(1) Any retired teacher or retired administrator who enters service in any public educational institution in Washington state shall cease to receive pension payments while engaged in such service: PROVIDED, That service may be rendered up to seventy-five days per school year without reduction of pension.

      (2) In addition to the seventy-five days of service permitted under subsection (1) of this section, a retired teacher or retired administrator may also serve only as a substitute teacher for up to an additional fifteen days per school year without reduction of pension if:

      (a) A school district, which is not a member of a multidistrict substitute cooperative, determines that it has exhausted or can reasonably anticipate that it will exhaust its list of qualified and available substitutes and the school board of the district adopts a resolution to make its substitute teachers who are retired teachers or retired administrators eligible for the additional fifteen days of extended service once the list of qualified and available substitutes has been exhausted. The resolution by the school district shall state that the services of retired teachers and retired administrators are necessary to address the shortage of qualified and available substitutes. The resolution shall be valid only for the school year in which it is adopted. The district shall forward a copy of the resolution with a list of retired teachers and retired administrators who have been employed as substitute teachers to the department and may notify the retired teachers and retired administrators included on the list of their right to take advantage of the provisions of this subsection; or

      (b) A multidistrict substitute cooperative determines that the school districts have exhausted or can reasonably anticipate that they will exhaust their list of qualified and available substitutes and each of the school boards adopts a resolution to make their substitute teachers or retired administrators who are retired teachers eligible for the extended service once the list of qualified and available substitutes has been exhausted. The resolutions by each of the school districts shall state that the services of retired teachers and retired administrators are necessary to address the shortage of qualified and available substitutes. The resolutions shall be valid only for the school year in which they are adopted. The cooperative shall forward a copy of the resolutions with a list of retired teachers and retired administrators who have been employed as substitute teachers to the department and may notify the retired teachers and retired administrators included on the list of their right to take advantage of the provisions of this subsection.

      (3) In addition to the seventy-five days of service permitted under subsection (1) of this section, a retired administrator or retired teacher may also serve as a substitute administrator up to an additional fifteen days per school year without reduction of pension if a school district board of directors adopts a resolution declaring that the services of a retired administrator or retired teacher are necessary because it cannot find a replacement administrator to fill a vacancy. The resolution shall be valid only for the school year in which it is adopted. The district shall forward a copy of the resolution with the name of the retired administrator or retired teacher who has been employed as a substitute administrator to the department. However, a retired administrator or retired teacher may not serve more than a total of fifteen additional days per school year pursuant to subsections (2) and (3) of this section.

      (4) Subsection (1) of this section shall apply to all persons governed by the provisions of plan I, regardless of the date of their retirement, but shall apply only to benefits payable after June 11, 1986.

      (((4))) (5) Subsection (2) of this section shall apply to all persons governed by the provisions of plan I, regardless of the date of their retirement, but shall only apply to benefits payable after September 1, 1994.

      NEW SECTION. Sec. 2. 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 page 1, line 1 of the title, after "administrators;" strike the remainder of the title and insert "amending RCW 41.32.570; and declaring an emergency.", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      On motion of Senator McAuliffe, the Senate concurred in the House amendments to Engrossed Senate Bill No. 6045.

MOTION

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

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 6045, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 6045, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley, Wojahn and Wood - 46.

      Excused: Senators Anderson, C., Heavey and West - 3.

      ENGROSSED SENATE BILL NO. 6045, as amended by the House, 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 Sutherland, the following resolution was adopted:

SENATE RESOLUTION 1995-8632

By Senators Sutherland, Bauer and Palmer

      WHEREAS, The Clark County Evergreen School District Plainsmen Boys' Basketball team is the 1995 Class AAA Basketball Champion; and

      WHEREAS, The Plainsmen have distinguished themselves and brought honor to their school by becoming the second ever undefeated Class AAA state champion, and the first since 1980; and

      WHEREAS, Under the coaching and supervision of John Triplett and assistant coach Ken Nesland Evergreen were the state's highest-scoring team this season with a 75.1-point per game average; and

      WHEREAS, The Plainsmen used full-court press through four grueling state tournament contests to become only the third Clark County team to win the boys' basketball title in the state's highest classification; and

      WHEREAS, The Plainsmen are the first Boys' Basketball team in thirty years to win the Basketball Championship from Southwest Washington; and

      WHEREAS, The Evergreen team had a 3.786 team Grade Point Average; and

      WHEREAS, Paul Bustrin was named the tournament's Most Valuable Player and was placed on the tournament's first team all-star squad; and

      WHEREAS, Guard Matt Dyment was placed on the tournament's first team all-star squad; and

      WHEREAS, This team has deservedly, and through their own efforts, commitment, and sacrifice, achieved the title of Washington State Class AAA Basketball Champion;

      NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate honor the 1995 Clark County Evergreen School District Boys' Basketball team with passage of this Senate Floor Resolution; and

      BE IT FURTHER RESOLVED, That with passage of this resolution, the members of the Washington State Senate acknowledge the example this group of amateur athletes has set, and the importance of athletic participation as part of the pursuit of academic achievement.

