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EIGHTY-FIRST DAY

MORNING SESSION

House Chamber, Olympia, Thursday, April 3, 1997

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

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

INTRODUCTIONS AND FIRST READING

SSB 5999 by Senate Committee on Ways & Means (originally sponsored by Senators Deccio and Kohl; by request of Governor Locke)

Financing stadium and exhibition centers.

Referred to Committee on Capital Budget.

SCR 8411 by Senators West and Snyder

Exempting Senate Bill No. 5999 from cutoff dates.

Referred to Rules Committee.

There being no objection, the bill and resolution listed on the day’s introduction sheet under the fourth order of business were referred to the committees so designated.

REPORTS OF STANDING COMMITTEES

April 1, 1997

HB 2276 Prime Sponsor, Representative Lisk: Promoting civil legal services for indigent persons. Reported by Committee on Law & Justice

MAJORITY recommendation: The substitute bill be substituted therefor and the substitute bill do pass. Signed by Representatives Sheahan, Chairman; McDonald, Vice Chairman; Sterk, Vice Chairman; Carrell; Kenney; Lambert; Lantz; Radcliff; Sherstad and Skinner.

MINORITY recommendation: Without recommendation. Signed by Representatives Costa, Ranking Minority Member; Constantine, Assistant Ranking Minority Member; and Cody.

Voting Yea: Representatives Sheahan, Sterk, McDonald, Carrell, Kenney, Lambert, Lantz, Radcliff, Sherstad and Skinner.

Voting Nay: Representatives Costa, Constantine and Cody.

Passed to Rules Committee for second reading.

April 1, 1997

SSB 5009 Prime Sponsor, Committee on Human Services & Corrections: Authorizing interstate agreements to provide adoption assistance for special needs children. Reported by Committee on Children & Family Services

MAJORITY recommendation: Do pass. Signed by Representatives Cooke, Chairman; Boldt, Vice Chairman; Bush, Vice Chairman; Tokuda, Ranking Minority Member; Kastama, Assistant Ranking Minority Member; Ballasiotes; Carrell; Dickerson; Gombosky; McDonald and Wolfe.

Voting Yea: Representatives Cooke, Boldt, Bush, Tokuda, Kastama, Ballasiotes, Carrell, Dickerson, Gombosky, McDonald and Wolfe.

Passed to Rules Committee for second reading.

April 1, 1997

SSB 5071 Prime Sponsor, Committee on Education: Changing provisions relating to territory included in city and town boundary extensions. Reported by Committee on Education

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

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

(1) The existing statutory provisions requiring an automatic transfer of territory from one school district to another when a city or town extends its boundaries through annexation of unincorporated territory is archaic, and that such school district transfers should not be automatic;

(2) Some current procedural requirements unduly restrict the ability of the state board of education to respond more flexibly to any given proposed transfer of territory;

(3) Consistent with the goal of growth management that public services and facilities necessary to support development be available without a decrease in service levels, citizens should have the opportunity to be heard on whether all land in a planned community that includes industrial, commercial, and residential sites should be in the same school district; and

(4) The current laws and rules governing school district organization are outdated and in need of a comprehensive review.

Sec. 2. RCW 28A.315.250 and 1985 c 385 s 19 are each amended to read as follows:

(1) Each incorporated city or town in the state shall be comprised in one school district: PROVIDED, That nothing in this section shall be construed: (((1))) (a) To prevent the extension of the boundaries of a school district beyond the limits of the city or town contained therein, or (((2))) (b) to prevent the inclusion of two or more incorporated cities or towns in a single school district, or (((3))) (c) to change or disturb the boundaries of any school district organized prior to the incorporation of any city or town, except as hereafter in this section provided.

(2) In case all or any part of a school district that operates a school or schools on one site only or operates elementary schools only on two or more sites is included in an incorporated city or town through the extension of the limits of such city or town in the manner provided by law, the ((educational service district superintendent shall: (1) Declare)) regional committee may, in its discretion, prepare a proposal for transfer of any part or all of the territory so included to be a part of the school district containing the city or town and (((2))), whenever a part of a district so included contains a school building of the district, ((present to the regional committee a proposal)) for the disposition of any part or all of the remaining territory of the district.

(3) In case of the extension of the limits of a city or town to include territory lying in a school district that operates on more than one site one or more elementary schools and one or more junior high schools or high schools, the regional committee ((shall)) may, in its discretion, prepare a proposal or proposals for annexation to the school district in which the city or town is located any part or all of the territory aforesaid which has been included in the city or town and for annexation to the school district in which the city or town is located or to some other school district or districts any part or all of the remaining territory of the school district affected by extension of the limits of the city or town: PROVIDED, That where no school or school site is located within the territory annexed to the city or town and not less than seventy-five percent of the registered voters residing within the annexed territory present a petition in writing for annexation and transfer of said territory to the school district in which the city or town is located, the educational service district superintendent shall declare the territory so included to be a part of the school district containing said city or town: PROVIDED FURTHER, That territory approved for annexation to a city or town by vote of the electors residing therein prior to January 12, 1953, shall not be subject to the provisions herein respecting annexation to a school district or school districts: AND PROVIDED FURTHER, That the provisions and procedural requirements of this chapter as now or hereafter amended not in conflict with or inconsistent with the provisions hereinabove in this section stated shall apply in the case of any proposal or proposals (((1))) (a) for the alteration of the boundaries of school districts through and by means of annexation of territory as aforesaid, and (((2))) (b) for the adjustment of the assets and liabilities of the school districts involved or affected thereby.

(4) In case of the incorporation of a city or town containing territory lying in two or more school districts or of the uniting of two or more cities or towns not located in the same school district, the educational service district superintendent, except where the incorporation or consolidation would affect a district or districts of the first class, shall: (((1))) (a) Order and declare to be established in each such case a single school district comprising all of the school districts involved, and (((2))) (b) designate each such district by name and by a number different from that of any other district in existence in the county.

(5) The educational service district superintendent shall fix as the effective date of any declaration or order required under this section a date no later than the first day of September next succeeding the date of the issuance of such declaration or order.

(6) The chapter . . ., Laws of 1997 (this act) amendments to this section apply retroactively.

Sec. 3. RCW 28A.315.140 and 1990 c 33 s 300 are each amended to read as follows:

The powers and duties of the state board with respect to this chapter shall be:

(1) To aid regional committees in the performance of their duties by furnishing them with plans of procedure, standards, data, maps, forms, and other necessary materials and services essential to a study and understanding of the problems of school district organization in their respective educational service districts.

(2) To receive, file, and examine the proposals and the maps, reports, records, and other materials relating thereto submitted by regional committees and to approve such proposals and so notify the regional committees when said proposals are found to provide for satisfactory improvement in the school district system of the counties and the state and for an equitable adjustment of the assets and liabilities, including bonded indebtedness and excess tax levies as authorized under RCW 28A.315.110(2), of the school districts involved or affected: PROVIDED, That whenever ((the state board approves a recommendation from a regional committee for the transfer of territory from one school district to another school district, such state board approval must be made not later than March 1 of any given year for implementation the school year immediately following: PROVIDED FURTHER, That whenever)) such proposals are found by the state board to be unsatisfactory or inequitable, the board shall so notify the regional committee and, upon request, assist the committee in making revisions which revisions shall be resubmitted within sixty days after such notification for reconsideration and approval or disapproval. The regional committee may request, and the state board is authorized to grant, an extension of the sixty days. The duration of the extension shall be set by the state board. Implementation of state board-approved transfers of territory from one school district to another school district shall become effective at the commencement of the next school year unless an earlier or later implementation date is agreed upon in writing by the boards of directors of the affected school districts and approved by the state board.

NEW SECTION. Sec. 4. (1) The joint legislative audit and review committee shall undertake a comprehensive study of the current laws and state board of education's rules governing school district organization. In conducting the study the committee shall seek input from the state board of education, the superintendent of public instruction, the educational service districts, the regional committees on school district organization, the Washington state school directors' association, representatives of cities, towns, and counties, and citizens.

(2) The purpose of the study under subsection (1) of this section is to determine if the existing procedures and requirements for school district organization are adequate and appropriate.

(3) The committee shall submit a report on the study to the legislature by December 1, 1997. The report shall include any recommendations for statutory changes and shall indicate whether the fundamental goal of the state's school district organization policy should be to support community/neighborhood schools and parental involvement.

NEW SECTION. Sec. 5. Beginning on the effective date of this section and through June 30, 1998, school district boundaries may not be changed; except school district boundaries shall be changed if a school district request for a boundary change pursuant to RCW 28A.315.280 prior to the effective date of this section, and RCW 28A.315.250(3) apply.

NEW SECTION. Sec. 6. 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 takes effect immediately."

Correct the title.

Signed by Representatives Johnson, Chairman; Hickel, Vice Chairman; Smith; Sterk; Sump and Talcott.

MINORITY recommendation: Do not pass. Signed by Representatives Cole, Ranking Minority Member; Keiser, Assistant Ranking Minority Member; and Veloria.

Voting Yea: Representatives Johnson, Hickel, Smith, Sterk, Sump, and Talcott.

Voting Nay: Representatives Cole, Keiser, Linville Veloria.

Excused: Representative Quall.

Passed to Rules Committee for second reading.

April 1, 1997

SSB 5144 Prime Sponsor, Committee on Law & Justice: Modifying numerous local government administrative requirements. Reported by Committee on Law & Justice

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 6.36.035 and 1994 c 185 s 7 are each amended to read as follows:

(1) At the time of the filing of the foreign judgment, the judgment creditor or the judgment creditor's lawyer shall make and file with the clerk of court an affidavit setting forth the name and last known post office address of the judgment debtor, and the judgment creditor.

