn - 41.

Absent: Senator Hargrove - 1.

Excused: Senators Anderson, C., Heavey, Long, McCaslin, Moyer, Quigley and Wood - 7.

SUBSTITUTE HOUSE BILL NO. 1287, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

HOUSE BILL NO. 1226, by Representatives Buck, Basich, Fuhrman and Kessler (by request of Department of Fish and Wildlife)

Authorizing shellfish to be taken under a salmon charter license.

The bill was read the second time.

MOTION

On motion of Senator Drew, the rules were suspended, House Bill No. 1226 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTION

On motion of Senator Loveland, Senator Hargrove was excused.

The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1226.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1226 and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wojahn - 42.

Excused: Senators Anderson, C., Hargrove, Heavey, McCaslin, Moyer, Quigley and Wood - 7.

HOUSE BILL NO. 1226, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

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

MOTION

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

SENATE RESOLUTION 1995-8635

By Senators Haugen and Spanel

WHEREAS, Trudy Sundberg has positively influenced the lives of hundreds of young people, first as a teacher in the Oak Harbor School District and most recently as founder of the Save Our Kids Crusade, an anti-violence campaign; and

WHEREAS, The Save Our Kids Crusade has united more than one hundred twenty-five organizations and individuals behind a common goal of supporting and nurturing young people; and

WHEREAS, The community improvement projects sponsored by the Save Our Kids Crusade include tree planting and building bird feeders; and

WHEREAS, Her Save Our Kids Crusade earned Trudy Sundberg the honor of being designated a "Hometown Hero" and featured on KOMO-TV; and

WHEREAS, Trudy Sundberg has a long and outstanding history of community service; and

WHEREAS, Under Trudy's leadership, the Island County League of Women Voters grew from thirty to more than one hundred members in just three years, making it the fastest growing league in the state of Washington; and

WHEREAS, Trudy Sundberg is truly someone who leads by example;

NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate recognize and commend Trudy Sundberg for her tireless efforts on behalf of Island County and its young people; and

BE IT FURTHER RESOLVED, That the Secretary of the Senate immediately transmit a copy of this resolution to Trudy Sundberg.

INTRODUCTION OF SPECIAL GUESTS

The President welcomed and introduced Trudy Sundberg and her family, who were seated in the gallery.

MOTION

On motion of Senator Spanel, the Senate returned to the sixth order of business.

MOTIONS

On motion of Senator Kohl, Senator Loveland was excused.

On motion of Senator Hale, Senator West was excused.

SECOND READING

ENGROSSED HOUSE BILL NO. 1014, by Representatives Padden, Dellwo, Costa, Appelwick and Silver (by request of Statute Law Committee)

Correcting obsolete references to the department of community development and the department of trade and economic development.

The bill was read the second time.

MOTION

On motion of Senator Pelz, the rules were suspended, Engrossed House Bill No. 1014 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 1014.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed House Bill No. 1014 and the bill passed the Senate by the following vote: Yeas, 40; Nays, 0; Absent, 0; Excused, 9.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Hochstatter, Johnson, Kohl, Long, McAuliffe, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley and Wojahn - 40.

Excused: Senators Anderson, C., Hargrove, Heavey, Loveland, McCaslin, Moyer, Quigley, West and Wood - 9.

ENGROSSED HOUSE BILL NO. 1014, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

HOUSE BILL NO. 1015, by Representatives Padden, Dellwo, Costa, Appelwick and Silver (by request of Statute Law Committee)

Correcting double amendments from the 1994 legislative sessions.

The bill was read the second time.

MOTION

On motion of Senator Smith, the rules were suspended, House Bill No. 1015 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1015.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1015 and the bill passed the Senate by the following vote: Yeas, 41; Nays, 0; Absent, 0; Excused, 8.

Excused: Senators Anderson, C., Hargrove, Heavey, Loveland, McCaslin, Moyer, Quigley and West - 8.

HOUSE BILL NO. 1015, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

ENGROSSED HOUSE BILL NO. 1131, by Representatives Silver and G. Fisher (by request of Office of the Forecast Council)

Changing provisions relating to economic assumptions for actuarial studies and retirement contribution rates.

The bill was read the second time.

MOTION

On motion of Senator Spanel, the rules were suspended, Engrossed House Bill No. 1131 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 1131.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed House Bill No. 1131 and the bill passed the Senate by the following vote: Yeas, 41; Nays, 0; Absent, 0; Excused, 8.

Excused: Senators Anderson, C., Hargrove, Heavey, Loveland, McCaslin, Moyer, Quigley and West - 8.

ENGROSSED HOUSE BILL NO. 1131, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

HOUSE BILL NO. 1495, by Representatives Basich, Hatfield, Fuhrman, Sheldon, Foreman and Chappell

Expanding timber excise tax small harvester option.

The bill was read the second time.

MOTION

On motion of Senator Rinehart, the rules were suspended, House Bill No. 1495 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1495.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1495 and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Johnson, Kohl, Long, McAuliffe, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley, Wojahn and Wood - 42.

Excused: Senators Anderson, C., Heavey, Loveland, McCaslin, Moyer, Quigley and West - 7.

HOUSE BILL NO. 1495, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

There being no objection, the Senate resumed consideration of Substitute House Bill No. 1434 and the pending amendment by Senator Finkbeiner on page 1, after line 15, deferred earlier today.

RULING BY THE PRESIDENT

President Pritchard: "In ruling upon the point of order raised by Senator Haugen, the President finds that Substitute House Bill No. 1434 is a measure which increases the maximum amount of a contract for purchases of materials, equipment and supplies that may be awarded through a uniform process by a public utility district.

"The amendment proposed by Senator Finkbeiner would amend the requirements for the resolution to be passed by the public utility commissions when fixing the amount of compensation for district managers.

"The President, therefore, finds that the proposed amendment does change the scope and object of the bill and the point of order is well taken."

The amendment by Senator Finkbeiner on page 1, after line 5, to Substitute House Bill No. 1434 was ruled out of order.

MOTION

On motion of Senator Haugen, the rules were suspended, Substitute House Bill No. 1434 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1434.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1434 and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

Excused: Senators Anderson, C., Heavey, Loveland, McCaslin, Moyer, Quigley and West - 7.

SUBSTITUTE HOUSE BILL NO. 1434, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

SENATE BILL NO. 5447, by Senator McAuliffe (by request of Office of Financial Management)

Tying the use of student learning improvement grants to attaining the student learning goals.

MOTIONS

On motion of Senator McAuliffe, Substitute Senate Bill No. 5447 was substituted for Senate Bill No. 5447 and the substitute bill was placed on second reading and read the second time.

Senator Cantu moved that the following amendments be considered simultaneously and be adopted:

On page 1, line 15, strike "and" and insert ","

On page 1, line 16, after "requirements" insert ", and the assessment system"

On page 2, line 18, strike "and" and insert ","

On page 2, line 19, after "requirements" insert ", and applicable assessments"

On page 2, line 34, strike "and" and insert ","

On page 2, line 34, after "requirements" insert ", and applicable assessments"

On page 3, line 6, after "requirements" insert "and implement the assessment system as it is developed"

Debate ensued.

The President declared the question before the Senate to be the adoption of the amendments by Senator Cantu on page 1, lines 15 and 16; page 2, lines 18, 19, and 34 (2); and page 3, line 6; to Substitute Senate Bill No. 5447.

The motion by Senator Cantu carried and the amendments were adopted.

MOTION

On motion of Senator McAuliffe, the rules were suspended, Engrossed Substitute Senate Bill No. 5447 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5447.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5447 and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

Excused: Senators Anderson, C., Heavey, Loveland, McCaslin, Moyer, Quigley and West - 7.

ENGROSSED SUBSTITUTE SENATE BILL NO. 5447, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1047, by House Committee on Law and Justice (originally sponsored by Representatives Sheahan, Sherstad, Benton, Dyer, Schoesler, Johnson, Thompson, Beeksma, Radcliff, Crouse, Carrell, Robertson, Blanton, Lambert, Fuhrman, L. Thomas, Huff, Mielke, McMahan and Casada)

Clarifying the process for defendants to pay restitution to their victims.

The bill was read the second time.

MOTIONS

On motion of Senator Smith, the following Committee on Law and Justice amendment was adopted:

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 9.94A.140 and 1994 c 271 s 601 are each amended to read as follows:

(1) If restitution is ordered, the court shall determine the amount of restitution due at the sentencing hearing or within ((sixty)) one hundred eighty days. The court may continue the hearing beyond the one hundred eighty days for good cause. The court shall then set a minimum monthly payment that the offender is required to make towards the restitution that is ordered. The court should take into consideration the total amount of the restitution owed, the offender's present, past, and future ability to pay, as well as any assets that the offender may have. During the period of supervision, the community corrections officer may examine the offender to determine if there has been a change in circumstances that warrants an amendment of the monthly payment schedule. The community corrections officer may recommend a change to the schedule of payment and shall inform the court of the recommended change and the reasons for the change. The sentencing court may then reset the monthly minimum payments based on the report from the community corrections officer of the change in circumstances. Restitution ordered by a court pursuant to a criminal conviction shall be based on easily ascertainable damages for injury to or loss of property, actual expenses incurred for treatment for injury to persons, and lost wages resulting from injury. Restitution shall not include reimbursement for damages for mental anguish, pain and suffering, or other intangible losses, but may include the costs of counseling reasonably related to the offense. The amount of restitution shall not exceed double the amount of the offender's gain or the victim's loss from the commission of the crime. For the purposes of this section, the offender shall remain under the court's jurisdiction for a maximum term of ten years following the offender's release from total confinement or ten years subsequent to the entry of the judgment and sentence, whichever period is longer. The portion of the sentence concerning restitution may be modified as to amount, terms and conditions during the ten-year period, regardless of the expiration of the offender's term of community supervision and regardless of the statutory maximum for the crime. The court may not reduce the total amount of restitution ordered because the offender may lack the ability to pay the total amount. The offender's compliance with the restitution shall be supervised by the department.

(2) Restitution may be ordered whenever the offender is convicted of an offense which results in injury to any person or damage to or loss of property. In addition, restitution may be ordered to pay for an injury, loss, or damage if the offender pleads guilty to a lesser offense or fewer offenses and agrees with the prosecutor's recommendation that the offender be required to pay restitution to a victim of an offense or offenses which are not prosecuted pursuant to a plea agreement.

(3) In addition to any sentence that may be imposed, a defendant who has been found guilty of an offense involving fraud or other deceptive practice or an organization which has been found guilty of any such offense may be ordered by the sentencing court to give notice of the conviction to the class of persons or to the sector of the public affected by the conviction or financially interested in the subject matter of the offense by mail, by advertising in designated areas or through designated media, or by other appropriate means.

(4) This section does not limit civil remedies or defenses available to the victim or defendant. The court shall identify in the judgment and sentence the victim or victims entitled to restitution and what amount is due each victim. The state or victim may enforce the court-ordered restitution in the same manner as a judgment in a civil action. Restitution collected through civil enforcement must be paid through the registry of the court and must be distributed proportionately according to each victim's loss when there is more than one victim.

Sec. 2. RCW 9.94A.142 and 1994 c 271 s 602 are each amended to read as follows:

(1) When restitution is ordered, the court shall determine the amount of restitution due at the sentencing hearing or within ((sixty)) one hundred eighty days. The court may continue the hearing beyond the one hundred eighty days for good cause. The court shall then set a minimum monthly payment that the offender is required to make towards the restitution that is ordered. The court should take into consideration the total amount of the restitution owed, the offender's present, past, and future ability to pay, as well as any assets that the offender may have. During the period of supervision, the community corrections officer may examine the offender to determine if there has been a change in circumstances that warrants an amendment of the monthly payment schedule. The community corrections officer may recommend a change to the schedule of payment and shall inform the court of the recommended change and the reasons for the change. The sentencing court may then reset the monthly minimum payments based on the report from the community corrections officer of the change in circumstances. Restitution ordered by a court pursuant to a criminal conviction shall be based on easily ascertainable damages for injury to or loss of property, actual expenses incurred for treatment for injury to persons, and lost wages resulting from injury. Restitution shall not include reimbursement for damages for mental anguish, pain and suffering, or other intangible losses, but may include the costs of counseling reasonably related to the offense. The amount of restitution shall not exceed double the amount of the offender's gain or the victim's loss from the commission of the crime. For the purposes of this section, the offender shall remain under the court's jurisdiction for a maximum term of ten years following the offender's release from total confinement or ten years subsequent to the entry of the judgment and sentence, whichever period is longer. The portion of the sentence concerning restitution may be modified as to amount, terms and conditions during the ten-year period, regardless of the expiration of the offender's term of community supervision and regardless of the statutory maximum for the crime. The court may not reduce the total amount of restitution ordered because the offender may lack the ability to pay the total amount. The offender's compliance with the restitution shall be supervised by the department.

(2) Restitution shall be ordered whenever the offender is convicted of an offense which results in injury to any person or damage to or loss of property unless extraordinary circumstances exist which make restitution inappropriate in the court's judgment and the court sets forth such circumstances in the record. In addition, restitution shall be ordered to pay for an injury, loss, or damage if the offender pleads guilty to a lesser offense or fewer offenses and agrees with the prosecutor's recommendation that the offender be required to pay restitution to a victim of an offense or offenses which are not prosecuted pursuant to a plea agreement.

(4) This section does not limit civil remedies or defenses available to the victim, survivors of the victim, or defendant. The court shall identify in the judgment and sentence the victim or victims entitled to restitution and what amount is due each victim. The state or victim may enforce the court-ordered restitution in the same manner as a judgment in a civil action. Restitution collected through civil enforcement must be paid through the registry of the court and must be distributed proportionately according to each victim's loss when there is more than one victim.

(5) This section shall apply to offenses committed after July 1, 1985.

Sec. 3. RCW 9.94A.145 and 1991 c 93 s 2 are each amended to read as follows:

(1) Whenever a person is convicted of a felony, the court may order the payment of a legal financial obligation as part of the sentence. The court must on either the judgment and sentence or on a subsequent order to pay, designate the total amount of a legal financial obligation and segregate this amount among the separate assessments made for restitution, costs, fines, and other assessments required by law. On the same order, the court is also to set a sum that the offender is required to pay on a monthly basis towards satisfying the legal financial obligation. If the court fails to set the offender monthly payment amount, the department shall set the amount. Upon receipt of an offender's monthly payment, after restitution is satisfied, the county clerk shall distribute the payment proportionally among all other fines, costs, and assessments imposed, unless otherwise ordered by the court.