INTRODUCTION OF SPECIAL GUESTS

      The President welcomed and introduced the Evergreen School District Plainsmen Boy's Basketball Team and their coaches, who were seated in the gallery.

MOTION

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

MESSAGE FROM THE HOUSE

April 13, 1995

MR. PRESIDENT:

      The House has passed SECOND SUBSTITUTE SENATE BILL NO. 5387 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

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

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

      (2) That the development of additional and desirable residential units in these urban centers that will attract and maintain a significant increase in the number of permanent residents in these areas will help to alleviate the detrimental conditions and social liability that tend to exist in the absence of a viable residential population and will help to achieve the planning goals mandated by the growth management act under RCW 36.70A.020; and

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

      NEW SECTION. Sec. 2. It is the purpose of this chapter to encourage increased residential opportunities in cities that are required to plan or choose to plan under the growth management act within urban centers where the legislative body of the affected city has found there is insufficient housing opportunities. It is further the purpose of this chapter to stimulate the construction of new multifamily housing and the rehabilitation of existing vacant and underutilized buildings for multifamily housing in urban centers having insufficient housing opportunities that will increase and improve residential opportunities within these urban centers. To achieve these purposes, this chapter provides for special valuations for eligible improvements associated with multiunit housing in residentially deficient urban centers.

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

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

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

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

      (4) "Multiple-unit housing" means a building having four or more dwelling units not designed or used as transient accommodations and not including hotels and motels. Multifamily units may result from new construction or rehabilitated or conversion of vacant, underutilized, or substandard buildings to multifamily housing.

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

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

      (7) "Rehabilitation improvements" means modifications to existing structures, that are vacant for twelve months or longer, that are made to achieve a condition of substantial compliance with existing building codes or modification to existing occupied structures which increase the number of multifamily housing units.

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

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

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

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

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

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

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

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

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

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

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

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

      (2) The multiple-unit housing must meet the guidelines as adopted by the governing authority that may include height, density, public benefit features, number and size of proposed development, parking, and other adopted requirements indicated necessary by the city. The required amenities should be relative to the size of the project and tax benefit to be obtained;

      (3) The new, converted, or rehabilitated multiple-unit housing must provide for a minimum of fifty percent of the space for permanent residential occupancy. In the case of existing occupied multifamily development, the multifamily housing must also provide for a minimum of four additional multifamily units. Existing multifamily vacant housing that has been vacant for twelve months or more does not have to provide additional multifamily units;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

      (1) A minimum of four new units are being constructed or in the case of occupied rehabilitation or conversion a minimum of four additional multifamily units are being developed;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

      (c) The owner's property is otherwise not qualified for limited exemption under this chapter.

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

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

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

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

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

      (3) A description of changes or improvements constructed after issuance of the certificate of tax exemption.

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

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

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

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

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

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

      NEW SECTION. Sec. 15. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

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

      Correct the title accordingly., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      On motion of Senator Prentice, the Senate concurred in the House amendment to Second Substitute Senate Bill No. 5387.

MOTION

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

      The President declared the question before the Senate to be the roll call on the final passage of Second Substitute Senate Bill No. 5387, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 5387, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 40; Nays, 2; Absent, 2; Excused, 5.

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

      Voting nay: Senators Cantu and Hochstatter - 2.

      Absent: Senators Oke and Wood - 2.

      Excused: Senators Anderson, C., Drew, Heavey, Owen and West - 5.

      SECOND SUBSTITUTE SENATE BILL NO. 5387, as amended by the House, 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 Johnson, Senator Moyer was excused.

MESSAGE FROM THE HOUSE

April 4, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5406 with the following amendment(s):

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

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

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

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

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

      Renumber the remaining section consecutively and correct the title reference accordingly., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      Senator Prentice moved that the Senate concur in the House amendment to Substitute Senate Bill No. 5406.

POINT OF INQUIRY

      Senator Hale: "Senator Prentice, does Section 4, subsection (3) of the House amendment to Substitute Senate Bill No. 5406 prevent a court from determining that a particular interest rate is unconscionable, absent other indicators of unconscionability?"

      Senator Prentice: "No, the language at Section 4, subsection (3) of the House amendment to Substitute Senate Bill No. 5406 states that 'a charge or practice permitted by this chapter is not in itself unconscionable.' This language should be interpreted as meaning that unless a specific numerical interest rate is permitted in statute, the rate can, in and of itself, be deemed unconscionable. Because no specific rate is either permitted or prohibited, a court is free to determine whether the rate is unconscionable under existing law. Thus, while parties are free to contract for an interest rate, clearly exorbitant rates can be deemed unconscionable."