(2) Promptly upon the filing of the foreign judgment and the affidavit, the ((clerk)) judgment creditor shall mail notice of the filing of the foreign judgment to the judgment debtor at the address given ((and shall make a note of the mailing in the docket)). The notice shall include the name and post office address of the judgment creditor and the judgment creditor's lawyer if any in this state. In addition, the judgment creditor ((may mail a notice of the filing of the judgment to the judgment debtor and may)) shall file proof of mailing with the clerk. ((Lack of notice of filing by the clerk shall not affect the enforcement proceedings if proof of mailing by the judgment creditor has been filed.))

(3)(a) No execution or other process for enforcement of a foreign judgment filed in the office of the clerk of a superior court shall ((issue until ten days after the date the judgment is filed, or)) be allowed until ten days after ((mailing the notice of filing, whether mailed by the clerk or)) the proof of mailing has been filed with the clerk by the judgment creditor((, whichever is later)).

(b) No execution or other process for enforcement of a foreign judgment filed in the office of the clerk of a district court shall ((issue until fourteen days after the date the judgment is filed, or)) be allowed until fourteen days after ((mailing the notice of filing, whether mailed by the clerk or)) the proof of mailing has been filed with the clerk by the judgment creditor((, whichever is later)).

Sec. 2. RCW 4.64.120 and 1987 c 442 s 1111 and 1987 c 202 s 119 are each reenacted and amended to read as follows:

It shall be the duty of the county clerk to enter in the execution docket any duly certified transcript of a judgment of a district court of this state and any duly certified abstract of any judgment of any court mentioned in RCW 4.56.200, filed in the county clerk's office, and to index the same in the same manner as judgments originally rendered in the superior court for the county of which he or she is clerk. Jurisdiction over the judgment, including modification to or vacation of the original judgment, transfers to the superior court. The superior court may, in its discretion, remand the cause to district court for determination of any motion to vacate or modify the original judgment.

Sec. 3. RCW 7.68.290 and 1987 c 281 s 2 are each amended to read as follows:

If a defendant has paid restitution pursuant to court order under RCW 9.92.060, 9.94A.140, 9.94A.142, 9.95.210, or 9A.20.030 and the victim entitled to restitution cannot be found or has died, the clerk of the court shall deposit with the county treasurer the amount of restitution unable to be paid to the victim. The county treasurer shall monthly transmit the money to the state treasurer for deposit as provided in RCW 43.08.250. Moneys deposited under this section shall be used to compensate victims of crimes through the crime victims compensation fund.

Sec. 4. RCW 4.56.100 and 1994 c 185 s 1 are each amended to read as follows:

(1) When any judgment for the payment of money only shall have been paid or satisfied, the clerk of the court in which such judgment was rendered shall note upon the record in the execution docket satisfaction thereof giving the date of such satisfaction upon either the payment to such clerk of the amount of such judgment, costs and interest and any accrued costs by reason of the issuance of any execution, or the filing with such clerk of a satisfaction entitled in such action and identifying the same executed by the judgment creditor or his attorney of record in such action or his assignee acknowledged as deeds are acknowledged. The clerk has the authority to note the satisfaction of judgments for criminal and juvenile legal financial obligations when the clerk's record indicates payment in full or as directed by the court. Every satisfaction of judgment and every partial satisfaction of judgment which provides for the payment of money shall clearly designate the judgment creditor and his or her attorney if any, the judgment debtor, the amount or type of satisfaction, whether the satisfaction is full or partial, the cause number, and the date of entry of the judgment. A certificate by such clerk of the entry of such satisfaction by him may be filed in the office of the clerk of any county in which an abstract of such judgment has been filed. When so satisfied by the clerk or the filing of such certificate the lien of such judgment shall be discharged.

(2) The department of social and health services shall file a satisfaction of judgment for welfare fraud conviction if a person does not pay money through the clerk as required under subsection (1) of this section.

(3) The department of corrections shall file a satisfaction of judgment if a person does not pay money through the clerk's office as required under subsection (1) of this section.

Sec. 5. RCW 4.64.030 and 1995 c 149 s 1 are each amended to read as follows:

The clerk shall enter all judgments in the execution docket, subject to the direction of the court and shall specify clearly the amount to be recovered, the relief granted, or other determination of the action.

On the first page of each judgment which provides for the payment of money, including judgments in rem, mandates of judgments, and judgments on garnishments, the following shall be succinctly summarized: The judgment creditor and the name of his or her attorney, the judgment debtor, the amount of the judgment, the interest owed to the date of the judgment, and the total of the taxable costs and attorney fees, if known at the time of the entry of the judgment. If the attorney fees and costs are not included in the judgment, they shall be summarized in the cost bill when filed. ((This information is included in the judgment to assist the county clerk in his or her record-keeping function.)) The clerk may not ((sign or file)) enter a judgment, and a judgment does not take effect, until the judgment has a summary in compliance with this section. The clerk is not liable for an incorrect summary.

Sec. 6. RCW 4.64.060 and 1987 c 442 s 1105 are each amended to read as follows:

Every county clerk shall keep in the clerk's office a record, to be called the execution docket, which shall be a public record and open during the usual business hours to all persons desirous of inspecting it. The record must be indexed both directly and inversely, and include all judgments, abstracts, and transcripts of judgments in the clerk's office. The index must refer to each party against whom the judgment is rendered or whose property is affected by the judgment.

Sec. 7. RCW 5.44.010 and Code 1881 s 430 are each amended to read as follows:

The records and proceedings of any court of the United States, or any state or territory, shall be admissible in evidence in all cases in this state when duly ((authenticated)) certified by the attestation of the clerk, prothonotary or other officer having charge of the records of such court, with the seal of such court annexed.

NEW SECTION. Sec. 8. RCW 4.64.070 and 1987 c 442 s 1106, 1935 c 22 s 1, & 1929 c 60 s 5 are each repealed."

Correct the title.

Signed by Representatives Sheahan, Chairman; McDonald, Vice Chairman; Sterk, Vice Chairman; Costa, Ranking Minority Member; Constantine, Assistant Ranking Minority Member; Carrell; Kenney; Lambert; Radcliff; Sherstad and Skinner.

MINORITY recommendation: Do not pass. Signed by Representatives Cody and Lantz.

Voting Yea: Representatives Sheahan, Sterk, McDonald, Costa, Constantine, Carrell, Kenney, Lambert, Radcliff, Sherstad and Skinner.

Voting Nay: Representatives Cody and Lantz.

Passed to Rules Committee for second reading.

April 1, 1997

SB 5257 Prime Sponsor, Senator Hochstatter: Changing the name of the noncertificated employee category. Reported by Committee on Education

MAJORITY recommendation: Do pass. Signed by Representatives Johnson, Chairman; Hickel, Vice Chairman; Cole, Ranking Minority Member; Keiser, Assistant Ranking Minority Member; Linville; Quall; Smith; Sterk; Sump; Talcott and Veloria.

Voting Yea: Representatives Johnson, Hickel, Cole, Keiser, Linville, Quall, Smith, Sump, Talcott and Veloria.

Excused: Representative Sterk.

Passed to Rules Committee for second reading.

April 1, 1997

SB 5258 Prime Sponsor, Senator Hochstatter: Providing medical assistance in public schools. Reported by Committee on Education

Voting Yea: Representatives Johnson, Hickel, Cole, Keiser, Linville, Quall, Smith, Sump, Talcott and Veloria.

Excused: Representatives Sterk.

Passed to Rules Committee for second reading.

April 1, 1997

SSB 5363 Prime Sponsor, Committee on Government Operations: Increasing the dollar amount allowed for contracts in which public officers have an interest. Reported by Committee on Government Administration

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

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

(1) The current statutes pertaining to municipal officers' beneficial interest in contracts are quite confusing and have resulted in some inadvertent violations of the law.

(2) The dollar thresholds for many of the exemptions have not been changed in over thirty-five years, and the restrictions apply to the total amount of the contract instead of the portion of the contract that pertains to the business operated by the municipal officer.

(3) The confusion existing over these current statutes discourages some municipalities from accessing some efficiencies available to them.

Therefore, it is the intent of the legislature to clarify the statutes pertaining to municipal officers and contracts and to enact reasonable protections against inappropriate conflicts of interest.

Sec. 2. RCW 42.23.030 and 1996 c 246 s 1 are each amended to read as follows:

No municipal officer shall be beneficially interested, directly or indirectly, in any contract which may be made by, through or under the supervision of such officer, in whole or in part, or which may be made for the benefit of his or her office, or accept, directly or indirectly, any compensation, gratuity or reward in connection with such contract from any other person beneficially interested therein. This section shall not apply in the following cases:

(1) The furnishing of electrical, water or other utility services by a municipality engaged in the business of furnishing such services, at the same rates and on the same terms as are available to the public generally;

(2) The designation of public depositaries for municipal funds;

(3) The publication of legal notices required by law to be published by any municipality, upon competitive bidding or at rates not higher than prescribed by law for members of the general public;

(4) The designation of a school director as clerk or as both clerk and purchasing agent of a school district;

(5) The employment of any person by a municipality((, other than a county with a population of one hundred twenty-five thousand or more, a city of the first or second class, an irrigation district encompassing in excess of fifty thousand acres, or a first class school district,)) for unskilled day labor at wages not exceeding ((one)) two hundred dollars in any calendar month. The exception provided in this subsection does not apply to a county with a population of one hundred twenty-five thousand or more, a city with a population of more than one thousand five hundred, an irrigation district encompassing more than fifty thousand acres, or a first class school district;

(6)(a) The letting of any other contract (((except a sale or lease as seller or lessor) by a municipality, other than a county with a population of one hundred twenty-five thousand or more, a city with a population of ten thousand or more, or an irrigation district encompassing in excess of fifty thousand acres: PROVIDED, That)) in which the total ((volume of business represented by such contract or contracts in which a particular officer is interested, singly or in the aggregate, as measured by the dollar amount of the municipality's liability thereunder, shall)) amount received under the contract or contracts by the municipal officer or the municipal officer's business does not exceed ((seven)) one thousand five hundred ((fifty)) dollars in any calendar month((: PROVIDED FURTHER, That));

(b) However, in the case of a particular officer of a second class city or town, or a noncharter optional code city, or a member of any county fair board in a county which has not established a county purchasing department pursuant to RCW 36.32.240, the total ((volume)) amount of such contract or contracts authorized in this subsection (6) may exceed ((seven)) one thousand five hundred ((fifty)) dollars in any calendar month but shall not exceed ((nine)) eighteen thousand dollars in any calendar year((: PROVIDED FURTHER, That there shall be public disclosure by having an available));

(c) The exceptions provided in this subsection (6) do not apply to a sale or lease by the municipality as the seller or lessor. The exceptions provided in this subsection (6) also do not apply to the letting of any contract by a county with a population of one hundred twenty-five thousand or more, a city with a population of ten thousand or more, or an irrigation district encompassing more than fifty thousand acres;

(d) The municipality shall maintain a list of ((such purchases or)) all contracts((, and if the supplier or contractor is an official of the municipality, he or she shall not vote on the authorization: PROVIDED FURTHER, That in the case of a first class school district, there shall be notice of the proposed contract by publication given in one or more newspapers of general circulation within the district)) that are awarded pursuant to this subsection (6). The list must be made available for public inspection and copying;

(e) Beginning January 1, 1998, and each January 1st thereafter, the dollar amounts in subsection (6) of this section shall be adjusted annually by the department of revenue based on the governmental price index established by the department of revenue under RCW 82.14.200. The adjusted dollar amounts shall be published in the Washington State Register;

(7) The leasing by a port district as lessor of port district property to a municipal officer or to a contracting party in which a municipal officer may be beneficially interested, if in addition to all other legal requirements, a board of three disinterested appraisers((, who shall be appointed from members of the American institute of real estate appraisers by the presiding judge of)) and the superior court in the county where the property is situated((, shall find and the court)) finds that all terms and conditions of such lease are fair to the port district and are in the public interest. The appraisers must be appointed from members of the American institute of real estate appraisers by the presiding judge of the superior court;

(8) The letting of any employment contract for the driving of a school bus in a second class school district((: PROVIDED, That)) if the terms of such contract ((shall be)) are commensurate with the pay plan or collective bargaining agreement operating in the district;

(9) The letting of any employment contract to the spouse of an officer of a ((second class school district in which less than two hundred full time equivalent students are enrolled at the start of the school year as defined in RCW 28A.150.040, when such contract is solely for employment as a certificated or classified employee of the school district, or the letting of any contract to the spouse of an officer of a)) school district, when such contract is solely for employment as a substitute teacher for the school district((: PROVIDED, That)). This exception applies only if the terms of ((such)) the contract ((shall be)) are commensurate with the pay plan or collective bargaining agreement applicable to all district employees and the board of directors has found, consistent with the written policy under RCW 28A.330.240, that there is a shortage of substitute teachers in the school district;

(10) The letting of any employment contract to the spouse of an officer of a school district if the spouse was under contract as a certificated or classified employee with the school district before the date in which the officer assumes office((: PROVIDED, That)) and the terms of ((such)) the contract ((shall be)) are commensurate with the pay plan or collective bargaining agreement operating in the district. However, in a second class school district that has less than two hundred full time equivalent students enrolled at the start of the school year as defined in RCW 28A.150.040, the spouse is not required to be under contract as a certificated or classified employee before the date on which the officer assumes office;

(11) The authorization, approval, or ratification of any employment contract with the spouse of a public hospital district commissioner if: (a) The spouse was employed by the public hospital district before the date the commissioner was initially elected; (b) the terms of the contract are commensurate with the pay plan or collective bargaining agreement operating in the district for similar employees; (c) the interest of the commissioner is disclosed to the board of commissioners and noted in the official minutes or similar records of the public hospital district prior to the letting or continuation of the contract; (d) and the commissioner does not vote on the authorization, approval, or ratification of the contract or any conditions in the contract.

A municipal officer may not vote in the authorization, approval, or ratification of any contract in which he or she is beneficially interested even though one of the exemptions allowing the awarding of such a contract applies. The interest of the municipal officer must be disclosed to the governing body of the municipality and noted in the official minutes or similar records of the municipality prior to the formation of the contract.

Sec. 3. RCW 42.23.040 and 1961 c 268 s 5 are each amended to read as follows:

A municipal officer ((shall)) is not ((be deemed to be)) interested in a contract, within the meaning of RCW 42.23.030, if ((he)) the officer has only a remote interest in the contract and ((if)) the ((fact and)) extent of ((such)) the interest is disclosed to the governing body of the municipality of which ((he)) the officer is an officer and noted in the official minutes or similar records of the municipality prior to the formation of the contract, and thereafter the governing body authorizes, approves, or ratifies the contract in good faith by a vote of its membership sufficient for the purpose without counting the vote or votes of the officer having the remote interest. As used in this section "remote interest" means:

(1) That of a nonsalaried officer of a nonprofit corporation;

(2) That of an employee or agent of a contracting party where the compensation of such employee or agent consists entirely of fixed wages or salary;

(3) That of a landlord or tenant of a contracting party;

(4) That of a holder of less than one percent of the shares of a corporation or cooperative which is a contracting party.

None of the provisions of this section ((shall be)) are applicable to any officer interested in a contract, ((though his)) even if the officer's interest ((be)) is only remote, ((who)) if the officer influences or attempts to influence any other officer of the municipality of which he or she is an officer to enter into the contract.

Sec. 4. RCW 42.23.050 and 1961 c 268 s 6 are each amended to read as follows:

Any contract made in violation of the provisions of this ((act shall be)) chapter is void and the performance thereof, in full or in part, by a contracting party shall not be the basis of any claim against the municipality. Any officer violating the provisions of this ((act shall be)) chapter is liable to the municipality of which he or she is an officer for a penalty in the amount of ((three)) five hundred dollars, in addition to such other civil or criminal liability or penalty as may otherwise be imposed upon ((him)) the officer by law.

In addition to all other penalties, civil or criminal, the violation by any officer of the provisions of this ((act shall work a)) chapter may be grounds for forfeiture of his or her office.

Sec. 5. RCW 42.23.060 and 1961 c 268 s 16 are each amended to read as follows:

If any provision of this ((act)) chapter conflicts with any provision of a city or county charter, or with any provision of a city-county charter, the ((city)) charter shall control if it contains stricter requirements than this chapter. The provisions of this chapter shall be considered as minimum standards to be enforced by municipalities."

On page 1, line 1, after "officers;" strike the remainder of the title and insert "amending RCW 42.23.030, 42.23.040, 42.23.050, and 42.23.060; and creating a new section."

Signed by Representatives D. Sommers, Vice Chairman; Scott, Ranking Minority Member; Gardner, Assistant Ranking Minority Member; Doumit; Dunshee; Reams; Smith; L. Thomas; Wensman and Wolfe.

Voting Yea: Representatives D. Sommers, Scott, Gardner, Doumit, Dunshee, Reams, Smith, L. Thomas, Wensman and Wolfe.

Excused: Representatives D. Schmidt, Dunn and Murray.

Passed to Rules Committee for second reading.

April 1, 1997

SB 5554 Prime Sponsor, Senator Johnson: Regulating deeds of trusts. Reported by Committee on Law & Justice

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 61.24.010 and 1991 c 72 s 58 are each amended to read as follows:

(1) The terms "record" and "recorded" as used in this chapter, shall include the appropriate registration proceedings, in the instance of registered land.

(2) The trustee of a deed of trust under this chapter shall be:

(a) Any domestic corporation incorporated under Title 23B, 30, 31, 32, or 33 RCW; or

(b) Any title insurance company authorized to insure title to real property under the laws of this state, or its agents; or

(d) Any professional corporation incorporated under chapter 18.100 RCW, all of whose shareholders are licensed attorneys; or

(e) Any agency or instrumentality of the United States government; or

(f) Any national bank, savings bank, or savings and loan association chartered under the laws of the United States.

(3) ((The trustee shall resign at the request of the beneficiary and may resign at its own election. Upon the resignation, incapacity, disability, or death of the trustee, the beneficiary shall nominate in writing a successor trustee.)) The beneficiary may appoint in writing a successor trustee at any time. Upon recording in the mortgage records of the county or counties in which the trust deed is recorded, of the appointment of a successor trustee, the successor trustee shall be vested with all powers of the original trustee. Recording of the appointment of a successor trustee shall be deemed a resignation by the predecessor trustee.

Sec. 2. RCW 61.24.040 and 1989 c 361 s 1 are each amended to read as follows:

A deed of trust foreclosed under this chapter shall be foreclosed as follows:

(1) At least ninety days before the sale, the trustee shall:

(a) Record a notice in the form described in RCW 61.24.040(1)(f) in the office of the auditor in each county in which the deed of trust is recorded;

(b) If their addresses are stated in a recorded instrument evidencing their interest, lien, or claim of lien, or an amendment thereto, or are otherwise known to the trustee, cause a copy of the notice of sale described in RCW 61.24.040(1)(f) to be transmitted by both first class and either certified or registered mail, return receipt requested, to the following persons or their legal representatives, if any, at such address:

(i) The grantor or the grantor's successor in interest;

(ii) The beneficiary of any deed of trust or mortgagee of any mortgage, or any person who has a lien or claim of lien against the property, that was recorded subsequent to the recordation of the deed of trust being foreclosed and before the recordation of the notice of sale;

(iii) The vendee in any real estate contract, the lessee in any lease or the holder of any conveyances of any interest or estate in any portion or all of the property described in such notice, if that contract, lease, or conveyance of such interest or estate, or a memorandum or other notice thereof, was recorded after the recordation of the deed of trust being foreclosed and before the recordation of the notice of sale;

(iv) The last holder of record of any other lien against or interest in the property that is subject to a subordination to the deed of trust being foreclosed that was recorded before the recordation of the notice of sale; and

(v) The last holder of record of the lien of any judgment subordinate to the deed of trust being foreclosed;

(c) Cause a copy of the notice of sale described in RCW 61.24.040(1)(f) to be transmitted by both first class and either certified or registered mail, return receipt requested, to the plaintiff or the plaintiff's attorney of record, in any court action to foreclose a lien or other encumbrance on all or any part of the property, provided a court action is pending and a lis pendens in connection therewith is recorded in the office of the auditor of any county in which all or part of the property is located on the date the notice is recorded;

(d) Cause a copy of the notice of sale described in RCW 61.24.040(1)(f) to be transmitted by both first class and either certified or registered mail, return receipt requested, to any person who has recorded a request for notice in accordance with RCW 61.24.045, at the address specified in such person's most recently recorded request for notice;

(e) Cause a copy of the notice of sale described in RCW 61.24.040(1)(f) to be posted in a conspicuous place on the property, or in lieu of posting, cause a copy of said notice to be served upon any occupant of the property;

(f) The notice shall be in substantially the following form:

NOTICE OF TRUSTEE'S SALE

NOTICE IS HEREBY GIVEN that the undersigned Trustee will on the . . . . day of . . . . . ., 19. . ., at the hour of . . . . o'clock . . . . M. at . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . [street address and location if inside a building] in the City of . . . . . ., State of Washington, sell at public auction to the highest and best bidder, payable at the time of sale, the following described real property, situated in the County(ies) of . . . . . ., State of Washington, to-wit:

which is subject to that certain Deed of Trust dated . . . . . ., 19. . ., recorded . . . . . ., 19. . ., under Auditor's File No. . . . ., records of . . . . . . County, Washington, from . . . . . . . . ., as Grantor, to . . . . . . . . ., as Trustee, to secure an obligation in favor of . . . . . . . . ., as Beneficiary, the beneficial interest in which was assigned by . . . . . . . . ., under an Assignment recorded under Auditor's File No. . . . . [Include recording information for all counties if the Deed of Trust is recorded in more than one county.]

II.

No action commenced by the Beneficiary of the Deed of Trust or the Beneficiary's successor is now pending to seek satisfaction of the obligation in any Court by reason of the Grantor's default on the obligation secured by the Deed of Trust.

III.

The default(s) for which this foreclosure is made is/are as follows:

[If default is for other than payment of money, set forth the particulars]

Failure to pay when due the following amounts which are now in arrears:

IV.

The sum owing on the obligation secured by the Deed of Trust is: Principal $ . . . . . ., together with interest as provided in the note or other instrument secured from the . . . . day of . . . . . ., 19. . ., and such other costs and fees as are due under the note or other instrument secured, and as are provided by statute.

The above-described real property will be sold to satisfy the expense of sale and the obligation secured by the Deed of Trust as provided by statute. The sale will be made without warranty, express or implied, regarding title, possession, or encumbrances on the . . . . day of . . . . . ., 19. . . The default(s) referred to in paragraph III must be cured by the . . . . day of . . . . . ., 19. . . (11 days before the sale date), to cause a discontinuance of the sale. The sale will be discontinued and terminated if at any time on or before the . . . . day of . . . . . ., 19. . ., (11 days before the sale date), the default(s) as set forth in paragraph III is/are cured and the Trustee's fees and costs are paid. The sale may be terminated any time after the . . . . day of . . . . . ., 19. . . (11 days before the sale date), and before the sale by the Grantor or the Grantor's successor in interest or the holder of any recorded junior lien or encumbrance paying the entire principal and interest secured by the Deed of Trust, plus costs, fees, and advances, if any, made pursuant to the terms of the obligation and/or Deed of Trust, and curing all other defaults.

VI.

A written notice of default was transmitted by the Beneficiary or Trustee to the Grantor or the Grantor's successor in interest at the following address:

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

by both first class and certified mail on the . . . . day of . . . . . ., 19. . ., proof of which is in the possession of the Trustee; and the Grantor or the Grantor's successor in interest was personally served on the . . . . day of . . . . . ., 19. . ., with said written notice of default or the written notice of default was posted in a conspicuous place on the real property described in paragraph I above, and the Trustee has possession of proof of such service or posting.

VII.

After receiving a request for a statement of all costs and fees due at any time prior to the sale from any person entitled to notice under RCW 61.24.040(1)(b), the Trustee whose name and address are set forth below will provide the requested statement in writing to ((anyone requesting it, a statement of all costs and fees due at any time prior to the sale)) such person.

VIII.

The effect of the sale will be to deprive the Grantor and all those who hold by, through or under the Grantor of all their interest in the above-described property.

IX.

Anyone having any objection to the sale on any grounds whatsoever will be afforded an opportunity to be heard as to those objections if they bring a lawsuit to restrain the sale pursuant to RCW 61.24.130. Failure to bring such a lawsuit may result in a waiver of any proper grounds for invalidating the Trustee's sale.

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

. . . . . . .. . . . . . .. . . . . . .. . . . . . ., Trustee

. . . . . . .. . . . . . .. . . . . . .. . . . . . .

. . . . . . .. . . . . . .. . . . . . .. . . . . . . Address

. . . . . . .. . . . . . .. . . . . . .. . . . . . .

. . . . . . .. . . . . . .. . . . . . .. . . . . . .} Phone

[Individual or corporate acknowledgment]

(2) In addition to providing the grantor or the grantor's successor in interest the notice of sale described in RCW 61.24.040(1)(f), the trustee shall include with the copy of the notice which is mailed to the grantor or the grantor's successor in interest, a statement to the grantor or the grantor's successor in interest in substantially the following form:

NOTICE OF FORECLOSURE

Pursuant to the Revised Code of Washington,

Chapter 61.24 RCW

The attached Notice of Trustee's Sale is a consequence of default(s) in the obligation to . . . . . ., the Beneficiary of your Deed of Trust and owner of the obligation secured thereby. Unless the default(s) is/are cured, your property will be sold at auction on the . . . . day of . . . . . ., 19. . .

To cure the default(s), you must bring the payments current, cure any other defaults, and pay accrued late charges and other costs, advances, and attorneys' fees as set forth below by the . . . . day of . . . . . ., 19. . . (11 days before the sale date). To date, these arrears and costs are as follows:

Estimated amount

Currently due that will be due

to reinstate to reinstate

on. . . . . on. . . . .

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

(11 days before

the date set

for sale)

Delinquent payments

from . . . . . .,

19. . ., in the

amount of

$ . . . . /Michael O’Connell,.: $ . . . . $ . . . .

Late charges in

the total

amount of: $ . . . . $ . . . .

Estimated

Amounts

Attorneys' fees: $ . . . . $ . . . .

Trustee's fee: $ . . . . $ . . . .

Trustee's expenses:

(Itemization)

Title report $ . . . . $ . . . .

Recording fees $ . . . . $ . . . .

Service/Posting

of Notices $ . . . . $ . . . .

Postage/Copying

expense $ . . . . $ . . . .

Publication $ . . . . $ . . . .

Telephone

charges $ . . . . $ . . . .

Inspection fees $ . . . . $ . . . .

. . . . . . $ . . . . $ . . . .

TOTALS $ . . . . $ . . . .

As to the defaults which do not involve payment of money to the Beneficiary of your Deed of Trust, you must cure each such default. Listed below are the defaults which do not involve payment of money to the Beneficiary of your Deed of Trust. Opposite each such listed default is a brief description of the action necessary to cure the default and a description of the documentation necessary to show that the default has been cured.

Default Description of Action Required to Cure and Documentation Necessary to Show Cure

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

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

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

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

You may reinstate your Deed of Trust and the obligation secured thereby at any time up to and including the . . . . day of . . . . . ., 19. . . (11 days before the sale date), by paying the amount set forth or estimated above and by curing any other defaults described above. Of course, as time passes other payments may become due, and any further payments coming due and any additional late charges must be added to your reinstating payment. Any new defaults not involving payment of money that occur after the date of this notice must also be cured in order to effect reinstatement. In addition, because some of the charges can only be estimated at this time, and because the amount necessary to reinstate may include presently unknown expenditures required to preserve the property or to comply with state or local law, it will be necessary for you to contact the Trustee before the time you tender reinstatement so that you may be advised of the exact amount you will be required to pay. Tender of payment or performance must be made to: . . . . . ., whose address is . . . . . ., telephone ( ) . . . . . . AFTER THE . . . . DAY OF . . . . . ., 19. . ., YOU MAY NOT REINSTATE YOUR DEED OF TRUST BY PAYING THE BACKLUND PAYMENTS AND COSTS AND FEES AND CURING THE OTHER DEFAULTS AS OUTLINED ABOVE. In such a case, you will only be able to stop the sale by paying, before the sale, the total principal balance ($ . . . . . .) plus accrued interest, costs and advances, if any, made pursuant to the terms of the documents and by curing the other defaults as outlined above.

You may contest this default by initiating court action in the Superior Court of the county in which the sale is to be held. In such action, you may raise any legitimate defenses you have to this default. A copy of your Deed of Trust and documents evidencing the obligation secured thereby are enclosed. You may wish to consult a lawyer. Legal action on your part may prevent or restrain the sale, but only if you persuade the court of the merits of your defense.

If you do not reinstate the secured obligation and your Deed of Trust in the manner set forth above, or if you do not succeed in restraining the sale by court action, your property will be sold to satisfy the obligations secured by your Deed of Trust. The effect of such sale will be to deprive you and all those who hold by, through or under you of all interest in the property;

(3) In addition, the trustee shall cause a copy of the notice of sale described in RCW 61.24.040(1)(f) (excluding the acknowledgment) to be published in a legal newspaper in each county in which the property or any part thereof is situated, once on or between the ((thirty-second)) thirty-fifth and twenty-eighth day before the date of sale, and once on or between the ((eleventh)) fourteenth and seventh day before the date of sale;

(4) On the date and at the time designated in the notice of sale, the trustee or its authorized agent shall sell the property at public auction to the highest bidder. The trustee may sell the property in gross or in parcels as the trustee shall deem most advantageous;

(5) The place of sale shall be at any designated public place within the county where the property is located and if the property is in more than one county, the sale may be in any of the counties where the property is located. The sale shall be on Friday, or if Friday is a legal holiday on the following Monday, and during the hours set by statute for the conduct of sales of real estate at execution;

(6) The trustee may for any cause the trustee deems advantageous, continue the sale for a period or periods not exceeding a total of one hundred twenty days by a public proclamation at the time and place fixed for sale in the notice of sale or, alternatively, by giving notice of the time and place of the postponed sale in the manner and to the persons specified in RCW 61.24.040(1) (b), (c), (d), and (e) and publishing a copy of such notice once in the newspaper(s) described in RCW 61.24.040(3), more than seven days before the date fixed for sale in the notice of sale. No other notice of the postponed sale need be given;

(7) The purchaser shall forthwith pay the price bid and on payment the trustee shall execute to the purchaser its deed; the deed shall recite the facts showing that the sale was conducted in compliance with all of the requirements of this chapter and of the deed of trust, which recital shall be prima facie evidence of such compliance and conclusive evidence thereof in favor of bona fide purchasers and encumbrancers for value, except that these recitals shall not affect the lien or interest of any person entitled to notice under RCW 61.24.040(1), if the trustee fails to give the required notice to such person. In such case, the lien or interest of such omitted person shall not be affected by the sale and such omitted person shall be treated as if such person was the holder of the same lien or interest and was omitted as a party defendant in a judicial foreclosure proceeding;

(8) The sale as authorized under this chapter shall not take place less than one hundred ninety days from the date of default in any of the obligations secured.

Sec. 3. RCW 61.24.050 and 1965 c 74 s 5 are each amended to read as follows:

The trustee's sale shall be deemed final when the bidding is closed and either: (1) The beneficiary is the successful bidder or (2) the trustee holds cash, a certified check, a cashier's check, a money order, or funds received by electronic transfer, or any combination thereof, payable to the trustee or the beneficiary in the amount of the successful bid. The deed of the trustee, executed and delivered to the purchaser, shall convey all of the right, title, and interest in the property which the grantor had or had the power to convey at the time of the execution by him of the deed of trust, and such as he may have thereafter acquired. After sale, as in this chapter provided, no person shall have any right by statute or otherwise to redeem from the deed of trust or from the sale.

Sec. 4. RCW 61.24.070 and 1965 c 74 s 7 are each amended to read as follows:

(1) The trustee may not bid at the trustee's sale. Any other person including the beneficiary under the deed of trust may bid at the trustee's sale.

(2) The beneficiary may credit bid all or any part of the obligations secured by the deed of trust. If the beneficiary is the purchaser, any amount bid in excess of the obligations secured by the deed of trust shall be paid to the trustee in the form of cash, certified check, cashier's check, or money order, or any combination thereof. If the purchaser is not the beneficiary, the entire bid shall be paid to the trustee in the form of cash, certified check, cashier's check, money order, or funds received by electronic transfer, or any combination thereof.

Sec. 5. RCW 61.24.080 and 1981 c 161 s 5 are each amended to read as follows:

The trustee shall apply the proceeds of the sale as follows:

(1) To the expense of sale, including a reasonable charge by the trustee and by his attorney: PROVIDED, That the aggregate of the charges by the trustee and his attorney, for their services in the sale, shall not exceed the amount which would, by the superior court of the county in which the trustee's sale occurred, have been deemed a reasonable attorney fee, had the trust deed been foreclosed as a mortgage in a noncontested action in the said court;

(2) To the obligation secured by the deed of trust; and

(3) The surplus, if any, less the clerk's filing fee shall be deposited together with written notice of the amount of the surplus, a copy of the recorded notice of sale, and an affidavit of mailing as provided below with the clerk of the superior court of the county in which the sale took place. The trustee shall mail copies of the notice of the surplus, the notice of sale, and the affidavit of mailing to each party to whom the notice of sale was sent pursuant to RCW 61.24.040(1). The clerk shall index such funds under the name of the grantor as set out in the recorded notice. Upon ((depositing such surplus)) compliance with the foregoing, the trustee shall be discharged from all further responsibilities ((therefor)) for the surplus. Interests in, or liens or claims of liens against the property eliminated by sale under this section shall attach to such surplus in the order of priority that it had attached to the property. A party seeking disbursement of funds shall file a motion requesting disbursement and shall mail notice of the motion to all parties to whom the trustee mailed notice of the surplus and any other party who has entered an appearance in the proceeding established by the notice of surplus at least ten days prior to the hearing of the motion. The clerk shall not disburse such surplus except upon order of the superior court of such county.

Sec. 6. RCW 61.24.090 and 1987 c 352 s 4 are each amended to read as follows:

(1) At any time prior to the eleventh day before the date set by the trustee for the sale in the recorded notice of sale, or in the event the trustee continues the sale pursuant to RCW 61.24.040(6), at any time prior to the eleventh day before the actual sale, the grantor or his successor in interest, any beneficiary under a subordinate deed of trust or any person having a subordinate lien or encumbrance of record on the trust property or any part thereof, shall be entitled to cause a discontinuance of the sale proceedings by curing the default or defaults set forth in the notice, which in the case of a default by failure to pay, shall be by paying to the trustee:

(a) The entire amount then due under the terms of the deed of trust and the obligation secured thereby, other than such portion of the principal as would not then be due had no default occurred, and

(b) The expenses actually incurred by the trustee enforcing the terms of the note and deed of trust, including a reasonable trustee's fee, together with the trustee's reasonable attorney's fees, together with costs of recording the notice of discontinuance of notice of trustee's sale.

(2) Any person entitled to cause a discontinuance of the sale proceedings shall have the right, before or after reinstatement, to request any court, excluding a small claims court, for disputes within the jurisdictional limits of that court, to determine the reasonableness of any fees demanded or paid as a condition to reinstatement. The court shall make such determination as it deems appropriate, which may include an award to the prevailing party of its costs and reasonable attorneys' fees, and render judgment accordingly. An action to determine fees shall not forestall any sale or affect its validity.

(3) Upon receipt of such payment the proceedings shall be discontinued, the deed of trust shall be reinstated and the obligation shall remain as though no acceleration had taken place.

(4) In the case of a default which is occasioned by other than failure to make payments, the person or persons causing the said default shall pay the expenses incurred by the trustee and the trustee's fees as set forth in subsection (1)(b) of this section.

(5) Any person having a subordinate lien of record on the trust property and who has cured the default or defaults pursuant to this section shall thereafter have included in his lien all payments made to cure any defaults, including interest thereon at eight percent per annum, payments made for trustees' costs and fees incurred as authorized herein, and his reasonable attorney's fees and costs incurred resulting from any judicial action commenced to enforce his rights to advances under this section.

(6) If the default is cured and the obligation and the deed of trust reinstated in the manner hereinabove provided, the trustee shall properly execute, acknowledge and cause to be recorded a notice of discontinuance of trustee's sale under such deed of trust. A notice of discontinuance of trustee's sale when so executed and acknowledged is entitled to be recorded and shall be sufficient if it sets forth a record of the deed of trust and the auditor's file number under which the deed of trust is recorded, and a reference to the notice of sale and the auditor's file number under which the notice of sale is recorded, and a notice that such sale is discontinued.

(7) Any payments required under this section as a condition precedent to reinstatement of the deed of trust shall be tendered to the trustee in the form of cash, certified check, cashier's check, money order, or funds received by electronic transfer, or any combination thereof.

Sec. 7. RCW 61.24.100 and 1990 c 111 s 2 are each amended to read as follows:

Foreclosure, as in this chapter provided, shall satisfy the obligation secured by the deed of trust foreclosed, regardless of the sale price or fair value, and no deficiency decree or other judgment shall thereafter be obtained on such obligation, except that if such obligation was not incurred primarily for personal, family, or household purposes, such foreclosure shall not preclude any judicial or nonjudicial foreclosure of any other deeds of trust, mortgages, security agreements, or other security interests or liens covering any real or personal property granted to secure such obligation or an action on any guaranty of such obligation. Where foreclosure is not made under this chapter, the beneficiary shall not be precluded from enforcing the security as a mortgage nor from enforcing the obligation by any means provided by law.

Sec. 8. RCW 61.24.130 and 1987 c 352 s 5 are each amended to read as follows:

(1) Nothing contained in this chapter shall prejudice the right of the grantor, the grantor's successor in interest, or any person who has an interest in, lien, or claim of lien against the property or some part thereof, to restrain, on any proper ground, a trustee's sale. The court shall require as a condition of granting the restraining order or injunction that the applicant pay to the clerk of the court the sums that would be due on the obligation secured by the deed of trust if the deed of trust was not being foreclosed:

(a) In the case of default in making the periodic payment of principal, interest, and reserves, such sums shall be the periodic payment of principal, interest, and reserves paid to the clerk of the court every thirty days.

(b) In the case of default in making payment of an obligation then fully payable by its terms, such sums shall be the amount of interest accruing monthly on said obligation at the nondefault rate, paid to the clerk of the court every thirty days.

In the case of default in performance of any nonmonetary obligation secured by the deed of trust, the court shall impose such conditions as it deems just.

In addition, the court may condition granting the restraining order or injunction upon the giving of security by the applicant, in such form and amount as the court deems proper, for the payment of such costs and damages, including attorneys' fees, as may be later found by the court to have been incurred or suffered by any party by reason of the restraining order or injunction. The court may consider, upon proper showing, the grantor's equity in the property in determining the amount of said security.

(2) No court may grant a restraining order or injunction to restrain a trustee's sale ((unless)) except as provided in this section. The person seeking the restraint shall give((s)) five court days notice to the trustee and the beneficiary of the time when, place where, and the judge before whom the application for the restraining order or injunction is to be made. No judge may act upon such application unless it is accompanied by proof, evidenced by return of a sheriff, the sheriff's deputy, or by any person eighteen years of age or over who is competent to be a witness, that the notice has been timely served on the trustee.

(3) If the restraining order or injunction is dissolved after the date of the trustee's sale set forth in the notice as provided in RCW 61.24.040(1)(f) ((and after the period for continuing sale as allowed by RCW 61.24.040(6))), the court granting such restraining order or injunction, or before whom the order or injunction is returnable, has the right to set a new sale date which shall be not less than forty-five days from the date of the order dissolving the restraining order. ((At least thirty days before the new sale date,)) The trustee shall:

(a) Comply with the requirements of RCW 61.24.040(1) (a) through (f) at least thirty days before the new sale date; and

(b) Cause a copy of the notice of trustee's sale as provided in RCW 61.24.040(1)(f) to be published ((once weekly during the three weeks preceding the time of sale)) in a legal newspaper in each county in which the property or any part thereof is situated, once between the thirty-fifth and twenty-eighth day before the sale and once between the fourteenth and seventh day before the sale.

(4) If a trustee's sale has been stayed as a result of the filing of a petition in federal bankruptcy court and((, after the period for continuing sale as allowed by RCW 61.24.040(6),)) an order is entered in federal bankruptcy court granting relief from the stay or closing or dismissing the case, or discharging the debtor with the effect of removing the stay, the trustee may set a new sale date which shall not be less than forty-five days after the date of the bankruptcy court's order. The trustee shall:

(a) Comply with the requirements of RCW 61.24.040(1) (a) through (f) at least thirty days before the new sale date; and

(b) Cause a copy of the notice as provided in RCW 61.24.040(1)(f) to be published in a legal newspaper in each county in which the property or any part thereof is situated, once between the ((thirty-second)) thirty-fifth and twenty-eighth day before the sale and once between the ((eleventh)) fourteenth and seventh day before the sale.

(5) The provisions of subsections (3) and (4) of this section are permissive only and may not be interpreted to prohibit the trustee from proceeding with a trustee's sale following termination of any injunction or stay on any date to which such sale has been properly continued in accordance with RCW 61.24.040(6).

NEW SECTION. Sec. 9. A new section is added to chapter 61.24 RCW to read as follows:

(1) It is unlawful for a person, acting alone or in concert with others to (a) offer, offer to accept, or accept from another any consideration of any type not to bid; or (b) fix or restrain bidding in any manner, at a sale of property conducted pursuant to a power of sale in a deed of trust. However, it is not unlawful for a person, including a trustee, to state that a property subject to a recorded notice of trustee's sale or subject to a sale conducted pursuant to this chapter is being sold in an "as-is" condition or for the beneficiary to arrange to provide financing for a particular bidder.

(2) A violation of this section is punishable as a gross misdemeanor according to chapter 9A.20 RCW."

Signed by Representatives Sheahan, Chairman; McDonald, Vice Chairman; Sterk, Vice Chairman; Carrell; Lambert; Radcliff; Sherstad and Skinner.

MINORITY recommendation: Do not pass. Signed by Representatives Costa, Ranking Minority Member; Constantine, Assistant Ranking Minority Member; Cody; Kenney and Lantz.

Voting Yea: Representatives Sheahan, Sterk, McDonald, Carrell, Lambert, Radcliff, Sherstad and Skinner.

Voting Nay: Representatives Costa, Constantine, Cody, Kenney and Lantz.

Passed to Rules Committee for second reading.

April 1, 1997

SB 5674 Prime Sponsor, Senator Wood: Creating the governor's award for excellence in teaching history. Reported by Committee on Education

MAJORITY recommendation: Do pass as amended.

On page 1, line 16, after "offered" strike "service"

Signed by Representatives Johnson, Chairman; Hickel, Vice Chairman; Cole, Ranking Minority Member; Keiser, Assistant Ranking Minority Member; Linville; Quall; Smith; Sterk; Sump; Talcott and Veloria.

Voting Yea: Representatives Johnson, Hickel, Cole, Keiser, Linville, Quall, Smith, Sterk, Sump, Talcott and Veloria.

Passed to Rules Committee for second reading.

April 2, 1997

SB 5713 Prime Sponsor, Senator Prentice: Defining nonprofit corporation. Reported by Committee on Trade & Economic Development

MAJORITY recommendation: Do pass. Signed by Representatives Van Luven, Chairman; Dunn, Vice Chairman; Veloria, Ranking Minority Member; Sheldon, Assistant Ranking Minority Member; Alexander; Ballasiotes; Mason; McDonald and Morris.

Voting Yea: Representatives Van Luven, Dunn, Veloria, Sheldon, Alexander, Ballasiotes, Mason, McDonald and Morris.

Passed to Rules Committee for second reading.

April 2, 1997

SB 5736 Prime Sponsor, Senator Roach: Increasing county burial costs for indigent deceased veterans. Reported by Committee on Trade & Economic Development

Voting Yea: Representatives Van Luven, Dunn, Veloria, Sheldon, Alexander, Ballasiotes, Mason, McDonald and Morris.

Passed to Rules Committee for second reading.

April 1, 1997

SSB 5768 Prime Sponsor, Committee on Commerce & Labor: Creating supported employment programs. Reported by Committee on Government Administration

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that the rate of unemployment among persons with developmental disabilities is high due to the limited employment opportunities available to disabled persons. Given that persons with disabilities are capable of filling employment positions in the general work force population, supported employment is an effective way of integrating such individuals into the general work force population. The creation of supported employment programs can increase the types and availability of employment positions for persons with developmental disabilities.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise the definitions in this section apply throughout sections 3 through 5 of this act.

(1) "Developmental disability" means a disability as defined in RCW 71A.10.020.

(2) "Supported employment" means employment for individuals with developmental disabilities who may require on-the-job training and long-term support in order to fulfill their job duties successfully. Supported employment offers the same wages and benefits as similar nonsupported employment positions.

(3) "State agency" means any office, department, division, bureau, board, commission, community college or institution of higher education, or agency of the state of Washington.

NEW SECTION. Sec. 3. State agencies are encouraged to participate in supported employment activities. The department of social and health services, in conjunction with the department of personnel and the office of financial management, shall identify agencies that have positions and funding conducive to implementing supported employment. An agency may only participate in supported employment activities pursuant to this section if the agency is able to operate the program within its existing budget. These agencies shall:

(1) Designate a coordinator who will be responsible for information and resource referral regarding the agency's supported employment program. The coordinator shall serve as a liaison between the agency and the department of personnel regarding supported employment;

(2) Submit an annual update to the department of social and health services, the department of personnel, and the office of financial management. The annual update shall include: A description of the agency's supported employment efforts, the number of persons placed in supported employment positions, recommendations concerning expanding the supported employment program to include people with mental disabilities or other disabilities, and an overall evaluation of the effectiveness of supported employment for the agency.

NEW SECTION. Sec. 4. The department of social and health services and the department of personnel shall, after consultation with supported employment provider associations and other interested parties, encourage, educate, and assist state agencies in implementing supported employment programs. The department of personnel shall provide human resources technical assistance to agencies implementing supported employment programs. The department of personnel shall make available, upon request of the legislature, an annual report that evaluates the overall progress of supported employment in state government.

NEW SECTION. Sec. 5. The creation of supported employment positions under sections 3 and 4 of this act shall not count against an agency's allotted full-time equivalent employee positions. Supported employment programs are not intended to displace employees or abrogate any reduction-in-force rights.

NEW SECTION. Sec. 6. Sections 2 through 5 of this act are each added to chapter 41.04 RCW."

Signed by Representatives D. Sommers, Vice Chairman; Scott, Ranking Minority Member; Gardner, Assistant Ranking Minority Member; Doumit; Dunshee; Reams; Smith; L. Thomas; Wensman and Wolfe.

Voting Yea: Representatives D. Sommers, Scott, Gardner, Doumit, Dunshee, Reams, Smith, L. Thomas, Wensman and Wolfe.

Excused: Representatives D. Schmidt, Dunn and Murray.

Passed to Rules Committee for second reading.

April 1, 1997

SSB 5803 Prime Sponsor, Committee on Government Operations: Allowing electronic distribution of rules notices. Reported by Committee on Government Administration

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 34.05 RCW to read as follows:

(1) In order to provide the greatest possible access to agency documents to the most people, agencies are encouraged to make their rule, interpretive, and policy information available through electronic distribution as well as through the regular mail. Agencies that have the capacity to transmit electronically may ask persons who are on mailing lists or rosters for copies of interpretive statements, policy statements, preproposal statements of inquiry, and other similar notices whether they would like to receive the notices electronically.

(2) Electronic distribution to persons who request it may substitute for mailed copies related to rule making or policy or interpretive statements. If a notice is distributed electronically, the agency is not required to transmit the actual notice form but must send all the information contained in the notice.

(3) Agencies which maintain mailing lists or rosters for any notices relating to rule making or policy or interpretive statements may establish different rosters or lists by general subject area.

Sec. 2. RCW 34.05.010 and 1992 c 44 s 10 are each amended to read as follows:

The definitions set forth in this section shall apply throughout this chapter, unless the context clearly requires otherwise.

(1) "Adjudicative proceeding" means a proceeding before an agency in which an opportunity for hearing before that agency is required by statute or constitutional right before or after the entry of an order by the agency. Adjudicative proceedings also include all cases of licensing and rate making in which an application for a license or rate change is denied except as limited by RCW 66.08.150, or a license is revoked, suspended, or modified, or in which the granting of an application is contested by a person having standing to contest under the law.

(2) "Agency" means any state board, commission, department, institution of higher education, or officer, authorized by law to make rules or to conduct adjudicative proceedings, except those in the legislative or judicial branches, the governor, or the attorney general except to the extent otherwise required by law and any local governmental entity that may request the appointment of an administrative law judge under chapter 42.41 RCW.

(3) "Agency action" means licensing, the implementation or enforcement of a statute, the adoption or application of an agency rule or order, the imposition of sanctions, or the granting or withholding of benefits.

Agency action does not include an agency decision regarding (a) contracting or procurement of goods, services, public works, and the purchase, lease, or acquisition by any other means, including eminent domain, of real estate, as well as all activities necessarily related to those functions, or (b) determinations as to the sufficiency of a showing of interest filed in support of a representation petition, or mediation or conciliation of labor disputes or arbitration of labor disputes under a collective bargaining law or similar statute, or (c) any sale, lease, contract, or other proprietary decision in the management of public lands or real property interests, or (d) the granting of a license, franchise, or permission for the use of trademarks, symbols, and similar property owned or controlled by the agency.

(4) "Agency head" means the individual or body of individuals in whom the ultimate legal authority of the agency is vested by any provision of law. If the agency head is a body of individuals, a majority of those individuals constitutes the agency head.

(5) "Entry" of an order means the signing of the order by all persons who are to sign the order, as an official act indicating that the order is to be effective.

(6) "Filing" of a document that is required to be filed with an agency means delivery of the document to a place designated by the agency by rule for receipt of official documents, or in the absence of such designation, at the office of the agency head.

(7) "Institutions of higher education" are the University of Washington, Washington State University, Central Washington University, Eastern Washington University, Western Washington University, The Evergreen State College, the various community colleges, and the governing boards of each of the above, and the various colleges, divisions, departments, or offices authorized by the governing board of the institution involved to act for the institution, all of which are sometimes referred to in this chapter as "institutions."

(8) "Interpretive statement" means a written expression of the opinion of an agency, entitled an interpretive statement by the agency head or its designee, as to the meaning of a statute or other provision of law, of a court decision, or of an agency order.

(9)(a) "License" means a franchise, permit, certification, approval, registration, charter, or similar form of authorization required by law, but does not include (i) a license required solely for revenue purposes, or (ii) a certification of an exclusive bargaining representative, or similar status, under a collective bargaining law or similar statute, or (iii) a license, franchise, or permission for use of trademarks, symbols, and similar property owned or controlled by the agency.

(b) "Licensing" includes the agency process respecting the issuance, denial, revocation, suspension, or modification of a license.

(10) "Mail" or "send," for purposes of any notice relating to rule making or policy or interpretive statements, means regular mail or electronic distribution, as provided in section 1 of this act. "Electronic distribution" or "electronically" means distribution by electronic mail or facsimile mail.

(11)(a) "Order," without further qualification, means a written statement of particular applicability that finally determines the legal rights, duties, privileges, immunities, or other legal interests of a specific person or persons.

(b) "Order of adoption" means the official written statement by which an agency adopts, amends, or repeals a rule.

(((11))) (12) "Party to agency proceedings," or "party" in a context so indicating, means:

(a) A person to whom the agency action is specifically directed; or

(b) A person named as a party to the agency proceeding or allowed to intervene or participate as a party in the agency proceeding.

(((12))) (13) "Party to judicial review or civil enforcement proceedings," or "party" in a context so indicating, means:

(a) A person who files a petition for a judicial review or civil enforcement proceeding; or

(b) A person named as a party in a judicial review or civil enforcement proceeding, or allowed to participate as a party in a judicial review or civil enforcement proceeding.

(((13))) (14) "Person" means any individual, partnership, corporation, association, governmental subdivision or unit thereof, or public or private organization or entity of any character, and includes another agency.

(((14))) (15) "Policy statement" means a written description of the current approach of an agency, entitled a policy statement by the agency head or its designee, to implementation of a statute or other provision of law, of a court decision, or of an agency order, including where appropriate the agency's current practice, procedure, or method of action based upon that approach.

(((15))) (16) "Rule" means any agency order, directive, or regulation of general applicability (a) the violation of which subjects a person to a penalty or administrative sanction; (b) which establishes, alters, or revokes any procedure, practice, or requirement relating to agency hearings; (c) which establishes, alters, or revokes any qualification or requirement relating to the enjoyment of benefits or privileges conferred by law; (d) which establishes, alters, or revokes any qualifications or standards for the issuance, suspension, or revocation of licenses to pursue any commercial activity, trade, or profession; or (e) which establishes, alters, or revokes any mandatory standards for any product or material which must be met before distribution or sale. The term includes the amendment or repeal of a prior rule, but does not include (i) statements concerning only the internal management of an agency and not affecting private rights or procedures available to the public, (ii) declaratory rulings issued pursuant to RCW 34.05.240, (iii) traffic restrictions for motor vehicles, bicyclists, and pedestrians established by the secretary of transportation or his designee where notice of such restrictions is given by official traffic control devices, or (iv) rules of institutions of higher education involving standards of admission, academic advancement, academic credit, graduation and the granting of degrees, employment relationships, or fiscal processes.

(((16))) (17) "Rules review committee" or "committee" means the joint administrative rules review committee created pursuant to RCW 34.05.610 for the purpose of selectively reviewing existing and proposed rules of state agencies.

(((17))) (18) "Rule making" means the process for formulation and adoption of a rule.

(((18))) (19) "Service," except as otherwise provided in this chapter, means posting in the United States mail, properly addressed, postage prepaid, or personal service. Service by mail is complete upon deposit in the United States mail. Agencies may, by rule, authorize service by electronic telefacsimile transmission, where copies are mailed simultaneously, or by commercial parcel delivery company."

Correct the title.

Signed by Representatives D. Sommers, Vice Chairman; Scott, Ranking Minority Member; Gardner, Assistant Ranking Minority Member; Doumit; Dunshee; Reams; Smith; L. Thomas; Wensman and Wolfe.

Voting Yea: Representatives D. Sommers, Scott, Gardner, Doumit, Dunshee, Reams, Smith, L. Thomas, Wensman and Wolfe.

Excused: Representatives D. Schmidt, Dunn and Murray.

Passed to Rules Committee for second reading.

April 1, 1997

E2SSB 5927 Prime Sponsor, Committee on Ways & Means: Changing higher education financing. Reported by Committee on Higher Education

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 3. (1) The legislature finds that:

(a) Each of the state's public baccalaureate institutions plays different but complementary roles in the state's system of higher education;

(b) Although each community college has different strengths and special programs, the community colleges as a whole have a common role and mission;

(c) College and university governing boards are in a unique position to assess the special needs of their institutions' students, faculty, staff, programs, and facilities;

(d) State and institutional financial aid programs should help needy low and middle-income students pay the costs of tuition increases;

(e) The primary purpose of the state's public system of higher education is the education and training of resident undergraduate students; and

(f) The ability to manage institutional resources in order to meet demand is critical to meeting present and future needs for access to higher education.

(2) Therefore, the legislature intends to:

(a) Provide some new financial tools to the governing boards of the baccalaureate institutions by allowing the boards to adjust tuition rates, within specified limits, for different categories of students and for graduate programs;

(b) Permit the state board for community and technical colleges to adjust tuition rates, within specified limits, for the community colleges as a whole;

(c) Revise the statutory funding mechanism for the state's financial aid programs in order to substantially increase the amount of state funding for programs that assist needy low and middle-income students;

(d) Ensure that any tuition increases for resident undergraduate students are limited, and, in conjunction with state financial aid programs, do not obstruct access to higher education for low and middle-income students; and

(e) Direct the colleges and universities to use part of the revenue from tuition increases over a specified level to help needy low and middle-income resident students pay the costs associated with the tuition increase.

NEW SECTION. Sec. 4. A new section is added to chapter 28B.15 RCW to read as follows:

(1) As used in this section, "excess credit" means any credit taken by either a resident undergraduate student or a resident student who is not enrolled in a first professional, graduate, or law program if the student has accumulated more than one hundred twenty-five percent of the number of credits required to complete the student's baccalaureate degree program.

(2)(a) Except as provided in (b) of this subsection, state universities, regional universities, and The Evergreen State College may collect a surcharge from any resident student who is enrolled for excess credit. The amount of the surcharge may vary by credit or percentage thresholds, or may be based on special circumstances, each as established by the institution.

(b) Students who are required to take continuing education credits as a condition of licensure or state law are exempt from the excess credit surcharge for any credits taken as a result of the requirements.

(3) A surcharge for excess credits shall not exceed twenty-five percent of the tuition fees rates for full-time resident undergraduate students at the college or university.

Sec. 5. RCW 28B.15.031 and 1996 c 142 s 2 are each amended to read as follows:

The term "operating fees" as used in this chapter shall include the fees, other than building fees, charged all students registering at the state's colleges and universities but shall not include surcharges for excess credit under section 2 of this act, or fees for short courses, self-supporting degree credit programs and courses, marine station work, experimental station work, correspondence or extension courses, and individual instruction and student deposits or rentals, disciplinary and library fines, which colleges and universities shall have the right to impose, laboratory, gymnasium, health, technology and student activity fees, or fees, charges, rentals, and other income derived from any or all revenue producing lands, buildings and facilities of the colleges or universities heretofore or hereafter acquired, constructed or installed, including but not limited to income from rooms, dormitories, dining rooms, hospitals, infirmaries, housing or student activity buildings, vehicular parking facilities, land, or the appurtenances thereon, or such other special fees as may be established by any college or university board of trustees or regents from time to time. All moneys received as operating fees at any institution of higher education shall be deposited in a local account containing only operating fees revenue and related interest: PROVIDED, That a minimum of three and one-half percent of operating fees shall be retained by the institutions, except the technical colleges, for the purposes of RCW 28B.15.820. Local operating fee accounts shall not be subject to appropriation by the legislature or allotment procedures under chapter 43.88 RCW.

Sec. 6. RCW 28B.15.065 and 1977 ex.s. c 322 s 6 are each amended to read as follows:

It is the intent of the legislature that needy students not be deprived of access to higher education due to increases in educational costs or consequent increases in tuition and fees. It is the sense of the legislature that state appropriations for student financial aid be adjusted in an amount which together with funds estimated to be available in the form of basic educational opportunity grants as authorized under Section 411 of the federal Higher Education Act of 1965 as now or hereafter amended will equal ((twenty-four)) or exceed thirty percent of any change in revenue estimated to occur as a result of revisions in tuition and fee levels under the provisions of ((this 1977 amendatory act)) chapter 322, Laws of 1977 ex. sess..

Sec. 7. RCW 28B.15.066 and 1995 1st sp.s. c 9 s 3 are each amended to read as follows:

It is the intent of the legislature that:

In making appropriations from the state's general fund to institutions of higher education, each appropriation shall conform to the following:

(1) The appropriation shall not be reduced by the amount of operating fees revenue estimated to be collected from students enrolled at the state-funded enrollment level specified in the omnibus biennial operating appropriations act;

(2) The appropriation shall not be reduced by the amount of operating fees revenue collected from students enrolled above the state-funded level, but within the over-enrollment limitations, specified in the omnibus biennial operating appropriations act; ((and))

(3) The general fund state appropriation shall not be reduced by the amount of operating fees revenue collected as a result of waiving less operating fees revenue than the amounts authorized under RCW 28B.15.910; and

(4) The appropriation shall not be reduced or increased as a result of adjustments during the 1997-98 and 1998-99 academic years of tuition fees rates above or below the forecasted growth rate of the implicit price deflator as reported by the forecast council in the November 1996 revenue and economic forecast.

Sec. 8. RCW 28B.15.067 and 1996 c 212 s 1 are each amended to read as follows:

(1) Tuition fees shall be established under the provisions of this chapter.

(2) ((Academic year tuition for full-time students at the state's institutions of higher education for the 1995-96 academic year, other than the summer term, shall be as provided in this subsection.

(a) At the University of Washington and Washington State University:

(i) For resident undergraduate students and other resident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, two thousand seven hundred sixty-four dollars;

(ii) For nonresident undergraduate students and other nonresident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, eight thousand two hundred sixty-eight dollars;

(iii) For resident graduate and law students not enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, four thousand four hundred ninety dollars;

(iv) For nonresident graduate and law students not enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, eleven thousand six hundred thirty-four dollars;

(v) For resident students enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, seven thousand four hundred ninety-seven dollars; and

(vi) For nonresident students enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, nineteen thousand four hundred thirty-one dollars.

(b) At the regional universities and The Evergreen State College:

(i) For resident undergraduate and all other resident students not in graduate study programs, two thousand forty-five dollars;

(ii) For nonresident undergraduate and all other nonresident students not in graduate study programs, seven thousand nine hundred ninety-two dollars;

(iii) For resident graduate students, three thousand four hundred forty-three dollars; and

(iv) For nonresident graduate students, eleven thousand seventy-one dollars.

(i) For resident students, one thousand two hundred twelve dollars; and

(ii) For nonresident students, five thousand one hundred sixty-two dollars and fifty cents.

(3))) Academic year tuition for full-time students at the state's institutions of higher education beginning with the 1996-97 academic year, other than the summer term, shall be as provided in this subsection.

(a) At the University of Washington and Washington State University:

(v) For resident students enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, seven thousand seven hundred ninety-seven dollars; and

(vi) For nonresident students enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, twenty thousand two hundred nine dollars.

(b) At the regional universities and The Evergreen State College:

(i) For resident undergraduate and all other resident students not in graduate study programs, two thousand one hundred twenty-seven dollars;

(ii) For nonresident undergraduate and all other nonresident students not in graduate study programs, eight thousand three hundred twelve dollars;

(iii) For resident graduate students, three thousand five hundred eighty-one dollars; and

(iv) For nonresident graduate students, eleven thousand five hundred fourteen dollars.

(i) For resident students, one thousand two hundred sixty-one dollars; and

(ii) For nonresident students, five thousand three hundred sixty-nine dollars and fifty cents.

(((4))) (3) For each of the 1997-98 and 1998-99 academic years, the governing boards of the state universities, the regional universities, and The Evergreen State College, and, for the community colleges as a whole, the state board for community and technical colleges may vary tuition fee rates by academic term and by individual graduate or law program, subject to the limitations of subsection (4) of this section.

(4) For each of the 1997-98 and 1998-99 academic years, the governing boards of the state universities, the regional universities, and The Evergreen State College, and, for the community colleges as a whole, the state board for community and technical colleges, may adjust the tuition fees rates in subsection (2) of this section for full-time students subject to the following limitations:

(a) Tuition fees rates for resident undergraduate students and other resident students not in first-professional, graduate, or law programs may be adjusted by a maximum rate above or below the rates charged to students in that tuition category during the previous year. The maximum rate shall be the five-year rolling average of per capita personal income contained in the even-year September Washington economic and revenue forecast by the office of the forecast council, rounded up to the nearest whole number. For any given academic year, the rolling average of per capita personal income shall be computed using the five-year period that ends with the fiscal year that corresponds with the academic year;

(b) Tuition fees rates for students in all other tuition categories under RCW 28B.15.069(1) may be adjusted by a maximum of ten percent above or below the rates charged to students in that tuition category during the previous year;

(c) In any year, if an institution increases tuition fees rates more than five percent in any tuition category or in any graduate or law program, the institution shall use at least ten percent of the revenue received from the difference between a five percent increase and the actual percentage increase to assist needy low and middle-income resident students enrolled in the same tuition category or graduate or law program. This requirement is in addition to the deposit requirements of the institutional financial aid fund under RCW 28B.15.820.

(5) The tuition fees established under this chapter shall not apply to summer term or to high school students enrolling in community colleges under RCW 28A.600.300 through 28A.600.395.

Sec. 9. RCW 28B.15.069 and 1995 1st sp.s. c 9 s 5 are each amended to read as follows:

(1) As used in this section, each of the following subsections is a separate tuition category:

(a) Resident undergraduate students and all other resident students not in first professional, graduate, or law programs;

(b) Nonresident undergraduate students and all other nonresident students not in graduate or law programs;

(d) Nonresident graduate and law students;

(e) Resident first professional students; and

(f) Nonresident students in first professional programs.

(2) Unless the context clearly requires otherwise, as used in this section "first professional programs" means programs leading to one of the following degrees: Doctor of medicine, doctor of dental surgery, or doctor of veterinary medicine.

(3) ((For the 1995-96 and 1996-97 academic years,)) The building fee for each academic year shall be a percentage of total tuition fees. This percentage shall be calculated by the higher education coordinating board and be based on the actual percentage the building fee is of total tuition for each tuition category in the 1994-95 academic year, rounded up to the nearest half percent.

(4) The governing boards of each institution of higher education, except for the technical colleges, shall charge to and collect from each student a services and activities fee. A governing board may increase the existing fee annually, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the annual percentage increase in student tuition fees for the applicable tuition category: PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

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

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

Correct the title.

Signed by Representatives Carlson, Chairman; Radcliff, Vice Chairman; Mason, Ranking Minority Member; Kenney, Assistant Ranking Minority Member; Butler; Dunn; O'Brien and Sheahan.

Voting Yea: Representatives Carlson, Radcliff, Mason, Kenney, Butler, Dunn, O’Brien, and Sheahan.

Excused: Representative Van Luven.

Passed to Rules Committee for second reading.

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

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

There being no objection, the House adjourned until 1:30 p.m., Friday, April 4, 1997.

CLYDE BALLARD, Speaker

TIMOTHY A. MARTIN, Chief Clerk

2276

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

5009 (Sub)

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

5071 (Sub)

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

5144 (Sub)

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5257

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

5258

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

5363 (Sub)

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

5554

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

5674

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

5713

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

5736

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

5768 (Sub)

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

5803 (Sub)

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

5927 (2nd Sub)

Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

5999 (Sub)

Intro & 1st Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

8411

Intro & 1st Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1