(2) If the court determines that the offender, at the time of sentencing, has the means to pay for the cost of incarceration, the court may require the offender to pay for the cost of incarceration at a rate of fifty dollars per day of incarceration. Payment of other court-ordered financial obligations, including all legal financial obligations and costs of supervision shall take precedence over the payment of the cost of incarceration ordered by the court. All funds recovered from offenders for the cost of incarceration in the county jail shall be remitted to the county and the costs of incarceration in a prison shall be remitted to the department of corrections.

(3) The court may add to the judgment and sentence or subsequent order to pay a statement that a notice of payroll deduction is to be immediately issued. If the court chooses not to order the immediate issuance of a notice of payroll deduction at sentencing, the court shall add to the judgment and sentence or subsequent order to pay a statement that a notice of payroll deduction may be issued or other income-withholding action may be taken, without further notice to the offender if a monthly court-ordered legal financial obligation payment is not paid when due, and an amount equal to or greater than the amount payable for one month is owed.

If a judgment and sentence or subsequent order to pay does not include the statement that a notice of payroll deduction may be issued or other income-withholding action may be taken if a monthly legal financial obligation payment is past due, the department may serve a notice on the offender stating such requirements and authorizations. Service shall be by personal service or any form of mail requiring a return receipt.

(4) All legal financial obligations that are ordered as a result of a conviction for a felony, may also be enforced in the same manner as a judgment in a civil action by the party or entity to whom the legal financial obligation is owed. Restitution collected through civil enforcement must be paid through the registry of the court and must be distributed proportionately according to each victim's loss when there is more than one victim. The judgment and sentence shall identify the party or entity to whom restitution is owed so that the state, party, or entity may enforce the judgment. These obligations may be enforced at any time during the ten-year period following the offender's release from total confinement or within ten years of entry of the judgment and sentence, whichever period is longer. Independent of the department, the party or entity to whom the legal financial obligation is owed shall have the authority to utilize any other remedies available to the party or entity to collect the legal financial obligation.

(5) In order to assist the court in setting a monthly sum that the offender must pay during the period of supervision, the offender is required to report to the department for purposes of preparing a recommendation to the court. When reporting, the offender is required, under oath, to truthfully and honestly respond to all questions concerning present, past, and future earning capabilities and the location and nature of all property or financial assets. The offender is further required to bring any and all documents as requested by the department.

(6) After completing the investigation, the department shall make a report to the court on the amount of the monthly payment that the offender should be required to make towards a satisfied legal financial obligation.

(7) During the period of supervision, the department may make a recommendation to the court that the offender's monthly payment schedule be modified so as to reflect a change in financial circumstances. If the department sets the monthly payment amount, the department may modify the monthly payment amount without the matter being returned to the court. Also, during the period of supervision, the offender may be required at the request of the department to report to the department for the purposes of reviewing the appropriateness of the collection schedule for the legal financial obligation. During this reporting, the offender is required under oath to truthfully and honestly respond to all questions concerning earning capabilities and the location and nature of all property or financial assets. Also, the offender is required to bring any and all documents as requested by the department in order to prepare the collection schedule.

(8) After the judgment and sentence or payment order is entered, the department shall for any period of supervision be authorized to collect the legal financial obligation from the offender. Any amount collected by the department shall be remitted daily to the county clerk for the purposes of disbursements. The department is authorized to accept credit cards as payment for a legal financial obligation, and any costs incurred related to accepting credit card payments shall be the responsibility of the offender.

(9) The department or any obligee of the legal financial obligation may seek a mandatory wage assignment for the purposes of obtaining satisfaction for the legal financial obligation pursuant to RCW 9.94A.2001.

(10) The requirement that the offender pay a monthly sum towards a legal financial obligation constitutes a condition or requirement of a sentence and the offender is subject to the penalties as provided in RCW 9.94A.200 for noncompliance.

(11) The county clerk shall provide the department with individualized monthly billings for each offender with an unsatisfied legal financial obligation and shall provide the department with notice of payments by such offenders no less frequently than weekly.

Sec. 4. RCW 6.17.020 and 1994 c 189 s 1 are each amended to read as follows:

(1) Except as provided in subsections (2) ((and)), (3), and (4) of this section, the party in whose favor a judgment of a court of record of this state or a district court of this state has been or may be rendered, or the assignee, may have an execution issued for the collection or enforcement of the judgment at any time within ten years from entry of the judgment.

(2) After July 23, 1989, a party who obtains a judgment or order of a court of record of any state, or an administrative order entered as defined in RCW 74.20A.020(6) for accrued child support, may have an execution issued upon that judgment or order at any time within ten years of the eighteenth birthday of the youngest child named in the order for whom support is ordered.

(3) After June 9, 1994, a party in whose favor a judgment has been rendered pursuant to subsection (1) or (4) of this section may, within ninety days before the expiration of the original ten-year period, apply to the court that rendered the judgment for an order granting an additional ten years during which an execution may be issued. The petitioner shall pay to the court a filing fee equal to the filing fee for filing the first or initial paper in a civil action in the court. When application is made to the court to grant an additional ten years, the application shall be accompanied by a current and updated judgment summary as outlined in RCW 4.64.030. The filing fee required under this subsection shall be included in the judgment summary and shall be a recoverable cost.

(4) A party who obtains a judgment or order for restitution or other court-ordered legal financial obligations pursuant to a criminal judgment and sentence may execute the judgment or order any time within ten years subsequent to the entry of the judgment and sentence or ten years following the offender's release from total confinement as provided in chapter 9.94A RCW.

NEW SECTION. Sec. 5. Sections 1 and 2 of this act shall apply retroactively to allow courts to set restitution in cases sentenced prior to the effective date of this act if:

(1) The court failed to set restitution within sixty days of sentencing as required by RCW 9.94A.140 prior to the effective date of this act;

(2) The defendant was sentenced no more than three hundred sixty-five days before the effective date of this act; and

(3) The defendant is not unfairly prejudiced by the delay.

In those cases, the court may set restitution within one hundred eighty days of the effective date of this act or at a later hearing set by the court for good cause."

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

On page 1, line 1 of the title, after "restitution;" strike the remainder of the title and insert "amending RCW 9.94A.140, 9.94A.142, 9.94A.145, and 6.17.020; and creating a new section."

MOTION

On motion of Senator Smith, the rules were suspended, Substitute House Bill No. 1047, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1047, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1047, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

Excused: Senators Anderson, C., Heavey, Loveland, McCaslin, Moyer and Quigley - 6.

SUBSTITUTE HOUSE BILL NO. 1047, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

At 2:05 p.m., on motion of Senator Spanel, the Senate was declared to be at ease.

The Senate was called to order at 2:17 p.m. by President Pritchard.

SECOND READING

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1080, by House Committee on Agriculture and Ecology (originally sponsored by Representatives Pennington, Chappell, McMorris, Carlson, Benton, McMahan, B. Thomas, Clements, Brumsickle, Boldt, Hatfield, Buck, Campbell, Delvin, Johnson, Sheldon, Mulliken, Kessler, Basich, Fuhrman, Morris, Huff, Honeyford, Chandler, Elliot, Schoesler and Sheahan)

Establishing an exemption to the outdoor burning permit program for certain nonurban areas.

The bill was read the second time.

MOTIONS

Senator Fraser moved that the following Committee on Ecology and Parks amendment be adopted:

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 70.94.745 and 1991 c 199 s 401 are each amended to read as follows:

(1) It shall be the responsibility and duty of the department of natural resources, department of ecology, department of agriculture, fire districts, and local air pollution control authorities to establish, through regulations, ordinances, or policy, a limited burning permit program ((for the people of this state, consisting of a one-permit system, until such time as)).

(2) The permit program shall apply to residential and land clearing burning in the following areas:

(a) In the nonurban areas of any county with an unincorporated population of greater than fifty thousand; and

(b) In any city and urban growth area that is not otherwise prohibited from burning pursuant to RCW 70.94.743.

(3) The permit program shall apply only to land clearing burning in the nonurban areas of any county with an unincorporated population of less than fifty thousand.

(4) The permit program may be limited to a general permit by rule, or by verbal, written, or electronic approval by the permitting entity.

(5) Burning shall be prohibited in an area when an alternate technology or method((s)) of disposing of the organic refuse ((have been developed that are)) is available, reasonably economical, and less harmful to the environment. It is the policy of this state to foster and encourage development of alternate methods or technology for disposing of or reducing the amount of organic refuse.

(6) As used in this section, "nonurban areas" are unincorporated areas within a county that is not designated as an urban growth area under chapter 36.70A RCW.

(7) Nothing in this section shall require fire districts to enforce air quality requirements related to outdoor burning, unless the fire district enters into an agreement with the department of ecology, department of natural resources, a local air pollution control authority, or other appropriate entity to provide such enforcement."

On motion of Senator Hale, the following amendment by Senators Hale, Loveland, Newhouse, Deccio, Hochstatter, Snyder and Fraser to the Committee on Ecology and Parks striking amendment was adopted:

On page 1, after line 25, insert the following:

"(5) Notwithstanding any other provision of this section, neither a permit nor the payment of a fee shall be required for outdoor burning for the purpose of disposal of tumbleweeds blown by wind. Such burning shall not be conducted during an air pollution episode or any stage of impaired air quality declared under RCW 70.94.714. This subsection (5) shall only apply within counties with a population less than 250,000."

Renumber subsections consecutively.

MOTION

On motion of Senator Newhouse, the following amendments by Senators Newhouse, Hale, Loveland and Snyder to the Committee on Ecology and Parks striking amendment were considered simultaneously and were adopted:

On page 1, line 32 of the amendment, after "(6)" insert "Incidental agricultural burning must be allowed without applying for any permit and without the payment of any fee if:

(a) The burning is incidental to commercial agricultural activities;

(b) The operator notifies the local fire department within the area where the burning is to be conducted;

(c) The burning does not occur during an air pollution episode or any stage of impaired air quality declared under RCW 70.94.715; and

(d) Only the following items are burned:

(i) Orchard prunings;

(ii) Organic debris along fence lines or irrigation or drainage ditches; or

(iii) Organic debris blown by wind.

(7)"

On page 1, at the beginning of line 35 of the amendment, strike "(7)" and insert "(8)"

The President declared the question before the Senate to be the adoption of the Committee on Ecology and Parks striking amendment, as amended, to Engrossed Substitute House Bill No. 1080.

The Committee on Ecology and Parks striking amendment, as amended, was adopted.

MOTIONS

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

On page 1, line 2 of the title, after "requirements;" strike the remainder of the title and insert "and amending RCW 70.94.745."

On motion of Senator Fraser, the rules were suspended, Engrossed Substitute House Bill No. 1080, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

POINT OF INQUIRY

Senator Owen: "Senator Snyder, on page 1, lines 21 to 23, does this language mean residential burning is allowed without any permit process?"

Senator Snyder: "Yes."

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1080, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1080, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 44.

Excused: Senators Anderson, C., Heavey, McCaslin, Moyer and Quigley - 5.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1080, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

On motion of Senator Kohl, Senators Loveland and Owen were excused.

SECOND READING

ENGROSSED HOUSE BILL NO. 1550, by Representatives Smith, Scott, Blanton, Benton, Campbell, Mielke, Huff, Lambert, Sheahan, Robertson, Carrell, McMahan, Padden, Delvin, Thompson and Kremen

Allowing warrantless arrest for criminal trespass.

The bill was read the second time.

MOTION

On motion of Senator Smith, the rules were suspended, Engrossed House Bill No. 1550 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 1550.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed House Bill No. 1550 and the bill passed the Senate by the following vote: Yeas, 40; Nays, 2; Absent, 0; Excused, 7.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Fraser, Gaspard, Hale, Haugen, Hochstatter, Johnson, Kohl, Long, McAuliffe, McDonald, Morton, Newhouse, Oke, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 40.

Voting nay: Senators Franklin and Hargrove - 2.

Excused: Senators Anderson, C., Heavey, Loveland, McCaslin, Moyer, Owen and Quigley - 7.

ENGROSSED HOUSE BILL NO. 1550, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

HOUSE BILL NO. 2022, by Representative Fuhrman

Making mining claims.

The bill was read the second time.

MOTION

On motion of Senator Drew, the rules were suspended, House Bill No. 2022 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 2022.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 2022 and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Johnson, Kohl, Long, McAuliffe, McDonald, Morton, Newhouse, Oke, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 42.

Excused: Senators Anderson, C., Heavey, Loveland, McCaslin, Moyer, Owen and Quigley - 7.

HOUSE BILL NO. 2022, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1414, by House Committee on Commerce and Labor (originally sponsored by Representatives Conway, Lisk, Chandler, Fuhrman, Goldsmith, Cole and Romero)

Defining "acting in the course of employment."

The bill was read the second time.

MOTION

On motion of Senator Pelz, the rules were suspended, Substitute House Bill No. 1414 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1414.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1414 and the bill passed the Senate by the following vote: Yeas, 40; Nays, 0; Absent, 2; Excused, 7.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Hochstatter, Johnson, Kohl, Long, McAuliffe, McDonald, Morton, Newhouse, Oke, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 40.

Absent: Senators Fairley and Hargrove - 2.

Excused: Senators Anderson, C., Heavey, Loveland, McCaslin, Moyer, Owen and Quigley - 7.

SUBSTITUTE HOUSE BILL NO. 1414, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

On motion of Senator Kohl, Senators Fairley, Hargrove and Pelz were excused.

SECOND READING

HOUSE BILL NO. 1858, by Representatives Ballasiotes, Costa, Robertson, Cody, Morris, Regala, Chopp, Ogden, Mitchell, Tokuda, Appelwick, Honeyford, Radcliff, Blanton, Dickerson, Campbell, Conway, Kessler and Ebersole

Establishing the office of crime victims advocacy in the department of community, trade, and economic development.

The bill was read the second time.

MOTIONS

On motion of Senator Haugen, the following Committee on Government Operations amendment was adopted:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 43.280 RCW to read as follows:

The office of crime victims advocacy is established in the department of community, trade, and economic development. The office shall assist communities in planning and implementing services for crime victims, advocate on behalf of crime victims in obtaining needed services and resources, and advise local and state governments on practices, policies, and priorities that impact crime victims. In addition, the office shall administer grant programs for sexual assault treatment and prevention services, as authorized in this chapter."

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

On page 1, line 1 of the title, after "advocacy;" strike the remainder of the title and insert "and adding a new section to chapter 43.280 RCW."

MOTION

On motion of Senator Haugen, the rules were suspended, House Bill No. 1858, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1858, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1858, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 39; Nays, 0; Absent, 0; Excused, 10.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Hochstatter, Johnson, Kohl, Long, McAuliffe, McDonald, Morton, Newhouse, Oke, Palmer, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 39.

Excused: Senators Anderson, C., Fairley, Hargrove, Heavey, Loveland, McCaslin, Moyer, Owen, Pelz and Quigley - 10.

HOUSE BILL NO. 1858, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1206, by House Committee on Appropriations (originally sponsored by Representatives Carlson, Sommers, Cooke and Dellwo)

Restructuring the retirement systems.

The bill was read the second time.

MOTIONS

On motion of Senator Bauer, the following Committee on Ways and Means amendment was adopted:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature recognizes that teachers, principals, and district administrators need the ability to make transitions to other public or private sector careers, and that the retirement system should not be a barrier to exercise of employee choice. The legislature also recognizes that teachers, principals, and district administrators need a secure and viable retirement benefit, not only for their own financial protection, but also that public funds are spent prudently for their intended purpose.

It is the legislative intent to create a new public retirement system that balances flexibility with stability, provides both increased employee control of investments and responsible protection of the public's investment in employee benefits, and encourages the pursuit of public sector careers without preventing employees from transitioning into other public or private sector employment.

Therefore, the purpose of chapter . . ., Laws of 1995 (this act) is to continue to provide teachers, principals, and district administrators with a guaranteed pension at retirement age based on years of public service with an element of inflation protection. It is further the purpose of chapter . . ., Laws of 1995 (this act) to create a parallel retirement plan where employees have options regarding the investment of their retirement contributions and have the opportunity, along with the accompanying risk, to receive a full rate of return on their investments and where employees who leave public employment prior to retirement receive a fair and reasonable value from the retirement system.

PART I

DEFINED BENEFIT--TRS III

Sec. 101. RCW 41.32.005 and 1992 c 72 s 4 are each amended to read as follows:

RCW 41.32.010 through 41.32.067 shall apply to members of plan I ((and)), plan II, and plan III.

Sec. 102. RCW 41.32.010 and 1994 c 298 s 3, 1994 c 247 s 2, and 1994 c 197 s 12 are each reenacted and amended to read as follows:

As used in this chapter, unless a different meaning is plainly required by the context:

(1)(a) "Accumulated contributions" for plan I members, means the sum of all regular annuity contributions and, except for the purpose of withdrawal at the time of retirement, any amount paid under RCW 41.50.165(2) with regular interest thereon.

(b) "Accumulated contributions" for plan II members, means the sum of all contributions standing to the credit of a member in the member's individual account, including any amount paid under RCW 41.50.165(2), together with the regular interest thereon.

(2) "Actuarial equivalent" means a benefit of equal value when computed upon the basis of such mortality tables and regulations as shall be adopted by the director and regular interest.

(3) "Annuity" means the moneys payable per year during life by reason of accumulated contributions of a member.

(4) "Member reserve" means the fund in which all of the accumulated contributions of members are held.

(5)(a) "Beneficiary" for plan I members, means any person in receipt of a retirement allowance or other benefit provided by this chapter.

(b) "Beneficiary" for plan II and plan III members, means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by another person.

(6) "Contract" means any agreement for service and compensation between a member and an employer.

(7) "Creditable service" means membership service plus prior service for which credit is allowable. This subsection shall apply only to plan I members.

(8) "Dependent" means receiving one-half or more of support from a member.

(9) "Disability allowance" means monthly payments during disability. This subsection shall apply only to plan I members.

(10)(a) "Earnable compensation" for plan I members, means:

(i) All salaries and wages paid by an employer to an employee member of the retirement system for personal services rendered during a fiscal year. In all cases where compensation includes maintenance the employer shall fix the value of that part of the compensation not paid in money.

(ii) "Earnable compensation" for plan I members also includes the following actual or imputed payments, which are not paid for personal services:

(A) Retroactive payments to an individual by an employer on reinstatement of the employee in a position, or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wages which the individual would have earned during a payroll period shall be considered earnable compensation and the individual shall receive the equivalent service credit.

(B) If a leave of absence, without pay, is taken by a member for the purpose of serving as a member of the state legislature, and such member has served in the legislature five or more years, the salary which would have been received for the position from which the leave of absence was taken shall be considered as compensation earnable if the employee's contribution thereon is paid by the employee. In addition, where a member has been a member of the state legislature for five or more years, earnable compensation for the member's two highest compensated consecutive years of service shall include a sum not to exceed thirty-six hundred dollars for each of such two consecutive years, regardless of whether or not legislative service was rendered during those two years.

(iii) For members employed less than full time under written contract with a school district, or community college district, in an instructional position, for which the member receives service credit of less than one year in all of the years used to determine the earnable compensation used for computing benefits due under RCW 41.32.497, 41.32.498, and 41.32.520, the member may elect to have earnable compensation defined as provided in RCW 41.32.345. For the purposes of this subsection, the term "instructional position" means a position in which more than seventy-five percent of the member's time is spent as a classroom instructor (including office hours), a librarian, or a counselor. Earnable compensation shall be so defined only for the purpose of the calculation of retirement benefits and only as necessary to insure that members who receive fractional service credit under RCW 41.32.270 receive benefits proportional to those received by members who have received full-time service credit.

(iv) "Earnable compensation" does not include:

(A) Remuneration for unused sick leave authorized under RCW 41.04.340, 28A.400.210, or 28A.310.490;

(B) Remuneration for unused annual leave in excess of thirty days as authorized by RCW 43.01.044 and 43.01.041.

(b) "Earnable compensation" for plan II and plan III members, means salaries or wages earned by a member during a payroll period for personal services, including overtime payments, and shall include wages and salaries deferred under provisions established pursuant to sections 403(b), 414(h), and 457 of the United States Internal Revenue Code, but shall exclude lump sum payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, or any form of severance pay.

"Earnable compensation" for plan II and plan III members also includes the following actual or imputed payments which, except in the case of (b)(ii)(B) of this subsection, are not paid for personal services:

(i) Retroactive payments to an individual by an employer on reinstatement of the employee in a position or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wages which the individual would have earned during a payroll period shall be considered earnable compensation, to the extent provided above, and the individual shall receive the equivalent service credit.

(ii) In any year in which a member serves in the legislature the member shall have the option of having such member's earnable compensation be the greater of:

(A) The earnable compensation the member would have received had such member not served in the legislature; or

(B) Such member's actual earnable compensation received for teaching and legislative service combined. Any additional contributions to the retirement system required because compensation earnable under (b)(ii)(A) of this subsection is greater than compensation earnable under (b)(ii)(B) of this subsection shall be paid by the member for both member and employer contributions.

(11) "Employer" means the state of Washington, the school district, or any agency of the state of Washington by which the member is paid.

(12) "Fiscal year" means a year which begins July 1st and ends June 30th of the following year.

(13) "Former state fund" means the state retirement fund in operation for teachers under chapter 187, Laws of 1923, as amended.

(14) "Local fund" means any of the local retirement funds for teachers operated in any school district in accordance with the provisions of chapter 163, Laws of 1917 as amended.

(15) "Member" means any teacher included in the membership of the retirement system. Also, any other employee of the public schools who, on July 1, 1947, had not elected to be exempt from membership and who, prior to that date, had by an authorized payroll deduction, contributed to the member reserve.

(16) "Membership service" means service rendered subsequent to the first day of eligibility of a person to membership in the retirement system: PROVIDED, That where a member is employed by two or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service is rendered. The provisions of this subsection shall apply only to plan I members.

(17) "Pension" means the moneys payable per year during life from the pension reserve.

(18) "Pension reserve" is a fund in which shall be accumulated an actuarial reserve adequate to meet present and future pension liabilities of the system and from which all pension obligations are to be paid.

(19) "Prior service" means service rendered prior to the first date of eligibility to membership in the retirement system for which credit is allowable. The provisions of this subsection shall apply only to plan I members.

(20) "Prior service contributions" means contributions made by a member to secure credit for prior service. The provisions of this subsection shall apply only to plan I members.

(21) "Public school" means any institution or activity operated by the state of Washington or any instrumentality or political subdivision thereof employing teachers, except the University of Washington and Washington State University.

(22) "Regular contributions" means the amounts required to be deducted from the compensation of a member and credited to the member's individual account in the member reserve. This subsection shall apply only to plan I members.

(23) "Regular interest" means such rate as the director may determine.

(24)(a) "Retirement allowance" for plan I members, means monthly payments based on the sum of annuity and pension, or any optional benefits payable in lieu thereof.

(b) "Retirement allowance" for plan II and plan III members, means monthly payments to a retiree or beneficiary as provided in this chapter.

(25) "Retirement system" means the Washington state teachers' retirement system.

(26)(a) "Service" for plan I members means the time during which a member has been employed by an employer for compensation.

(i) If a member is employed by two or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service is rendered.

(ii) As authorized by RCW 28A.400.300, up to forty-five days of sick leave may be creditable as service solely for the purpose of determining eligibility to retire under RCW 41.32.470.

(iii) As authorized in RCW 41.32.065, service earned in an out-of-state retirement system that covers teachers in public schools may be applied solely for the purpose of determining eligibility to retire under RCW 41.32.470.

(b) "Service" for plan II and plan III members, means periods of employment by a member for one or more employers for which earnable compensation is earned subject to the following conditions:

(i) A member employed in an eligible position or as a substitute shall receive one service credit month for each month of September through August of the following year if he or she earns earnable compensation for eight hundred ten or more hours during that period and is employed during nine of those months, except that a member may not receive credit for any period prior to the member's employment in an eligible position except as provided in RCW 41.32.812 and 41.50.132;

(ii) If a member is employed either in an eligible position or as a substitute teacher for nine months of the twelve month period between September through August of the following year but earns earnable compensation for less than eight hundred ten hours but for at least six hundred thirty hours, he or she will receive one-half of a service credit month for each month of the twelve month period;

(iii) All other members in an eligible position or as a substitute teacher shall receive service credit as follows:

(A) A service credit month is earned in those calendar months where earnable compensation is earned for ninety or more hours;

(B) A half-service credit month is earned in those calendar months where earnable compensation is earned for at least seventy hours but less than ninety hours; and

(C) A quarter-service credit month is earned in those calendar months where earnable compensation is earned for less than seventy hours.

(iv) Any person who is a member of the teachers' retirement system and who is elected or appointed to a state elective position may continue to be a member of the retirement system and continue to receive a service credit month for each of the months in a state elective position by making the required member contributions.

(v) When an individual is employed by two or more employers the individual shall only receive one month's service credit during any calendar month in which multiple service for ninety or more hours is rendered.

(vi) As authorized by RCW 28A.400.300, up to forty-five days of sick leave may be creditable as service solely for the purpose of determining eligibility to retire under RCW 41.32.470. For purposes of plan II "forty-five days" as used in RCW 28A.400.300 is equal to two service credit months. Use of less than forty-five days of sick leave is creditable as allowed under this subsection as follows:

(A) Less than eleven days equals one-quarter service credit month;

(B) Eleven or more days but less than twenty-two days equals one-half service credit month;

(D) More than twenty-two days but less than thirty-three days equals one and one-quarter service credit month;

(E) Thirty-three or more days but less than forty-five days equals one and one-half service credit month.

(vii) As authorized in RCW 41.32.065, service earned in an out-of-state retirement system that covers teachers in public schools may be applied solely for the purpose of determining eligibility to retire under RCW 41.32.470.

(viii) The department shall adopt rules implementing this subsection.

(27) "Service credit year" means an accumulation of months of service credit which is equal to one when divided by twelve.

(28) "Service credit month" means a full service credit month or an accumulation of partial service credit months that are equal to one.

(29) "Teacher" means any person qualified to teach who is engaged by a public school in an instructional, administrative, or supervisory capacity. The term includes state, educational service district, and school district superintendents and their assistants and all employees certificated by the superintendent of public instruction; and in addition thereto any full time school doctor who is employed by a public school and renders service of an instructional or educational nature.

(30) "Average final compensation" for plan II and plan III members, means the member's average earnable compensation of the highest consecutive sixty service credit months prior to such member's retirement, termination, or death. Periods constituting authorized leaves of absence may not be used in the calculation of average final compensation except under RCW 41.32.810(2).

(31) "Retiree" means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer while a member. A person is in receipt of a retirement allowance as defined in subsection (24) of this section or other benefit as provided by this chapter when the department mails, causes to be mailed, or otherwise transmits the retirement allowance warrant.

(32) "Department" means the department of retirement systems created in chapter 41.50 RCW.

(33) "Director" means the director of the department.

(34) "State elective position" means any position held by any person elected or appointed to state-wide office or elected or appointed as a member of the legislature.

(35) "State actuary" or "actuary" means the person appointed pursuant to RCW 44.44.010(2).

(36) "Substitute teacher" means:

(a) A teacher who is hired by an employer to work as a temporary teacher, except for teachers who are annual contract employees of an employer and are guaranteed a minimum number of hours; or

(b) Teachers who either (i) work in ineligible positions for more than one employer or (ii) work in an ineligible position or positions together with an eligible position.

(37)(a) "Eligible position" for plan II members from June 7, 1990, through September 1, 1991, means a position which normally requires two or more uninterrupted months of creditable service during September through August of the following year.

(b) "Eligible position" for plan II and plan III on and after September 1, 1991, means a position that, as defined by the employer, normally requires five or more months of at least seventy hours of earnable compensation during September through August of the following year.

(c) For purposes of this chapter an employer shall not define "position" in such a manner that an employee's monthly work for that employer is divided into more than one position.

(d) The elected position of the superintendent of public instruction is an eligible position.

(38) "Plan I" means the teachers' retirement system, plan I providing the benefits and funding provisions covering persons who first became members of the system prior to October 1, 1977.

(39) "Plan II" means the teachers' retirement system, plan II providing the benefits and funding provisions covering persons who first became members of the system on and after October 1, 1977, and prior to the effective date of this act.

(40) "Plan III" means the teachers' retirement system, plan III providing the benefits and funding provisions covering persons who first become members of the system on and after the effective date of this act or who transfer under section 303 of this act.

(41) "Education association" means an association organized to carry out collective bargaining activities, the majority of whose members are employees covered by chapter 41.59 RCW or academic employees covered by chapter 28B.52 RCW.

(42) "Index" means, for any calendar year, that year's annual average consumer price index, Seattle, Washington area, for urban wage earners and clerical workers, all items compiled by the bureau of labor statistics, United States department of labor.

(((41))) (43) "Index A" means the index for the year prior to the determination of a postretirement adjustment.

(((42))) (44) "Index B" means the index for the year prior to index A.

(((43))) (45) "Index year" means the earliest calendar year in which the index is more than sixty percent of index A.

(((44))) (46) "Adjustment ratio" means the value of index A divided by index B.

Sec. 103. RCW 41.32.032 and 1992 c 212 s 17 are each amended to read as follows:

(1) Any teacher, as defined under RCW 41.32.010, who is first employed by a public school on or after June 7, 1984, shall become a member of the retirement system ((as directed under RCW 41.32.780)) if otherwise eligible.

(2) Any person who before June 7, 1984, has established service credit under chapter 41.40 RCW while employed in an educational staff associate position and who is employed in such a position on or after June 7, 1984 has the following options:

(a) To remain a member of the public employees' retirement system notwithstanding the provisions of RCW 41.32.240 or 41.32.780; or

(b) To irrevocably elect to join the retirement system under this chapter and to receive service credit for previous periods of employment in any position included under RCW 41.32.010. This service credit and corresponding employee contribution shall be computed as though the person had then been a member of the retirement system under this chapter. All employee contributions credited to a member under chapter 41.40 RCW for service now to be credited to the retirement system under this chapter shall be transferred to the system and the member shall not receive any credit nor enjoy any rights under chapter 41.40 RCW for those periods of service. The member shall pay any difference between the employee contributions made under chapter 41.40 RCW and transferred under this subsection and what would have been required under this chapter, including interest as set by the director. The member shall be given until July 1, 1989, to make the irrevocable election permitted under this section. The election shall be made by submitting written notification as required by the department requesting credit under this section and by remitting any necessary proof of service or payments within the time set by the department.

Any person, not employed as an educational staff associate on June 7, 1984, may, before June 30 of the fifth school year after that person's return to employment as a teacher, request and establish membership and credit under this subsection.

PLAN III

NEW SECTION. Sec. 104. (1) Sections 104 through 117 of this act shall apply only to plan III members.

(2) Plan III shall consist of two separate elements: (a) A defined benefit portion covered under this subchapter; and (b) a defined contribution portion covered under chapter 41.-- RCW (sections 201 through 209 of this act). All contributions on behalf of the employer paid by an employee shall be made to the defined benefit portion of plan III and shall be nonrefundable when paid to the fund described in RCW 41.50.075(3).

(3) Unless otherwise specified, all references to "plan III" in this subchapter refer to the defined benefit portion of plan III.

NEW SECTION. Sec. 105. All teachers who first become employed by an employer in an eligible position on or after the effective date of this act shall be members of plan III.

NEW SECTION. Sec. 106. A member of the retirement system shall receive a retirement allowance equal to one percent of such member's average final compensation for each service credit year.

NEW SECTION. Sec. 107. Retirement allowances paid under the defined benefit portion of plan III shall have a postretirement cost-of-living allowance calculated and paid as provided in RCW 41.32.770.

NEW SECTION. Sec. 108. (1) Upon retirement for service as prescribed in section 113 of this act or retirement for disability under section 114 of this act, a member shall elect to have the retirement allowance paid pursuant to one of the following options, calculated so as to be actuarially equivalent to each other.

(a) Standard allowance. A member electing this option shall receive a retirement allowance payable throughout such member's life. Upon the death of the retired member, all benefits shall cease.

(b) The department shall adopt rules that allow a member to select a retirement option that pays the member a reduced retirement allowance and upon death, such portion of the member's reduced retirement allowance as the department by rule designates shall be continued throughout the life of and paid to such person or persons as the retiree shall have nominated by written designation duly executed and filed with the department at the time of retirement. The options adopted by the department shall include, but are not limited to, a joint and one hundred percent survivor option and joint and fifty percent survivor option.

(2) A member, if married, must provide the written consent of his or her spouse to the option selected under this section. If a member is married and both the member and the member's spouse do not give written consent to an option under this section, the department shall pay a joint and fifty percent survivor benefit calculated to be actuarially equivalent to the benefit options available under subsection (1) of this section.

NEW SECTION. Sec. 109. Any member or beneficiary eligible to receive a retirement allowance under the provisions of section 113, 114, or 117 of this act shall be eligible to commence receiving a retirement allowance after having filed written application with the department.

(1) Retirement allowances paid to members shall accrue from the first day of the calendar month immediately following such member's separation from employment.

(2) Retirement allowances paid to vested members no longer in service, but qualifying for such an allowance pursuant to section 112 of this act shall accrue from the first day of the calendar month immediately following such qualification.

(3) Disability allowances paid to disabled members shall accrue from the first day of the calendar month immediately following such member's separation from employment for disability.

(4) Retirement allowances paid as death benefits shall accrue from the first day of the calendar month immediately following the member's death.

NEW SECTION. Sec. 110. (1) No retiree shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.40.010 or 41.32.010, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030, except that a plan III retiree may work in eligible positions on a temporary basis for up to five months per calendar year.

(2) If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused the suspension of benefits. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

NEW SECTION. Sec. 111. (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit.

(2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization, and whose employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence, may also be considered to be on a paid leave of absence. This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave. The earnable compensation reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

(3) Except as specified in subsection (4) of this section, a member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer. Such credit may be obtained only if:

(a) The member makes the contribution on behalf of the employer, plus interest, as determined by the department; and

(b) The member makes the employee contribution, plus interest, as determined by the department, to the defined contribution portion.

The contributions required shall be based on the average of the member's earnable compensation at both the time the authorized leave of absence was granted and the time the member resumed employment.

(4) A member who leaves the employ of an employer to enter the armed forces of the United States shall be entitled to retirement system service credit for up to four years of military service if within ninety days of the member's honorable discharge from the United States armed forces, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces.

The department shall bill the employer for its contribution required under this act for the period of military service, plus interest as determined by the department. Service credit under this subsection may be obtained only if the member makes the employee contribution plus interest to the defined contribution portion as determined by the department.

The contributions required shall be based on the average of the member's earnable compensation at both the time the member left the employ of the employer to enter the armed forces and the time the member resumed employment.

NEW SECTION. Sec. 112. (1) The director may pay a member eligible to receive a retirement allowance or the member's beneficiary a lump sum payment in lieu of a monthly benefit if the initial monthly benefit would be less than one hundred dollars. The one hundred dollar limit shall be increased by three percent compounded annually on January 1. The lump sum payment shall be the actuarial equivalent of the monthly benefit.

(2) Persons covered under the provisions of subsection (1) of this section may upon returning to member status reinstate all previous service by depositing the lump sum payment received, with interest as computed by the director, within two years of returning to service or prior to retiring again, whichever comes first. In computing the amount due, the director shall exclude the accumulated value of the normal payments the member would have received while in beneficiary status if the lump sum payment had not occurred.

(3) Any member who receives a settlement under this section shall be deemed to be retired from this system.

NEW SECTION. Sec. 113. (1) NORMAL RETIREMENT. Any member who has vested and attained at least age sixty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of section 106 of this act.

(2) EARLY RETIREMENT. Any member who has attained at least age fifty-five and has completed at least ten years of service shall be eligible to retire and to receive a retirement allowance computed according to the provisions of section 106 of this act, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

NEW SECTION. Sec. 114. (1) A member of the retirement system who becomes totally incapacitated for continued employment by an employer as determined by the department shall be eligible to receive an allowance under the provisions of plan III. The member shall receive a monthly disability allowance computed as provided for in section 106 of this act and shall have this allowance actuarially reduced to reflect the difference in the number of years between age at disability and the attainment of age sixty-five.

Any member who receives an allowance under the provisions of this section shall be subject to comprehensive medical examinations as required by the department. If these medical examinations reveal that a member has recovered from the incapacitating disability and the member is offered reemployment by an employer at a comparable compensation, the member shall cease to be eligible for the allowance.

(2) If the recipient of a monthly retirement allowance under this section dies, any further benefit payments shall be conditioned by the payment option selected by the retiree as provided in section 108 of this act.

NEW SECTION. Sec. 115. (1) An active member shall become vested in the right to a benefit upon completing ten years of service or upon completing five years of service and attaining age fifty-five.

(2) A vested member who separates or has separated may remain a member during the period of such member's absence from service for the exclusive purpose only of receiving a retirement allowance under the provisions of section 113 of this act.

(3) The retirement allowance payable under section 113 of this act to a member who separates after having completed at least twenty years of service shall be increased by twenty-five one-hundredths of one percent, compounded for each month from the date of separation to the date that the retirement allowance commences.

NEW SECTION. Sec. 116. A nonvested member who leaves service and then reenters membership must earn an additional twelve service credit months to restore past service credit in the defined benefit portion of plan III.

NEW SECTION. Sec. 117. If a member who is vested dies prior to retirement, the surviving spouse or eligible child or children shall receive a retirement allowance computed as provided in section 108 of this act actuarially reduced to reflect a joint and one hundred percent survivor option and if the member was not eligible for normal retirement at the date of death a further reduction as described in section 113(2) of this act.

If the surviving spouse who is receiving the retirement allowance dies leaving a child or children under the age of majority, then such child or children shall continue to receive an allowance in an amount equal to that which was being received by the surviving spouse, share and share alike, until such child or children reach the age of majority.

If there is no surviving spouse eligible to receive an allowance at the time of the member's death, such member's child or children under the age of majority shall receive an allowance, share and share alike. The allowance shall be calculated with the assumption that the age of the spouse and member were equal at the time of the member's death.

NEW SECTION. Sec. 118. Sections 104 through 117 of this act are designated as a subchapter within chapter 41.32 RCW with the subchapter heading "Provisions Applicable to Plan III."

PART II

DEFINED CONTRIBUTION PORTION OF PLAN III

NEW SECTION. Sec. 201. The purpose of chapter . . ., Laws of 1995 (this act) is to:

(1) Provide a fair and reasonable value from the retirement system for those who leave public employment before retirement;

(2) Increase flexibility for such employees to make transitions into other public or private sector employment;

(3) Increase employee options for addressing retirement needs, personal financial planning, and career transitions; and

(4) Continue the legislature's established policy of having employees contribute toward their retirement benefits.

NEW SECTION. Sec. 202. As used in this chapter, the following terms have the meanings indicated:

(1) "Actuary" means the state actuary or the office of the state actuary.

(2) "Board" means the employee retirement benefits board authorized in chapter 41.50 RCW.

(3) "Department" means the department of retirement systems.

(4) "Compensation" for purposes of this chapter is the same as "earnable compensation" for plan III in chapter 41.32 RCW.

(5) "Member" means any employee included in the membership of a retirement system as provided for plan III in chapter 41.32 RCW.

(6) "Member account" means the sum of the contributions and earnings on behalf of the member.

(7) "Retiree" means any member in receipt of an allowance or other benefit provided by this chapter resulting from service rendered to an employer by such member.

NEW SECTION. Sec. 203. (1) This chapter applies only to members of plan III retirement systems created under chapter 41.32 RCW.

(2) Plan III consists of two separate elements: (a) A defined benefit portion covered under sections 101 through 117, chapter . . ., Laws of 1995 (sections 101 through 117 of this act); and (b) a defined contribution portion covered under this chapter. Unless specified otherwise, all references to "plan III" in this chapter refer to the defined contribution portion of plan III.

NEW SECTION. Sec. 204. (1) A member shall contribute from his or her compensation according to one of the following rate structures:

Option A Contribution Rate

All Ages 5.0% fixed

Option B

Up to Age 35 5.0%

Age 35 to 44 6.0%

Age 45 and above 7.5%

Option C

Up to Age 35 6.0%

Age 35 to 44 7.5%

Age 45 and above 8.5%

(2) The board shall have the right to offer contribution rate options in addition to those listed in subsection (1) of this section, provided that no significant additional administrative costs are created. All options offered by the board shall conform to the requirements stated in subsections (3) and (4) of this section.

(3) Within ninety days of the date that an employee becomes a member of plan III, he or she has an irrevocable option to choose one of the above contribution rate structures. If the member does not select an option within this ninety-day period, he or she shall be assigned option A. Such assignment shall be irrevocable.

(4) Contributions shall begin the first day of the month immediately following the earlier of the selection of an option or the end of the ninety-day period.

NEW SECTION. Sec. 205. The legislature may authorize contributions to the members' accounts for a biennium through budget appropriation.

NEW SECTION. Sec. 206. The member's account shall be invested by the state investment board unless the member elects to self direct investments as authorized by the board. Members who make this election shall pay the expenses for self-directed investment.

NEW SECTION. Sec. 207. (1) If the member retires, becomes disabled, or otherwise terminates employment, the balance in the member's account may be distributed in accordance with an option selected by the member either as a lump sum or pursuant to other options authorized by the board.

(2) If the member dies while in service, the balance of the member's account may be distributed in accordance with an option selected by the member either as a lump sum or pursuant to other options authorized by the board. The distribution shall be made to such person or persons as the member shall have nominated by written designation duly executed and filed with the department. If there be no such designated person or persons still living at the time of the member's death, the balance of the member's account in the retirement system, less any amount identified as owing to an obligee upon withdrawal of such account balance pursuant to a court order filed under RCW 41.50.670, shall be paid to the member's surviving spouse as if in fact such spouse had been nominated by written designation, or if there is no surviving spouse, then to such person or persons, trust, or organization as the member shall have nominated by written designation duly executed and filed with the department.

(3) The distribution under subsections (1) or (2) of this section shall be less any amount identified as owing to an obligee upon withdrawal pursuant to a court order filed under RCW 41.50.670.

NEW SECTION. Sec. 208. (1) Subject to subsections (2) and (3) of this section, the right of a person to a pension, an annuity, a retirement allowance, any optional benefit, any other right accrued or accruing to any person under the provisions of this chapter, and the various funds created by chapter . . ., Laws of 1995 (this act) and all moneys and investments and income thereof, is hereby exempt from any state, county, municipal, or other local tax, and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or other process of law whatsoever, and shall be unassignable.

(2) This section shall not be deemed to prohibit a beneficiary of a retirement allowance from authorizing deductions therefrom for payment of premiums due on any group insurance policy or plan issued for the benefit of a group comprised of public employees of the state of Washington or its political subdivisions and that has been approved for deduction in accordance with rules that may be adopted by the state health care authority and/or the department. This section shall not be deemed to prohibit a beneficiary of a retirement allowance from authorizing deductions therefrom for payment of dues and other membership fees to any retirement association or organization the membership of which is composed of retired public employees, if a total of three hundred or more of such retired employees have authorized such deduction for payment to the same retirement association or organization.

(3) Subsection (1) of this section shall not prohibit the department from complying with (a) a wage assignment order for child support issued pursuant to chapter 26.18 RCW, (b) an order to withhold and deliver issued pursuant to chapter 74.20A RCW, (c) a notice of payroll deduction issued pursuant to RCW 26.23.060, (d) a mandatory benefits assignment order issued by the department, (e) a court order directing the department to pay benefits directly to an obligee under a dissolution order as defined in RCW 41.50.500(3) which fully complies with RCW 41.50.670 and 41.50.700, or (f) any administrative or court order expressly authorized by federal law.

NEW SECTION. Sec. 209. (1) The retirement plan created by this chapter shall be administered so as to comply with the federal Internal Revenue Code, Title 26 U.S.C., and specifically with plan qualification requirements imposed on governmental plans by section 401(a) of the Internal Revenue Code.

(2) Any section or provision of this chapter which may be susceptible to more than one construction shall be interpreted in favor of the construction most likely to satisfy requirements imposed by section 401(a) of the Internal Revenue Code.

(3) If any section or provision of this chapter is found to be in conflict with the plan qualification requirements for governmental plans in section 401(a) of the Internal Revenue Code, the conflicting part of this chapter is hereby inoperative solely to the extent of the conflict, and such finding shall not affect the operation of the remainder of this chapter.

NEW SECTION. Sec. 210. Sections 201 through 209 of this act shall constitute a new chapter in Title 41 RCW.

PART III

MISCELLANEOUS

NEW SECTION. Sec. 301. A new section is added to chapter 41.50 RCW to read as follows:

(1) The employee retirement benefits board is created within the department of retirement systems.

(2) The board shall be composed of eight members appointed by the governor and one ex officio member as follows:

(a) Three members representing the public employees' retirement system: One retired, two active. The members shall be appointed from a list of nominations submitted by organizations representing each category. The initial term of appointment shall be two years for the retired member, one year for one active member, and three years for the remaining active member.

(b) Three members representing the teachers' retirement system: One retired, two active. The members shall be appointed from a list of nominations submitted by organizations representing each category. The initial term of appointment shall be one year for the retired member, two years for one active member, and three years for the remaining active member.

(c) Two members with experience in defined contribution plan administration. The initial term for these members shall be two years for one member and three years for the remaining member.

(d) The director of the department shall serve ex officio and shall be the chair of the board.

(3) After the initial appointments, members shall be appointed to three-year terms.

(4) The board shall meet at least quarterly during the calendar year, at the call of the chair.

(5) Members of the board shall serve without compensation but shall receive travel expenses as provided for in RCW 43.03.050 and 43.03.060. Such travel expenses shall be reimbursed by the department from the retirement system expense fund.

(6) The board shall adopt rules governing its procedures and conduct of business.

(7) The actuary shall perform all actuarial services for the board and provide advice and support.

(8) The state investment board shall provide advice and support to the board.

NEW SECTION. Sec. 302. A new section is added to chapter 41.50 RCW to read as follows:

The board shall adopt rules as necessary and exercise all the powers and perform all duties prescribed by law with respect to:

(1) The preselection of options for members to choose from for self-directed investment deemed by the board to be in the best interest of the member. At the board's request, the state investment board may provide investment options for purposes of this subsection;

(2) The selection of optional benefit payment schedules available to members and survivors of members upon the death, disability, retirement, or termination of the member. The optional benefit payments may include but not be limited to: Fixed and participating annuities, joint and survivor annuities, and payments that bridge to social security or defined benefit plan payments;

(3) Approval of actuarially equivalent annuities that may be purchased from the combined plan II and plan III funds under RCW 41.50.075 (2) or (3);

(4) Determination of the basis for administrative charges to the self-directed investment fund to offset self-directed account expenses; and

(5) Selection of investment options for the deferred compensation program.

NEW SECTION. Sec. 303. A new section is added to chapter 41.32 RCW under the subchapter heading "Plan II" to read as follows:

(1) Every plan II member employed by an employer in an eligible position may make an irrevocable option to transfer to plan III. For those who elect to transfer:

(a) All service credit in plan II shall be transferred to the defined benefit portion of plan III.

(b) The accumulated contributions in plan II shall be transferred to the member's account in the defined contribution portion established in sections 201 through 209 of this act, pursuant to procedures developed by the department and subject to section 209 of this act.

(c) A member vested on the effective date of this act under plan II shall be automatically vested in plan III upon transfer.

(d) Members employed by an employer in an eligible position on January 1, 1998, who request to transfer to plan III by January 1, 1998, shall have their account in the defined contribution portion of plan III, other than those accumulated contributions attributable to restorations made under RCW 41.50.165(2), increased by twenty percent of their plan II accumulated contributions as of January 1, 1996. If the member who requests to transfer dies before January 1, 1998, the additional payment provided by this subsection shall be paid to the member's estate, or such person or persons, trust, or organization as the member shall have nominated by written designation duly executed and filed with the department.

(e) The legislature reserves the right to discontinue the right to transfer under this section.

(2) This subsection shall also apply to dual members as provided in section 320 of this act.

(3) Any member who elects to transfer to plan III and has eligible unrestored withdrawn contributions in plan II, may subsequently restore such contributions under the provisions of RCW 41.32.825. The restored plan II service credit will be automatically transferred to plan III. Contributions restored will be transferred to the member's account in plan III.

(4) Anyone previously retired from plan II is prohibited from transferring to plan III.

NEW SECTION. Sec. 304. A new section is added to chapter 41.32 RCW under the subchapter heading "Plan II" to read as follows:

Any person who elected pursuant to RCW 41.32.032(2)(a) to remain a member of the public employees' retirement system under chapter 41.40 RCW may make an irrevocable option to transfer to plan III pursuant to section 303 of this act, PROVIDED THAT:

(1) Only service credit for previous periods of employment in a position covered by RCW 41.32.010 is transferred to plan III;

(2) Equivalent accumulated employee and employer contributions attributable to service covered by subsection (1) of this section are transferred to plan III;

(3) Employer contributions transferred under this section shall be paid into the teachers' retirement system combined plan II and III fund.

Any person, not employed as an educational staff associate on the effective date of this act may choose, within one year of the person's return to employment as a teacher, to transfer to plan III under this section.

Sec. 305. RCW 41.45.010 and 1989 c 273 s 1 are each amended to read as follows:

It is the intent of the legislature to provide a dependable and systematic process for funding the benefits provided to members and retirees of the public employees' retirement system, chapter 41.40 RCW; the teachers' retirement system, chapter 41.32 RCW; the law enforcement officers' and fire fighters' retirement system, chapter 41.26 RCW; and the Washington state patrol retirement system, chapter 43.43 RCW.

The funding process established by this chapter is intended to achieve the following goals:

(1) To continue to fully fund the public employees' retirement system plan II, the teachers' retirement system plans II and III, and the law enforcement officers' and fire fighters' retirement system plan II as provided by law;

(2) To fully amortize the total costs of the public employees' retirement system plan I, the teachers' retirement system plan I, and the law enforcement officers' and fire fighters' retirement system plan I not later than June 30, 2024;

(3) To establish predictable long-term employer contribution rates which will remain a relatively constant proportion of the future state budgets; and

(4) To fund, to the extent feasible, benefit increases for plan I members and all benefits for plan II and III members over the working lives of those members so that the cost of those benefits are paid by the taxpayers who receive the benefit of those members' service.

Sec. 306. RCW 41.45.020 and 1989 c 273 s 2 are each amended to read as follows:

As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.

(1) "Council" means the economic and revenue forecast council created in RCW ((82.01.130)) 82.33.010.

(2) "Department" means the department of retirement systems.

(3) "Law enforcement officers' and fire fighters' retirement system plan I," and "law enforcement officers' and fire fighters' retirement system plan II" mean((s)) the benefits and funding provisions ((covering persons who first became members of the law enforcement officers' and fire fighters' retirement system prior to October 1, 1977.

(4) "Law enforcement officers' and fire fighters' retirement system plan II" means the benefits and funding provisions covering persons who first became members of the law enforcement officers' and fire fighters' retirement system on or after October 1, 1977)) under chapter 41.26 RCW.

(((5))) (4) "Public employees' retirement system plan I" ((means the benefits and funding provisions covering persons who first became members of the public employees' retirement system prior to October 1, 1977.

(6) "Public employees' retirement system plan II" means the benefits and funding provisions covering persons who first became members of the public employees' retirement system on or after October 1, 1977)) and "public employees' retirement system plan II" mean the benefits and funding provisions under chapter 41.40 RCW.

(((7))) (5) "Teachers' retirement system plan I," "teachers' retirement system plan II," and "teachers' retirement system plan III" mean((s)) the benefits and funding provisions ((covering persons who first became members of the teachers' retirement system prior to October 1, 1977.

(8) "Teachers' retirement system plan II" means the benefits and funding provisions covering persons who first became members of the teachers' retirement system on or after October 1, 1977)) under chapter 41.32 RCW.

(((9))) (6) "Washington state patrol retirement system" means the retirement benefits provided under chapter 43.43 RCW.

(7) "Unfunded liability" means the unfunded actuarial accrued liability of a retirement system.

(((10))) (8) "Actuary" or "state actuary" means the state actuary employed under chapter 44.44 RCW.

(((11))) (9) "State retirement systems" means the retirement systems listed in RCW 41.50.030.

Sec. 307. RCW 41.45.030 and 1993 c 519 s 17 are each amended to read as follows:

(1) Beginning September 1, ((1989)) 1995, and every ((six)) two years thereafter, the state actuary shall submit to the council information regarding the experience and financial condition of each state retirement system. The council shall review this and such other information as it may require.

(2) ((The council shall review the information submitted by the state actuary and)) By December 31, 1995, and every two years thereafter, the council, by affirmative vote of five councilmembers, shall adopt the following long-term economic assumptions:

(a) Growth in system membership;

(b) Growth in salaries, exclusive of merit or longevity increases;

(d) Investment rate of return.

(3) The council shall work with the department of retirement systems, the state actuary, and the executive director of the state investment board, and shall consider long-term historical averages, in developing the economic assumptions. The assumptions adopted by the council shall be used by the state actuary in conducting valuation studies of the state retirement systems.

(((3) The council may utilize information provided by the state actuary and such other information as it may request.))

Sec. 308. RCW 41.45.050 and 1989 c 273 s 5 are each amended to read as follows:

(1) ((Beginning September 1, 1990,)) Employers of members of the public employees' retirement system, the teachers' retirement system, and the Washington state patrol retirement system shall make contributions to those systems based on the rates established in RCW 41.45.060 and 41.45.070.

(2) ((Beginning September 1, 1990,)) The state shall make contributions to the law enforcement officers' and fire fighters' retirement system based on the rates established in RCW 41.45.060 and 41.45.070. The state treasurer shall transfer the required contributions each month on the basis of salary data provided by the department.

(3) ((Beginning September 1, 1990,)) The department shall bill employers, and the state shall make contributions to the law enforcement officers' and fire fighters' retirement system, using the combined rates established in RCW 41.45.060 and 41.45.070 regardless of the level of pension funding provided in the biennial budget. Any member of an affected retirement system may, by mandamus or other appropriate proceeding, require the transfer and payment of funds as directed in this section.

(4) The contributions received for the public employees' retirement system shall be allocated between the public employees' retirement system plan I fund and public employees' retirement system plan II fund as follows: The contributions necessary to fully fund the public employees' retirement system plan II employer contribution required by RCW 41.40.650 shall first be deposited in the public employees' retirement system plan II fund. All remaining public employees' retirement system employer contributions shall be deposited in the public employees' retirement system plan I fund.

((The employer contributions for the teachers' retirement system, and the state contributions for the law enforcement officers' and fire fighters' retirement system shall be allocated in the same manner as the public employees' retirement system and in accordance with the law enforcement officers' and fire fighters' retirement system plan II and the teachers' retirement system plan II contribution rates required by RCW 41.26.450 and 41.32.775 respectively)) (5) The contributions received for the teachers' retirement system shall be allocated between the plan I fund and the combined plan II and plan III fund as follows: The contributions necessary to fully fund the combined plan II and plan III employer contribution shall first be deposited in the combined plan II and plan III fund. All remaining teachers' retirement system employer contributions shall be deposited in the plan I fund.

(6) The contributions received under RCW 41.26.450 for the law enforcement officers' and fire fighters' retirement system shall be allocated between the law enforcement officers' and fire fighters' retirement system plan I and the law enforcement officers' and fire fighters' retirement system plan II fund as follows: The contributions necessary to fully fund the law enforcement officers' and fire fighters' retirement system plan II employer contributions shall be first deposited in the law enforcement officers' and fire fighters' retirement system plan II fund. All remaining law enforcement officers' and fire fighters' retirement system employer contributions shall be deposited in the law enforcement officers' and fire fighters' retirement system plan I fund.

Sec. 309. RCW 41.45.060 and 1993 c 519 s 19 are each amended to read as follows:

(1) ((For the period of September 1, 1993, through August 31, 1995, the basic state contribution rate for the law enforcement officers' and fire fighters' retirement system, and the basic employer contribution rates for the public employees' retirement system, the teachers' retirement system, and the Washington state patrol retirement system shall be as determined in the 1991 valuations prepared by the office of the state actuary.)) The state actuary shall provide actuarial valuation results based on the assumptions adopted under RCW 41.45.030.

(2) Not later than September 30, ((1994)) 1996, and every two years thereafter((:

(a))), consistent with the assumptions adopted under RCW 41.45.030, the council shall adopt ((the contributions to be used in the ensuing biennial period for the systems specified in subsection (1) of this section.

(b))) both: (a) A basic state contribution rate for the law enforcement officers' and fire fighters' retirement system; and (b) basic employer contribution rates for the public employees' retirement system plan I, the teachers' retirement system plan I, and the Washington state patrol retirement system to be used in the ensuing biennial period.

(3) The employer and state contribution rates adopted by the council shall be the level percentages of pay that are needed:

(a) To fully amortize the total costs of the public employees' retirement system plan I, the teachers' retirement system plan I, the law enforcement officers' and fire fighters' retirement system plan I, and the unfunded liability of the Washington state patrol retirement system not later than June 30, 2024; and

(b) To also continue to fully fund the public employees' retirement system plan II, the teachers' retirement system plans II and III, and the law enforcement officers' and fire fighters' retirement system plan II in accordance with RCW 41.40.650, 41.26.450, and this section.

(4) The aggregate actuarial cost method shall be used to calculate a combined plan II and III employer contribution rate.

(5) The council shall immediately notify the directors of the office of financial management and department of retirement systems of the state and employer contribution rates adopted ((under (a) of this subsection)).

(((c))) (6) The director of the department of retirement systems shall collect those rates adopted by the council ((under this chapter)).

Sec. 310. RCW 41.45.070 and 1990 c 18 s 2 are each amended to read as follows:

(1) ((Beginning September 1, 1991,)) In addition to the basic employer contribution rate established in RCW 41.45.060, the department shall also charge employers of public employees' retirement system, teachers' retirement system, or Washington state patrol retirement system members an additional supplemental rate to pay for the cost of additional benefits, if any, granted to members of those systems ((after January 1, 1990)). The supplemental contribution rates required by this section shall be calculated by the state actuary and shall be charged regardless of language to the contrary contained in the statute which authorizes additional benefits.

(2) ((Beginning September 1, 1991,)) In addition to the basic state contribution rate established in RCW 41.45.060 for the law enforcement officers' and fire fighters' retirement system the department shall also establish a supplemental rate to pay for the cost of additional benefits, if any, granted to members of the law enforcement officers' and fire fighters' retirement system ((after January 1, 1990)). This supplemental rate shall be calculated by the state actuary and the state treasurer shall transfer the additional required contributions regardless of language to the contrary contained in the statute which authorizes the additional benefits.

(3) The supplemental rate charged under this section to fund benefit increases provided to active members of the public employees' retirement system plan I, the teachers' retirement system plan I, the law enforcement officers' and fire fighters' retirement system plan I, and Washington state patrol retirement system, shall be calculated as the level percentage of all members' pay needed to fund the cost of the benefit not later than June 30, 2024.

(4) The supplemental rate charged under this section to fund benefit increases provided to active and retired members of the public employees' retirement system plan II, the teachers' retirement system plan II and plan III, or the law enforcement officers' and fire fighters' retirement system plan II, shall be calculated as the level percentage of all members' pay needed to fund the cost of the benefit, as calculated under RCW 41.40.650, 41.32.775, or 41.26.450, respectively.

(5) The supplemental rate charged under this section to fund postretirement adjustments which are provided on a nonautomatic basis to current retirees shall be calculated as the percentage of pay needed to fund the adjustments as they are paid to the retirees. The supplemental rate charged under this section to fund automatic postretirement adjustments for active or retired members of the public employees' retirement system plan I and the teachers' retirement system plan I shall be calculated as the level percentage of pay needed to fund the cost of the automatic adjustments not later than June 30, 2024.

NEW SECTION. Sec. 311. A new section is added to chapter 41.45 RCW to read as follows:

(1) The required contribution rate for members of the plan II teachers' retirement system shall be fixed at the rates in effect on the effective date of this act, subject to the following:

(a) Beginning September 1, 1998, except as provided in (b) of this subsection, the employee contribution rate shall not exceed the employer plan II and III rates adopted under RCW 41.45.060 and 41.45.070 for the teachers' retirement system;

(b) In addition, the employee contribution rate for plan II shall be increased by fifty percent of the contribution rate increase caused by any plan II benefit increase passed after the effective date of this act.

(2) The required plan II and III contribution rates for employers shall be adopted in the manner described in RCW 41.45.060.

Sec. 312. RCW 41.50.075 and 1991 c 35 s 108 are each amended to read as follows:

(1) Two funds are hereby created and established in the state treasury to be known as the Washington law enforcement officers' and fire fighters' system plan I retirement fund, and the Washington law enforcement officers' and fire fighters' system plan II retirement fund which shall consist of all moneys paid into them in accordance with the provisions of this chapter and chapter 41.26 RCW, whether such moneys take the form of cash, securities, or other assets. The plan I fund shall consist of all moneys paid to finance the benefits provided to members of the law enforcement officers' and fire fighters' retirement system plan I, and the plan II fund shall consist of all moneys paid to finance the benefits provided to members of the law enforcement officers' and fire fighters' retirement system plan II.

(2) All of the assets of the Washington state teachers' retirement system shall be credited according to the purposes for which they are held, to two funds to be maintained in the state treasury, namely, the teachers' retirement system plan I fund and the teachers' retirement system combined plan II and III fund. The plan I fund shall consist of all moneys paid to finance the benefits provided to members of the Washington state teachers' retirement system plan I, and the combined plan II and III fund shall consist of all moneys paid to finance the benefits provided to members of the Washington state teachers' retirement system plan II and III.

(3) There is hereby established in the state treasury two separate funds, namely the public employees' retirement system plan I fund and the public employees' (([retirement system])) retirement system plan II fund. The plan I fund shall consist of all moneys paid to finance the benefits provided to members of the public employees' retirement system plan I, and the plan II fund shall consist of all moneys paid to finance the benefits provided to members of the public employees' retirement system plan II.

(4) There is hereby established in the state treasury the plan III defined contribution fund which shall consist of all contributions and earnings paid on behalf of members, except as otherwise provided.

Sec. 313. RCW 41.50.110 and 1990 c 8 s 3 are each amended to read as follows:

(1) Notwithstanding any provision of law to the contrary, the retirement system expense fund is hereby redesignated as the department of retirement systems expense fund from which shall be paid the expenses of the administration of the department and the expenses of administration of the retirement systems created in chapters 2.10, 2.12, 41.26, 41.32, 41.40, 41.-- (sections 201 through 209 of this act), and 43.43 RCW.

(2) In order to reimburse the department of retirement systems expense fund on an equitable basis the department shall ascertain and report to each employer, as defined in RCW 41.26.030, 41.32.010, or 41.40.010, the sum necessary to defray its proportional share of the entire expense of the administration of the retirement system that the employer participates in during the ensuing biennium or fiscal year whichever may be required. Such sum is to be computed in an amount directly proportional to the estimated entire expense of the administration as the ratio of monthly salaries of the employer's members bears to the total salaries of all members in the entire system. It shall then be the duty of all such employers to include in their budgets or otherwise provide the amounts so required.

(3) The department shall compute and bill each employer, as defined in RCW 41.26.030, 41.32.010, or 41.40.010, at the end of each month for the amount due for that month to the department of retirement systems expense fund and the same shall be paid as are its other obligations. Such computation as to each employer shall be made on a percentage rate of salary established by the department. However, the department may at its discretion establish a system of billing based upon calendar year quarters in which event the said billing shall be at the end of each such quarter.

(4) The director may adjust the expense fund contribution rate for each system at any time when necessary to reflect unanticipated costs or savings in administering the department.

(((3) All employers shall pay a standard fee to the department to cover the cost of administering the system.)) (5) An employer who fails to submit timely and accurate reports to the department may be assessed an additional fee related to the increased costs incurred by the department in processing the deficient reports. Fees paid under this subsection shall be deposited in the retirement system expense fund.

(a) Every six months the department shall determine the amount of an employer's fee by reviewing the timeliness and accuracy of the reports submitted by the employer in the preceding six months. If those reports were not both timely and accurate the department may prospectively assess an additional fee under this subsection.

(b) An additional fee assessed by the department under this subsection shall not exceed fifty percent of the standard fee.

(6) Expenses incurred pursuant to section 206 of this act shall be deducted from the defined contribution fund in accordance with rules established by the board under section 302 of this act.

NEW SECTION. Sec. 314. A new section is added to chapter 41.50 RCW to read as follows:

(1) "Employee" as used in this section and section 315 of this act includes all full-time, part-time, and career seasonal employees of the state, a county, a municipality, or other political subdivision of the state, whether or not covered by civil service; elected and appointed officials of the executive branch of the government, including full-time members of boards, commissions, or committees; justices of the supreme court and judges of the court of appeals and of the superior and district courts; and members of the state legislature or of the legislative authority of any county, city, or town.

(2) The state, through the department, and any county, municipality, or other political subdivision of the state acting through its principal supervising official or governing body is authorized to contract with an employee to defer a portion of that employee's income, which deferred portion shall in no event exceed the amount allowable under 26 U.S.C. Sec. 457, and deposit or invest such deferred portion in a credit union, savings and loan association, bank, or mutual savings bank or purchase life insurance, shares of an investment company, or fixed and/or variable annuity contracts from any insurance company or any investment company licensed to contract business in this state.

(3) The department can provide such plans as the employee retirement benefits board, established under section 301 of this act, deems are in the interests of state employees. In addition to the types of investments described in this section, the department may invest the deferred portion of an employee's income, without limitation as to amount, in any of the class of investments described in RCW 43.84.150 as in effect on January 1, 1981. Any income deferred under such a plan shall continue to be included as regular compensation, for the purpose of computing the state or local retirement and pension benefits earned by any employee.

(4) Coverage of an employee under a deferred compensation plan under this section shall not render such employee ineligible for simultaneous membership and participation in any pension system for public employees.

NEW SECTION. Sec. 315. A new section is added to chapter 41.50 RCW to read as follows:

(1) The deferred compensation principal account is hereby created in the state treasury. Any deficiency in the deferred compensation administrative account caused by an excess of administrative expenses disbursed from that account over earnings of investments of balances credited to that account shall be eliminated by transferring moneys to that account from the deferred compensation principal account.

(2) The amount of compensation deferred by employees under agreements entered into under the authority contained in section 314 of this act shall be paid into the deferred compensation principal account and shall be sufficient to cover costs of administration and staffing in addition to such other amounts as determined by the department. The deferred compensation principal account shall be used to carry out the purposes of section 314 of this act. All eligible state employees shall be given the opportunity to participate in agreements entered into by the department under section 314 of this act. State agencies shall cooperate with the department in providing employees with the opportunity to participate.

(3) Any county, municipality, or other subdivision of the state may elect to participate in any agreements entered into by the department under section 314 of this act, including the making of payments therefrom to the employees participating in a deferred compensation plan upon their separation from state or other qualifying service. Accordingly, the deferred compensation principal account shall be considered to be a public pension or retirement fund within the meaning of Article XXIX, section 1 of the state Constitution, for the purpose of determining eligible investments and deposits of the moneys therein.

(4) All moneys in the deferred compensation principal account, all property and rights purchased therewith, and all income attributable thereto, shall remain (until made available to the participating employee or other beneficiary) solely the money, property, and rights of the state and participating counties, municipalities, and subdivisions (without being restricted to the provision of benefits under the plan) subject only to the claims of the state's and participating jurisdictions' general creditors. Participating jurisdictions shall each retain property rights separately.

(5) The state investment board, at the request of the employee retirement benefits board as established under section 301 of this act, is authorized to invest moneys in the deferred compensation principal account in accordance with RCW 43.84.150. Except as provided in RCW 43.33A.160, one hundred percent of all earnings from these investments shall accrue directly to the deferred compensation principal account.

(6) The deferred compensation administrative account is hereby created in the state treasury. All expenses of the department pertaining to the deferred compensation plan including staffing and administrative expenses shall be paid out of the deferred compensation administrative account. Any excess of earnings of investments of balances credited to this account over administrative expenses disbursed from this account shall be transferred to the deferred compensation principal account. Any deficiency in the deferred compensation administrative account caused by an excess of administrative expenses disbursed from this account over earnings of investments of balances credited to this account shall be transferred to this account from the deferred compensation principal account.

(7) In addition to the duties specified in this section and section 314 of this act, the department shall administer the salary reduction plan established in RCW 41.04.600 through 41.04.645.

(8) The department shall keep or cause to be kept full and adequate accounts and records of the assets, obligations, transactions, and affairs of any deferred compensation plans created under section 314 of this act and this section.

(9) The department shall file an annual report of the financial condition, transactions, and affairs of the deferred compensation plans under its jurisdiction. A copy of the annual report shall be filed with the speaker of the house of representatives, the president of the senate, the governor, and the state auditor.

(10) Members of the employee retirement benefits board established under section 301 of this act shall be deemed to stand in a fiduciary relationship to the employees participating in the deferred compensation plans created under section 314 of this act and this section and shall discharge the duties of their respective positions in good faith and with that diligence, care, and skill which ordinary prudent persons would exercise under similar circumstances in like positions.

(11) The department may adopt rules necessary to carry out the purposes of section 314 of this act and this section.

Sec. 316. RCW 41.50.030 and 1975-'76 2nd ex.s. c 105 s 5 are each amended to read as follows:

(1) As soon as possible but not more than one hundred and eighty days after March 19, 1976, there is transferred to the department of retirement systems, except as otherwise provided in this chapter, all powers, duties, and functions of:

(((1))) (a) The Washington public employees' retirement system ((and the retirement board thereof));

(((2))) (b) The Washington state teachers' retirement system ((and the board of trustees thereof));

(((3))) (c) The Washington law enforcement officers' and fire fighters' retirement system ((and the retirement board thereof));

(((4))) (d) The Washington state patrol retirement system ((and the retirement board thereof));

(((5))) (e) The Washington judicial retirement system ((and the retirement board thereof)); and

(((6))) (f) The state treasurer with respect to the administration of the judges' retirement fund imposed pursuant to chapter 2.12 RCW.

(2) On the effective date of this act there is transferred to the department all powers, duties, and functions of the deferred compensation committee.

(3) The department shall administer sections 201 through 209 of this act.

Sec. 317. RCW 41.50.050 and 1993 c 61 s 1 are each amended to read as follows:

The director shall:

(1) Have the authority to organize the department into not more than ((three)) four divisions, each headed by an assistant director;

(2) Have free access to all files and records of various funds assigned to the department and inspect and audit the files and records as deemed necessary;

(3) Employ personnel to carry out the general administration of the department;

(4) Submit an annual written report of the activities of the department to the governor and the chairs of the appropriate legislative committees with one copy to the staff of each of the committees, including recommendations for statutory changes the director believes to be desirable;

(5) Adopt such rules and regulations as are necessary to carry out the powers, duties, and functions of the department pursuant to the provisions of chapter 34.05 RCW.

Sec. 318. RCW 41.50.060 and 1975-'76 2nd ex.s. c 105 s 8 are each amended to read as follows:

The director may delegate the performance of such powers, duties, and functions, other than those relating to rule making, to employees of the department, but the director shall remain and be responsible for the official acts of the employees of the department.

The director shall be responsible for the public employees' retirement system, the teachers' retirement system, the judicial retirement system, the law enforcement officers' and fire fighters' retirement system, and the Washington state patrol retirement system. The director shall also be responsible for the deferred compensation program.

Sec. 319. RCW 41.54.030 and 1990 c 192 s 2 are each amended to read as follows:

(1) A dual member(('s)) may combine service in all systems ((may be combined)) for the ((sole)) purpose of:

(a) Determining the member's eligibility to receive a service retirement allowance; and

(b) Qualifying for a benefit under section 115(3) of this act.

(2) A dual member who is eligible to retire under any system may elect to retire from all the member's systems and to receive service retirement allowances calculated as provided in this section. Each system shall calculate the allowance using its own criteria except that the member shall be allowed to substitute the member's base salary from any system as the compensation used in calculating the allowance.

(3) The service retirement allowances from a system which, but for this section, would not be allowed to be paid at this date based on the dual member's age shall be either actuarially adjusted from the earliest age upon which the combined service would have made such dual member eligible in that system, or the dual member may choose to defer the benefit until fully eligible.

NEW SECTION. Sec. 320. A new section is added to chapter 41.54 RCW to read as follows:

Any dual member who elects to transfer under section 303 of this act may subject to the provisions of this chapter:

(1) Similarly transfer any other prior plan II service credit to plan III of the same retirement system; or

(2) Combine service credit in all systems for purposes of vesting pursuant to section 303(1)(c) of this act.

NEW SECTION. Sec. 321. A new section is added to chapter 43.33A RCW to read as follows:

Pursuant to section 302 of this act, the state investment board, at the request of the employee retirement benefits board, is authorized to offer investment options for self-directed investment under plan III.

Sec. 322. RCW 41.04.440 and 1984 c 227 s 1 are each amended to read as follows:

(1) The sole purpose of RCW 41.04.445 and 41.04.450 is to allow the members of the retirement systems created in chapters 2.10, 2.12, 41.26, 41.32, 41.40, 41.-- (sections 201 through 209 of this act), and 43.43 RCW to enjoy the tax deferral benefits allowed under 26 USC 414(h). This act does not alter in any manner the provisions of RCW 41.26.450((, 41.32.775)) and 41.40.650 which require that the member contribution rates shall be set so as to provide fifty percent of the cost((s)) of the respective retirement plans.

(2) Should the legislature revoke any benefit allowed under ((this act)) 26 U.S.C. 414(h), no affected employee shall be entitled thereafter to receive such benefit as a matter of contractual right.

Sec. 323. RCW 41.04.445 and 1992 c 212 s 15 are each amended to read as follows:

(1) This section applies to all members who are:

(a) Judges under the retirement system established under chapter 2.10, 2.12, or 2.14 RCW;

(b) Employees of the state under the retirement system established by chapter 41.32, 41.40, or 43.43 RCW;

(c) Employees of school districts under the retirement system established by chapter 41.32 or 41.40 RCW, except for substitute teachers as defined by RCW 41.32.010;

(d) Employees of educational service districts under the retirement system established by chapter 41.32 or 41.40 RCW; or

(e) Employees of community college districts under the retirement system established by chapter 41.32 or 41.40 RCW.

(2) Only for compensation earned after the effective date of the implementation of this section and as provided by section 414(h) of the federal internal revenue code, the employer of all the members specified in subsection (1) of this section shall pick up only those member contributions as required under:

(a) RCW 2.10.090(1);

(b) RCW 2.12.060;

(d) RCW 41.32.263;

(e) RCW 41.32.350;

(f) ((RCW 41.32.775;

(g))) RCW 41.40.330 (1) and (3);

(((h))) (g) RCW 41.40.650; ((and

(i))) (h) Section 207 of this act;

(i) RCW 43.43.300; and

(j) Section 204 of this act.

(3) Only for the purposes of federal income taxation, the gross income of the member shall be reduced by the amount of the contribution to the respective retirement system picked up by the employer.

(4) All member contributions to the respective retirement system picked up by the employer as provided by this section, plus the accrued interest earned thereon, shall be paid to the member upon the withdrawal of funds or lump-sum payment of accumulated contributions as provided under the provisions of the retirement systems.

(5) At least forty-five days prior to implementing this section, the employer shall provide:

(a) A complete explanation of the effects of this section to all members; and

(b) Notification of such implementation to the director of the department of retirement systems.

Sec. 324. RCW 41.04.450 and 1985 c 13 s 3 are each amended to read as follows:

(1) Employers of those members under chapters 41.26 ((and)), 41.40, and 41.-- (sections 201 through 209 of this act) RCW who are not specified in RCW 41.04.445 may choose to implement the employer pick up of all member contributions without exception under RCW 41.26.080(1), 41.26.450, 41.40.330(1), ((and)) 41.40.650, and chapter 41.-- RCW (sections 201 through 209 of this act). If the employer does so choose, the employer and members shall be subject to the conditions and limitations of RCW 41.04.445 (3), (4), and (5) and RCW 41.04.455.

(2) An employer exercising the option under this section may later choose to withdraw from and/or reestablish the employer pick up of member contributions only once in a calendar year following forty-five days prior notice to the director of the department of retirement systems.

NEW SECTION. Sec. 325. The benefits provided pursuant to this act are not provided to employees as a matter of contractual right prior to the effective date of this act. The legislature retains the right to alter or abolish these benefits at any time prior to the date this act becomes effective.

NEW SECTION. Sec. 326. The following acts or parts of acts are each repealed:

(1) RCW 41.04.250 and 1981 c 256 s 2, 1975 1st ex.s. c 274 s 2, 1973 1st ex.s. c 99 s 1, 1972 ex.s. c 19 s 1, & 1971 ex.s. c 264 s 1;

(2) RCW 41.04.255 and 1991 c 249 s 2 & 1982 c 107 s 2;

(3) RCW 41.04.260 and 1993 c 34 s 2 & 1991 sp.s. c 13 s 101;

(4) RCW 41.32.775 and 1990 c 274 s 9, 1989 c 273 s 19, 1986 c 268 s 2, 1984 c 184 s 11, & 1977 ex.s. c 293 s 6;

(5) RCW 41.45.040 and 1993 c 519 s 18 & 1989 c 273 s 4;

(6) RCW 41.45.0601 and 1993 c 519 s 20 & 1992 c 239 s 1;

(7) RCW 41.45.901 and 1989 c 273 s 33;

(8) RCW 41.50.032 and 1984 c 184 s 15 & 1982 c 163 s 9; and

(9) RCW 41.50.250 and 1991 c 35 s 72, 1989 c 273 s 21, 1981 c 3 s 32, 1969 c 128 s 4, 1963 c 174 s 6, 1955 c 220 s 2, 1953 c 200 s 3, 1949 c 240 s 5, & 1947 c 274 s 9.

NEW SECTION. Sec. 327. This act shall take effect July 1, 1996.

NEW SECTION. Sec. 328. Part headings and subchapter headings as used in this act constitute no part of the law."

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

On page 1, line 1 of the title, after "systems;" strike the remainder of the title and insert "amending RCW 41.32.005, 41.32.032, 41.45.010, 41.45.020, 41.45.030, 41.45.050, 41.45.060, 41.45.070, 41.50.075, 41.50.110, 41.50.030, 41.50.050, 41.50.060, 41.54.030, 41.04.440, 41.04.445, and 41.04.450; reenacting and amending RCW 41.32.010; adding new sections to chapter 41.32 RCW; adding new sections to chapter 41.50 RCW; adding a new section to chapter 41.45 RCW; adding a new section to chapter 41.54 RCW; adding a new section to chapter 43.33A RCW; adding a new chapter to Title 41 RCW; creating new sections; repealing RCW 41.04.250, 41.04.255, 41.04.260, 41.32.775, 41.45.040, 41.45.0601, 41.45.901, 41.50.032, and 41.50.250; and providing an effective date."

MOTION

On motion of Senator Bauer, the rules were suspended, Engrossed Substitute House Bill No. 1206, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1206, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1206, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 34; Nays, 9; Absent, 0; Excused, 6.

Voting yea: Senators Anderson, A., Bauer, Deccio, Drew, Fairley, Finkbeiner, Franklin, Gaspard, Hale, Hargrove, Haugen, Johnson, Kohl, Long, Loveland, McAuliffe, McDonald, Palmer, Pelz, Rasmussen, Rinehart, Roach, Schow, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 34.

Voting nay: Senators Cantu, Fraser, Hochstatter, Morton, Newhouse, Oke, Prentice, Prince and Sellar - 9.

Excused: Senators Anderson, C., Heavey, McCaslin, Moyer, Owen and Quigley - 6.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1206, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1549, by House Committee on Corrections (originally sponsored by Representatives Ballasiotes, Morris, Wolfe, Campbell, Quall, Backlund, Dyer and Blanton) (by request of Sentencing Guidelines Commission)

Creating a sentencing alternative for drug offenders.

The bill was read the second time.

MOTION

On motion of Senator Smith, the rules were suspended, Substitute House Bill No. 1549 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1549.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1549 and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 43.

Excused: Senators Anderson, C., Heavey, McCaslin, Moyer, Owen and Quigley - 6.

SUBSTITUTE HOUSE BILL NO. 1549, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

HOUSE BILL NO. 1163, by Representatives Kremen, Goldsmith, Kessler, McMorris, Campbell, Basich, Thompson, Foreman, McMahan, Buck, Cooke, Mielke and Sheahan

Providing a tax exemption for property used by nonprofit organizations for camping and recreational purposes.

The bill was read the second time.

MOTION

On motion of Senator Spanel, the rules were suspended, House Bill No. 1163 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1163.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1163 and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 43.

Excused: Senators Anderson, C., Heavey, McCaslin, Moyer, Owen and Quigley - 6.

HOUSE BILL NO. 1163, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

HOUSE BILL NO. 1725, by Representatives Brumsickle, Wolfe and Conway

Regulating housing authorities.

The bill was read the second time.

MOTION

Senator Haugen moved that the following amendment by Senators Smith and Roach be adopted:

On page 4, after line 5, insert the following:

"Sec. 3. RCW 69.50.435 and 1991 c 32 s 4 are each amended to read as follows:

(a) Any person who violates RCW 69.50.401(a) by manufacturing, selling, delivering, or possessing with the intent to manufacture, sell, or deliver a controlled substance listed under that subsection or who violates RCW 69.50.410 by selling for profit any controlled substance or counterfeit substance classified in schedule I, RCW 69.50.204, except leaves and flowering tops of marihuana to a person:

(1) In a school ((or));

(2) On a school bus ((or));

(3) Within one thousand feet of a school bus route stop designated by the school district ((or));

(4) Within one thousand feet of the perimeter of the school grounds((,));

(5) In a public park ((or));

(6) In a public housing project designated by a local governing authority as a drug-free zone;

(7) On a public transit vehicle((,)); or

(8) In a public transit stop shelter may be punished by a fine of up to twice the fine otherwise authorized by this chapter, but not including twice the fine authorized by RCW 69.50.406, or by imprisonment of up to twice the imprisonment otherwise authorized by this chapter, but not including twice the imprisonment authorized by RCW 69.50.406, or by both such fine and imprisonment. The provisions of this section shall not operate to more than double the fine or imprisonment otherwise authorized by this chapter for an offense.

(b) It is not a defense to a prosecution for a violation of this section that the person was unaware that the prohibited conduct took place while in a school or school bus or within one thousand feet of the school or school bus route stop, in a public park, on a public transit vehicle, ((or)) in a public transit stop shelter, or in a public housing project designated by a local governing authority as a drug-free zone.

(c) It is not a defense to a prosecution for a violation of this section or any other prosecution under this chapter that persons under the age of eighteen were not present in the school, the school bus, the public park, or the public transit vehicle, or at the school bus route stop or the public transit vehicle stop shelter, or in a public housing project designated by a local governing authority as a drug-free zone at the time of the offense or that school was not in session.

(d) It is an affirmative defense to a prosecution for a violation of this section that the prohibited conduct took place entirely within a private residence, that no person under eighteen years of age or younger was present in such private residence at any time during the commission of the offense, and that the prohibited conduct did not involve delivering, manufacturing, selling, or possessing with the intent to manufacture, sell, or deliver any controlled substance in RCW 69.50.401(a) for profit. The affirmative defense established in this section shall be proved by the defendant by a preponderance of the evidence. This section shall not be construed to establish an affirmative defense with respect to a prosecution for an offense defined in any other section of this chapter.

(e) In a prosecution under this section, a map produced or reproduced by any ((municipal)) municipality, school district, county, ((or)) transit authority engineer, or public housing authority for the purpose of depicting the location and boundaries of the area on or within one thousand feet of any property used for a school, school bus route stop, public park, ((or)) public transit vehicle stop shelter, or public housing project designated by a local governing authority as a drug-free zone, or a true copy of such a map, shall under proper authentication, be admissible and shall constitute prima facie evidence of the location and boundaries of those areas if the governing body of the municipality, school district, county, or transit authority has adopted a resolution or ordinance approving the map as the official location and record of the location and boundaries of the area on or within one thousand feet of the school, school bus route stop, public park, ((or)) public transit vehicle stop shelter, or public housing project designated by a local governing authority as a drug-free zone. Any map approved under this section or a true copy of the map shall be filed with the clerk of the municipality or county, and shall be maintained as an official record of the municipality or county. This section shall not be construed as precluding the prosecution from introducing or relying upon any other evidence or testimony to establish any element of the offense. This section shall not be construed as precluding the use or admissibility of any map or diagram other than the one which has been approved by the governing body of a municipality, school district, county, ((or)) transit authority, or public housing authority if the map or diagram is otherwise admissible under court rule.

(f) As used in this section the following terms have the meanings indicated unless the context clearly requires otherwise:

(1) "School" has the meaning under RCW 28A.150.010 or 28A.150.020. The term "school" also includes a private school approved under RCW 28A.195.010;

(2) "School bus" means a school bus as defined by the superintendent of public instruction by rule which is owned and operated by any school district and all school buses which are privately owned and operated under contract or otherwise with any school district in the state for the transportation of students. The term does not include buses operated by common carriers in the urban transportation of students such as transportation of students through a municipal transportation system;

(3) "School bus route stop" means a school bus stop as designated on maps submitted by school districts to the office of the superintendent of public instruction;

(4) "Public park" means land, including any facilities or improvements on the land, that is operated as a park by the state or a local government;

(5) "Public transit vehicle" means any motor vehicle, street car, train, trolley vehicle, or any other device, vessel, or vehicle which is owned or operated by a transit authority and which is used for the purpose of carrying passengers on a regular schedule;

(6) "Transit authority" means a city, county, or state transportation system, transportation authority, public transportation benefit area, public transit authority, or metropolitan municipal corporation within the state that operates public transit vehicles;

(7) "Stop shelter" means a passenger shelter designated by a transit authority;

(8) "Public housing project" means the same as defined in RCW 35.82.020(9)."

Debate ensued.

The President declared the question before the Senate to be the adoption of the amendment by Senators Smith and Roach on page 4, after line 5, to House Bill No. 1725.

The motion by Senator Haugen carried and the amendment by Senators Smith and Roach was adopted.

MOTIONS

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

On page 1, line 2 of the title, strike "and 35.82.130" and insert ", 35.82.130, and 69.50.435"

On motion of Senator Haugen, the rules were suspended, House Bill No. 1725, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1725, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1725, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 43.

Excused: Senators Anderson, C., Heavey, McCaslin, Moyer, Owen and Quigley - 6.

HOUSE BILL NO. 1725, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1250, by House Committee on Commerce and Labor (originally sponsored by Representatives Cole, Cody, Conway, Basich, Scott, Costa and Chopp)

Providing for prompt payment of industrial insurance awards.

The bill was read the second time.

MOTIONS

Senator Pelz moved that the following Committee on Labor, Commerce and Trade amendment be adopted:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 51.32 RCW to read as follows:

(1)(a) If the worker or beneficiary in a state fund claim prevails in an appeal by any party to the board or the court, the department shall comply with the board or court's order with respect to the payment of compensation within the later of the following time periods:

(i) Sixty days after the compensation order is entered; or

(ii) If, after the order has been entered and the department has, within the period specified in (a)(i) of this subsection, requested the filing by the worker or beneficiary of documents necessary to make payment of compensation, sixty days after all requested documents are filed with the department.

The department may extend the sixty-day time period for an additional thirty days for good cause.

(b) If the department fails to comply with (a) of this subsection, any person entitled to compensation under the order may institute proceedings for injunctive or other appropriate relief for enforcement of the order. These proceedings may be instituted in the superior court for the county in which the claimant resides, or, if the claimant is not then a resident of this state, in the superior court for Thurston county.

(2) In a proceeding under this section, the court shall enforce obedience to the order by proper means, enjoining compliance upon the person obligated to comply with the compensation order. The court may issue such writs and processes as are necessary to carry out its orders and may award a penalty of up to five hundred dollars to the person entitled to compensation under the order and reasonable costs and attorneys' fees. The court may award an additional penalty of five hundred dollars for each month that payment is not received beyond the time period allowed in subsection (1) of this section.

(3) A proceeding under this section does not preclude other methods of enforcement provided for in this title.

NEW SECTION. Sec. 2. This act applies to all appeals in state fund claims determined under Title 51 RCW on or after the effective date of this act, regardless of the date of filing of the claim."

Senator Ann Anderson moved that the following amendments to the Committee on Labor, Commerce and Trade striking amendment be considered simultaneously and be adopted:

On page 2, line 3 of the striking amendment, after "2." strike "This" and insert "Section 1 of this"

On page 2, after line 5 of the striking amendment, insert the following:

"Sec. 3. RCW 51.32.020 and 1977 ex.s. c 350 s 39 are each amended to read as follows:

If injury or death results to a worker from the deliberate intention of the worker himself or herself to produce such injury or death, from the worker's intoxication or use of a controlled substance defined in the Uniform Controlled Substances Act, chapter 69.50 RCW, or while the worker is engaged in the attempt to commit, or the commission of, a felony, neither the worker nor the widow, widower, child, or dependent of the worker shall receive any payment under this title. If the worker has the same or greater weight of alcohol in the blood than that set forth in RCW 46.61.502 or if the worker had positive confirmation of a controlled substance, it must be presumed that the injury was caused by the intoxication of alcohol or by the influence of the controlled substance.

An invalid child, while being supported and cared for in a state institution, shall not receive compensation under this chapter.

No payment shall be made to or for a natural child of a deceased worker and, at the same time, as the stepchild of a deceased worker.

At any time following an injury occurring during the course of employment, if requested by the employer, an employee involved in the injury shall submit to a physical examination that may include the taking of blood or urine samples, or both, to determine whether the employee, at the time of the injury, was under the influence of alcohol or any controlled substance as defined in the Uniform Controlled Substances Act, chapter 69.50 RCW."

POINT OF ORDER

Senator Pelz: "I rise to challenge this amendment as being outside the scope and object of the bill. This is a bill relating to prompt payment of industrial insurance awards. The underlying bill provides a time frame under which the Department of Labor and Industries must comply with the worker's compensation order or face penalties and fees. The amendment provides that a worker's intoxication makes them and their beneficiaries ineligible for worker's compensation payments. The amendment also requires employees to submit to drug tests if requested by an employer after an injury. The amendment is, therefore, outside the scope and object of the original measure."

Further debate ensued.

There being no objection, further consideration of Substitute House Bill No. 1250 was deferred.

SECOND READING

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1076, by House Committee on Capital Budget (originally sponsored by Representatives Sehlin and Ogden) (by request of Interagency Committee for Outdoor Recreation).

Revising account names and accounting procedure of the IAC.

The bill was read the second time.

MOTION

On motion of Senator Fraser, the rules were suspended, Engrossed Substitute House Bill No. 1076 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTION

On motion of Senator Wood, Senator Johnson was excused.

The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1076.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1076 and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Palmer, Pelz, Prentice, Prince, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 42.

Excused: Senators Anderson, C., Heavey, Johnson, McCaslin, Moyer, Owen and Quigley - 7.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1076, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

At 3:20 p.m., on motion of Senator Spanel, the Senate was declared to be at ease.

The Senate was called to order at 3:58 p.m. by President Pritchard.

MOTION

On motion of Senator Spanel, the Senate reverted to the fifth order of business.

INTRODUCTION AND FIRST READING

SB 6063 by Senator Rinehart

AN ACT Relating to natural resources.

Referred to Committee on Ways and Means.

SB 6064 by Senator Rinehart

AN ACT Relating to education.

Referred to Committee on Ways and Means.

SB 6065 by Senator Rinehart

AN ACT Relating to higher education.

Referred to Committee on Ways and Means.

SB 6066 by Senator Rinehart

AN ACT Relating to revenue.

Referred to Committee on Ways and Means.

SB 6067 by Senator Rinehart

AN ACT Relating to social and health services.

Referred to Committee on Ways and Means.

SB 6068 by Senator Rinehart

AN ACT Relating to public employees.

Referred to Committee on Ways and Means.

SB 6069 by Senator Rinehart

AN ACT Relating to fiscal matters.

Referred to Committee on Ways and Means.

SB 6070 by Senator Rinehart

AN ACT Relating to state government.

Referred to Committee on Ways and Means.

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

There being no objection, the Senate resumed consideration of Substitute House Bill No. 1250 and the pending amendments by Senator Ann Anderson on page 2, lines 3 and 5, to the Committee on Labor, Commerce and Trade striking amendment, deferred earlier today.

RULING BY THE PRESIDENT

President Pritchard: "In ruling upon the point of order raised by Senator Pelz, the President finds that Substitute House Bill No. 1250 is a measure which sets time limits for compensation orders by the Department of Labor and Industries.

"The amendments proposed by Senator Ann Anderson to the Committee on Labor, Commerce and Trade striking amendment would, among other items, deny benefits to workers who are injured while under the influence of alcohol or controlled substances.

"The President, therefore, finds that the proposed amendment does change the scope and object of the bill and the point of order is well taken."

The amendments by Senator Ann Anderson on page 2, lines 3 and 5, to the Committee on Labor, Commerce and Trade striking amendment were ruled out of order.

The President declared the question before the Senate to be the adoption of the Committee on Labor, Commerce and Trade striking amendment to Substitute House Bill No. 1250.

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

MOTIONS

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

On page 1, line 1 of the title, after "awards;" strike the remainder of the title and insert "adding a new section to chapter 51.32 RCW; creating a new section; and prescribing penalties."

On motion of Senator Pelz, the rules were suspended, Substitute House Bill No. 1250, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTION

On motion of Senator Sellar, Senator Newhouse was excused.

The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1250, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1250, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 37; Nays, 0; Absent, 5; Excused, 7.

Voting yea: Senators Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, Morton, Oke, Palmer, Pelz, Prentice, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wojahn - 37.

Absent: Senators Anderson, A., Hargrove, McDonald, Prince and Wood - 5.

Excused: Senators Anderson, C., Heavey, McCaslin, Moyer, Newhouse, Owen and Quigley - 7.

SUBSTITUTE HOUSE BILL NO. 1250, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1917, by House Committee on Natural Resources (originally sponsored by Representatives Pennington, Fuhrman, Thompson, Goldsmith, McMorris and Kremen)

Requiring that department of natural resources contract with private entities for emergency response equipment, supplies, and services.

The bill was read the second time.

MOTION

On motion of Senator Drew, the rules were suspended, Substitute House Bill No. 1917 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTIONS

On motion of Senator Kohl, Senator Hargrove was excused.

On motion of Senator Sellar, Senators Ann Anderson, McDonald, Prince and Wood were excused.

The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1917.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1917 and the bill passed the Senate by the following vote: Yeas, 37; Nays, 0; Absent, 0; Excused, 12.

Excused: Senators Anderson, A., Anderson, C., Hargrove, Heavey, McCaslin, McDonald, Moyer, Newhouse, Owen, Prince, Quigley and Wood - 12.

SUBSTITUTE HOUSE BILL NO. 1917, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1777, by House Committee on Education (originally sponsored by Representatives Radcliff, Carrell, D. Schmidt, Thompson, Goldsmith, Pelesky, McMahan, Johnson, Smith, Fuhrman, Campbell, Lambert, Casada, Lisk, Mulliken, McMorris, Hargrove, Brumsickle, Clements, Silver, Koster, Backlund, Boldt, Hymes, Mitchell, Skinner and Blanton)

Requiring specificity in school board resolutions for ballot propositions authorizing indebtedness.

The bill was read the second time.

MOTION

On motion of Senator McAuliffe, the rules were suspended, Substitute House Bill No. 1777 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1777.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1777 and the bill passed the Senate by the following vote: Yeas, 37; Nays, 0; Absent, 0; Excused, 12.

Excused: Senators Anderson, A., Anderson, C., Hargrove, Heavey, McCaslin, McDonald, Moyer, Newhouse, Owen, Prince, Quigley and Wood - 12.

SUBSTITUTE HOUSE BILL NO. 1777, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

ENGROSSED HOUSE BILL NO. 1603, by Representatives L. Thomas, Morris, Huff, Campbell, Smith, Beeksma and Kessler

Disclosing deposit account information.

The bill was read the second time.

MOTION

On motion of Senator Prentice, the rules were suspended, Engrossed House Bill No. 1603 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

POINT OF INQUIRY

Senator Roach: "Senator Prentice, does this measure provide any authority to private diversion program operators working for county prosecutors?"

Senator Prentice: "No, only a designated public employee is provided authority to request information under this bill."

The President declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 1603.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed House Bill No. 1603 and the bill passed the Senate by the following vote: Yeas, 39; Nays, 0; Absent, 0; Excused, 10.

Voting yea: Senators Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Haugen, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Oke, Palmer, Pelz, Prentice, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 39.

Excused: Senators Anderson, A., Anderson, C., Hargrove, Heavey, McCaslin, Moyer, Newhouse, Owen, Prince and Quigley - 10.

ENGROSSED HOUSE BILL NO. 1603, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1744, by House Committee on Energy and Utilities (originally sponsored by Representatives Huff, Kessler, Casada and Campbell)

Regulating small telecommunications companies.

The bill was read the second time.

MOTION

On motion of Senator Sutherland, the rules were suspended, Substitute House Bill No. 1744 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1744.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1744 and the bill passed the Senate by the following vote: Yeas, 39; Nays, 0; Absent, 0; Excused, 10.

Excused: Senators Anderson, A., Anderson, C., Hargrove, Heavey, McCaslin, Moyer, Newhouse, Owen, Prince and Quigley - 10.

SUBSTITUTE HOUSE BILL NO. 1744, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 2067, by House Committee on Finance (originally sponsored by Representatives Foreman and Mastin)

Extending property tax exemptions for nonprofit arts, scientific, or historical organizations.

The bill was read the second time.

MOTIONS

On motion of Senator Spanel, the following Committee on Ways and Means amendment was adopted:

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 84.36.060 and 1981 c 141 s 1 are each amended to read as follows:

The following property shall be exempt from taxation:

(1) All art, scientific, or historical collections of associations maintaining and exhibiting such collections for the benefit of the general public and not for profit, together with all real and personal property of such associations used exclusively for the safekeeping, maintaining and exhibiting of such collections; and all the real and personal property owned by or leased to associations engaged in the production and performance of musical, dance, artistic,

dramatic, or literary works for the benefit of the general public and not for profit, which real and personal property is used exclusively for this production or performance((: PROVIDED, That to qualify for)).

(a) To receive this exemption an organization must be organized and operated exclusively for artistic, scientific, historical, literary, musical, dance, dramatic, or educational purposes and receive a substantial part of its support (exclusive of income received in the exercise or performance by such organization of its purpose or function) from the United States or any state or any political subdivision thereof or from direct or indirect contributions from the general public((;)).

(b) If the property is not currently being used for an exempt purpose but will be used for an exempt purpose within a reasonable period of time, the nonprofit organization, association, or corporation claiming the exemption must submit proof that a reasonably specific and active program is being carried out to construct, remodel, or otherwise enable the property to be used for an exempt purpose. The property does not qualify for an exemption during this interim period if the property is used by, loaned to, or rented to a for-profit organization or business enterprise. Proof of a specific and active program to build or remodel the property so it may be used for an exempt purpose may include, but is not limited to:

(i) Affirmative action by the board of directors, trustees, or governing body of the nonprofit organization, association, or corporation toward an active program of construction or remodeling;

(ii) Itemized reasons for the proposed construction or remodeling;

(iii) Clearly established plans for financing the construction or remodeling; or

(iv) Building permits.

(c) Notwithstanding (b) of this subsection, a for-profit limited partnership created to provide facilities for the use of nonprofit art, scientific, or historical organizations qualifies for the exemption under (b) of this subsection through 1997 if the for-profit limited partnership otherwise qualifies under (b) of this subsection.

(2) All fire engines and other implements used for the extinguishment of fire, with the buildings used exclusively for the safekeeping thereof, and for meetings of fire companies, provided such properties belong to any city or town or to a fire company therein((;)).

(3) Property owned by humane societies in this state in actual use by such societies.

NEW SECTION. Sec. 2. The act is effective for taxes levied for collection in 1995 and thereafter.

NEW SECTION. Sec. 3. 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."

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

On page 1, line 2 of the title, after "organizations;" strike the remainder of the title and insert "amending RCW 84.36.060; creating a new section; and declaring an emergency."

MOTION

On motion of Senator Spanel, the rules were suspended, Substitute House Bill No. 2067, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 2067, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 2067, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 39; Nays, 0; Absent, 0; Excused, 10.

Excused: Senators Anderson, A., Anderson, C., Hargrove, Heavey, McCaslin, Moyer, Newhouse, Owen, Prince and Quigley - 10.

SUBSTITUTE HOUSE BILL NO. 2067, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

SECOND READING

HOUSE BILL NO. 1012, by Representative L. Thomas

Regulating loans made by pawnbrokers.

The bill was read the second time.

MOTION

On motion of Senator Prentice, the rules were suspended, House Bill No. 1012 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President declared the question before the Senate to be the roll call on the final passage of House Bill No. 1012.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1012 and the bill passed the Senate by the following vote: Yeas, 39; Nays, 0; Absent, 0; Excused, 10.

Excused: Senators Anderson, A., Anderson, C., Hargrove, Heavey, McCaslin, Moyer, Newhouse, Owen, Prince and Quigley - 10.

HOUSE BILL NO. 1012, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

At 4:30 p.m., on motion of Senator Spanel, the Senate adjourned until 10:00 a.m., Monday, April 10, 1995.

JOEL PRITCHARD, President of the Senate

MARTY BROWN, Secretary of the Senate