      The President declared the question before the Senate to be the motion by Senator Prentice that the Senate do concur in the House amendment to Substitute Senate Bill No. 5406.

      The motion by Senator Prentice carried and the Senate concurred in the House amendment to Substitute Senate Bill No. 5406.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5406, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5406, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 41; Nays, 3; Absent, 0; Excused, 5.

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

      Voting nay: Senators Cantu, Pelz and Wojahn - 3.

      Excused: Senators Anderson, C., Drew, Heavey, Moyer and Owen - 5.

      SUBSTITUTE SENATE BILL NO. 5406, as amended by the House, 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 10:48 a.m., on motion of Senator Spanel, the Senate was declared to be at ease.

      The Senate was called to order at 11:27 a.m. by President Pritchard.

MOTIONS

      On motion of Senator Wood, Senators Hochstatter, McDonald and Winsley were excused.

      On motion of Senator Loveland, Senator Pelz was excused.

MESSAGE FROM THE HOUSE

April 14, 1995

MR. PRESIDENT:

      The House has passed ENGROSSED SENATE BILL NO. 6037 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The legislature finds that the proliferation and complexity of state agency rules requires oversight beyond that which is currently provided by the legislative, executive, and judicial branches of government. The legislature further finds that some states have created independent commissions to oversee the regulatory process, and that this type of commission may have merit in Washington's system of regulatory oversight.

      NEW SECTION. Sec. 2. The senate and house of representatives government operations committees shall conduct a joint interim study on the advisability of creating an independent commission to provide oversight of the state's regulatory system. The study may include an examination of the appropriate roles for the legislative, executive, and judicial branches of government in the oversight of rule making. The study may also include an analysis of the costs of creating an independent commission and the benefits to be obtained. The committees may examine the possible functions of an independent commission, including its role in the systematic review of existing agency rules for compliance with the determinations contained in section 201, chapter. . ., Laws of 1995 (section 201 of Engrossed Substitute House Bill No. 1010). The committees shall report their recommendations to the legislature by January 1, 1996."

      Correct the title accordingly., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      On motion of Senator Sheldon, the Senate concurred in the House amendment to Engrossed Senate Bill No. 6037.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 6037, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 6037, as amended by the House, 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, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Owen, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Wojahn and Wood - 43.

      Excused: Senators Anderson, C., Hochstatter, McDonald, Moyer, Pelz and Winsley - 6.

      ENGROSSED SENATE BILL NO. 6037, as amended by the House, 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 Loveland, Senator Owen was excused.

MESSAGE FROM THE HOUSE

April 6, 1995

MR. PRESIDENT:

      The House has passed SENATE JOINT MEMORIAL NO. 8014 with the following amendment(s):

      On page 2, line 18, after "contrary" strike all material through "procedures and" on line 20, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      On motion of Senator Sutherland, the Senate concurred in the House amendment to Engrossed Senate Joint Memorial No. 8014.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Joint Memorial No. 8014, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Joint Memorial No. 8014, as amended by the House, and the joint memorial 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, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Wojahn and Wood - 42.

      Excused: Senators Anderson, C., Hochstatter, McDonald, Moyer, Owen, Pelz and Winsley - 7.

      SENATE JOINT MEMORIAL NO. 8014, as amended by the House, having received the constitutional majority, was declared passed.

MESSAGE FROM THE HOUSE

April 5, 1995

MR. PRESIDENT:

      The House has passed SENATE BILL NO. 5292 with the following amendment(s):

      On page 1, beginning on line 13, after "specified in" strike all material through "1992" on line 15, and insert "federal pipeline safety laws (49 U.S.C. 60101 et seq.) in effect on the effective date of this act", and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

      On motion of Senator Sutherland, the Senate concurred in the House amendment to Senate Bill No. 5292.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5292, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Bill No. 5292, as amended by the House, 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, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, Morton, Newhouse, Oke, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Wojahn and Wood - 42.

      Excused: Senators Anderson, C., Hochstatter, McDonald, Moyer, Owen, Pelz and Winsley - 7.

      SENATE BILL NO. 5292, as amended by the House, 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.

MESSAGE FROM THE HOUSE

April 5, 1995

MR. PRESIDENT:

      The House has passed SUBSTITUTE SENATE BILL NO. 5089 with the following amendment(s):

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The legislature finds that citizens of the state increasingly rely on the dependability of enhanced 911, a system that allows the person answering an emergency call to immediately determine the location of the emergency without the need of the caller to speak. The legislature further finds that in some cases, calls made from telephones connected to private telephone systems may not be precisely located by the answerer, eliminating some of the benefit of enhanced 911, and that this condition could additionally imperil citizens calling from these locations in an emergency. The legislature also finds that until national standards have been developed to address this condition, information-forwarding requirements should be mandated for only those settings with the most risk, including schools, residences, and some business settings.

      Sec. 2. RCW 80.04.010 and 1991 c 100 s 1 are each amended to read as follows: